LEAR CORP (LEA) Stock Fundamental Analysis
USA - NYSE:LEA - US5218652049 - Common Stock
105.34 USD
-2.01 (-1.87%)
105.34 USD
0 (0%)
Overall LEA gets a fundamental rating of 4 out of 10. We evaluated LEA against 81 industry peers in the Automobile Components industry. LEA has an average financial health and profitability rating. 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
In the past year LEA was profitable.
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
The Return On Assets of LEA (3.07%) is worse than 62.96% of its industry peers.
Looking at the Return On Equity, with a value of 9.24%, LEA belongs to the top of the industry, outperforming 87.65% of the companies in the same industry.
LEA's Return On Invested Capital of 8.29% is amongst the best of the industry. LEA outperforms 86.42% 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
Looking at the Profit Margin, with a value of 2.05%, LEA is doing worse than 69.14% of the companies in the same industry.
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: 69.14% of the companies in the same industry are doing better.
LEA's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 7.66%, LEA is not doing good in the industry: 88.89% of the companies in the same industry are doing better.
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.
The number of shares outstanding for LEA has been reduced compared to 5 years ago.
Compared to 1 year ago, LEA has a worse debt to assets ratio.
2.2 Solvency
LEA has an Altman-Z score of 2.76. 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 2.76 is in line compared to the rest of the industry. LEA outperforms 59.26% 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 79.01% of its industry peers.
A Debt/Equity ratio of 0.55 indicates that 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 | 2.76 |
ROIC/WACC0.92
WACC8.98%
2.3 Liquidity
A Current Ratio of 1.34 indicates that LEA should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.34, LEA is doing worse than 87.65% of the companies in the same industry.
A Quick Ratio of 1.07 indicates that LEA should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.07, LEA is not doing good in the industry: 80.25% of the companies in the same industry are doing better.
| 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.
LEA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.30% yearly.
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
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 8.48, which indicates a very decent valuation of LEA.
LEA's Price/Earnings ratio is rather cheap when compared to the industry. LEA is cheaper than 88.89% of the companies in the same industry.
When comparing the Price/Earnings ratio of LEA to the average of the S&P500 Index (27.38), we can say LEA is valued rather cheaply.
The Price/Forward Earnings ratio is 7.57, which indicates a rather cheap valuation of LEA.
76.54% of the companies in the same industry are more expensive than LEA, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of LEA to the average of the S&P500 Index (22.86), we can say LEA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.48 | ||
| Fwd PE | 7.57 |
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 76.54% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, LEA is valued a bit cheaper than the industry average as 70.37% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.72 | ||
| EV/EBITDA | 4.6 |
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%.
Compared to an average industry Dividend Yield of 3.94, LEA has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, LEA pays a bit more dividend than the S&P500 average.
| 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
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%
105.34
-2.01 (-1.87%)
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 Cap5.61B
Analysts73.33
Price Target114.17 (8.38%)
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 | 8.48 | ||
| Fwd PE | 7.57 | ||
| P/S | 0.24 | ||
| P/FCF | 11.72 | ||
| P/OCF | 5.43 | ||
| P/B | 1.1 | ||
| P/tB | 1.69 | ||
| EV/EBITDA | 4.6 |
EPS(TTM)12.42
EY11.79%
EPS(NY)13.92
Fwd EY13.22%
FCF(TTM)8.99
FCFY8.53%
OCF(TTM)19.39
OCFY18.41%
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
WACC8.98%
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-1.47%
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%