LEAR CORP (LEA)
US5218652049 - Common Stock
Taking everything into account, LEA scores 6 out of 10 in our fundamental rating. LEA was compared to 42 industry peers in the Automobile Components industry. LEA has an average financial health and profitability rating. LEA scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings could make LEA a good candidate for value investing.
1. Profitability
1.1 Basic Checks
LEA had positive earnings in the past year.
In the past year LEA had a positive cash flow from operations.
In the past 5 years LEA has always been profitable.
In the past 5 years LEA always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 3.90%, LEA is doing good in the industry, outperforming 69.05% of the companies in the same industry.
The Return On Equity of LEA (11.64%) is better than 80.95% of its industry peers.
LEA has a Return On Invested Capital of 8.96%. This is in the better half of the industry: LEA outperforms 78.57% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LEA is in line with the industry average of 9.29%.
The last Return On Invested Capital (8.96%) for LEA is above the 3 year average (7.93%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.9% | ||
| ROE | 11.64% | ||
| ROIC | 8.96% |
ROA(3y)3.03%
ROA(5y)3.25%
ROE(3y)8.9%
ROE(5y)9.52%
ROIC(3y)7.93%
ROIC(5y)8.23%
1.3 Margins
LEA has a Profit Margin (2.44%) which is comparable to the rest of the industry.
LEA's Profit Margin has declined in the last couple of years.
LEA has a Operating Margin (4.59%) which is comparable to the rest of the industry.
LEA's Operating Margin has declined in the last couple of years.
LEA's Gross Margin of 7.87% is on the low side compared to the rest of the industry. LEA is outperformed by 83.33% of its industry peers.
In the last couple of years the Gross Margin of LEA has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.59% | ||
| PM (TTM) | 2.44% | ||
| GM | 7.87% |
OM growth 3Y9.2%
OM growth 5Y-10.67%
PM growth 3Y37.78%
PM growth 5Y-14.81%
GM growth 3Y2.91%
GM growth 5Y-6.92%
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.
Compared to 5 years ago, LEA has less shares outstanding
The debt/assets ratio for LEA has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.99 indicates that LEA is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.99, LEA is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
LEA has a debt to FCF ratio of 4.45. This is a neutral value as LEA would need 4.45 years to pay back of all of its debts.
LEA has a better Debt to FCF ratio (4.45) than 66.67% of its industry peers.
A Debt/Equity ratio of 0.56 indicates that LEA is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.56, LEA is in line with its industry, outperforming 42.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 4.45 | ||
| Altman-Z | 2.99 |
ROIC/WACC0.85
WACC10.52%
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 76.19% of its industry peers.
A Quick Ratio of 1.04 indicates that LEA should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.04, LEA is doing worse than 61.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 37.57% over the past year.
LEA shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.97% yearly.
Looking at the last year, LEA shows a quite strong growth in Revenue. The Revenue has grown by 12.33% in the last year.
The Revenue has been growing slightly by 2.10% on average over the past years.
EPS 1Y (TTM)37.57%
EPS 3Y31.35%
EPS 5Y-7.97%
EPS growth Q2Q7.83%
Revenue 1Y (TTM)12.33%
Revenue growth 3Y11.24%
Revenue growth 5Y2.1%
Revenue growth Q2Q8.76%
3.2 Future
LEA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.84% yearly.
Based on estimates for the next years, LEA will show a small growth in Revenue. The Revenue will grow by 5.93% on average per year.
EPS Next Y20.57%
EPS Next 2Y22.34%
EPS Next 3Y20.64%
EPS Next 5Y22.84%
Revenue Next Year4.91%
Revenue Next 2Y4.5%
Revenue Next 3Y4.31%
Revenue Next 5Y5.93%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.06, the valuation of LEA can be described as very reasonable.
Based on the Price/Earnings ratio, LEA is valued cheaper than 88.10% of the companies in the same industry.
When comparing the Price/Earnings ratio of LEA to the average of the S&P500 Index (24.76), we can say LEA is valued rather cheaply.
A Price/Forward Earnings ratio of 9.17 indicates a reasonable valuation of LEA.
Based on the Price/Forward Earnings ratio, LEA is valued cheaper than 80.95% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.26. LEA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.06 | ||
| Fwd PE | 9.17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LEA is valued a bit cheaper than 73.81% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, LEA is valued a bit cheaper than the industry average as 73.81% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.17 | ||
| EV/EBITDA | 5.36 |
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.
A more expensive valuation may be justified as LEA's earnings are expected to grow with 20.64% in the coming years.
PEG (NY)0.54
PEG (5Y)N/A
EPS Next 2Y22.34%
EPS Next 3Y20.64%
5. Dividend
5.1 Amount
LEA has a Yearly Dividend Yield of 2.25%. Purely for dividend investing, there may be better candidates out there.
LEA's Dividend Yield is rather good when compared to the industry average which is at 2.71. LEA pays more dividend than 83.33% of the companies in the same industry.
LEA's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
5.2 History
The dividend of LEA has a limited annual growth rate of 1.81%.
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)1.81%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
LEA pays out 31.77% of its income as dividend. This is a sustainable payout ratio.
The dividend of LEA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP31.77%
EPS Next 2Y22.34%
EPS Next 3Y20.64%
LEAR CORP
NYSE:LEA (4/19/2024, 7:04:00 PM)
After market: 132.86 0 (0%)132.86
+1.7 (+1.3%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap7.58B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.06 | ||
| Fwd PE | 9.17 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.54
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.9% | ||
| ROE | 11.64% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.59% | ||
| PM (TTM) | 2.44% | ||
| GM | 7.87% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)37.57%
EPS 3Y31.35%
EPS 5Y
EPS growth Q2Q
EPS Next Y20.57%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12.33%
Revenue growth 3Y11.24%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y