LEAR CORP (LEA)
US5218652049 - Common Stock
We assign a fundamental rating of 4 out of 10 to LEA. LEA was compared to 82 industry peers in the Automobile Components industry. LEA has only an average score on both its financial health and profitability. LEA has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
LEA had positive earnings in the past year.
In the past year LEA had a positive cash flow from operations.
LEA had positive earnings in each of the past 5 years.
Each year in the past 5 years LEA had a positive operating cash flow.
1.2 Ratios
LEA has a worse Return On Assets (3.68%) than 67.07% of its industry peers.
The Return On Equity of LEA (11.45%) is better than 87.80% of its industry peers.
The Return On Invested Capital of LEA (9.07%) is worse than 60.98% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LEA is in line with the industry average of 9.42%.
The last Return On Invested Capital (9.07%) for LEA is above the 3 year average (7.93%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.68% | ||
| ROE | 11.45% | ||
| ROIC | 9.07% |
ROA(3y)3.03%
ROA(5y)3.25%
ROE(3y)8.9%
ROE(5y)9.52%
ROIC(3y)7.93%
ROIC(5y)8.23%
1.3 Margins
LEA's Profit Margin of 2.33% is on the low side compared to the rest of the industry. LEA is outperformed by 70.73% of its industry peers.
LEA's Profit Margin has declined in the last couple of years.
The Operating Margin of LEA (4.60%) is worse than 71.95% of its industry peers.
LEA's Operating Margin has declined in the last couple of years.
LEA's Gross Margin of 7.71% is on the low side compared to the rest of the industry. LEA is outperformed by 90.24% of its industry peers.
LEA's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.6% | ||
| PM (TTM) | 2.33% | ||
| GM | 7.71% |
OM growth 3Y9.2%
OM growth 5Y-10.67%
PM growth 3Y37.78%
PM growth 5Y-14.81%
GM growth 3Y2.91%
GM growth 5Y-6.92%
2. Health
2.1 Basic Checks
LEA has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for LEA has been reduced compared to 1 year ago.
The number of shares outstanding for LEA has been reduced compared to 5 years ago.
LEA has a better debt/assets ratio than last year.
2.2 Solvency
LEA has an Altman-Z score of 2.84. This is not the best score and indicates that LEA is in the grey zone with still only limited risk for bankruptcy at the moment.
LEA's Altman-Z score of 2.84 is fine compared to the rest of the industry. LEA outperforms 64.63% of its industry peers.
The Debt to FCF ratio of LEA is 6.23, which is on the high side as it means it would take LEA, 6.23 years of fcf income to pay off all of its debts.
LEA has a worse Debt to FCF ratio (6.23) than 68.29% of its industry peers.
LEA has a Debt/Equity ratio of 0.59. This is a neutral value indicating LEA is somewhat dependend on debt financing.
The Debt to Equity ratio of LEA (0.59) is worse than 76.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 6.23 | ||
| Altman-Z | 2.84 |
ROIC/WACC1.17
WACC7.74%
2.3 Liquidity
A Current Ratio of 1.33 indicates that LEA should not have too much problems paying its short term obligations.
The Current ratio of LEA (1.33) is worse than 89.02% of its industry peers.
A Quick Ratio of 1.03 indicates that LEA should not have too much problems paying its short term obligations.
LEA has a Quick ratio of 1.03. This is amonst the worse of the industry: LEA underperforms 81.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
LEA shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.72%.
Measured over the past years, LEA shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.97% on average per year.
LEA shows a small growth in Revenue. In the last year, the Revenue has grown by 1.90%.
The Revenue has been growing slightly by 2.10% on average over the past years.
EPS 1Y (TTM)7.72%
EPS 3Y31.35%
EPS 5Y-7.97%
EPS Q2Q%0.7%
Revenue 1Y (TTM)1.9%
Revenue growth 3Y11.24%
Revenue growth 5Y2.1%
Sales Q2Q%-3.4%
3.2 Future
The Earnings Per Share is expected to grow by 12.47% on average over the next years. This is quite good.
Based on estimates for the next years, LEA will show a small growth in Revenue. The Revenue will grow by 2.25% on average per year.
EPS Next Y1.59%
EPS Next 2Y6.43%
EPS Next 3Y10.14%
EPS Next 5Y12.47%
Revenue Next Year-0.9%
Revenue Next 2Y0.3%
Revenue Next 3Y1.25%
Revenue Next 5Y2.25%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 7.46, the valuation of LEA can be described as very cheap.
Based on the Price/Earnings ratio, LEA is valued cheaper than 85.37% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.73, LEA is valued rather cheaply.
LEA is valuated cheaply with a Price/Forward Earnings ratio of 6.97.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LEA indicates a somewhat cheap valuation: LEA is cheaper than 74.39% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, LEA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.46 | ||
| Fwd PE | 6.97 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LEA is valued a bit cheaper than 74.39% of the companies in the same industry.
LEA's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.47 | ||
| EV/EBITDA | 4.22 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates LEA does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)4.69
PEG (5Y)N/A
EPS Next 2Y6.43%
EPS Next 3Y10.14%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.31%, LEA has a reasonable but not impressive dividend return.
LEA's Dividend Yield is comparable with the industry average which is at 4.23.
Compared to an average S&P500 Dividend Yield of 2.34, LEA pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.31% |
5.2 History
The dividend of LEA has a limited annual growth rate of 1.81%.
LEA has paid a dividend for at least 10 years, which is a reliable track record.
LEA has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)1.81%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
32.34% of the earnings are spent on dividend by LEA. This is a low number and sustainable payout ratio.
LEA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP32.34%
EPS Next 2Y6.43%
EPS Next 3Y10.14%
LEAR CORP
NYSE:LEA (12/20/2024, 8:21:59 PM)
After market: 94.78 0 (0%)94.78
+1.59 (+1.71%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners108.51%
Inst Owner Change-3.26%
Ins Owners0.42%
Ins Owner Change0.17%
Market Cap5.15B
Analysts75.45
Price Target139.4 (47.08%)
Short Float %5.01%
Short Ratio3.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.31% |
Dividend Growth(5Y)1.81%
DP32.34%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.84%
Min EPS beat(2)4.89%
Max EPS beat(2)8.8%
EPS beat(4)3
Avg EPS beat(4)3.51%
Min EPS beat(4)-3.76%
Max EPS beat(4)8.8%
EPS beat(8)7
Avg EPS beat(8)4.78%
EPS beat(12)11
Avg EPS beat(12)8.06%
EPS beat(16)13
Avg EPS beat(16)6.84%
Revenue beat(2)0
Avg Revenue beat(2)-1.02%
Min Revenue beat(2)-1.26%
Max Revenue beat(2)-0.77%
Revenue beat(4)1
Avg Revenue beat(4)-0.59%
Min Revenue beat(4)-1.26%
Max Revenue beat(4)0.83%
Revenue beat(8)5
Avg Revenue beat(8)0.77%
Revenue beat(12)9
Avg Revenue beat(12)1.09%
Revenue beat(16)11
Avg Revenue beat(16)1.31%
PT rev (1m)-6.56%
PT rev (3m)-10.42%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-39.84%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)-4.81%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-11.71%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.46 | ||
| Fwd PE | 6.97 | ||
| P/S | 0.22 | ||
| P/FCF | 11.47 | ||
| P/OCF | 5.1 | ||
| P/B | 1.08 | ||
| P/tB | 1.71 | ||
| EV/EBITDA | 4.22 |
EPS(TTM)12.7
EY13.4%
EPS(NY)13.6
Fwd EY14.35%
FCF(TTM)8.27
FCFY8.72%
OCF(TTM)18.57
OCFY19.59%
SpS431.22
BVpS87.69
TBVpS55.41
PEG (NY)4.69
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.68% | ||
| ROE | 11.45% | ||
| ROCE | 12.09% | ||
| ROIC | 9.07% | ||
| ROICexc | 9.92% | ||
| ROICexgc | 12.63% | ||
| OM | 4.6% | ||
| PM (TTM) | 2.33% | ||
| GM | 7.71% | ||
| FCFM | 1.92% |
ROA(3y)3.03%
ROA(5y)3.25%
ROE(3y)8.9%
ROE(5y)9.52%
ROIC(3y)7.93%
ROIC(5y)8.23%
ROICexc(3y)9.21%
ROICexc(5y)9.74%
ROICexgc(3y)12.37%
ROICexgc(5y)13.51%
ROCE(3y)10.56%
ROCE(5y)10.95%
ROICexcg growth 3Y13.09%
ROICexcg growth 5Y-16.49%
ROICexc growth 3Y15.82%
ROICexc growth 5Y-14.71%
OM growth 3Y9.2%
OM growth 5Y-10.67%
PM growth 3Y37.78%
PM growth 5Y-14.81%
GM growth 3Y2.91%
GM growth 5Y-6.92%
F-Score6
Asset Turnover1.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 6.23 | ||
| Debt/EBITDA | 1.65 | ||
| Cap/Depr | 90.92% | ||
| Cap/Sales | 2.39% | ||
| Interest Coverage | 9.23 | ||
| Cash Conversion | 59.55% | ||
| Profit Quality | 82.3% | ||
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | 2.84 |
F-Score6
WACC7.74%
ROIC/WACC1.17
Cap/Depr(3y)105.44%
Cap/Depr(5y)103.7%
Cap/Sales(3y)2.92%
Cap/Sales(5y)2.89%
Profit Quality(3y)82.82%
Profit Quality(5y)94.25%
High Growth Momentum
Growth
EPS 1Y (TTM)7.72%
EPS 3Y31.35%
EPS 5Y-7.97%
EPS Q2Q%0.7%
EPS Next Y1.59%
EPS Next 2Y6.43%
EPS Next 3Y10.14%
EPS Next 5Y12.47%
Revenue 1Y (TTM)1.9%
Revenue growth 3Y11.24%
Revenue growth 5Y2.1%
Sales Q2Q%-3.4%
Revenue Next Year-0.9%
Revenue Next 2Y0.3%
Revenue Next 3Y1.25%
Revenue Next 5Y2.25%
EBIT growth 1Y0.65%
EBIT growth 3Y21.48%
EBIT growth 5Y-8.79%
EBIT Next Year52.83%
EBIT Next 3Y19.26%
EBIT Next 5Y19.35%
FCF growth 1Y1470.63%
FCF growth 3Y43.49%
FCF growth 5Y-10.8%
OCF growth 1Y54.97%
OCF growth 3Y23.51%
OCF growth 5Y-6.83%