LEAR CORP (LEA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LEA - US5218652049 - Common Stock
118.772 USD
-0.05 (-0.04%)
We assign a fundamental rating of 4 out of 10 to LEA. LEA was compared to 81 industry peers in the Automobile Components industry. LEA scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. LEA has a valuation in line with the averages, but it does not seem to be growing.
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.
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
The Return On Assets of LEA (2.92%) is worse than 61.73% of its industry peers.
Looking at the Return On Equity, with a value of 8.66%, LEA is in line with its industry, outperforming 43.21% of the companies in the same industry.
LEA's Return On Invested Capital of 8.16% is in line compared to the rest of the industry. LEA outperforms 40.74% 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 8.55%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.92% | ||
| ROE | 8.66% | ||
| ROIC | 8.16% |
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
The Profit Margin of LEA (1.92%) is worse than 64.20% of its industry peers.
LEA's Profit Margin has declined in the last couple of years.
LEA's Operating Margin of 4.35% is on the low side compared to the rest of the industry. LEA is outperformed by 71.60% of its industry peers.
In the last couple of years the Operating Margin of LEA has declined.
LEA's Gross Margin of 7.51% is on the low side compared to the rest of the industry. LEA is outperformed by 88.89% of its industry peers.
LEA's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.35% | ||
| PM (TTM) | 1.92% | ||
| GM | 7.51% |
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.
LEA has less shares outstanding than it did 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 2.83. 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.
LEA's Altman-Z score of 2.83 is fine compared to the rest of the industry. LEA outperforms 62.96% 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.
LEA's Debt to FCF ratio of 3.80 is amongst the best of the industry. LEA outperforms 86.42% of its industry peers.
LEA has a Debt/Equity ratio of 0.55. This is a neutral value indicating LEA is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.55, LEA is not doing good in the industry: 71.60% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 3.8 | ||
| Altman-Z | 2.83 |
ROIC/WACC1.04
WACC7.88%
2.3 Liquidity
A Current Ratio of 1.35 indicates that LEA should not have too much problems paying its short term obligations.
The Current ratio of LEA (1.35) is worse than 85.19% of its industry peers.
A Quick Ratio of 1.05 indicates that LEA should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.05, LEA is doing worse than 79.01% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
LEA shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.99%.
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 -1.91% 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)-2.99%
EPS 3Y16.72%
EPS 5Y-2.01%
EPS Q2Q%-3.46%
Revenue 1Y (TTM)-1.91%
Revenue growth 3Y6.56%
Revenue growth 5Y3.3%
Sales Q2Q%1.71%
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-2.94%
EPS Next 2Y6.41%
EPS Next 3Y9.35%
EPS Next 5Y13.48%
Revenue Next Year-0.54%
Revenue Next 2Y0.63%
Revenue Next 3Y1.42%
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
The Price/Earnings ratio is 9.64, 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 80.25% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.39, LEA is valued rather cheaply.
The Price/Forward Earnings ratio is 8.32, which indicates a very decent valuation of LEA.
76.54% of the companies in the same industry are more expensive than LEA, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.84, LEA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.64 | ||
| Fwd PE | 8.32 |
4.2 Price Multiples
75.31% of the companies in the same industry are more expensive than LEA, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, LEA is valued cheaper than 87.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.38 | ||
| EV/EBITDA | 4.91 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y6.41%
EPS Next 3Y9.35%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.63%, LEA has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.56, LEA has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 1.87, LEA pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.63% |
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
37.81% 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.
DP37.81%
EPS Next 2Y6.41%
EPS Next 3Y9.35%
NYSE:LEA (12/22/2025, 11:11:06 AM)
118.772
-0.05 (-0.04%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners112.02%
Inst Owner Change-1.64%
Ins Owners0.6%
Ins Owner Change-8.66%
Market Cap6.16B
Revenue(TTM)22.99B
Net Income(TTM)442.20M
Analysts72
Price Target120 (1.03%)
Short Float %3.71%
Short Ratio2.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.63% |
Yearly Dividend3.14
Dividend Growth(5Y)0.74%
DP37.81%
Div Incr Years0
Div Non Decr Years4
Ex-Date
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)1.66%
PT rev (3m)5.11%
EPS NQ rev (1m)-0.65%
EPS NQ rev (3m)-7.19%
EPS NY rev (1m)-0.5%
EPS NY rev (3m)-0.82%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)1.51%
Revenue NY rev (1m)0.27%
Revenue NY rev (3m)0.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.64 | ||
| Fwd PE | 8.32 | ||
| P/S | 0.27 | ||
| P/FCF | 8.38 | ||
| P/OCF | 4.76 | ||
| P/B | 1.21 | ||
| P/tB | 1.84 | ||
| EV/EBITDA | 4.91 |
EPS(TTM)12.32
EY10.37%
EPS(NY)14.28
Fwd EY12.02%
FCF(TTM)14.17
FCFY11.93%
OCF(TTM)24.94
OCFY21%
SpS443.13
BVpS98.43
TBVpS64.47
PEG (NY)N/A
PEG (5Y)N/A
Graham Number165.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.92% | ||
| ROE | 8.66% | ||
| ROCE | 10.87% | ||
| ROIC | 8.16% | ||
| ROICexc | 9.18% | ||
| ROICexgc | 11.68% | ||
| OM | 4.35% | ||
| PM (TTM) | 1.92% | ||
| GM | 7.51% | ||
| FCFM | 3.2% |
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%
ROICexgc growth 3Y3.48%
ROICexgc 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 Turnover1.52
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 | 2.83 |
F-Score6
WACC7.88%
ROIC/WACC1.04
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)-2.99%
EPS 3Y16.72%
EPS 5Y-2.01%
EPS Q2Q%-3.46%
EPS Next Y-2.94%
EPS Next 2Y6.41%
EPS Next 3Y9.35%
EPS Next 5Y13.48%
Revenue 1Y (TTM)-1.91%
Revenue growth 3Y6.56%
Revenue growth 5Y3.3%
Sales Q2Q%1.71%
Revenue Next Year-0.54%
Revenue Next 2Y0.63%
Revenue Next 3Y1.42%
Revenue Next 5Y2.81%
EBIT growth 1Y-6.49%
EBIT growth 3Y6.16%
EBIT growth 5Y-4.12%
EBIT Next Year51.97%
EBIT Next 3Y18.97%
EBIT Next 5YN/A
FCF growth 1Y24.92%
FCF growth 3Y87.62%
FCF growth 5Y-3.77%
OCF growth 1Y6.32%
OCF growth 3Y18.68%
OCF growth 5Y-2.7%
LEAR CORP / LEA FAQ
Can you provide the ChartMill fundamental rating for LEAR CORP?
ChartMill assigns a fundamental rating of 4 / 10 to LEA.
What is the valuation status of LEAR CORP (LEA) stock?
ChartMill assigns a valuation rating of 6 / 10 to LEAR CORP (LEA). This can be considered as Fairly Valued.
How profitable is LEAR CORP (LEA) stock?
LEAR CORP (LEA) has a profitability rating of 3 / 10.
Can you provide the PE and PB ratios for LEA stock?
The Price/Earnings (PE) ratio for LEAR CORP (LEA) is 9.64 and the Price/Book (PB) ratio is 1.21.
What is the financial health of LEAR CORP (LEA) stock?
The financial health rating of LEAR CORP (LEA) is 5 / 10.