LEAR CORP (LEA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LEA - US5218652049 - Common Stock
124.85 USD
+0.18 (+0.14%)
124.85 USD
0 (0%)
Taking everything into account, LEA scores 5 out of 10 in our fundamental rating. LEA was compared to 42 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 is cheap, but on the other hand it scores bad on growth. Finally LEA also has an excellent dividend rating. With these ratings, LEA could be worth investigating further for value and dividend investing!.
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.
- 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.
1.2 Ratios
- Looking at the Return On Assets, with a value of 2.92%, LEA is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
- LEA has a Return On Equity of 8.66%. This is amongst the best in the industry. LEA outperforms 80.95% of its industry peers.
- The Return On Invested Capital of LEA (8.16%) is better than 76.19% 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 9.10%.
| 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
- LEA's Profit Margin of 1.92% is fine compared to the rest of the industry. LEA outperforms 66.67% of its industry peers.
- LEA's Profit Margin has declined in the last couple of years.
- The Operating Margin of LEA (4.35%) is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of LEA has declined.
- LEA has a Gross Margin of 7.51%. This is amonst the worse of the industry: LEA underperforms 80.95% 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.
- Compared to 5 years ago, LEA has less shares outstanding
- LEA has a worse debt/assets ratio than last year.
2.2 Solvency
- LEA has an Altman-Z score of 2.85. 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 2.85 is fine compared to the rest of the industry. LEA outperforms 61.90% 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 has a better Debt to FCF ratio (3.80) than 73.81% of its industry peers.
- A Debt/Equity ratio of 0.55 indicates that LEA is somewhat dependend on debt financing.
- LEA's Debt to Equity ratio of 0.55 is in line compared to the rest of the industry. LEA outperforms 54.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 3.8 | ||
| Altman-Z | 2.85 |
ROIC/WACC0.98
WACC8.29%
2.3 Liquidity
- LEA has a Current Ratio of 1.35. 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 Current ratio of 1.35. This is in the lower half of the industry: LEA underperforms 71.43% 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 61.90% of its industry peers.
| 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%.
- LEA shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.01% yearly.
- The Revenue has decreased by -1.91% in the past year.
- Measured over the past years, LEA shows a small growth in Revenue. The Revenue has been growing by 3.30% on average per year.
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
- The Earnings Per Share is expected to grow by 13.48% 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 2.81% on average per year.
EPS Next Y-2.96%
EPS Next 2Y6.36%
EPS Next 3Y9.33%
EPS Next 5Y13.48%
Revenue Next Year-0.53%
Revenue Next 2Y0.65%
Revenue Next 3Y1.49%
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.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 10.13, the valuation of LEA can be described as reasonable.
- 90.48% of the companies in the same industry are more expensive than LEA, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.33, LEA is valued rather cheaply.
- With a Price/Forward Earnings ratio of 8.75, the valuation of LEA can be described as very reasonable.
- Based on the Price/Forward Earnings ratio, LEA is valued cheaply inside the industry as 90.48% of the companies are valued more expensively.
- LEA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.12.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.13 | ||
| Fwd PE | 8.75 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LEA indicates a rather cheap valuation: LEA is cheaper than 88.10% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of LEA indicates a rather cheap valuation: LEA is cheaper than 83.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.81 | ||
| EV/EBITDA | 5.11 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y6.36%
EPS Next 3Y9.33%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.44%, LEA has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.62, LEA pays a better dividend. On top of this LEA pays more dividend than 90.48% of the companies listed in the same industry.
- LEA's Dividend Yield is a higher than the S&P500 average which is at 1.91.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.44% |
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.
- LEA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP37.81%
EPS Next 2Y6.36%
EPS Next 3Y9.33%
124.85
+0.18 (+0.14%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)10-31 2025-10-31/bmo
Earnings (Next)02-04 2026-02-04/amc
Inst Owners111.59%
Inst Owner Change0.02%
Ins Owners0.59%
Ins Owner Change1.22%
Market Cap6.48B
Revenue(TTM)22.99B
Net Income(TTM)442.20M
Analysts71.58
Price Target120.57 (-3.43%)
Short Float %4.15%
Short Ratio3.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.44% |
Yearly Dividend3.14
Dividend Growth(5Y)0.74%
DP37.81%
Div Incr Years0
Div Non Decr Years4
Ex-DateN/A
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)0.47%
PT rev (3m)4.67%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)-9.84%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-1.22%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)0.61%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.13 | ||
| Fwd PE | 8.75 | ||
| P/S | 0.28 | ||
| P/FCF | 8.81 | ||
| P/OCF | 5.01 | ||
| P/B | 1.27 | ||
| P/tB | 1.94 | ||
| EV/EBITDA | 5.11 |
EPS(TTM)12.32
EY9.87%
EPS(NY)14.27
Fwd EY11.43%
FCF(TTM)14.17
FCFY11.35%
OCF(TTM)24.94
OCFY19.98%
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 | 2.85 |
F-Score6
WACC8.29%
ROIC/WACC0.98
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-2.96%
EPS Next 2Y6.36%
EPS Next 3Y9.33%
EPS Next 5Y13.48%
Revenue 1Y (TTM)-1.91%
Revenue growth 3Y6.56%
Revenue growth 5Y3.3%
Sales Q2Q%1.71%
Revenue Next Year-0.53%
Revenue Next 2Y0.65%
Revenue Next 3Y1.49%
Revenue Next 5Y2.81%
EBIT growth 1Y-6.49%
EBIT growth 3Y6.16%
EBIT growth 5Y-4.12%
EBIT Next Year51.88%
EBIT Next 3Y19.33%
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 5 / 10 to LEA.
What is the valuation status for LEA stock?
ChartMill assigns a valuation rating of 7 / 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 5 / 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 decline by -2.96% in the next year.