LEAR CORP (LEA) Stock Fundamental Analysis
NYSE:LEA - New York Stock Exchange, Inc. - US5218652049 - Common Stock - Currency: USD
LEA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 81 industry peers in the Automobile Components industry. There are concerns on the financial health of LEA while its profitability can be described as average. LEA has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
LEA had positive earnings in the past year.
LEA had a positive operating cash flow in the past year.
Each year in the past 5 years LEA has been profitable.
LEA had a positive operating cash flow in each of the past 5 years.
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.
LEA has a Return On Equity of 10.25%. This is amongst the best in the industry. LEA outperforms 87.65% of its industry peers.
LEA has a better Return On Invested Capital (8.77%) 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 9.04%.
The 3 year average ROIC (8.42%) for LEA is below the current ROIC(8.77%), indicating increased profibility in the last year.
| Industry Rank | Sector 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%
1.3 Margins
With a Profit Margin value of 2.09%, LEA is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of LEA has declined.
LEA has a Operating Margin of 4.48%. This is in the lower half of the industry: LEA underperforms 70.37% of its industry peers.
LEA's Operating Margin has declined in the last couple of years.
LEA has a worse Gross Margin (7.71%) than 91.36% of its industry peers.
LEA's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
LEA has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for LEA has been reduced compared to 1 year ago.
Compared to 5 years ago, LEA has less shares outstanding
Compared to 1 year ago, LEA has a worse debt to assets ratio.
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.
Looking at the Altman-Z score, with a value of 2.83, LEA is in the better half of the industry, outperforming 65.43% of the companies in the same industry.
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.
With a Debt to FCF ratio value of 5.78, LEA is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
LEA has a Debt/Equity ratio of 0.59. This is a neutral value indicating LEA is somewhat dependend on debt financing.
LEA's Debt to Equity ratio of 0.59 is on the low side compared to the rest of the industry. LEA is outperformed by 71.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 5.78 | ||
| Altman-Z | 2.83 |
ROIC/WACC1.01
WACC8.72%
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.
LEA has a Quick Ratio of 1.03. This is a normal value and indicates that LEA is financially healthy and should not expect problems in meeting its short term obligations.
LEA has a Quick ratio of 1.03. This is amonst the worse of the industry: LEA underperforms 81.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
LEA shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.13%.
Measured over the past years, LEA shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.01% on average per year.
Looking at the last year, LEA shows a decrease in Revenue. The Revenue has decreased by -3.15% 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)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
The Earnings Per Share is expected to grow by 14.36% on average over the next years. This is quite good.
Based on estimates for the next years, LEA will show a small growth in Revenue. The Revenue will grow by 2.41% on average per year.
EPS Next Y-4.41%
EPS Next 2Y4.98%
EPS Next 3Y10.4%
EPS Next 5Y14.36%
Revenue Next Year-4.17%
Revenue Next 2Y-0.38%
Revenue Next 3Y0.95%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 7.59, which indicates a rather cheap valuation of LEA.
Based on the Price/Earnings ratio, LEA is valued cheaply inside the industry as 81.48% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.59. LEA is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 6.85 indicates a rather cheap valuation of LEA.
LEA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LEA is cheaper than 75.31% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.39. LEA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.59 | ||
| Fwd PE | 6.85 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LEA indicates a somewhat cheap valuation: LEA is cheaper than 69.14% of the companies listed in the same industry.
LEA's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.65 | ||
| EV/EBITDA | 4.3 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y4.98%
EPS Next 3Y10.4%
5. Dividend
5.1 Amount
LEA has a Yearly Dividend Yield of 3.53%.
LEA's Dividend Yield is comparable with the industry average which is at 4.26.
Compared to an average S&P500 Dividend Yield of 2.39, LEA pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.53% |
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 Years4
5.3 Sustainability
LEA pays out 35.90% of its income as dividend. This is a sustainable payout ratio.
LEA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP35.9%
EPS Next 2Y4.98%
EPS Next 3Y10.4%
95.23
+4.83 (+5.34%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners106.72%
Inst Owner Change1.41%
Ins Owners0.47%
Ins Owner Change24.07%
Market Cap5.09B
Analysts73.33
Price Target103.7 (8.89%)
Short Float %3.51%
Short Ratio2.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.53% |
Yearly Dividend3.14
Dividend Growth(5Y)0.74%
DP35.9%
Div Incr Years0
Div Non Decr Years4
Ex-Date
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)3.48%
PT rev (3m)-17.39%
EPS NQ rev (1m)2.27%
EPS NQ rev (3m)-5.27%
EPS NY rev (1m)0.18%
EPS NY rev (3m)-6.92%
Revenue NQ rev (1m)0.73%
Revenue NQ rev (3m)0.21%
Revenue NY rev (1m)-0.74%
Revenue NY rev (3m)-1.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.59 | ||
| Fwd PE | 6.85 | ||
| P/S | 0.22 | ||
| P/FCF | 10.65 | ||
| P/OCF | 4.96 | ||
| P/B | 1.09 | ||
| P/tB | 1.73 | ||
| EV/EBITDA | 4.3 |
EPS(TTM)12.55
EY13.18%
EPS(NY)13.9
Fwd EY14.59%
FCF(TTM)8.94
FCFY9.39%
OCF(TTM)19.21
OCFY20.17%
SpS427.83
BVpS87.14
TBVpS54.9
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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
WACC8.72%
ROIC/WACC1.01
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-4.41%
EPS Next 2Y4.98%
EPS Next 3Y10.4%
EPS Next 5Y14.36%
Revenue 1Y (TTM)-3.15%
Revenue growth 3Y6.56%
Revenue growth 5Y3.3%
Sales Q2Q%-7.24%
Revenue Next Year-4.17%
Revenue Next 2Y-0.38%
Revenue Next 3Y0.95%
Revenue Next 5Y2.41%
EBIT growth 1Y-5.52%
EBIT growth 3Y6.16%
EBIT growth 5Y-4.12%
EBIT Next Year42.53%
EBIT Next 3Y19.16%
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%