LEAR CORP (LEA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LEA - US5218652049 - Common Stock
107.5 USD
-0.27 (-0.25%)
LEA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 82 industry peers in the Automobile Components industry. LEA scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. 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.
LEA had a positive operating cash flow in the past year.
LEA had positive earnings in each of the past 5 years.
LEA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of LEA (2.92%) is worse than 62.20% of its industry peers.
With a Return On Equity value of 8.66%, LEA perfoms like the industry average, outperforming 42.68% of the companies in the same industry.
LEA has a Return On Invested Capital of 8.16%. This is comparable to the rest of the industry: LEA outperforms 40.24% 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 8.52%.
| 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.
In the last couple of years the Profit Margin of LEA has declined.
LEA has a worse Operating Margin (4.35%) than 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.
Compared to 1 year ago, LEA has less shares outstanding
The number of shares outstanding for LEA has been reduced compared to 5 years ago.
The debt/assets ratio for LEA is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.81 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 2.81, LEA is in the better half of the industry, outperforming 60.98% of the companies in the same industry.
LEA has a debt to FCF ratio of 3.80. This is a good value and a sign of high solvency as LEA would need 3.80 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 3.80, LEA belongs to the best of the industry, outperforming 86.59% of the companies in the same industry.
A Debt/Equity ratio of 0.55 indicates that LEA is somewhat dependend on debt financing.
LEA has a worse Debt to Equity ratio (0.55) than 71.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 3.8 | ||
| Altman-Z | 2.81 |
ROIC/WACC1.02
WACC7.99%
2.3 Liquidity
A Current Ratio of 1.35 indicates that LEA should not have too much problems paying its short term obligations.
With a Current ratio value of 1.35, LEA is not doing good in the industry: 85.37% of the companies in the same industry are doing better.
A Quick Ratio of 1.05 indicates that LEA should not have too much problems paying its short term obligations.
The Quick ratio of LEA (1.05) is worse than 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%.
Measured over the past years, LEA shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.01% on average per year.
Looking at the last year, LEA shows a decrease in Revenue. The Revenue has decreased by -1.91% in the last 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)-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
Based on estimates for the next years, LEA will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.48% on average per year.
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-2.45%
EPS Next 2Y5.99%
EPS Next 3Y9.52%
EPS Next 5Y13.48%
Revenue Next Year-0.81%
Revenue Next 2Y0.6%
Revenue Next 3Y1.51%
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.
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
Based on the Price/Earnings ratio of 8.73, the valuation of LEA can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of LEA indicates a rather cheap valuation: LEA is cheaper than 85.37% of the companies listed in the same industry.
LEA is valuated cheaply when we compare the Price/Earnings ratio to 26.15, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 7.59 indicates a rather cheap valuation of LEA.
78.05% of the companies in the same industry are more expensive than LEA, based on the Price/Forward Earnings ratio.
LEA is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.12, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.73 | ||
| Fwd PE | 7.59 |
4.2 Price Multiples
75.61% of the companies in the same industry are more expensive than LEA, based on the Enterprise Value to EBITDA ratio.
89.02% of the companies in the same industry are more expensive than LEA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.78 | ||
| EV/EBITDA | 4.64 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.99%
EPS Next 3Y9.52%
5. Dividend
5.1 Amount
LEA has a Yearly Dividend Yield of 3.10%.
Compared to an average industry Dividend Yield of 4.49, LEA has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, LEA pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.1% |
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 Years4
5.3 Sustainability
LEA pays out 37.81% 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.
DP37.81%
EPS Next 2Y5.99%
EPS Next 3Y9.52%
NYSE:LEA (11/28/2025, 9:47:05 AM)
107.5
-0.27 (-0.25%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners110.02%
Inst Owner Change-1.81%
Ins Owners0.59%
Ins Owner Change-7.1%
Market Cap5.72B
Revenue(TTM)22.99B
Net Income(TTM)442.20M
Analysts72
Price Target120 (11.63%)
Short Float %4.49%
Short Ratio3.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.1% |
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)4.17%
PT rev (3m)4.17%
EPS NQ rev (1m)-7.63%
EPS NQ rev (3m)-5.6%
EPS NY rev (1m)-0.74%
EPS NY rev (3m)-0.32%
Revenue NQ rev (1m)-0.26%
Revenue NQ rev (3m)1.33%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.73 | ||
| Fwd PE | 7.59 | ||
| P/S | 0.25 | ||
| P/FCF | 7.78 | ||
| P/OCF | 4.42 | ||
| P/B | 1.12 | ||
| P/tB | 1.71 | ||
| EV/EBITDA | 4.64 |
EPS(TTM)12.32
EY11.46%
EPS(NY)14.17
Fwd EY13.18%
FCF(TTM)13.81
FCFY12.85%
OCF(TTM)24.31
OCFY22.62%
SpS431.97
BVpS95.96
TBVpS62.85
PEG (NY)N/A
PEG (5Y)N/A
Graham Number163.09
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 | 2.81 |
F-Score6
WACC7.99%
ROIC/WACC1.02
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-2.45%
EPS Next 2Y5.99%
EPS Next 3Y9.52%
EPS Next 5Y13.48%
Revenue 1Y (TTM)-1.91%
Revenue growth 3Y6.56%
Revenue growth 5Y3.3%
Sales Q2Q%1.71%
Revenue Next Year-0.81%
Revenue Next 2Y0.6%
Revenue Next 3Y1.51%
Revenue Next 5Y2.81%
EBIT growth 1Y-6.49%
EBIT growth 3Y6.16%
EBIT growth 5Y-4.12%
EBIT Next Year53.44%
EBIT Next 3Y19.7%
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 8.73 and the Price/Book (PB) ratio is 1.12.
What is the financial health of LEAR CORP (LEA) stock?
The financial health rating of LEAR CORP (LEA) is 5 / 10.