LEAR CORP (LEA) Stock Fundamental Analysis
NYSE:LEA - US5218652049 - Common Stock
108.57 USD
+5.48 (+5.32%)
108.57 USD
0 (0%)
Taking everything into account, LEA scores 4 out of 10 in our fundamental rating. LEA was compared to 80 industry peers in the Automobile Components industry. Both the profitability and the financial health of LEA get a neutral evaluation. Nothing too spectacular is happening here. LEA is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year LEA was profitable.
LEA had a positive operating cash flow in the past year.
LEA had positive earnings in each of the past 5 years.
LEA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
LEA has a Return On Assets of 3.07%. This is in the lower half of the industry: LEA underperforms 63.75% of its industry peers.
LEA has a better Return On Equity (9.24%) than 87.50% of its industry peers.
With an excellent Return On Invested Capital value of 8.29%, LEA belongs to the best of the industry, outperforming 86.25% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for LEA is in line with the industry average of 8.49%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.07% | ||
| ROE | 9.24% | ||
| ROIC | 8.29% |
ROA(3y)3.3%
ROA(5y)2.78%
ROE(3y)10.01%
ROE(5y)8.33%
ROIC(3y)8.42%
ROIC(5y)7.66%
1.3 Margins
LEA has a worse Profit Margin (2.05%) than 70.00% of its industry peers.
LEA's Profit Margin has declined in the last couple of years.
The Operating Margin of LEA (4.43%) is worse than 70.00% of its industry peers.
In the last couple of years the Operating Margin of LEA has declined.
LEA has a Gross Margin of 7.66%. This is amonst the worse of the industry: LEA underperforms 90.00% of its industry peers.
LEA's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.43% | ||
| PM (TTM) | 2.05% | ||
| GM | 7.66% |
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%
2. Health
2.1 Basic Checks
LEA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, LEA has less shares outstanding
The number of shares outstanding for LEA has been reduced compared to 5 years ago.
The debt/assets ratio for LEA is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.77 indicates that LEA is not a great score, but indicates only limited risk for bankruptcy at the moment.
LEA's Altman-Z score of 2.77 is in line compared to the rest of the industry. LEA outperforms 58.75% of its industry peers.
The Debt to FCF ratio of LEA is 5.84, which is a neutral value as it means it would take LEA, 5.84 years of fcf income to pay off all of its debts.
LEA's Debt to FCF ratio of 5.84 is fine compared to the rest of the industry. LEA outperforms 78.75% of its industry peers.
LEA has a Debt/Equity ratio of 0.55. This is a neutral value indicating LEA is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.55, LEA is not doing good in the industry: 72.50% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 5.84 | ||
| Altman-Z | 2.77 |
ROIC/WACC0.92
WACC9%
2.3 Liquidity
LEA has a Current Ratio of 1.34. This is a normal value and indicates that LEA is financially healthy and should not expect problems in meeting its short term obligations.
LEA's Current ratio of 1.34 is on the low side compared to the rest of the industry. LEA is outperformed by 88.75% of its industry peers.
A Quick Ratio of 1.07 indicates that LEA should not have too much problems paying its short term obligations.
LEA's Quick ratio of 1.07 is on the low side compared to the rest of the industry. LEA is outperformed by 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
The earnings per share for LEA have decreased by -2.05% in the last year.
The Earnings Per Share has been decreasing by -2.01% on average over the past years.
Looking at the last year, LEA shows a decrease in Revenue. The Revenue has decreased by -3.13% in the last year.
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)-2.05%
EPS 3Y16.72%
EPS 5Y-2.01%
EPS Q2Q%-3.61%
Revenue 1Y (TTM)-3.13%
Revenue growth 3Y6.56%
Revenue growth 5Y3.3%
Sales Q2Q%0.3%
3.2 Future
The Earnings Per Share is expected to grow by 13.48% 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 2.81% yearly.
EPS Next Y-2.14%
EPS Next 2Y5.08%
EPS Next 3Y10.77%
EPS Next 5Y13.48%
Revenue Next Year-1.53%
Revenue Next 2Y0.28%
Revenue Next 3Y1.21%
Revenue Next 5Y2.81%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
LEA is valuated reasonably with a Price/Earnings ratio of 8.74.
Compared to the rest of the industry, the Price/Earnings ratio of LEA indicates a rather cheap valuation: LEA is cheaper than 85.00% of the companies listed in the same industry.
LEA is valuated cheaply when we compare the Price/Earnings ratio to 27.24, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 7.80, the valuation of LEA can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LEA indicates a somewhat cheap valuation: LEA is cheaper than 75.00% of the companies listed in the same industry.
LEA is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.81, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.74 | ||
| Fwd PE | 7.8 |
4.2 Price Multiples
75.00% of the companies in the same industry are more expensive than LEA, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, LEA is valued a bit cheaper than the industry average as 68.75% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.08 | ||
| EV/EBITDA | 4.71 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.08%
EPS Next 3Y10.77%
5. Dividend
5.1 Amount
LEA has a Yearly Dividend Yield of 2.99%.
LEA's Dividend Yield is comparable with the industry average which is at 3.82.
Compared to an average S&P500 Dividend Yield of 2.34, LEA pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
5.2 History
The dividend of LEA has a limited annual growth rate of 0.74%.
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)0.74%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
LEA pays out 35.99% 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.
DP35.99%
EPS Next 2Y5.08%
EPS Next 3Y10.77%
108.57
+5.48 (+5.32%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners108.59%
Inst Owner Change0.81%
Ins Owners0.61%
Ins Owner Change1.03%
Market Cap5.78B
Analysts73.33
Price Target115.19 (6.1%)
Short Float %4.03%
Short Ratio3.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
Yearly Dividend3.14
Dividend Growth(5Y)0.74%
DP35.99%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.54%
Min EPS beat(2)4.62%
Max EPS beat(2)14.45%
EPS beat(4)4
Avg EPS beat(4)10.2%
Min EPS beat(4)4.62%
Max EPS beat(4)14.45%
EPS beat(8)7
Avg EPS beat(8)6.56%
EPS beat(12)11
Avg EPS beat(12)6.6%
EPS beat(16)14
Avg EPS beat(16)7.1%
Revenue beat(2)1
Avg Revenue beat(2)0.66%
Min Revenue beat(2)-0.35%
Max Revenue beat(2)1.68%
Revenue beat(4)2
Avg Revenue beat(4)0.72%
Min Revenue beat(4)-0.77%
Max Revenue beat(4)2.32%
Revenue beat(8)4
Avg Revenue beat(8)0.42%
Revenue beat(12)8
Avg Revenue beat(12)0.89%
Revenue beat(16)11
Avg Revenue beat(16)0.91%
PT rev (1m)2.5%
PT rev (3m)14.94%
EPS NQ rev (1m)-7.29%
EPS NQ rev (3m)-16.39%
EPS NY rev (1m)4.11%
EPS NY rev (3m)2.37%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)0.13%
Revenue NY rev (1m)2.32%
Revenue NY rev (3m)2.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.74 | ||
| Fwd PE | 7.8 | ||
| P/S | 0.25 | ||
| P/FCF | 12.08 | ||
| P/OCF | 5.6 | ||
| P/B | 1.14 | ||
| P/tB | 1.74 | ||
| EV/EBITDA | 4.71 |
EPS(TTM)12.42
EY11.44%
EPS(NY)13.92
Fwd EY12.83%
FCF(TTM)8.99
FCFY8.28%
OCF(TTM)19.39
OCFY17.86%
SpS430.18
BVpS95.51
TBVpS62.41
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.07% | ||
| ROE | 9.24% | ||
| ROCE | 11.03% | ||
| ROIC | 8.29% | ||
| ROICexc | 9.18% | ||
| ROICexgc | 11.64% | ||
| OM | 4.43% | ||
| PM (TTM) | 2.05% | ||
| GM | 7.66% | ||
| 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-Score6
Asset Turnover1.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 5.84 | ||
| Debt/EBITDA | 1.72 | ||
| Cap/Depr | 91.16% | ||
| Cap/Sales | 2.42% | ||
| Interest Coverage | 8.73 | ||
| Cash Conversion | 63.61% | ||
| Profit Quality | 101.81% | ||
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 2.77 |
F-Score6
WACC9%
ROIC/WACC0.92
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)-2.05%
EPS 3Y16.72%
EPS 5Y-2.01%
EPS Q2Q%-3.61%
EPS Next Y-2.14%
EPS Next 2Y5.08%
EPS Next 3Y10.77%
EPS Next 5Y13.48%
Revenue 1Y (TTM)-3.13%
Revenue growth 3Y6.56%
Revenue growth 5Y3.3%
Sales Q2Q%0.3%
Revenue Next Year-1.53%
Revenue Next 2Y0.28%
Revenue Next 3Y1.21%
Revenue Next 5Y2.81%
EBIT growth 1Y-6.64%
EBIT growth 3Y6.16%
EBIT growth 5Y-4.12%
EBIT Next Year52.8%
EBIT Next 3Y19.57%
EBIT Next 5YN/A
FCF growth 1Y6.45%
FCF growth 3Y87.62%
FCF growth 5Y-3.77%
OCF growth 1Y-3.11%
OCF growth 3Y18.68%
OCF growth 5Y-2.7%