LEAR CORP (LEA) Stock Fundamental Analysis
USA - NYSE:LEA - US5218652049 - Common Stock
103.07 USD
-2.27 (-2.15%)
103.13 USD
+0.06 (+0.06%)
Taking everything into account, LEA scores 4 out of 10 in our fundamental rating. LEA was compared to 81 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 valued correctly, 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.
In the past 5 years LEA has always been profitable.
LEA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 3.07%, LEA is not doing good in the industry: 62.96% of the companies in the same industry are doing better.
With an excellent Return On Equity value of 9.24%, LEA belongs to the best of the industry, outperforming 87.65% of the companies in the same industry.
With an excellent Return On Invested Capital value of 8.29%, LEA belongs to the best of the industry, outperforming 86.42% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for LEA is in line with the industry average of 8.51%.
| 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
LEA has a worse Profit Margin (2.05%) than 69.14% of its industry peers.
LEA's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 4.43%, LEA is not doing good in the industry: 69.14% of the companies in the same industry are doing better.
LEA's Operating Margin has declined in the last couple of years.
LEA's Gross Margin of 7.66% is on the low side compared to the rest of the industry. LEA is outperformed by 88.89% of its industry peers.
LEA's Gross Margin has declined in the last couple of years.
| 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.
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 2.75 indicates that LEA is not a great score, but indicates only limited risk for bankruptcy at the moment.
LEA has a Altman-Z score (2.75) which is comparable to the rest of the industry.
LEA has a debt to FCF ratio of 5.84. This is a neutral value as LEA would need 5.84 years to pay back of all of its debts.
LEA's Debt to FCF ratio of 5.84 is fine compared to the rest of the industry. LEA outperforms 79.01% of its industry peers.
A Debt/Equity ratio of 0.55 indicates that LEA is somewhat dependend on debt financing.
LEA has a Debt to Equity ratio of 0.55. This is in the lower half of the industry: LEA underperforms 71.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 5.84 | ||
| Altman-Z | 2.75 |
ROIC/WACC0.93
WACC8.93%
2.3 Liquidity
A Current Ratio of 1.34 indicates that LEA should not have too much problems paying its short term obligations.
With a Current ratio value of 1.34, LEA is not doing good in the industry: 87.65% of the companies in the same industry are doing better.
A Quick Ratio of 1.07 indicates that LEA should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.07, LEA is not doing good in the industry: 80.25% of the companies in the same industry are doing better.
| 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%.
LEA shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.01% yearly.
Looking at the last year, LEA shows a decrease in Revenue. The Revenue has decreased by -3.13% in the last 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)-2.05%
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
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.
The Revenue is expected to grow by 2.81% on average over the next years.
EPS Next Y-2.14%
EPS Next 2Y5.08%
EPS Next 3Y10.77%
EPS Next 5Y13.48%
Revenue Next Year-1.47%
Revenue Next 2Y0.27%
Revenue Next 3Y1.21%
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
The Price/Earnings ratio is 8.30, which indicates a very decent valuation of LEA.
88.89% of the companies in the same industry are more expensive than LEA, based on the Price/Earnings ratio.
LEA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.41.
The Price/Forward Earnings ratio is 7.40, which indicates a rather cheap valuation of LEA.
Based on the Price/Forward Earnings ratio, LEA is valued a bit cheaper than 76.54% of the companies in the same industry.
LEA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.3 | ||
| Fwd PE | 7.4 |
4.2 Price Multiples
LEA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LEA is cheaper than 77.78% 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 71.60% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.47 | ||
| EV/EBITDA | 4.53 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.08%
EPS Next 3Y10.77%
5. Dividend
5.1 Amount
LEA has a Yearly Dividend Yield of 2.87%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.95, 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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
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 35.99% 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.
DP35.99%
EPS Next 2Y5.08%
EPS Next 3Y10.77%
103.07
-2.27 (-2.15%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners108.59%
Inst Owner Change0.81%
Ins Owners0.61%
Ins Owner Change-2.87%
Market Cap5.48B
Analysts73.33
Price Target114.17 (10.77%)
Short Float %4.46%
Short Ratio3.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
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)-0.89%
PT rev (3m)9.65%
EPS NQ rev (1m)1.05%
EPS NQ rev (3m)4.71%
EPS NY rev (1m)0%
EPS NY rev (3m)5.68%
Revenue NQ rev (1m)0.25%
Revenue NQ rev (3m)2%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)2.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.3 | ||
| Fwd PE | 7.4 | ||
| P/S | 0.24 | ||
| P/FCF | 11.47 | ||
| P/OCF | 5.31 | ||
| P/B | 1.08 | ||
| P/tB | 1.65 | ||
| EV/EBITDA | 4.53 |
EPS(TTM)12.42
EY12.05%
EPS(NY)13.92
Fwd EY13.51%
FCF(TTM)8.99
FCFY8.72%
OCF(TTM)19.39
OCFY18.82%
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 | 2.75 |
F-Score6
WACC8.93%
ROIC/WACC0.93
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-2.14%
EPS Next 2Y5.08%
EPS Next 3Y10.77%
EPS Next 5Y13.48%
Revenue 1Y (TTM)-3.13%
Revenue growth 3Y6.56%
Revenue growth 5Y3.3%
Sales Q2Q%0.3%
Revenue Next Year-1.47%
Revenue Next 2Y0.27%
Revenue Next 3Y1.21%
Revenue Next 5Y2.81%
EBIT growth 1Y-6.64%
EBIT growth 3Y6.16%
EBIT growth 5Y-4.12%
EBIT Next Year52.8%
EBIT Next 3Y19.57%
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%