Don't overlook NYSE:LEA—it's a hidden gem with strong fundamentals and an attractive price tag.

Consider LEAR CORP (NYSE:LEA) as a top value stock, identified by our stock screening tool. NYSE:LEA shines in terms of profitability, solvency, and liquidity, all while remaining very reasonably priced. Let's dive deeper into the analysis.

What does the Valuation looks like for NYSE:LEA

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:LEA scores a 8 out of 10:

• The Price/Earnings ratio is 11.98, which indicates a very decent 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 85.71% of the companies listed in the same industry.
• LEA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.08.
• LEA is valuated reasonably with a Price/Forward Earnings ratio of 8.76.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of LEA indicates a rather cheap valuation: LEA is cheaper than 80.95% of the companies listed 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 20.99.
• Based on the Enterprise Value to EBITDA ratio, LEA is valued a bit cheaper than the industry average as 76.19% of the companies are valued more expensively.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of LEA indicates a somewhat cheap valuation: LEA is cheaper than 71.43% of the companies listed in the same industry.
• LEA's 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.

Assessing Profitability for NYSE:LEA

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:LEA was assigned a score of 5 for profitability:

• Looking at the Return On Assets, with a value of 3.85%, LEA is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
• LEA's Return On Equity of 11.58% is fine compared to the rest of the industry. LEA outperforms 71.43% of its industry peers.
• LEA has a Return On Invested Capital of 9.04%. This is in the better half of the industry: LEA outperforms 71.43% 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 61.90% of its industry peers.

Understanding NYSE:LEA's Health Score

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:LEA has received a 5 out of 10:

• LEA has an Altman-Z score of 3.02. This indicates that LEA is financially healthy and has little risk of bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 3.02, LEA is in the better half of the industry, outperforming 61.90% of the companies in the same industry.
• The Debt to FCF ratio of LEA (4.71) is better than 69.05% of its industry peers.

Analyzing Growth Metrics

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:LEA has achieved 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.
• Based on estimates for the next years, LEA will show a very strong growth in Earnings Per Share. The EPS will grow by 25.65% on average per year.
• 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.

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.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.