LEAR CORP (LEA) Fundamental Analysis & Valuation

NYSE:LEA • US5218652049

Current stock price

118.26 USD
-3.69 (-3.03%)
At close:
118.26 USD
0 (0%)
After Hours:

This LEA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. LEA Profitability Analysis

1.1 Basic Checks

  • LEA had positive earnings in the past year.
  • LEA had a positive operating cash flow in the past year.
  • In the past 5 years LEA has always been profitable.
  • LEA had a positive operating cash flow in each of the past 5 years.
LEA Yearly Net Income VS EBIT VS OCF VS FCFLEA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

1.2 Ratios

  • LEA has a Return On Assets of 2.94%. This is in the better half of the industry: LEA outperforms 68.29% of its industry peers.
  • The Return On Equity of LEA (8.68%) is better than 75.61% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 8.49%, LEA is in the better half of the industry, outperforming 75.61% of the companies in the same industry.
  • LEA had an Average Return On Invested Capital over the past 3 years of 8.76%. This is in line with the industry average of 9.26%.
Industry RankSector Rank
ROA 2.94%
ROE 8.68%
ROIC 8.49%
ROA(3y)3.48%
ROA(5y)3.13%
ROE(3y)10.56%
ROE(5y)9.35%
ROIC(3y)8.76%
ROIC(5y)8.21%
LEA Yearly ROA, ROE, ROICLEA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

1.3 Margins

  • LEA's Profit Margin of 1.88% is fine compared to the rest of the industry. LEA outperforms 60.98% of its industry peers.
  • In the last couple of years the Profit Margin of LEA has grown nicely.
  • The Operating Margin of LEA (4.48%) is comparable to the rest of the industry.
  • LEA's Operating Margin has improved in the last couple of years.
  • The Gross Margin of LEA (7.50%) is worse than 82.93% of its industry peers.
  • In the last couple of years the Gross Margin of LEA has remained more or less at the same level.
Industry RankSector Rank
OM 4.48%
PM (TTM) 1.88%
GM 7.5%
OM growth 3Y3.59%
OM growth 5Y4.88%
PM growth 3Y6.18%
PM growth 5Y15.02%
GM growth 3Y-0.05%
GM growth 5Y0.76%
LEA Yearly Profit, Operating, Gross MarginsLEA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6 8 10

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5

2. LEA Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LEA is still creating some value.
  • Compared to 1 year ago, LEA has less shares outstanding
  • LEA has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, LEA has an improved debt to assets ratio.
LEA Yearly Shares OutstandingLEA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M
LEA Yearly Total Debt VS Total AssetsLEA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B

2.2 Solvency

  • LEA has an Altman-Z score of 2.91. 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 2.91 is fine compared to the rest of the industry. LEA outperforms 68.29% of its industry peers.
  • The Debt to FCF ratio of LEA is 5.20, which is a neutral value as it means it would take LEA, 5.20 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of LEA (5.20) is better than 65.85% of its industry peers.
  • A Debt/Equity ratio of 0.54 indicates that LEA is somewhat dependend on debt financing.
  • LEA has a Debt to Equity ratio (0.54) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.54
Debt/FCF 5.2
Altman-Z 2.91
ROIC/WACC0.99
WACC8.59%
LEA Yearly LT Debt VS Equity VS FCFLEA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B

2.3 Liquidity

  • A Current Ratio of 1.35 indicates that LEA should not have too much problems paying its short term obligations.
  • LEA has a Current ratio of 1.35. This is in the lower half of the industry: LEA underperforms 75.61% of its industry peers.
  • LEA has a Quick Ratio of 1.05. 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 Quick ratio (1.05) than 65.85% of its industry peers.
Industry RankSector Rank
Current Ratio 1.35
Quick Ratio 1.05
LEA Yearly Current Assets VS Current LiabilitesLEA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

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4

3. LEA Growth Analysis

3.1 Past

  • LEA shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.43%.
  • LEA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.27% yearly.
  • LEA shows a decrease in Revenue. In the last year, the revenue decreased by -0.20%.
  • Measured over the past years, LEA shows a small growth in Revenue. The Revenue has been growing by 6.41% on average per year.
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.
  • LEA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.59% yearly.
EPS Next Y14.52%
EPS Next 2Y16.02%
EPS Next 3Y14.38%
EPS Next 5Y15.24%
Revenue Next Year2.52%
Revenue Next 2Y2.8%
Revenue Next 3Y2.53%
Revenue Next 5Y3.59%

3.3 Evolution

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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.
LEA Yearly Revenue VS EstimatesLEA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5B 10B 15B 20B 25B
LEA Yearly EPS VS EstimatesLEA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5 10 15 20 25

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8

4. LEA Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 9.25, the valuation of LEA can be described as very reasonable.
  • Compared to the rest of the industry, the Price/Earnings ratio of LEA indicates a rather cheap valuation: LEA is cheaper than 87.80% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 24.89, LEA is valued rather cheaply.
  • The Price/Forward Earnings ratio is 8.07, which indicates a very decent valuation of LEA.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of LEA indicates a rather cheap valuation: LEA is cheaper than 80.49% of the companies listed in the same industry.
  • When comparing the Price/Forward Earnings ratio of LEA to the average of the S&P500 Index (22.19), we can say LEA is valued rather cheaply.
Industry RankSector Rank
PE 9.25
Fwd PE 8.07
LEA Price Earnings VS Forward Price EarningsLEA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20

4.2 Price Multiples

  • LEA's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. LEA is cheaper than 90.24% of the companies 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 65.85% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 11.38
EV/EBITDA 4.65
LEA Per share dataLEA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 100 200 300 400

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.
  • The decent profitability rating of LEA may justify a higher PE ratio.
  • A more expensive valuation may be justified as LEA's earnings are expected to grow with 14.38% in the coming years.
PEG (NY)0.64
PEG (5Y)0.48
EPS Next 2Y16.02%
EPS Next 3Y14.38%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. LEA Dividend Analysis

5.1 Amount

  • LEA has a Yearly Dividend Yield of 2.53%.
  • Compared to an average industry Dividend Yield of 0.68, LEA pays a better dividend. On top of this LEA pays more dividend than 90.24% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.89, LEA pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.53%

5.2 History

  • The dividend of LEA is nicely growing with an annual growth rate of 23.03%!
  • LEA has been paying a dividend for at least 10 years, so it has a reliable track record.
  • LEA has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)23.03%
Div Incr Years0
Div Non Decr Years4
LEA Yearly Dividends per shareLEA Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3

5.3 Sustainability

  • LEA pays out 37.73% of its income as dividend. This is a sustainable payout ratio.
  • LEA's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP37.73%
EPS Next 2Y16.02%
EPS Next 3Y14.38%
LEA Yearly Income VS Free CF VS DividendLEA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B
LEA Dividend Payout.LEA Dividend Payout, showing the Payout Ratio.LEA Dividend Payout.PayoutRetained Earnings

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LEA Fundamentals: All Metrics, Ratios and Statistics

LEAR CORP

NYSE:LEA (3/27/2026, 8:04:00 PM)

After market: 118.26 0 (0%)

118.26

-3.69 (-3.03%)

Chartmill FA Rating
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)02-04
Earnings (Next)05-04
Inst Owners111.64%
Inst Owner Change1.96%
Ins Owners0.76%
Ins Owner Change20.93%
Market Cap6.00B
Revenue(TTM)23.26B
Net Income(TTM)436.80M
Analysts72
Price Target143.2 (21.09%)
Short Float %3.61%
Short Ratio3.45
Dividend
Industry RankSector Rank
Dividend Yield 2.53%
Yearly Dividend3.16
Dividend Growth(5Y)23.03%
DP37.73%
Div Incr Years0
Div Non Decr Years4
Ex-Date03-05
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.13%
Min EPS beat(2)1.67%
Max EPS beat(2)20.58%
EPS beat(4)4
Avg EPS beat(4)10.33%
Min EPS beat(4)1.67%
Max EPS beat(4)20.58%
EPS beat(8)8
Avg EPS beat(8)9.01%
EPS beat(12)11
Avg EPS beat(12)7.02%
EPS beat(16)15
Avg EPS beat(16)8.63%
Revenue beat(2)2
Avg Revenue beat(2)1.32%
Min Revenue beat(2)0.28%
Max Revenue beat(2)2.35%
Revenue beat(4)3
Avg Revenue beat(4)0.99%
Min Revenue beat(4)-0.35%
Max Revenue beat(4)2.35%
Revenue beat(8)4
Avg Revenue beat(8)0.38%
Revenue beat(12)8
Avg Revenue beat(12)0.92%
Revenue beat(16)12
Avg Revenue beat(16)0.99%
PT rev (1m)-0.52%
PT rev (3m)18.77%
EPS NQ rev (1m)1.26%
EPS NQ rev (3m)-1.69%
EPS NY rev (1m)2.92%
EPS NY rev (3m)2.68%
Revenue NQ rev (1m)-0.59%
Revenue NQ rev (3m)2.06%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.95%
Valuation
Industry RankSector Rank
PE 9.25
Fwd PE 8.07
P/S 0.26
P/FCF 11.38
P/OCF 5.51
P/B 1.19
P/tB 1.84
EV/EBITDA 4.65
EPS(TTM)12.79
EY10.82%
EPS(NY)14.65
Fwd EY12.39%
FCF(TTM)10.39
FCFY8.79%
OCF(TTM)21.46
OCFY18.15%
SpS458.49
BVpS99.25
TBVpS64.21
PEG (NY)0.64
PEG (5Y)0.48
Graham Number169
Profitability
Industry RankSector Rank
ROA 2.94%
ROE 8.68%
ROCE 11.36%
ROIC 8.49%
ROICexc 9.58%
ROICexgc 12.24%
OM 4.48%
PM (TTM) 1.88%
GM 7.5%
FCFM 2.27%
ROA(3y)3.48%
ROA(5y)3.13%
ROE(3y)10.56%
ROE(5y)9.35%
ROIC(3y)8.76%
ROIC(5y)8.21%
ROICexc(3y)9.99%
ROICexc(5y)9.44%
ROICexgc(3y)13.13%
ROICexgc(5y)12.55%
ROCE(3y)11.72%
ROCE(5y)10.98%
ROICexgc growth 3Y3.19%
ROICexgc growth 5Y5.71%
ROICexc growth 3Y4.22%
ROICexc growth 5Y7.63%
OM growth 3Y3.59%
OM growth 5Y4.88%
PM growth 3Y6.18%
PM growth 5Y15.02%
GM growth 3Y-0.05%
GM growth 5Y0.76%
F-Score6
Asset Turnover1.57
Health
Industry RankSector Rank
Debt/Equity 0.54
Debt/FCF 5.2
Debt/EBITDA 1.66
Cap/Depr 92.96%
Cap/Sales 2.41%
Interest Coverage 9.14
Cash Conversion 66.12%
Profit Quality 120.7%
Current Ratio 1.35
Quick Ratio 1.05
Altman-Z 2.91
F-Score6
WACC8.59%
ROIC/WACC0.99
Cap/Depr(3y)95.54%
Cap/Depr(5y)99.86%
Cap/Sales(3y)2.49%
Cap/Sales(5y)2.71%
Profit Quality(3y)113.43%
Profit Quality(5y)95.99%
High Growth Momentum
Growth
EPS 1Y (TTM)1.43%
EPS 3Y13.58%
EPS 5Y19.27%
EPS Q2Q%15.99%
EPS Next Y14.52%
EPS Next 2Y16.02%
EPS Next 3Y14.38%
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 2Y2.8%
Revenue Next 3Y2.53%
Revenue Next 5Y3.59%
EBIT growth 1Y2.02%
EBIT growth 3Y7.36%
EBIT growth 5Y11.61%
EBIT Next Year66.92%
EBIT Next 3Y23.22%
EBIT Next 5YN/A
FCF growth 1Y-6.09%
FCF growth 3Y11.22%
FCF growth 5Y20.12%
OCF growth 1Y-2.79%
OCF growth 3Y2.15%
OCF growth 5Y10.43%

LEAR CORP / LEA Fundamental Analysis 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 14.52% in the next year.