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 an average financial health and profitability rating. LEA has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year LEA was profitable.
In the past year LEA had a positive cash flow from operations.
In the past 5 years LEA has always been profitable.
In the past 5 years LEA always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of LEA (3.68%) is worse than 67.90% of its industry peers.
With an excellent Return On Equity value of 11.45%, LEA belongs to the best of the industry, outperforming 87.65% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 9.07%, LEA is doing worse than 61.73% of the companies in the same industry.
LEA had an Average Return On Invested Capital over the past 3 years of 7.93%. This is in line with the industry average of 9.39%.
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 has a Profit Margin of 2.33%. This is in the lower half of the industry: LEA underperforms 71.60% of its industry peers.
LEA's Profit Margin has declined in the last couple of years.
LEA has a worse Operating Margin (4.60%) than 72.84% of its industry peers.
LEA's Operating Margin has declined in the last couple of years.
LEA has a Gross Margin of 7.71%. This is amonst the worse of the industry: LEA underperforms 90.12% 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.
LEA has less shares outstanding than it did 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
An Altman-Z score of 2.84 indicates that LEA is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.84, LEA is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
LEA has a debt to FCF ratio of 6.23. This is a slightly negative value and a sign of low solvency as LEA would need 6.23 years to pay back of all of its debts.
LEA has a Debt to FCF ratio of 6.23. This is in the lower half of the industry: LEA underperforms 70.37% 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.
LEA's Debt to Equity ratio of 0.59 is on the low side compared to the rest of the industry. LEA is outperformed by 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 6.23 | ||
| Altman-Z | 2.84 |
ROIC/WACC1.18
WACC7.7%
2.3 Liquidity
A Current Ratio of 1.33 indicates that LEA should not have too much problems paying its short term obligations.
LEA's Current ratio of 1.33 is on the low side compared to the rest of the industry. LEA is outperformed by 87.65% of its industry peers.
LEA has a Quick Ratio of 1.03. This is a normal value and indicates that LEA is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of LEA (1.03) is worse than 82.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.72% over the past year.
The Earnings Per Share has been decreasing by -7.97% on average over the past years.
LEA shows a small growth in Revenue. In the last year, the Revenue has grown by 1.90%.
Measured over the past years, LEA shows a small growth in Revenue. The Revenue has been growing by 2.10% on average per year.
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
Based on estimates for the next years, LEA will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.85% on average per year.
LEA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.29% yearly.
EPS Next Y1.74%
EPS Next 2Y7.06%
EPS Next 3Y10.5%
EPS Next 5Y16.85%
Revenue Next Year-0.9%
Revenue Next 2Y0.3%
Revenue Next 3Y1.3%
Revenue Next 5Y3.29%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 7.59, the valuation of LEA can be described as very cheap.
Based on the Price/Earnings ratio, LEA is valued cheaper than 85.19% of the companies in the same industry.
LEA is valuated cheaply when we compare the Price/Earnings ratio to 28.96, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 7.00, the valuation of LEA can be described as very cheap.
75.31% of the companies in the same industry are more expensive than LEA, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, LEA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.59 | ||
| Fwd PE | 7 |
4.2 Price Multiples
LEA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LEA is cheaper than 75.31% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LEA is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.66 | ||
| EV/EBITDA | 4.18 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)4.36
PEG (5Y)N/A
EPS Next 2Y7.06%
EPS Next 3Y10.5%
5. Dividend
5.1 Amount
LEA has a Yearly Dividend Yield of 3.21%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.30, LEA has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.23, LEA pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.21% |
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
LEA pays out 32.34% of its income as dividend. This is a sustainable payout ratio.
The dividend of LEA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP32.34%
EPS Next 2Y7.06%
EPS Next 3Y10.5%
LEAR CORP
NYSE:LEA (11/21/2024, 8:04:00 PM)
After market: 96.65 +0.28 (+0.29%)96.37
+2.81 (+3%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.24B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.21% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.59 | ||
| Fwd PE | 7 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)4.36
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.68% | ||
| ROE | 11.45% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.6% | ||
| PM (TTM) | 2.33% | ||
| GM | 7.71% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)7.72%
EPS 3Y31.35%
EPS 5Y
EPS Q2Q%
EPS Next Y1.74%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.9%
Revenue growth 3Y11.24%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y