LEAR CORP (LEA) Stock Fundamental Analysis
USA - NYSE:LEA - US5218652049 - Common Stock
103.09 USD
+0.02 (+0.02%)
103 USD
-0.09 (-0.09%)
LEA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 81 industry peers in the Automobile Components industry. LEA has only an average score on both its financial health and profitability. 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.
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 each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.07%, LEA is doing worse than 62.96% of the companies in the same industry.
LEA has a Return On Equity of 9.24%. This is amongst the best in the industry. LEA outperforms 87.65% of its industry peers.
With an excellent Return On Invested Capital value of 8.29%, LEA belongs to the best of the industry, outperforming 86.42% of the companies in the same industry.
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 worse Profit Margin (2.05%) than 69.14% of its industry peers.
LEA's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 4.43%, LEA is doing worse than 69.14% of the companies in the same industry.
In the last couple of years the Operating Margin of LEA has declined.
LEA has a worse Gross Margin (7.66%) than 88.89% of its industry peers.
In the last couple of years the Gross Margin of LEA has declined.
| 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
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 2.75 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 2.75, LEA is in line with its industry, outperforming 59.26% of the companies in the same industry.
LEA has a debt to FCF ratio of 5.84. This is a neutral value as LEA would need 5.84 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 5.84, LEA is doing good in the industry, outperforming 79.01% of the companies in the same industry.
LEA has a Debt/Equity ratio of 0.55. This is a neutral value indicating LEA is somewhat dependend on debt financing.
LEA has a Debt to Equity ratio of 0.55. This is in the lower half of the industry: LEA underperforms 71.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 5.84 | ||
| Altman-Z | 2.75 |
ROIC/WACC0.93
WACC8.93%
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 87.65% 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 80.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
LEA shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.05%.
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.
The Revenue has decreased by -3.13% in the past year.
The Revenue has been growing slightly by 3.30% on average over the past years.
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.
The Revenue is expected to grow by 2.81% on average over the next years.
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.
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
Based on the Price/Earnings ratio of 8.30, the valuation of LEA can be described as reasonable.
Based on the Price/Earnings ratio, LEA is valued cheaper than 88.89% of the companies in the same industry.
LEA is valuated cheaply when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 7.40, the valuation of LEA can be described as very cheap.
Based on the Price/Forward Earnings ratio, LEA is valued a bit cheaper than the industry average as 76.54% of the companies are valued more expensively.
LEA is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.87, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.3 | ||
| Fwd PE | 7.4 |
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 77.78% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LEA indicates a somewhat cheap valuation: LEA is cheaper than 71.60% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.47 | ||
| EV/EBITDA | 4.53 |
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 2.87%.
LEA's Dividend Yield is comparable with the industry average which is at 3.95.
LEA's Dividend Yield is a higher than the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
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
35.99% of the earnings are spent on dividend by LEA. This is a low number and 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%
103.09
+0.02 (+0.02%)
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 Cap5.49B
Analysts73.33
Price Target114.17 (10.75%)
Short Float %4.46%
Short Ratio3.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
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)9.65%
EPS NQ rev (1m)1.05%
EPS NQ rev (3m)4.71%
EPS NY rev (1m)0%
EPS NY rev (3m)5.68%
Revenue NQ rev (1m)0.25%
Revenue NQ rev (3m)2%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)2.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.3 | ||
| Fwd PE | 7.4 | ||
| P/S | 0.24 | ||
| P/FCF | 11.47 | ||
| P/OCF | 5.32 | ||
| P/B | 1.08 | ||
| P/tB | 1.65 | ||
| EV/EBITDA | 4.53 |
EPS(TTM)12.42
EY12.05%
EPS(NY)13.92
Fwd EY13.51%
FCF(TTM)8.99
FCFY8.72%
OCF(TTM)19.39
OCFY18.81%
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 | 2.75 |
F-Score6
WACC8.93%
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%