LEAR CORP (LEA) Stock Fundamental Analysis
NYSE:LEA - New York Stock Exchange, Inc. - US5218652049 - Common Stock - Currency: USD
LEA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 80 industry peers in the Automobile Components industry. Both the profitability and the financial health of LEA get a neutral evaluation. Nothing too spectacular is happening here. 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.
In the past year LEA had a positive cash flow from operations.
LEA had positive earnings in each of the past 5 years.
In the past 5 years LEA always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of LEA (3.07%) is worse than 65.00% of its industry peers.
LEA has a better Return On Equity (9.24%) than 85.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.29%, LEA belongs to the top of the industry, outperforming 86.25% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for LEA is in line with the industry average of 8.73%.
| 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
With a Profit Margin value of 2.05%, LEA is not doing good in the industry: 68.75% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of LEA has declined.
The Operating Margin of LEA (4.43%) is worse than 71.25% of its industry peers.
In the last couple of years the Operating Margin of LEA has declined.
Looking at the Gross Margin, with a value of 7.66%, LEA is doing worse than 91.25% of the companies in the same industry.
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
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.
The debt/assets ratio for LEA is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.72 indicates that LEA is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of LEA (2.72) is comparable to the rest of the industry.
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 80.00% 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.
Looking at the Debt to Equity ratio, with a value of 0.55, LEA is doing worse than 72.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 5.84 | ||
| Altman-Z | 2.72 |
ROIC/WACC0.96
WACC8.66%
2.3 Liquidity
LEA has a Current Ratio of 1.34. This is a normal value and indicates that LEA is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.34, LEA is not doing good in the industry: 87.50% of the companies in the same industry are doing better.
LEA has a Quick Ratio of 1.07. This is a normal value and indicates that LEA is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.07, LEA is doing worse than 81.25% of the companies in the same industry.
| 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%.
The Earnings Per Share has been decreasing by -2.01% on average over the past years.
Looking at the last year, LEA shows a decrease in Revenue. The Revenue has decreased by -3.13% in the last 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
The Earnings Per Share is expected to grow by 14.36% on average over the next years. This is quite good.
Based on estimates for the next years, LEA will show a small growth in Revenue. The Revenue will grow by 2.41% on average per year.
EPS Next Y-6.01%
EPS Next 2Y5.04%
EPS Next 3Y10.62%
EPS Next 5Y14.36%
Revenue Next Year-2.13%
Revenue Next 2Y0.19%
Revenue Next 3Y1.13%
Revenue Next 5Y2.41%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
LEA is valuated cheaply with a Price/Earnings ratio of 7.49.
Based on the Price/Earnings ratio, LEA is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.82. LEA is valued rather cheaply when compared to this.
LEA is valuated cheaply with a Price/Forward Earnings ratio of 6.69.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LEA indicates a somewhat cheap valuation: LEA is cheaper than 75.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.21, LEA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.49 | ||
| Fwd PE | 6.69 |
4.2 Price Multiples
LEA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LEA is cheaper than 77.50% of the companies in the same industry.
76.25% of the companies in the same industry are more expensive than LEA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.35 | ||
| EV/EBITDA | 4.2 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.04%
EPS Next 3Y10.62%
5. Dividend
5.1 Amount
LEA has a Yearly Dividend Yield of 3.27%.
LEA's Dividend Yield is comparable with the industry average which is at 4.01.
LEA's Dividend Yield is a higher than the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.27% |
5.2 History
The dividend of LEA has a limited annual growth rate of 0.74%.
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)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.
LEA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP35.99%
EPS Next 2Y5.04%
EPS Next 3Y10.62%
93.06
-1.23 (-1.3%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners108.49%
Inst Owner Change-0.68%
Ins Owners0.62%
Ins Owner Change15.5%
Market Cap4.95B
Analysts73.33
Price Target112.39 (20.77%)
Short Float %4.31%
Short Ratio3.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.27% |
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)7.93%
PT rev (3m)13.91%
EPS NQ rev (1m)0.53%
EPS NQ rev (3m)-15.9%
EPS NY rev (1m)1.5%
EPS NY rev (3m)-1.49%
Revenue NQ rev (1m)1.38%
Revenue NQ rev (3m)0.45%
Revenue NY rev (1m)1.84%
Revenue NY rev (3m)1.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.49 | ||
| Fwd PE | 6.69 | ||
| P/S | 0.22 | ||
| P/FCF | 10.35 | ||
| P/OCF | 4.8 | ||
| P/B | 0.97 | ||
| P/tB | 1.49 | ||
| EV/EBITDA | 4.2 |
EPS(TTM)12.42
EY13.35%
EPS(NY)13.91
Fwd EY14.95%
FCF(TTM)8.99
FCFY9.66%
OCF(TTM)19.39
OCFY20.84%
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 | 2.72 |
F-Score6
WACC8.66%
ROIC/WACC0.96
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-6.01%
EPS Next 2Y5.04%
EPS Next 3Y10.62%
EPS Next 5Y14.36%
Revenue 1Y (TTM)-3.13%
Revenue growth 3Y6.56%
Revenue growth 5Y3.3%
Sales Q2Q%0.3%
Revenue Next Year-2.13%
Revenue Next 2Y0.19%
Revenue Next 3Y1.13%
Revenue Next 5Y2.41%
EBIT growth 1Y-6.64%
EBIT growth 3Y6.16%
EBIT growth 5Y-4.12%
EBIT Next Year42.53%
EBIT Next 3Y19.16%
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%