When you look at NYSE:LEA, it's hard to ignore the strong fundamentals, especially considering its likely undervaluation.

LEAR CORP (NYSE:LEA) has caught the attention of our stock screener as a great value stock. NYSE:LEA excels in profitability, solvency, and liquidity, all while being very reasonably priced. Let's delve into the details.

Valuation Analysis for NYSE:LEA

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:

• With a Price/Earnings ratio of 11.45, the valuation of LEA can be described as very reasonable.
• 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.
• When comparing the Price/Earnings ratio of LEA to the average of the S&P500 Index (26.01), we can say LEA is valued rather cheaply.
• With a Price/Forward Earnings ratio of 8.69, the valuation of LEA can be described as very reasonable.
• Based on the Price/Forward Earnings ratio, LEA is valued cheaper than 80.95% of the companies in the same industry.
• The average S&P500 Price/Forward Earnings ratio is at 21.61. LEA is valued rather cheaply when compared to this.
• Based on the Enterprise Value to EBITDA ratio, LEA is valued a bit cheaper than 78.57% of the companies in the same industry.
• Based on the Price/Free Cash Flow ratio, LEA is valued a bit cheaper than 73.81% of the companies 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 28.71% in the coming years.

Analyzing Profitability Metrics

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:LEA, the assigned 5 is a significant indicator of profitability:

• LEA's Return On Assets of 3.90% is fine compared to the rest of the industry. LEA outperforms 66.67% of its industry peers.
• LEA's Return On Equity of 11.64% is fine compared to the rest of the industry. LEA outperforms 71.43% of its industry peers.
• The Return On Invested Capital of LEA (8.95%) is better than 71.43% of its industry peers.
• The last Return On Invested Capital (8.95%) for LEA is above the 3 year average (7.93%), which is a sign of increasing profitability.
• LEA has a better Profit Margin (2.44%) than 61.90% of its industry peers.

What does the Health looks like 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 3.02 indicates that LEA is not in any danger for bankruptcy at the moment.
• The Altman-Z score of LEA (3.02) is better than 69.05% of its industry peers.
• LEA has a better Debt to FCF ratio (4.45) than 71.43% of its industry peers.

Assessing Growth Metrics for NYSE:LEA

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:LEA was assigned a score of 6 for growth:

• The Earnings Per Share has grown by an impressive 37.57% over the past year.
• The Revenue has grown by 12.33% in the past year. This is quite good.
• Based on estimates for the next years, LEA will show a very strong growth in Earnings Per Share. The EPS will grow by 22.84% 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

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.