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LEAR CORP (LEA) Stock Fundamental Analysis

NYSE:LEA - New York Stock Exchange, Inc. - US5218652049 - Common Stock - Currency: USD

95.54  +0.7 (+0.74%)

After market: 95.54 0 (0%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to LEA. LEA was compared to 81 industry peers in the Automobile Components industry. While LEA is still in line with the averages on profitability rating, there are concerns on its financial health. LEA has a valuation in line with the averages, but on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

4

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.
LEA Yearly Net Income VS EBIT VS OCF VS FCFLEA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

1.2 Ratios

With a Return On Assets value of 3.27%, LEA is not doing good in the industry: 65.43% of the companies in the same industry are doing better.
With an excellent Return On Equity value of 10.25%, LEA belongs to the best of the industry, outperforming 87.65% of the companies in the same industry.
The Return On Invested Capital of LEA (8.77%) is better than 87.65% of its industry peers.
LEA had an Average Return On Invested Capital over the past 3 years of 8.42%. This is in line with the industry average of 8.96%.
The 3 year average ROIC (8.42%) for LEA is below the current ROIC(8.77%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 3.27%
ROE 10.25%
ROIC 8.77%
ROA(3y)3.3%
ROA(5y)2.78%
ROE(3y)10.01%
ROE(5y)8.33%
ROIC(3y)8.42%
ROIC(5y)7.66%
LEA Yearly ROA, ROE, ROICLEA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

1.3 Margins

Looking at the Profit Margin, with a value of 2.09%, LEA is doing worse than 66.67% of the companies in the same industry.
LEA's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 4.48%, LEA is doing worse than 70.37% of the companies in the same industry.
In the last couple of years the Operating Margin of LEA has declined.
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 RankSector Rank
OM 4.48%
PM (TTM) 2.09%
GM 7.71%
OM growth 3Y-0.38%
OM growth 5Y-7.19%
PM growth 3Y3.85%
PM growth 5Y-10.6%
GM growth 3Y0.04%
GM growth 5Y-4.59%
LEA Yearly Profit, Operating, Gross MarginsLEA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8 10

3

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LEA is still creating some value.
Compared to 1 year ago, LEA has less shares outstanding
LEA has less shares outstanding than it did 5 years ago.
The debt/assets ratio for LEA is higher compared to a year ago.
LEA Yearly Shares OutstandingLEA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M
LEA Yearly Total Debt VS Total AssetsLEA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B

2.2 Solvency

LEA has an Altman-Z score of 2.83. 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 has a better Altman-Z score (2.83) than 65.43% of its industry peers.
LEA has a debt to FCF ratio of 5.78. This is a neutral value as LEA would need 5.78 years to pay back of all of its debts.
LEA has a Debt to FCF ratio of 5.78. This is in the lower half of the industry: LEA underperforms 66.67% 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 has a Debt to Equity ratio of 0.59. This is in the lower half of the industry: LEA underperforms 77.78% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.59
Debt/FCF 5.78
Altman-Z 2.83
ROIC/WACC1.02
WACC8.63%
LEA Yearly LT Debt VS Equity VS FCFLEA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

2.3 Liquidity

A Current Ratio of 1.32 indicates that LEA should not have too much problems paying its short term obligations.
LEA has a Current ratio of 1.32. This is amonst the worse of the industry: LEA underperforms 87.65% of its industry peers.
A Quick Ratio of 1.03 indicates that LEA should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.03, LEA is doing worse than 81.48% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.32
Quick Ratio 1.03
LEA Yearly Current Assets VS Current LiabilitesLEA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

3

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 1.13% over the past year.
LEA shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.01% yearly.
LEA shows a decrease in Revenue. In the last year, the revenue decreased by -3.15%.
Measured over the past years, LEA shows a small growth in Revenue. The Revenue has been growing by 3.30% on average per year.
EPS 1Y (TTM)1.13%
EPS 3Y16.72%
EPS 5Y-2.01%
EPS Q2Q%-1.89%
Revenue 1Y (TTM)-3.15%
Revenue growth 3Y6.56%
Revenue growth 5Y3.3%
Sales Q2Q%-7.24%

3.2 Future

LEA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.36% yearly.
LEA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.41% yearly.
EPS Next Y-4.59%
EPS Next 2Y6.99%
EPS Next 3Y11.18%
EPS Next 5Y14.36%
Revenue Next Year-3.46%
Revenue Next 2Y0.02%
Revenue Next 3Y0.88%
Revenue Next 5Y2.41%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
LEA Yearly Revenue VS EstimatesLEA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5B 10B 15B 20B 25B
LEA Yearly EPS VS EstimatesLEA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5 10 15 20 25

6

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 7.61, the valuation of LEA can be described as very cheap.
LEA's Price/Earnings ratio is rather cheap when compared to the industry. LEA is cheaper than 81.48% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 24.95. LEA is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 6.62, which indicates a rather cheap valuation of LEA.
Based on the Price/Forward Earnings ratio, LEA is valued a bit cheaper than 75.31% of the companies in the same industry.
LEA is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.99, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 7.61
Fwd PE 6.62
LEA Price Earnings VS Forward Price EarningsLEA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

67.90% of the companies in the same industry are more expensive than LEA, based on the Enterprise Value to EBITDA ratio.
LEA's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 10.7
EV/EBITDA 4.31
LEA Per share dataLEA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 100 200 300 400

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y6.99%
EPS Next 3Y11.18%

6

5. Dividend

5.1 Amount

LEA has a Yearly Dividend Yield of 3.25%.
LEA's Dividend Yield is comparable with the industry average which is at 4.24.
Compared to an average S&P500 Dividend Yield of 2.41, LEA pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 3.25%

5.2 History

The dividend of LEA has a limited annual growth rate of 0.74%.
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)0.74%
Div Incr Years0
Div Non Decr Years3
LEA Yearly Dividends per shareLEA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3

5.3 Sustainability

LEA pays out 35.90% 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.
DP35.9%
EPS Next 2Y6.99%
EPS Next 3Y11.18%
LEA Yearly Income VS Free CF VS DividendLEA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B
LEA Dividend Payout.LEA Dividend Payout, showing the Payout Ratio.LEA Dividend Payout.PayoutRetained Earnings

LEAR CORP

NYSE:LEA (5/13/2025, 8:04:00 PM)

After market: 95.54 0 (0%)

95.54

+0.7 (+0.74%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)05-06 2025-05-06/bmo
Earnings (Next)07-23 2025-07-23/amc
Inst Owners106.72%
Inst Owner Change2.03%
Ins Owners0.47%
Ins Owner Change20.86%
Market Cap5.12B
Analysts73.33
Price Target100.22 (4.9%)
Short Float %3.52%
Short Ratio2.34
Dividend
Industry RankSector Rank
Dividend Yield 3.25%
Yearly Dividend3.14
Dividend Growth(5Y)0.74%
DP35.9%
Div Incr Years0
Div Non Decr Years3
Ex-Date03-06 2025-03-06 (0.77)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.7%
Min EPS beat(2)12.95%
Max EPS beat(2)14.45%
EPS beat(4)4
Avg EPS beat(4)10.27%
Min EPS beat(4)4.89%
Max EPS beat(4)14.45%
EPS beat(8)7
Avg EPS beat(8)6.33%
EPS beat(12)11
Avg EPS beat(12)8.13%
EPS beat(16)13
Avg EPS beat(16)6.71%
Revenue beat(2)1
Avg Revenue beat(2)0.98%
Min Revenue beat(2)-0.35%
Max Revenue beat(2)2.32%
Revenue beat(4)1
Avg Revenue beat(4)-0.02%
Min Revenue beat(4)-1.26%
Max Revenue beat(4)2.32%
Revenue beat(8)4
Avg Revenue beat(8)0.37%
Revenue beat(12)8
Avg Revenue beat(12)0.76%
Revenue beat(16)10
Avg Revenue beat(16)0.67%
PT rev (1m)-17.65%
PT rev (3m)-21.33%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-15.65%
EPS NY rev (1m)-5.7%
EPS NY rev (3m)-8.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.3%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)-2.82%
Valuation
Industry RankSector Rank
PE 7.61
Fwd PE 6.62
P/S 0.22
P/FCF 10.7
P/OCF 4.98
P/B 1.1
P/tB 1.74
EV/EBITDA 4.31
EPS(TTM)12.55
EY13.14%
EPS(NY)14.44
Fwd EY15.11%
FCF(TTM)8.93
FCFY9.34%
OCF(TTM)19.18
OCFY20.08%
SpS427.19
BVpS87.01
TBVpS54.82
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 3.27%
ROE 10.25%
ROCE 11.68%
ROIC 8.77%
ROICexc 9.63%
ROICexgc 12.26%
OM 4.48%
PM (TTM) 2.09%
GM 7.71%
FCFM 2.09%
ROA(3y)3.3%
ROA(5y)2.78%
ROE(3y)10.01%
ROE(5y)8.33%
ROIC(3y)8.42%
ROIC(5y)7.66%
ROICexc(3y)9.67%
ROICexc(5y)8.89%
ROICexgc(3y)12.82%
ROICexgc(5y)12%
ROCE(3y)11.21%
ROCE(5y)10.19%
ROICexcg growth 3Y3.48%
ROICexcg growth 5Y-8.63%
ROICexc growth 3Y4.84%
ROICexc growth 5Y-6.82%
OM growth 3Y-0.38%
OM growth 5Y-7.19%
PM growth 3Y3.85%
PM growth 5Y-10.6%
GM growth 3Y0.04%
GM growth 5Y-4.59%
F-Score4
Asset Turnover1.56
Health
Industry RankSector Rank
Debt/Equity 0.59
Debt/FCF 5.78
Debt/EBITDA 1.69
Cap/Depr 89.56%
Cap/Sales 2.4%
Interest Coverage 8.79
Cash Conversion 62.71%
Profit Quality 100.04%
Current Ratio 1.32
Quick Ratio 1.03
Altman-Z 2.83
F-Score4
WACC8.63%
ROIC/WACC1.02
Cap/Depr(3y)101.46%
Cap/Depr(5y)98.02%
Cap/Sales(3y)2.71%
Cap/Sales(5y)2.76%
Profit Quality(3y)112.18%
Profit Quality(5y)98.37%
High Growth Momentum
Growth
EPS 1Y (TTM)1.13%
EPS 3Y16.72%
EPS 5Y-2.01%
EPS Q2Q%-1.89%
EPS Next Y-4.59%
EPS Next 2Y6.99%
EPS Next 3Y11.18%
EPS Next 5Y14.36%
Revenue 1Y (TTM)-3.15%
Revenue growth 3Y6.56%
Revenue growth 5Y3.3%
Sales Q2Q%-7.24%
Revenue Next Year-3.46%
Revenue Next 2Y0.02%
Revenue Next 3Y0.88%
Revenue Next 5Y2.41%
EBIT growth 1Y-5.52%
EBIT growth 3Y6.16%
EBIT growth 5Y-4.12%
EBIT Next Year49.13%
EBIT Next 3Y20.35%
EBIT Next 5YN/A
FCF growth 1Y228.68%
FCF growth 3Y87.62%
FCF growth 5Y-3.77%
OCF growth 1Y34.23%
OCF growth 3Y18.68%
OCF growth 5Y-2.7%