LEAR CORP (LEA)

US5218652049 - Common Stock

132.86  +1.7 (+1.3%)

After market: 132.86 0 (0%)

Fundamental Rating

6

LEA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 42 industry peers in the Automobile Components industry. LEA has only an average score on both its financial health and profitability. LEA may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make LEA a good candidate for value investing.



5

1. Profitability

1.1 Basic Checks

In the past year LEA was profitable.
LEA had a positive operating cash flow in the past year.
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.
LEA had an Average Return On Invested Capital over the past 3 years of 7.93%. This 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 RankSector 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.
In the last couple of years the Operating Margin of LEA has declined.
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.
LEA's Gross Margin has declined in the last couple of years.
Industry RankSector 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%

5

2. Health

2.1 Basic Checks

LEA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
LEA has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, LEA has less shares outstanding
Compared to 1 year ago, LEA has an improved debt to assets ratio.

2.2 Solvency

An Altman-Z score of 3.00 indicates that LEA is not in any danger for bankruptcy at the moment.
LEA has a better Altman-Z score (3.00) than 71.43% of its industry peers.
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 Debt to FCF ratio of 4.45. This is in the better half of the industry: LEA outperforms 66.67% of its industry peers.
LEA has a Debt/Equity ratio of 0.56. This is a neutral value indicating LEA is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.56, LEA perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.56
Debt/FCF 4.45
Altman-Z 3
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 worse Current ratio (1.35) than 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.
LEA has a Quick ratio of 1.04. This is in the lower half of the industry: LEA underperforms 61.90% of its industry peers.
Industry RankSector Rank
Current Ratio 1.35
Quick Ratio 1.04

6

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 37.57% over the past year.
Measured over the past years, LEA shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.97% on average per year.
The Revenue has grown by 12.33% in the past year. This is quite good.
LEA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.10% yearly.
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.
The Revenue is expected to grow by 5.93% on average over the next years.
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

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 accelerating: in the next years the growth will be better than in the last years.

8

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.
Compared to the rest of the industry, the Price/Earnings ratio of LEA indicates a rather cheap valuation: LEA is cheaper than 88.10% of the companies listed in the same industry.
LEA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.76.
A Price/Forward Earnings ratio of 9.17 indicates a reasonable valuation of LEA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LEA indicates a rather cheap valuation: LEA is cheaper than 80.95% of the companies listed 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 RankSector Rank
PE 11.06
Fwd PE 9.17

4.2 Price Multiples

73.81% 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 the industry average as 73.81% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 12.15
EV/EBITDA 5.41

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%

6

5. Dividend

5.1 Amount

LEA has a Yearly Dividend Yield of 2.35%. 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 2.81. 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 2.44.
Industry RankSector Rank
Dividend Yield 2.35%

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 Cap7.57B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 2.35%
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)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 RankSector 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 RankSector 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 RankSector 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