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Lear

NYSE:LEA
Snowflake Description

Good value with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
LEA
NYSE
$8B
Market Cap
  1. Home
  2. US
  3. Automobiles
Company description

Lear Corporation designs, develops, engineers, manufactures, assembles, and supplies automotive seating, and electrical distribution systems and related components for automotive original equipment manufacturers worldwide. The last earnings update was 86 days ago. More info.


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LEA Share Price and Events
7 Day Returns
-3.1%
NYSE:LEA
0.7%
US Auto Components
-1.2%
US Market
1 Year Returns
-27.1%
NYSE:LEA
-24.1%
US Auto Components
3.4%
US Market
LEA Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Lear (LEA) -3.1% -4% -14.7% -27.1% 16.5% 33.5%
US Auto Components 0.7% 1.2% -14% -24.1% 0.8% -9.8%
US Market -1.2% 1.2% 1.7% 3.4% 35.5% 41.6%
1 Year Return vs Industry and Market
  • LEA underperformed the Auto Components industry which returned -24.1% over the past year.
  • LEA underperformed the Market in United States of America which returned 3.4% over the past year.
Price Volatility
LEA
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Lear undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Lear to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Lear.

NYSE:LEA Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 19 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.9%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:LEA
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Auto Components Unlevered Beta Simply Wall St/ S&P Global 1.27
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.271 (1 + (1- 21%) (29.37%))
1.379
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.38
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.379 * 5.96%)
10.95%

Discounted Cash Flow Calculation for NYSE:LEA using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Lear is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:LEA DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10.95%)
2020 817.06 Analyst x6 736.43
2021 1,051.04 Analyst x2 853.84
2022 1,090.59 Est @ 3.76% 798.54
2023 1,128.25 Est @ 3.45% 744.60
2024 1,164.77 Est @ 3.24% 692.84
2025 1,200.69 Est @ 3.08% 643.73
2026 1,236.45 Est @ 2.98% 597.49
2027 1,272.35 Est @ 2.9% 554.16
2028 1,308.63 Est @ 2.85% 513.72
2029 1,345.47 Est @ 2.82% 476.06
Present value of next 10 years cash flows $6,611.43
NYSE:LEA DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $1,345.47 × (1 + 2.73%) ÷ (10.95% – 2.73%)
$16,818.41
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $16,818.41 ÷ (1 + 10.95%)10
$5,950.80
NYSE:LEA Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $6,611.43 + $5,950.80
$12,562.22
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $12,562.22 / 62.26
$201.77
NYSE:LEA Discount to Share Price
Calculation Result
Value per share (USD) From above. $201.77
Current discount Discount to share price of $132.19
= -1 x ($132.19 - $201.77) / $201.77
34.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Lear is available for.
Intrinsic value
34%
Share price is $132.19 vs Future cash flow value of $201.77
Current Discount Checks
For Lear to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Lear's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Lear's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Lear's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Lear's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:LEA PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-30) in USD $15.89
NYSE:LEA Share Price ** NYSE (2019-07-19) in USD $132.19
United States of America Auto Components Industry PE Ratio Median Figure of 23 Publicly-Listed Auto Components Companies 15.8x
United States of America Market PE Ratio Median Figure of 3,080 Publicly-Listed Companies 17.88x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Lear.

NYSE:LEA PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:LEA Share Price ÷ EPS (both in USD)

= 132.19 ÷ 15.89

8.32x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Lear is good value based on earnings compared to the US Auto Components industry average.
  • Lear is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Lear's expected growth come at a high price?
Raw Data
NYSE:LEA PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 8.32x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts
10.1%per year
United States of America Auto Components Industry PEG Ratio Median Figure of 21 Publicly-Listed Auto Components Companies 1.05x
United States of America Market PEG Ratio Median Figure of 2,119 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

NYSE:LEA PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 8.32x ÷ 10.1%

0.82x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Lear is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Lear's assets?
Raw Data
NYSE:LEA PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-30) in USD $68.02
NYSE:LEA Share Price * NYSE (2019-07-19) in USD $132.19
United States of America Auto Components Industry PB Ratio Median Figure of 40 Publicly-Listed Auto Components Companies 1.33x
United States of America Market PB Ratio Median Figure of 5,245 Publicly-Listed Companies 1.79x
NYSE:LEA PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:LEA Share Price ÷ Book Value per Share (both in USD)

= 132.19 ÷ 68.02

1.94x

* Primary Listing of Lear.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Lear is overvalued based on assets compared to the US Auto Components industry average.
X
Value checks
We assess Lear's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Auto Components industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Auto Components industry average (and greater than 0)? (1 check)
  5. Lear has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Lear expected to perform in the next 1 to 3 years based on estimates from 19 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
10.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Lear expected to grow at an attractive rate?
  • Lear's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Lear's earnings growth is positive but not above the United States of America market average.
  • Lear's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:LEA Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:LEA Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts 10.1%
NYSE:LEA Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 19 Analysts 4.3%
United States of America Auto Components Industry Earnings Growth Rate Market Cap Weighted Average 17.3%
United States of America Auto Components Industry Revenue Growth Rate Market Cap Weighted Average 5.6%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:LEA Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:LEA Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 22,862 1
2022-12-31 23,213 1,213 3
2021-12-31 22,756 1,802 1,149 10
2020-12-31 21,384 1,510 1,010 19
2019-12-31 20,331 1,379 839 16
NYSE:LEA Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-30 20,575 1,595 1,027
2018-12-31 21,149 1,780 1,139
2018-09-29 21,570 1,620 1,318
2018-06-30 21,660 1,692 1,341
2018-03-31 21,202 1,741 1,330
2017-12-31 20,467 1,783 1,288
2017-09-30 19,747 1,710 1,120
2017-07-01 19,292 1,647 1,062
2017-04-01 18,893 1,610 1,033
2016-12-31 18,558 1,619 975
2016-10-01 18,639 1,679 981
2016-07-02 18,443 1,681 947
2016-04-02 18,353 1,626 847

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Lear's earnings are expected to grow by 10.1% yearly, however this is not considered high growth (20% yearly).
  • Lear's revenue is expected to grow by 4.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:LEA Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below

All data from Lear Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:LEA Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31 22.14 25.77 18.50 2.00
2021-12-31 20.12 22.15 17.10 4.00
2020-12-31 16.91 18.85 14.00 11.00
2019-12-31 13.91 14.63 12.48 6.00
NYSE:LEA Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-30 15.89
2018-12-31 17.35
2018-09-29 19.80
2018-06-30 19.94
2018-03-31 19.59
2017-12-31 18.79
2017-09-30 16.19
2017-07-01 15.18
2017-04-01 14.52
2016-12-31 13.48
2016-10-01 13.32
2016-07-02 12.66
2016-04-02 11.16

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Lear is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Lear's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Lear has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Lear performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Lear's growth in the last year to its industry (Auto Components).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Lear's year on year earnings growth rate has been positive over the past 5 years.
  • Lear's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Lear's 1-year earnings growth is negative, it can't be compared to the US Auto Components industry average.
Earnings and Revenue History
Lear's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Lear Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:LEA Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-30 20,574.90 1,026.70 575.30
2018-12-31 21,148.50 1,139.40 588.10
2018-09-29 21,569.90 1,318.40 608.40
2018-06-30 21,659.80 1,340.70 618.00
2018-03-31 21,202.20 1,330.40 618.40
2017-12-31 20,467.00 1,287.90 618.70
2017-09-30 19,746.70 1,120.10 627.90
2017-07-01 19,291.60 1,062.00 623.00
2017-04-01 18,893.20 1,032.50 620.10
2016-12-31 18,557.60 975.10 633.80
2016-10-01 18,638.70 980.50 569.60
2016-07-02 18,442.60 947.10 553.60
2016-04-02 18,352.90 846.60 550.80
2015-12-31 18,211.40 745.50 562.10
2015-09-26 18,036.50 772.00 548.70
2015-06-27 17,938.90 731.10 539.20
2015-03-28 17,888.90 697.70 525.70
2014-12-31 17,727.30 672.40 510.70
2014-09-27 17,433.70 483.40 520.10
2014-06-28 17,118.70 456.10 520.60
2014-03-29 16,646.70 444.90 510.50
2013-12-31 16,234.00 431.40 503.40
2013-09-28 15,697.30 1,240.50 508.20
2013-06-29 15,318.20 1,249.10 493.00
2013-03-30 14,870.10 1,257.20 482.40
2012-12-31 14,567.00 1,282.80 468.90
2012-09-29 14,356.10 507.40 476.30

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Lear has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Lear used its assets more efficiently than the US Auto Components industry average last year based on Return on Assets.
  • Lear's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Lear's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Auto Components industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Lear has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Lear's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Lear's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Lear is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Lear's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Lear's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 3.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Lear Company Filings, last reported 3 months ago.

NYSE:LEA Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-30 4,550.30 1,967.30 1,213.20
2018-12-31 4,518.70 1,963.80 1,498.00
2018-09-29 4,597.30 1,963.80 1,206.90
2018-06-30 4,594.90 1,959.90 1,331.50
2018-03-31 4,724.90 1,962.00 1,268.50
2017-12-31 4,446.00 1,960.50 1,503.60
2017-09-30 4,175.00 1,963.80 1,294.40
2017-07-01 3,756.20 1,923.00 1,210.00
2017-04-01 3,463.50 1,938.00 1,245.30
2016-12-31 3,192.90 1,942.20 1,301.80
2016-10-01 3,243.00 1,948.60 1,370.40
2016-07-02 3,156.10 1,950.80 1,421.10
2016-04-02 3,144.40 1,957.50 1,199.10
2015-12-31 3,017.70 1,954.80 1,219.60
2015-09-26 2,924.80 1,979.50 922.80
2015-06-27 2,978.30 1,982.80 967.90
2015-03-28 2,891.80 1,983.00 748.20
2014-12-31 3,029.30 1,694.50 1,112.10
2014-09-27 3,155.80 1,068.70 872.70
2014-06-28 3,221.20 1,068.60 865.10
2014-03-29 3,242.50 1,068.60 919.40
2013-12-31 3,149.50 1,057.10 1,137.70
2013-09-28 2,920.00 1,057.00 884.00
2013-06-29 2,790.30 1,056.90 841.10
2013-03-30 3,485.80 1,056.80 1,601.30
2012-12-31 3,612.20 626.30 1,402.20
2012-09-29 2,802.20 626.20 1,269.60
  • Lear's level of debt (43.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (33% vs 43.2% today).
  • Debt is well covered by operating cash flow (81.1%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 19.3x coverage).
X
Financial health checks
We assess Lear's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Lear has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Lear's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.27%
Current annual income from Lear dividends. Estimated to be 2.27% next year.
If you bought $2,000 of Lear shares you are expected to receive $45 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Lear's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
  • Lear's dividend is below the markets top 25% of dividend payers in United States of America (3.76%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:LEA Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below
United States of America Auto Components Industry Average Dividend Yield Market Cap Weighted Average of 15 Stocks 2.1%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2016 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:LEA Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31 3.00 1.00
2021-12-31 3.20 6.00
2020-12-31 2.97 13.00
2019-12-31 2.94 12.00
NYSE:LEA Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-16 3.000 2.261
2019-02-07 3.000 2.050
2018-11-15 2.800 2.060
2018-08-08 2.800 1.870
2018-05-17 2.800 1.463
2018-02-14 2.800 1.472
2017-11-16 2.000 1.095
2017-08-10 2.000 1.226
2017-05-18 2.000 1.377
2017-02-13 2.000 1.421
2016-11-17 1.200 0.879
2016-08-10 1.200 1.018
2016-05-19 1.200 1.074
2016-02-12 1.200 1.097
2015-11-19 1.000 0.885
2015-08-10 1.000 0.898
2015-05-14 1.000 0.909
2015-02-17 1.000 0.897
2014-11-20 0.800 0.815
2014-08-14 0.800 0.861
2014-05-16 0.800 0.874
2014-02-07 0.800 0.975
2013-11-14 0.680 0.854
2013-08-15 0.680 0.931
2013-05-16 0.680 1.076
2013-02-07 0.680 1.234
2012-11-14 0.560 1.219
2012-08-15 0.560 1.387
2012-05-16 0.560 1.472
2012-02-09 0.560 1.263
2011-11-10 0.500 1.217
2011-08-10 0.500 1.122
2011-05-13 0.500 1.007
2011-02-17 0.500 1.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Lear has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Lear only paid a dividend in the past 8 years.
Current Payout to shareholders
What portion of Lear's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (5.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (6.7x coverage).
X
Income/ dividend checks
We assess Lear's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Lear afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Lear has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Lear's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ray Scott
COMPENSATION $9,936,305
AGE 54
TENURE AS CEO 1.3 years
CEO Bio

Mr. Raymond E. Scott Jr., also known as Ray, is President, Chief Executive Officer and Director at Lear Corporation since March 1, 2018 and has been its Interim President of E-Systems since February 2019. Mr. Scott served as Interim President of E-Systems at Lear Corporation since January 28, 2019 until February 2019. Mr. Scott is responsible for the strategic direction and operational leadership. He was an Executive Vice President of Lear Corporation since November 2011 until March 1, 2018. Mr. Scott was President of Seating at Lear Corporation since November 2011 until March 1, 2018. He was responsible for implementing global initiatives to further grow and diversify sales for the seating division, accelerate product innovation efforts, improve financial results and sustain world-class competitiveness at Lear. He served as the President of Global Electrical Power Management Systems at Lear Corporation from February 2008 to October 24, 2011. He has been with Lear Corporation since 1988 in such positions as President of General Motors Europe and Fiat Customer Focused Divisions since February 2000, Vice President and General Manager, Lear GM-Europe since September 1999, Vice President of Operations-Saab since May 1998 and Director of Sales for General Motors Division since April 1996. He served as Senior Vice President of Lear Corporation since August 2005 and served as its President of Global Electrical & Electronic Systems Division since February 2008. Mr. Scott served as the President of North American Seating Systems of Lear Corporation since August 2006 and was responsible for all seating-related activities in the United States, Canada and Mexico. He served as President of North American Customer Group of Lear Corporation since June 2005. Mr. Scott served as the President of General Motors Fiat Division of Lear Corporation since November 2000. He also served as the President of European Customer Focused Division of Lear Corporation since June 2004. Mr. Scott serves as a Director of Tempronics, Inc. Mr. Scott earned a Bachelor of Science degree in economics from the University of Michigan. He has also earned a Master of Business Administration degree from Michigan State University's Advanced Management Program.

CEO Compensation
  • Ray's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.
  • Ray's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Lear management team in years:

1.8
Average Tenure
54
Average Age
  • The average tenure for the Lear management team is less than 2 years, this suggests a new team.
Management Team

Ray Scott

TITLE
President
COMPENSATION
$10M
AGE
54
TENURE
1.3 yrs

Jeff Vanneste

TITLE
Senior VP & CFO
COMPENSATION
$4M
AGE
59
TENURE
7.3 yrs

Tom DiDonato

TITLE
Senior VP & Chief Administrative Officer
COMPENSATION
$3M
AGE
60
TENURE
0.5 yrs

Terry Larkin

TITLE
Executive VP of Business Development
COMPENSATION
$4M
AGE
64
TENURE
11.5 yrs

Frank Orsini

TITLE
Executive VP & President of Seating
COMPENSATION
$4M
AGE
46
TENURE
7.8 yrs

Amy Doyle

TITLE
VP & Chief Accounting Officer
AGE
51
TENURE
2.2 yrs

John Absmeier

TITLE
Chief Technology Officer
AGE
44
TENURE
1.1 yrs

Alicia Davis

TITLE
Vice President of Investor Relations
TENURE
0.9 yrs

Dave Mullin

TITLE
Vice President of Sales & Marketing
TENURE
14.8 yrs

Rashida Thomas

TITLE
Chief Diversity Officer & Director of Talent Management
TENURE
1.2 yrs
Board of Directors Tenure

Average tenure and age of the Lear board of directors in years:

8.9
Average Tenure
65
Average Age
  • The tenure for the Lear board of directors is about average.
Board of Directors

Henry Daniel Wallace

TITLE
Non-Executive Chairman
COMPENSATION
$475K
AGE
73
TENURE
8.9 yrs

Ray Scott

TITLE
President
COMPENSATION
$10M
AGE
54
TENURE
1.3 yrs

Thomas Capo

TITLE
Independent Director
COMPENSATION
$295K
AGE
68
TENURE
9.7 yrs

Jon Foster

TITLE
Independent Director
COMPENSATION
$655K
AGE
58
TENURE
9.7 yrs

Kathleen Ligocki

TITLE
Independent Director
COMPENSATION
$290K
AGE
63
TENURE
6.8 yrs

Conrad Mallett

TITLE
Independent Director
COMPENSATION
$275K
AGE
65
TENURE
16.9 yrs

Greg Smith

TITLE
Independent Director
COMPENSATION
$275K
AGE
67
TENURE
9.7 yrs

Mary Jepsen

TITLE
Independent Director
COMPENSATION
$275K
AGE
54
TENURE
3.3 yrs

Mei-Wei Cheng

TITLE
Director
AGE
69
TENURE
0.5 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
20. Feb 19 Sell Shari Burgess Individual 19. Feb 19 19. Feb 19 -3,500 $156.00 $-546,000
15. Feb 19 Sell Terrence Larkin Individual 13. Feb 19 13. Feb 19 -18,985 $155.28 $-2,947,896
19. Nov 18 Sell Richard Bott Individual 16. Nov 18 16. Nov 18 -789 $135.13 $-106,618
11. Sep 18 Sell Conrad Mallett Individual 10. Sep 18 10. Sep 18 -79 $158.71 $-12,538
X
Management checks
We assess Lear's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Lear has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Want To Invest In Lear Corporation (NYSE:LEA) Today? Read This First

This tells us the stock is undervalued relative to the current US market average of 17.92x , and undervalued based on its latest annual earnings update compared to the Auto Components average of 14.42x. … But, to be able to properly assess the value of a high-growth stock such as Lear, we must incorporate its earnings growth in our valuation. … A PE ratio of 8.11x and expected year-on-year earnings growth of 10% give Lear a low PEG ratio of 0.80x.

Simply Wall St -

Should We Be Delighted With Lear Corporation's (NYSE:LEA) ROE Of 25%?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Lear: 25% = US$1.0b ÷ US$4.6b (Based on the trailing twelve months to March 2019.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … Does Lear Have A Good Return On Equity? … In my book the highest quality companies have high return on equity, despite low debt.

Simply Wall St -

Introducing Lear (NYSE:LEA), A Stock That Climbed 52% In The Last Five Years

To wit, the Lear share price has climbed 52% in five years, easily topping the market return of 39% (ignoring dividends). … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … During five years of share price growth, Lear achieved compound earnings per share (EPS) growth of 24% per year.

Simply Wall St -

Here's How P/E Ratios Can Help Us Understand Lear Corporation (NYSE:LEA)

The formula for price to earnings is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Lear: P/E of 8.41 = $133.7 ÷ $15.89 (Based on the year to March 2019.) Is A High P/E Ratio Good? … A higher P/E ratio means that investors are paying a higher price for each $1 of company earnings. … The P/E ratio indicates whether the market has higher or lower expectations of a company.

Simply Wall St -

Is There An Opportunity With Lear Corporation's (NYSE:LEA) 30% Undervaluation?

Today, we will estimate the stock's intrinsic value by taking the expected future cash flows and discounting them to today's value. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $881.43 $1.02k $1.01k $1.00k $1.01k $1.02k $1.04k $1.06k $1.08k $1.11k Growth Rate Estimate Source Analyst x7 Analyst x6 Analyst x1 Est @ -0.26% Est @ 0.63% Est @ 1.26% Est @ 1.7% Est @ 2.01% Est @ 2.23% Est @ 2.38% Present Value ($, Millions) Discounted @ 10.24% $799.55 $840.52 $750.75 $679.21 $620.02 $569.52 $525.41 $486.19 $450.84 $418.68 Present Value of 10-year Cash Flow (PVCF)= $6.14b "Est" = FCF growth rate estimated by Simply Wall St We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = US$1.1b × (1 + 2.7%) ÷ (10.2% – 2.7%) = US$15b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = $US$15b ÷ ( 1 + 10.2%)10 = $5.73b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is $11.87b.

Simply Wall St -

Should You Like Lear Corporation’s (NYSE:LEA) High Return On Capital Employed?

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Lear: 0.22 = US$1.6b ÷ (US$12b - US$4.9b) (Based on the trailing twelve months to March 2019.) Therefore, Lear has an ROCE of 22%. … How Lear's Current Liabilities Impact Its ROCE Current liabilities include invoices, such as supplier payments, short-term debt, or a tax bill, that need to be paid within 12 months. … The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise.

Simply Wall St -

Have Insiders Been Selling Lear Corporation (NYSE:LEA) Shares This Year?

So shareholders might well want to know whether insiders have been buying or selling shares in Lear Corporation (NYSE:LEA). … That means that an insider was selling shares at around the current price of US$145 … While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price

Simply Wall St -

A Spotlight On Lear Corporation's (NYSE:LEA) Fundamentals

Today I've chosen to put the spotlight on Lear Corporation (NYSE:LEA) due to its excellent fundamentals in more than one area. … Below, I've touched on some key aspects you should know on a high level

Simply Wall St -

Is There Now An Opportunity In Lear Corporation (NYSE:LEA)?

Lear Corporation (NYSE:LEA), which is in the auto components business, and is based in United States,. … saw a double-digit share price rise of over 10% in the past couple of months on the NYSE. … With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price?

Simply Wall St -

Lear Corporation (NYSE:LEA): Time For A Financial Health Check

Small-cap and large-cap companies receive a lot of attention from investors, but mid-cap stocks like Lear Corporation (NYSE:LEA), with a market cap of US$9.5b, are often out of the spotlight. … Despite this, the two other categories have lagged behind the risk-adjusted returns of commonly ignored mid-cap stocks. … LEA’s financial liquidity and debt position will be analysed in this article, to get an idea of whether the company can fund opportunities for strategic growth and maintain strength through economic downturns.

Simply Wall St -

Company Info

Description

Lear Corporation designs, develops, engineers, manufactures, assembles, and supplies automotive seating, and electrical distribution systems and related components for automotive original equipment manufacturers worldwide. Its Seating segment offers leather and fabric products, seat trim covers, recliner mechanisms, seat tracks and foams, seat structures and mechanisms, and headrests for automobiles and light trucks, compact cars, and sport utility vehicles; and heating and cooling systems. The company’s E-Systems segment offers electrical distribution systems that route electrical signals and manage electrical power within the vehicle for traditional vehicle architectures, as well as high power and hybrid electric systems. This segment’s products comprise wire harnesses, terminals and connectors, and junction boxes; and electronic control modules, such as body control modules, smart junction boxes, gateway and wireless control modules, lighting control modules, and audio domain controllers and amplifiers. It also provides electrification products comprising charging systems that include onboard charging modules, cord set charging equipment, and wireless charging systems; battery electronics, which comprise battery disconnect units, cell monitoring supervisory systems, and integrated total battery control modules; and other power management modules, including converter and inverter systems. In addition, this segment offers cybersecurity software; EXO advanced vehicle positioning for automated and autonomous driving applications; roadside modules that communicate real-time traffic information; and cellular protocols for vehicle connectivity, as well as Connexus connectivity products. Further, it provides wireless systems, such as passive entry, remote keyless entry, and dual range/function remote keyless entry systems. Lear Corporation has a strategic partnership with Plug and Play. The company was founded in 1917 and is headquartered in Southfield, Michigan.

Details
Name: Lear Corporation
LEA
Exchange: NYSE
Founded: 1917
$8,230,302,740
62,261,160
Website: http://www.lear.com
Address: Lear Corporation
21557 Telegraph Road,
Southfield,
Michigan, 48033,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE LEA Common Stock New York Stock Exchange US USD 09. Nov 2009
DB LE6N Common Stock Deutsche Boerse AG DE EUR 09. Nov 2009
LSE 0JTQ Common Stock London Stock Exchange GB USD 09. Nov 2009
BMV LEA * Common Stock Bolsa Mexicana de Valores MX MXN 09. Nov 2009
Number of employees
Current staff
Staff numbers
169,000
Lear employees.
Industry
Auto Parts and Equipment
Automobiles
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/21 00:34
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2019/07/19
Last earnings filing: 2019/04/26
Last earnings reported: 2019/03/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.