Investors should take notice of NYSE:LEA—it offers a great deal for the fundamentals it presents.

Our stock screening tool has identified LEAR CORP (NYSE:LEA) as an undervalued gem with strong fundamentals. NYSE:LEA boasts decent financial health and profitability while maintaining an attractive price point. We'll break it down further.

Exploring NYSE:LEA's Valuation

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NYSE:LEA has earned a 8 for valuation:

• Based on the Price/Earnings ratio of 11.37, the valuation of LEA can be described as reasonable.
• Compared to the rest of the industry, the Price/Earnings ratio of LEA indicates a rather cheap valuation: LEA is cheaper than 87.80% of the companies listed in the same industry.
• Compared to an average S&P500 Price/Earnings ratio of 24.79, LEA is valued rather cheaply.
• LEA is valuated reasonably with a Price/Forward Earnings ratio of 8.32.
• Based on the Price/Forward Earnings ratio, LEA is valued cheaper than 80.49% of the companies in the same industry.
• LEA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.41.
• Based on the Enterprise Value to EBITDA ratio, LEA is valued a bit cheaper than 75.61% of the companies in the same industry.
• 70.73% of the companies in the same industry are more expensive than LEA, based on the Price/Free Cash Flow ratio.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• A more expensive valuation may be justified as LEA's earnings are expected to grow with 32.54% in the coming years.

How do we evaluate the Profitability for NYSE:LEA?

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:LEA scores a 5 out of 10:

• LEA has a Return On Assets of 3.85%. This is in the better half of the industry: LEA outperforms 65.85% of its industry peers.
• LEA has a Return On Equity of 11.58%. This is in the better half of the industry: LEA outperforms 70.73% of its industry peers.
• LEA has a better Return On Invested Capital (9.04%) than 70.73% of its industry peers.
• The 3 year average ROIC (6.79%) for LEA is below the current ROIC(9.04%), indicating increased profibility in the last year.
• LEA has a Profit Margin of 2.45%. This is in the better half of the industry: LEA outperforms 60.98% of its industry peers.

A Closer Look at Health for NYSE:LEA

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:LEA has earned a 5 out of 10:

• An Altman-Z score of 2.99 indicates that LEA is not in any danger for bankruptcy at the moment.
• LEA's Altman-Z score of 2.99 is fine compared to the rest of the industry. LEA outperforms 60.98% of its industry peers.
• With a decent Debt to FCF ratio value of 4.71, LEA is doing good in the industry, outperforming 68.29% of the companies in the same industry.

Unpacking NYSE:LEA's Growth Rating

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:LEA boasts a 6 out of 10:

• The Earnings Per Share has grown by an impressive 65.13% over the past year.
• Looking at the last year, LEA shows a quite strong growth in Revenue. The Revenue has grown by 12.73% in the last year.
• LEA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.65% yearly.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
• 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.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

Check the latest full fundamental report of LEA for a complete fundamental analysis.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.