LEAR CORP (LEA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LEA - US5218652049 - Common Stock
118.82 USD
+1.6 (+1.36%)
118.82 USD
0 (0%)
Overall LEA gets a fundamental rating of 4 out of 10. We evaluated LEA against 82 industry peers in the Automobile Components industry. The financial health of LEA is average, but there are quite some concerns on its profitability. LEA is valued correctly, but it does not seem to be growing.
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.
In the past 5 years LEA has always been profitable.
Each year in the past 5 years LEA had a positive operating cash flow.
1.2 Ratios
LEA has a worse Return On Assets (2.92%) than 62.20% of its industry peers.
LEA's Return On Equity of 8.66% is in line compared to the rest of the industry. LEA outperforms 42.68% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.16%, LEA is in line with its industry, outperforming 40.24% of the companies in the same industry.
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 8.62%.
| 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 has a Profit Margin of 1.92%. This is in the lower half of the industry: LEA underperforms 64.63% of its industry peers.
LEA's Profit Margin has declined in the last couple of years.
LEA has a Operating Margin of 4.35%. This is in the lower half of the industry: LEA underperforms 71.95% of its industry peers.
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 89.02% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LEA is still 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.
Compared to 1 year ago, LEA has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.83 indicates that LEA is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of LEA (2.83) is better than 62.20% 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 86.59% 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 71.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 3.8 | ||
| Altman-Z | 2.83 |
ROIC/WACC1.03
WACC7.91%
2.3 Liquidity
A Current Ratio of 1.35 indicates that LEA should not have too much problems paying its short term obligations.
LEA has a Current ratio of 1.35. This is amonst the worse of the industry: LEA underperforms 85.37% 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 79.27% 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
LEA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.48% yearly.
LEA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.81% yearly.
EPS Next Y-2.94%
EPS Next 2Y6.41%
EPS Next 3Y9.35%
EPS Next 5Y13.48%
Revenue Next Year-0.54%
Revenue Next 2Y0.63%
Revenue Next 3Y1.42%
Revenue Next 5Y2.81%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.64, which indicates a very decent valuation of LEA.
Based on the Price/Earnings ratio, LEA is valued cheaper than 80.49% of the companies in the same industry.
When comparing the Price/Earnings ratio of LEA to the average of the S&P500 Index (26.38), we can say LEA is valued rather cheaply.
The Price/Forward Earnings ratio is 8.32, which indicates a very decent valuation of LEA.
Based on the Price/Forward Earnings ratio, LEA is valued a bit cheaper than 76.83% of the companies in the same industry.
LEA is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.64 | ||
| Fwd PE | 8.32 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LEA is valued a bit cheaper than the industry average as 75.61% of the companies are valued more expensively.
LEA's Price/Free Cash Flow ratio is rather cheap when compared to the industry. LEA is cheaper than 87.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.39 | ||
| EV/EBITDA | 4.86 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y6.41%
EPS Next 3Y9.35%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.71%, LEA has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.57, LEA has a dividend in line with its industry peers.
LEA's Dividend Yield is a higher than the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.71% |
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
LEA pays out 37.81% 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.
DP37.81%
EPS Next 2Y6.41%
EPS Next 3Y9.35%
118.82
+1.6 (+1.36%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners112.02%
Inst Owner Change-1.64%
Ins Owners0.6%
Ins Owner Change-7.1%
Market Cap6.16B
Revenue(TTM)22.99B
Net Income(TTM)442.20M
Analysts72
Price Target120 (0.99%)
Short Float %3.71%
Short Ratio2.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.71% |
Yearly Dividend3.14
Dividend Growth(5Y)0.74%
DP37.81%
Div Incr Years0
Div Non Decr Years4
Ex-Date
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)1.66%
PT rev (3m)5.11%
EPS NQ rev (1m)-3.36%
EPS NQ rev (3m)-6.59%
EPS NY rev (1m)-0.5%
EPS NY rev (3m)-0.82%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)1.51%
Revenue NY rev (1m)0.27%
Revenue NY rev (3m)0.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.64 | ||
| Fwd PE | 8.32 | ||
| P/S | 0.27 | ||
| P/FCF | 8.39 | ||
| P/OCF | 4.76 | ||
| P/B | 1.21 | ||
| P/tB | 1.84 | ||
| EV/EBITDA | 4.86 |
EPS(TTM)12.32
EY10.37%
EPS(NY)14.28
Fwd EY12.02%
FCF(TTM)14.17
FCFY11.92%
OCF(TTM)24.94
OCFY20.99%
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 | 2.83 |
F-Score6
WACC7.91%
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)-2.99%
EPS 3Y16.72%
EPS 5Y-2.01%
EPS Q2Q%-3.46%
EPS Next Y-2.94%
EPS Next 2Y6.41%
EPS Next 3Y9.35%
EPS Next 5Y13.48%
Revenue 1Y (TTM)-1.91%
Revenue growth 3Y6.56%
Revenue growth 5Y3.3%
Sales Q2Q%1.71%
Revenue Next Year-0.54%
Revenue Next 2Y0.63%
Revenue Next 3Y1.42%
Revenue Next 5Y2.81%
EBIT growth 1Y-6.49%
EBIT growth 3Y6.16%
EBIT growth 5Y-4.12%
EBIT Next Year51.97%
EBIT Next 3Y18.97%
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 4 / 10 to LEA.
What is the valuation status of LEAR CORP (LEA) stock?
ChartMill assigns a valuation rating of 6 / 10 to LEAR CORP (LEA). This can be considered as Fairly Valued.
How profitable is LEAR CORP (LEA) stock?
LEAR CORP (LEA) has a profitability rating of 3 / 10.
Can you provide the PE and PB ratios for LEA stock?
The Price/Earnings (PE) ratio for LEAR CORP (LEA) is 9.64 and the Price/Book (PB) ratio is 1.21.
What is the financial health of LEAR CORP (LEA) stock?
The financial health rating of LEAR CORP (LEA) is 5 / 10.