LEAR CORP (LEA) Stock Fundamental Analysis
NYSE:LEA - New York Stock Exchange, Inc. - US5218652049 - Common Stock - Currency: USD
LEA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 83 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.
Each year in the past 5 years LEA has been profitable.
LEA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 3.68%, LEA is not doing good in the industry: 66.27% of the companies in the same industry are doing better.
With an excellent Return On Equity value of 11.45%, LEA belongs to the best of the industry, outperforming 87.95% of the companies in the same industry.
LEA has a worse Return On Invested Capital (9.07%) than 60.24% of its industry peers.
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 9.42%.
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 has a worse Profit Margin (2.33%) than 69.88% of its industry peers.
In the last couple of years the Profit Margin of LEA has declined.
LEA has a worse Operating Margin (4.60%) than 71.08% of its industry peers.
LEA's Operating Margin has declined in the last couple of years.
The Gross Margin of LEA (7.71%) is worse than 89.16% of its industry peers.
In the last couple of years the Gross Margin of LEA has declined.
| 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.
LEA has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, LEA has an improved debt to assets ratio.
2.2 Solvency
LEA has an Altman-Z score of 2.85. 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 2.85 is fine compared to the rest of the industry. LEA outperforms 63.86% 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.
The Debt to FCF ratio of LEA (6.23) is worse than 67.47% 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 77.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 6.23 | ||
| Altman-Z | 2.85 |
ROIC/WACC1.13
WACC8.03%
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 87.95% 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.
LEA has a worse Quick ratio (1.03) than 80.72% 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.
The Revenue has been growing slightly by 1.90% in the past year.
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
The Earnings Per Share is expected to grow by 11.67% on average over the next years. This is quite good.
LEA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.59% yearly.
EPS Next Y1.59%
EPS Next 2Y6.43%
EPS Next 3Y10.14%
EPS Next 5Y11.67%
Revenue Next Year-0.76%
Revenue Next 2Y0%
Revenue Next 3Y1.08%
Revenue Next 5Y1.59%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 7.57 indicates a rather cheap valuation of LEA.
Compared to the rest of the industry, the Price/Earnings ratio of LEA indicates a rather cheap valuation: LEA is cheaper than 85.54% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of LEA to the average of the S&P500 Index (28.42), we can say LEA is valued rather cheaply.
LEA is valuated cheaply with a Price/Forward Earnings ratio of 7.06.
Based on the Price/Forward Earnings ratio, LEA is valued a bit cheaper than 74.70% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of LEA to the average of the S&P500 Index (24.39), we can say LEA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.57 | ||
| Fwd PE | 7.06 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LEA indicates a somewhat cheap valuation: LEA is cheaper than 68.67% of the companies listed in the same industry.
LEA's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.62 | ||
| EV/EBITDA | 4.32 |
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)4.75
PEG (5Y)N/A
EPS Next 2Y6.43%
EPS Next 3Y10.14%
5. Dividend
5.1 Amount
LEA has a Yearly Dividend Yield of 3.25%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.08, LEA has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.27, LEA pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.25% |
5.2 History
The dividend of LEA has a limited annual growth rate of 1.81%.
LEA has been paying a dividend for at least 10 years, so it has 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.
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 (1/28/2025, 8:04:00 PM)
After market: 96.08 0 (0%)96.08
-1.94 (-1.98%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners108.51%
Inst Owner Change-2.57%
Ins Owners0.42%
Ins Owner Change6.71%
Market Cap5.22B
Analysts75.45
Price Target138.53 (44.18%)
Short Float %4.74%
Short Ratio3.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.25% |
Yearly Dividend3.13
Dividend Growth(5Y)1.81%
DP32.34%
Div Incr Years0
Div Non Decr Years3
Ex-DateN/A
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)-0.63%
PT rev (3m)-7.14%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-18.1%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.81%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.23%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)-1.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.57 | ||
| Fwd PE | 7.06 | ||
| P/S | 0.22 | ||
| P/FCF | 11.62 | ||
| P/OCF | 5.17 | ||
| P/B | 1.1 | ||
| P/tB | 1.73 | ||
| EV/EBITDA | 4.32 |
EPS(TTM)12.7
EY13.22%
EPS(NY)13.6
Fwd EY14.16%
FCF(TTM)8.27
FCFY8.6%
OCF(TTM)18.57
OCFY19.33%
SpS431.22
BVpS87.69
TBVpS55.41
PEG (NY)4.75
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 | 2.85 |
F-Score6
WACC8.03%
ROIC/WACC1.13
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 5Y11.67%
Revenue 1Y (TTM)1.9%
Revenue growth 3Y11.24%
Revenue growth 5Y2.1%
Sales Q2Q%-3.4%
Revenue Next Year-0.76%
Revenue Next 2Y0%
Revenue Next 3Y1.08%
Revenue Next 5Y1.59%
EBIT growth 1Y0.65%
EBIT growth 3Y21.48%
EBIT growth 5Y-8.79%
EBIT Next Year52.74%
EBIT Next 3Y18.95%
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%