LEAR CORP (LEA) Stock Fundamental Analysis
NYSE:LEA • US5218652049
134.75 USD
+0.74 (+0.55%)
At close: Feb 20, 2026
134.75 USD
0 (0%)
After Hours: 2/20/2026, 8:04:00 PM
Taking everything into account, LEA scores 6 out of 10 in our fundamental rating. LEA was compared to 41 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 may be a bit undervalued, certainly considering the very reasonable score on growth LEA also has an excellent dividend rating. This makes LEA very considerable for value and dividend investing!
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.
- LEA had positive earnings in each of the past 5 years.
- LEA had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- LEA's Return On Assets of 2.92% is fine compared to the rest of the industry. LEA outperforms 70.73% of its industry peers.
- The Return On Equity of LEA (8.66%) is better than 78.05% of its industry peers.
- LEA has a better Return On Invested Capital (8.12%) than 70.73% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for LEA is in line with the industry average of 9.03%.
- The 3 year average ROIC (7.90%) for LEA is below the current ROIC(8.12%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.92% | ||
| ROE | 8.66% | ||
| ROIC | 8.12% |
ROA(3y)3.48%
ROA(5y)3.13%
ROE(3y)10.47%
ROE(5y)9.29%
ROIC(3y)7.9%
ROIC(5y)7.69%
1.3 Margins
- LEA has a better Profit Margin (1.92%) than 63.41% of its industry peers.
- LEA's Profit Margin has improved in the last couple of years.
- LEA's Operating Margin of 4.35% is in line compared to the rest of the industry. LEA outperforms 51.22% of its industry peers.
- In the last couple of years the Operating Margin of LEA has declined.
- LEA has a worse Gross Margin (7.51%) than 82.93% of its industry peers.
- In the last couple of years the Gross Margin of LEA has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.35% | ||
| PM (TTM) | 1.92% | ||
| GM | 7.51% |
OM growth 3Y-8.19%
OM growth 5Y-2.44%
PM growth 3Y6.18%
PM growth 5Y15.02%
GM growth 3Y-4.86%
GM growth 5Y-2.18%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), LEA is destroying value.
- LEA has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for LEA has been reduced compared to 5 years ago.
- LEA has a better debt/assets ratio than last year.
2.2 Solvency
- LEA has an Altman-Z score of 2.88. 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's Altman-Z score of 2.88 is fine compared to the rest of the industry. LEA outperforms 70.73% of its industry peers.
- The Debt to FCF ratio of LEA is 3.80, which is a good value as it means it would take LEA, 3.80 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 3.80, LEA is doing good in the industry, outperforming 73.17% of the companies in the same industry.
- A Debt/Equity ratio of 0.55 indicates that LEA is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.55, LEA perfoms like the industry average, outperforming 53.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 3.8 | ||
| Altman-Z | 2.88 |
ROIC/WACC0.98
WACC8.27%
2.3 Liquidity
- LEA has a Current Ratio of 1.35. 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 worse Current ratio (1.35) than 78.05% of its industry peers.
- A Quick Ratio of 1.05 indicates that LEA should not have too much problems paying its short term obligations.
- LEA's Quick ratio of 1.05 is on the low side compared to the rest of the industry. LEA is outperformed by 68.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 1.43% over the past year.
- The Earnings Per Share has been growing by 19.27% on average over the past years. This is quite good.
- The Revenue has decreased by -0.20% in the past year.
- The Revenue has been growing slightly by 6.41% on average over the past years.
EPS 1Y (TTM)1.43%
EPS 3Y13.58%
EPS 5Y19.27%
EPS Q2Q%15.99%
Revenue 1Y (TTM)-0.2%
Revenue growth 3Y3.64%
Revenue growth 5Y6.41%
Sales Q2Q%4.79%
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 15.24% yearly.
- The Revenue is expected to grow by 3.59% on average over the next years.
EPS Next Y11.27%
EPS Next 2Y14.13%
EPS Next 3Y10.31%
EPS Next 5Y15.24%
Revenue Next Year2.52%
Revenue Next 2Y2.67%
Revenue Next 3Y2.53%
Revenue Next 5Y3.59%
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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
- Based on the Price/Earnings ratio of 10.54, the valuation of LEA can be described as reasonable.
- 90.24% of the companies in the same industry are more expensive than LEA, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 26.99. LEA is valued rather cheaply when compared to this.
- Based on the Price/Forward Earnings ratio of 9.47, the valuation of LEA can be described as reasonable.
- 82.93% of the companies in the same industry are more expensive than LEA, based on the Price/Forward Earnings ratio.
- LEA is valuated cheaply when we compare the Price/Forward Earnings ratio to 28.06, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.54 | ||
| Fwd PE | 9.47 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LEA indicates a rather cheap valuation: LEA is cheaper than 85.37% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, LEA is valued cheaply inside the industry as 87.80% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.51 | ||
| EV/EBITDA | 5.42 |
4.3 Compensation for Growth
- LEA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- LEA has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.93
PEG (5Y)0.55
EPS Next 2Y14.13%
EPS Next 3Y10.31%
5. Dividend
5.1 Amount
- LEA has a Yearly Dividend Yield of 2.30%.
- LEA's Dividend Yield is rather good when compared to the industry average which is at 0.59. LEA pays more dividend than 90.24% of the companies in the same industry.
- LEA's Dividend Yield is a higher than the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
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 37.81% 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.
DP37.81%
EPS Next 2Y14.13%
EPS Next 3Y10.31%
134.75
+0.74 (+0.55%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)02-04 2026-02-04/bmo
Earnings (Next)05-04 2026-05-04/bmo
Inst Owners111.59%
Inst Owner Change1.52%
Ins Owners0.59%
Ins Owner Change27.04%
Market Cap6.99B
Revenue(TTM)23.26B
Net Income(TTM)442.20M
Analysts71.58
Price Target128.13 (-4.91%)
Short Float %3.92%
Short Ratio3.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
Yearly Dividend3.14
Dividend Growth(5Y)0.74%
DP37.81%
Div Incr Years0
Div Non Decr Years4
Ex-Date03-05 2026-03-05 (0.77)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.15%
Min EPS beat(2)1.67%
Max EPS beat(2)4.62%
EPS beat(4)4
Avg EPS beat(4)8.42%
Min EPS beat(4)1.67%
Max EPS beat(4)14.45%
EPS beat(8)7
Avg EPS beat(8)5.97%
EPS beat(12)11
Avg EPS beat(12)6%
EPS beat(16)15
Avg EPS beat(16)8.15%
Revenue beat(2)2
Avg Revenue beat(2)0.98%
Min Revenue beat(2)0.28%
Max Revenue beat(2)1.68%
Revenue beat(4)3
Avg Revenue beat(4)0.98%
Min Revenue beat(4)-0.35%
Max Revenue beat(4)2.32%
Revenue beat(8)4
Avg Revenue beat(8)0.19%
Revenue beat(12)8
Avg Revenue beat(12)0.84%
Revenue beat(16)12
Avg Revenue beat(16)1.06%
PT rev (1m)6.27%
PT rev (3m)6.78%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.16%
EPS NY rev (1m)-0.51%
EPS NY rev (3m)0.46%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)1.18%
Revenue NY rev (1m)0.79%
Revenue NY rev (3m)1.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.54 | ||
| Fwd PE | 9.47 | ||
| P/S | 0.3 | ||
| P/FCF | 9.51 | ||
| P/OCF | 5.4 | ||
| P/B | 1.37 | ||
| P/tB | 2.09 | ||
| EV/EBITDA | 5.42 |
EPS(TTM)12.79
EY9.49%
EPS(NY)14.23
Fwd EY10.56%
FCF(TTM)14.17
FCFY10.51%
OCF(TTM)24.94
OCFY18.51%
SpS443.13
BVpS98.43
TBVpS64.47
PEG (NY)0.93
PEG (5Y)0.55
Graham Number168.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.92% | ||
| ROE | 8.66% | ||
| ROCE | 10.87% | ||
| ROIC | 8.12% | ||
| ROICexc | 9.13% | ||
| ROICexgc | 11.62% | ||
| OM | 4.35% | ||
| PM (TTM) | 1.92% | ||
| GM | 7.51% | ||
| FCFM | 3.2% |
ROA(3y)3.48%
ROA(5y)3.13%
ROE(3y)10.47%
ROE(5y)9.29%
ROIC(3y)7.9%
ROIC(5y)7.69%
ROICexc(3y)9.02%
ROICexc(5y)8.86%
ROICexgc(3y)11.82%
ROICexgc(5y)11.76%
ROCE(3y)10.57%
ROCE(5y)10.29%
ROICexgc growth 3Y-9.12%
ROICexgc growth 5Y-2.04%
ROICexc growth 3Y-7.66%
ROICexc growth 5Y0.09%
OM growth 3Y-8.19%
OM growth 5Y-2.44%
PM growth 3Y6.18%
PM growth 5Y15.02%
GM growth 3Y-4.86%
GM growth 5Y-2.18%
F-Score6
Asset Turnover1.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 3.8 | ||
| Debt/EBITDA | 1.73 | ||
| Cap/Depr | 92.03% | ||
| Cap/Sales | 2.43% | ||
| Interest Coverage | 8.79 | ||
| Cash Conversion | 80.45% | ||
| Profit Quality | 166.17% | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z | 2.88 |
F-Score6
WACC8.27%
ROIC/WACC0.98
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1.43%
EPS 3Y13.58%
EPS 5Y19.27%
EPS Q2Q%15.99%
EPS Next Y11.27%
EPS Next 2Y14.13%
EPS Next 3Y10.31%
EPS Next 5Y15.24%
Revenue 1Y (TTM)-0.2%
Revenue growth 3Y3.64%
Revenue growth 5Y6.41%
Sales Q2Q%4.79%
Revenue Next Year2.52%
Revenue Next 2Y2.67%
Revenue Next 3Y2.53%
Revenue Next 5Y3.59%
EBIT growth 1Y-6.49%
EBIT growth 3Y-4.84%
EBIT growth 5Y3.81%
EBIT Next Year66.54%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y63.58%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y28.22%
OCF growth 3YN/A
OCF growth 5YN/A
LEAR CORP / LEA FAQ
Can you provide the ChartMill fundamental rating for LEAR CORP?
ChartMill assigns a fundamental rating of 6 / 10 to LEA.
What is the valuation status for LEA stock?
ChartMill assigns a valuation rating of 8 / 10 to LEAR CORP (LEA). This can be considered as Undervalued.
How profitable is LEAR CORP (LEA) stock?
LEAR CORP (LEA) has a profitability rating of 6 / 10.
How financially healthy is LEAR CORP?
The financial health rating of LEAR CORP (LEA) is 5 / 10.
What is the earnings growth outlook for LEAR CORP?
The Earnings per Share (EPS) of LEAR CORP (LEA) is expected to grow by 11.27% in the next year.