LEAR CORP (LEA) Stock Fundamental Analysis
USA - NYSE:LEA - US5218652049 - Common Stock
105.31 USD
-0.32 (-0.3%)
105.31 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. LEA has an average financial health and profitability rating. LEA is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
LEA had positive earnings in the past year.
In the past year LEA had a positive cash flow from operations.
In the past 5 years LEA has always been profitable.
Each year in the past 5 years LEA had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.07%, LEA is doing worse than 63.75% of the companies in the same industry.
Looking at the Return On Equity, with a value of 9.24%, LEA belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
The Return On Invested Capital of LEA (8.29%) is better than 86.25% 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 8.51%.
| 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 Profit Margin of 2.05%. This is in the lower half of the industry: LEA underperforms 70.00% of its industry peers.
In the last couple of years the Profit Margin of LEA has declined.
With a Operating Margin value of 4.43%, LEA is not doing good in the industry: 70.00% of the companies in the same industry are doing better.
LEA's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 7.66%, LEA is doing worse than 90.00% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LEA is destroying 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
The debt/assets ratio for LEA is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.76 indicates that LEA is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.76, LEA is in line with its industry, outperforming 58.75% of the companies in the same industry.
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.
With a decent Debt to FCF ratio value of 5.84, LEA is doing good in the industry, outperforming 78.75% of the companies in the same industry.
A Debt/Equity ratio of 0.55 indicates that LEA is somewhat dependend on debt financing.
The Debt to Equity ratio of LEA (0.55) is worse than 72.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 5.84 | ||
| Altman-Z | 2.76 |
ROIC/WACC0.93
WACC8.9%
2.3 Liquidity
A Current Ratio of 1.34 indicates that LEA should not have too much problems paying 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 has a Quick ratio of 1.07. This is amonst the worse of the industry: LEA underperforms 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
LEA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.48% yearly.
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-1.47%
Revenue Next 2Y0.27%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.48, the valuation of LEA can be described as very reasonable.
Based on the Price/Earnings ratio, LEA is valued cheaper than 87.50% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.27, LEA is valued rather cheaply.
The Price/Forward Earnings ratio is 7.56, which 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 76.25% of the companies in the same industry.
LEA is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.77, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.48 | ||
| Fwd PE | 7.56 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LEA is valued a bit cheaper than 75.00% of the companies in the same industry.
70.00% of the companies in the same industry are more expensive than LEA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.72 | ||
| EV/EBITDA | 4.61 |
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 2.82%. Purely for dividend investing, there may be better candidates out there.
LEA's Dividend Yield is comparable with the industry average which is at 3.89.
Compared to an average S&P500 Dividend Yield of 2.38, LEA has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.82% |
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 35.99% 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.
DP35.99%
EPS Next 2Y5.08%
EPS Next 3Y10.77%
105.31
-0.32 (-0.3%)
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 Change-2.87%
Market Cap5.60B
Analysts73.33
Price Target114.17 (8.41%)
Short Float %3.64%
Short Ratio3.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.82% |
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)-0.89%
PT rev (3m)10.1%
EPS NQ rev (1m)1.05%
EPS NQ rev (3m)4.71%
EPS NY rev (1m)4.11%
EPS NY rev (3m)2.37%
Revenue NQ rev (1m)0.25%
Revenue NQ rev (3m)2%
Revenue NY rev (1m)0.68%
Revenue NY rev (3m)2.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.48 | ||
| Fwd PE | 7.56 | ||
| P/S | 0.24 | ||
| P/FCF | 11.72 | ||
| P/OCF | 5.43 | ||
| P/B | 1.1 | ||
| P/tB | 1.69 | ||
| EV/EBITDA | 4.61 |
EPS(TTM)12.42
EY11.79%
EPS(NY)13.92
Fwd EY13.22%
FCF(TTM)8.99
FCFY8.54%
OCF(TTM)19.39
OCFY18.42%
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 | 2.76 |
F-Score6
WACC8.9%
ROIC/WACC0.93
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-1.47%
Revenue Next 2Y0.27%
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%