LEAR CORP (LEA) Fundamental Analysis & Valuation

NYSE:LEA • US5218652049

Current stock price

114.16 USD
-1.49 (-1.29%)
At close:
114.16 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

  • In the past year LEA was profitable.
  • In the past year LEA had a positive cash flow from operations.
  • Each year in the past 5 years LEA has been profitable.
  • Each year in the past 5 years LEA had a positive operating cash flow.
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

  • The Return On Assets of LEA (2.94%) is better than 68.29% of its industry peers.
  • Looking at the Return On Equity, with a value of 8.68%, LEA is in the better half of the industry, outperforming 75.61% of the companies in the same industry.
  • The Return On Invested Capital of LEA (8.49%) is better than 75.61% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for LEA is in line with the industry average of 9.25%.
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 has a Profit Margin of 1.88%. This is in the better half of the industry: LEA outperforms 60.98% of its industry peers.
  • LEA's Profit Margin has improved in the last couple of years.
  • 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.
  • LEA has a Gross Margin of 7.50%. This is amonst the worse of the industry: LEA underperforms 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

  • 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.
  • LEA has a better debt/assets ratio than last year.
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

  • An Altman-Z score of 2.90 indicates that LEA is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • LEA has a better Altman-Z score (2.90) than 68.29% of its industry peers.
  • LEA has a debt to FCF ratio of 5.20. This is a neutral value as LEA would need 5.20 years to pay back of all of its debts.
  • The Debt to FCF ratio of LEA (5.20) is better than 63.41% of its industry peers.
  • A Debt/Equity ratio of 0.54 indicates that LEA is somewhat dependend on debt financing.
  • With a Debt to Equity ratio value of 0.54, LEA perfoms like the industry average, outperforming 53.66% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.54
Debt/FCF 5.2
Altman-Z 2.9
ROIC/WACC1
WACC8.49%
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's Current ratio of 1.35 is on the low side compared to the rest of the industry. LEA is outperformed by 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 Quick ratio of 1.05. This is in the lower half of the industry: LEA underperforms 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%.
  • The Earnings Per Share has been growing by 19.27% on average over the past years. This is quite good.
  • Looking at the last year, LEA shows a decrease in Revenue. The Revenue has decreased by -0.20% in the last 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

  • Based on estimates for the next years, LEA will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.24% on average per year.
  • Based on estimates for the next years, LEA will show a small growth in Revenue. The Revenue will grow by 3.59% on average per year.
EPS Next Y14.52%
EPS Next 2Y16.02%
EPS Next 3Y14.38%
EPS Next 5Y15.24%
Revenue Next Year2.63%
Revenue Next 2Y2.78%
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.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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

  • A Price/Earnings ratio of 8.93 indicates a reasonable valuation of LEA.
  • Compared to the rest of the industry, the Price/Earnings ratio of LEA indicates a rather cheap valuation: LEA is cheaper than 95.12% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 25.70, LEA is valued rather cheaply.
  • A Price/Forward Earnings ratio of 7.79 indicates a rather cheap 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 87.80% 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 (23.84), we can say LEA is valued rather cheaply.
Industry RankSector Rank
PE 8.93
Fwd PE 7.79
LEA Price Earnings VS Forward Price EarningsLEA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

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.
  • Based on the Price/Free Cash Flow ratio, LEA is valued a bit cheaper than 65.85% of the companies in the same industry.
Industry RankSector Rank
P/FCF 10.99
EV/EBITDA 4.53
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)0.61
PEG (5Y)0.46
EPS Next 2Y16.02%
EPS Next 3Y14.38%

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6

5. LEA Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 2.66%, LEA has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 0.69, LEA pays a better dividend. On top of this LEA pays more dividend than 90.24% of the companies listed in the same industry.
  • LEA's Dividend Yield is a higher than the S&P500 average which is at 1.89.
Industry RankSector Rank
Dividend Yield 2.66%

5.2 History

  • On average, the dividend of LEA grows each year by 23.03%, which is quite nice.
  • 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)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

  • 37.73% 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 the earnings are growing slower. 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 (3/13/2026, 8:04:00 PM)

After market: 114.16 0 (0%)

114.16

-1.49 (-1.29%)

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 Change20.94%
Market Cap5.79B
Revenue(TTM)23.26B
Net Income(TTM)436.80M
Analysts72
Price Target143.94 (26.09%)
Short Float %3.25%
Short Ratio3.08
Dividend
Industry RankSector Rank
Dividend Yield 2.66%
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)12.34%
PT rev (3m)19.95%
EPS NQ rev (1m)0.3%
EPS NQ rev (3m)-4.02%
EPS NY rev (1m)2.92%
EPS NY rev (3m)2.59%
Revenue NQ rev (1m)0.95%
Revenue NQ rev (3m)2.79%
Revenue NY rev (1m)0.89%
Revenue NY rev (3m)1.1%
Valuation
Industry RankSector Rank
PE 8.93
Fwd PE 7.79
P/S 0.25
P/FCF 10.99
P/OCF 5.32
P/B 1.15
P/tB 1.78
EV/EBITDA 4.53
EPS(TTM)12.79
EY11.2%
EPS(NY)14.65
Fwd EY12.83%
FCF(TTM)10.39
FCFY9.1%
OCF(TTM)21.46
OCFY18.8%
SpS458.49
BVpS99.25
TBVpS64.21
PEG (NY)0.61
PEG (5Y)0.46
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 2.9
F-Score6
WACC8.49%
ROIC/WACC1
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 Year2.63%
Revenue Next 2Y2.78%
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.