Lear (NYSE:LEA) Is Increasing Its Dividend To US$0.77
Lear Corporation's ( NYSE:LEA ) dividend will be increasing to US$0.77 on 29th of December. Despite this raise, the...
Has the U.S. Auto Components Industry valuation changed over the past few years?
|Wed, 01 Dec 2021||US$147.9b||US$132.8b||US$2.4b||19.7x|
|Fri, 29 Oct 2021||US$147.6b||US$131.3b||US$2.6b||19.4x|
|Sun, 26 Sep 2021||US$141.1b||US$131.3b||US$2.2b||17.9x|
|Tue, 24 Aug 2021||US$142.5b||US$131.4b||US$2.2b||17.2x|
|Wed, 30 Jun 2021||US$145.2b||US$128.3b||US$1.7b||20.8x|
|Sat, 03 Apr 2021||US$144.0b||US$113.8b||-US$1,623,063,261.99||28.3x|
|Tue, 05 Jan 2021||US$151.0b||US$108.5b||-US$2,167,246,212.42||22.4x|
|Fri, 09 Oct 2020||US$75.9b||US$100.2b||-US$497,133,258.17||33.1x|
|Thu, 02 Jul 2020||US$69.9b||US$103.2b||US$158.8m||22.8x|
|Sun, 05 Apr 2020||US$47.8b||US$138.8b||US$943.7m||8.5x|
|Wed, 08 Jan 2020||US$85.9b||US$143.1b||US$1.9b||16.6x|
|Tue, 01 Oct 2019||US$78.9b||US$145.2b||US$2.8b||15.8x|
|Fri, 05 Jul 2019||US$80.9b||US$143.0b||US$2.2b||12.8x|
|Mon, 08 Apr 2019||US$78.7b||US$142.5b||US$3.4b||14.1x|
|Thu, 10 Jan 2019||US$72.4b||US$142.4b||US$4.3b||11.7x|
Current Industry PE: Investors are relatively neutral on the industry at the moment, considering it's trading close to its 3-year average PE ratio of 19.2x. It appears they believe that earnings will grow in-line with historical growth rates.
Past Earnings Growth: The earnings for companies in the Auto Components industry have declined 17% per year over the last three years, while revenues have remained mostly flat. This means that although sales have remained flat, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.
Which industries have driven the changes within the U.S. Auto Components industry?
|Auto Parts and Equipment||-7.05%|
|Tires and Rubber||-10.14%|
Industry PE: Investors are most optimistic about the Auto Parts and Equipment industry, which is trading close to its 3-year average PE ratio of 18.9x. However analysts are expecting annual earnings growth of 28%, which is lower than the prior year's growth of 94% per year. So the market might believe that analysts are underestimating future growth. Meanwhile, investors are most pessimistic about the Tires and Rubber industry, which is trading below its 3-year average of 46.6x.
Forecasted Growth: Analysts are most optimistic on the Tires and Rubber industry, expecting annual earnings growth of 74% over the next 5 years. Meanwhile, the Auto Parts and Equipment industry is expected to see its earnings grow by 28% per year over the next few years.
Goodyear Tire & Rubber
Gentex Corporation experienced some volatility during the COVID-19 pandemic, but the picture is looking much better now. The company's risk appears low because of its debt picture and excess cash. But on the whole, it just looks pricey for what investors are getting.
This article explores my discounted cash flow valuation for Luminar as of Nov. 18, 2021. I assume Luminar meets all of its projected revenue and EBITDA guidance from the Investor Day presentation in November 2020, followed by a slowing of growth reflecting its maturity. Luminar shares some growth and risk characteristics with those of semiconductors and auto parts companies. The intrinsic value I found for Luminar was $24.15 per share. This value has been adjusted by option values and risk of failure.