LEAR CORP (LEA) Stock Fundamental Analysis
NYSE:LEA - New York Stock Exchange, Inc. - US5218652049 - Common Stock - Currency: USD
Overall LEA gets a fundamental rating of 4 out of 10. We evaluated LEA against 81 industry peers in the Automobile Components industry. While LEA is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
In the past 5 years LEA always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of LEA (3.27%) is worse than 65.43% of its industry peers.
The Return On Equity of LEA (10.25%) is better than 87.65% of its industry peers.
With an excellent Return On Invested Capital value of 8.77%, LEA belongs to the best of the industry, outperforming 87.65% 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 9.01%.
The last Return On Invested Capital (8.77%) for LEA is above the 3 year average (8.42%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.27% | ||
| ROE | 10.25% | ||
| ROIC | 8.77% |
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 2.09% is on the low side compared to the rest of the industry. LEA is outperformed by 66.67% of its industry peers.
LEA's Profit Margin has declined in the last couple of years.
The Operating Margin of LEA (4.48%) is worse than 70.37% of its industry peers.
In the last couple of years the Operating Margin of LEA has declined.
With a Gross Margin value of 7.71%, LEA is not doing good in the industry: 90.12% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of LEA has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.48% | ||
| PM (TTM) | 2.09% | ||
| GM | 7.71% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), LEA is creating some value.
LEA has less shares outstanding than it did 1 year ago.
LEA has less shares outstanding than it did 5 years ago.
The debt/assets ratio for LEA is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.82 indicates that LEA is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.82, LEA is in the better half of the industry, outperforming 65.43% of the companies in the same industry.
LEA has a debt to FCF ratio of 5.78. This is a neutral value as LEA would need 5.78 years to pay back of all of its debts.
LEA has a worse Debt to FCF ratio (5.78) than 66.67% of its industry peers.
A Debt/Equity ratio of 0.59 indicates that LEA is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.59, LEA is doing worse than 76.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 5.78 | ||
| Altman-Z | 2.82 |
ROIC/WACC1.03
WACC8.5%
2.3 Liquidity
A Current Ratio of 1.32 indicates that LEA should not have too much problems paying its short term obligations.
LEA has a worse Current ratio (1.32) than 87.65% of its industry peers.
LEA has a Quick Ratio of 1.03. 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 (1.03) than 80.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
LEA shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.13%.
The Earnings Per Share has been decreasing by -2.01% on average over the past years.
The Revenue has decreased by -3.15% 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)1.13%
EPS 3Y16.72%
EPS 5Y-2.01%
EPS Q2Q%-1.89%
Revenue 1Y (TTM)-3.15%
Revenue growth 3Y6.56%
Revenue growth 5Y3.3%
Sales Q2Q%-7.24%
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-4.41%
EPS Next 2Y4.98%
EPS Next 3Y10.4%
EPS Next 5Y14.36%
Revenue Next Year-3.79%
Revenue Next 2Y-0.31%
Revenue Next 3Y1.04%
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
A Price/Earnings ratio of 7.26 indicates a rather cheap valuation of LEA.
Based on the Price/Earnings ratio, LEA is valued cheaply inside the industry as 81.48% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of LEA to the average of the S&P500 Index (26.03), we can say LEA is valued rather cheaply.
LEA is valuated cheaply with a Price/Forward Earnings ratio of 6.56.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LEA indicates a somewhat cheap valuation: LEA is cheaper than 79.01% 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 (21.94), we can say LEA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.26 | ||
| Fwd PE | 6.56 |
4.2 Price Multiples
67.90% 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 a bit cheaper than 60.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.21 | ||
| EV/EBITDA | 4.26 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y4.98%
EPS Next 3Y10.4%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.28%, LEA has a reasonable but not impressive dividend return.
LEA's Dividend Yield is comparable with the industry average which is at 4.08.
LEA's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.28% |
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 Years3
5.3 Sustainability
LEA pays out 35.90% of its income as dividend. This is a sustainable payout ratio.
LEA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP35.9%
EPS Next 2Y4.98%
EPS Next 3Y10.4%
91.14
-2.8 (-2.98%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners106.72%
Inst Owner Change1.54%
Ins Owners0.47%
Ins Owner Change20.86%
Market Cap4.88B
Analysts73.33
Price Target100.22 (9.96%)
Short Float %3.52%
Short Ratio2.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.28% |
Yearly Dividend3.14
Dividend Growth(5Y)0.74%
DP35.9%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.7%
Min EPS beat(2)12.95%
Max EPS beat(2)14.45%
EPS beat(4)4
Avg EPS beat(4)10.27%
Min EPS beat(4)4.89%
Max EPS beat(4)14.45%
EPS beat(8)7
Avg EPS beat(8)6.33%
EPS beat(12)11
Avg EPS beat(12)8.13%
EPS beat(16)13
Avg EPS beat(16)6.71%
Revenue beat(2)1
Avg Revenue beat(2)0.98%
Min Revenue beat(2)-0.35%
Max Revenue beat(2)2.32%
Revenue beat(4)1
Avg Revenue beat(4)-0.02%
Min Revenue beat(4)-1.26%
Max Revenue beat(4)2.32%
Revenue beat(8)4
Avg Revenue beat(8)0.37%
Revenue beat(12)8
Avg Revenue beat(12)0.76%
Revenue beat(16)10
Avg Revenue beat(16)0.67%
PT rev (1m)-17.65%
PT rev (3m)-21.33%
EPS NQ rev (1m)5.46%
EPS NQ rev (3m)-2.07%
EPS NY rev (1m)0.18%
EPS NY rev (3m)-6.05%
Revenue NQ rev (1m)0.26%
Revenue NQ rev (3m)-0.05%
Revenue NY rev (1m)-0.48%
Revenue NY rev (3m)-3.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.26 | ||
| Fwd PE | 6.56 | ||
| P/S | 0.21 | ||
| P/FCF | 10.21 | ||
| P/OCF | 4.75 | ||
| P/B | 1.05 | ||
| P/tB | 1.66 | ||
| EV/EBITDA | 4.26 |
EPS(TTM)12.55
EY13.77%
EPS(NY)13.9
Fwd EY15.25%
FCF(TTM)8.93
FCFY9.79%
OCF(TTM)19.18
OCFY21.05%
SpS427.19
BVpS87.01
TBVpS54.82
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.27% | ||
| ROE | 10.25% | ||
| ROCE | 11.68% | ||
| ROIC | 8.77% | ||
| ROICexc | 9.63% | ||
| ROICexgc | 12.26% | ||
| OM | 4.48% | ||
| PM (TTM) | 2.09% | ||
| GM | 7.71% | ||
| 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-Score4
Asset Turnover1.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 5.78 | ||
| Debt/EBITDA | 1.69 | ||
| Cap/Depr | 89.56% | ||
| Cap/Sales | 2.4% | ||
| Interest Coverage | 8.79 | ||
| Cash Conversion | 62.71% | ||
| Profit Quality | 100.04% | ||
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | 2.82 |
F-Score4
WACC8.5%
ROIC/WACC1.03
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)1.13%
EPS 3Y16.72%
EPS 5Y-2.01%
EPS Q2Q%-1.89%
EPS Next Y-4.41%
EPS Next 2Y4.98%
EPS Next 3Y10.4%
EPS Next 5Y14.36%
Revenue 1Y (TTM)-3.15%
Revenue growth 3Y6.56%
Revenue growth 5Y3.3%
Sales Q2Q%-7.24%
Revenue Next Year-3.79%
Revenue Next 2Y-0.31%
Revenue Next 3Y1.04%
Revenue Next 5Y2.41%
EBIT growth 1Y-5.52%
EBIT growth 3Y6.16%
EBIT growth 5Y-4.12%
EBIT Next Year49.13%
EBIT Next 3Y20.35%
EBIT Next 5YN/A
FCF growth 1Y228.68%
FCF growth 3Y87.62%
FCF growth 5Y-3.77%
OCF growth 1Y34.23%
OCF growth 3Y18.68%
OCF growth 5Y-2.7%