LEA Stock Overview
Lear Corporation designs, develops, engineers, manufactures, assembles, and supplies automotive seating, and electrical distribution systems and related components for automotive original equipment manufacturers in North America, Europe, Africa, Asia, and South America.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$171.00|
|52 Week High||US$204.91|
|52 Week Low||US$144.78|
|1 Month Change||-5.01%|
|3 Month Change||2.46%|
|1 Year Change||9.67%|
|3 Year Change||10.88%|
|5 Year Change||20.35%|
|Change since IPO||508.00%|
Recent News & Updates
Lear Corporation (NYSE:LEA) Shares Could Be 45% Below Their Intrinsic Value Estimate
How far off is Lear Corporation ( NYSE:LEA ) from its intrinsic value? Using the most recent financial data, we'll take...
Lear (NYSE:LEA) Is Paying Out A Larger Dividend Than Last Year
The board of Lear Corporation ( NYSE:LEA ) has announced that it will be increasing its dividend on the 29th of...
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...
|LEA||US Auto Components||US Market|
Return vs Industry: LEA exceeded the US Auto Components industry which returned -14.1% over the past year.
Return vs Market: LEA exceeded the US Market which returned 4.2% over the past year.
|LEA Average Weekly Movement||4.7%|
|Auto Components Industry Average Movement||6.4%|
|Market Average Movement||6.7%|
|10% most volatile stocks in US Market||15.4%|
|10% least volatile stocks in US Market||2.4%|
Stable Share Price: LEA is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: LEA's weekly volatility (5%) has been stable over the past year.
About the Company
Lear Corporation designs, develops, engineers, manufactures, assembles, and supplies automotive seating, and electrical distribution systems and related components for automotive original equipment manufacturers in North America, Europe, Africa, Asia, and South America. Its Seating segment offers seat systems, seat subsystems, key seat components, seat trim covers, seat mechanisms, seat foams, and headrests, as well as surface materials, such as leather and fabric for automobiles and light trucks, compact cars, pick-up trucks, and sport utility vehicles. The company’s E-Systems segment provides electrical distribution and connection systems that route electrical signals and networks; and manage electrical power within the vehicle for various powertrains.
Lear Fundamentals Summary
|LEA fundamental statistics|
Is LEA overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|LEA income statement (TTM)|
|Cost of Revenue||US$17.87b|
Last Reported Earnings
Oct 02, 2021
Next Earnings Date
|Earnings per share (EPS)||9.29|
|Net Profit Margin||2.82%|
How did LEA perform over the long term?See historical performance and comparison
1.8%Current Dividend Yield
Is Lear undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: LEA ($171) is trading below our estimate of fair value ($302.25)
Significantly Below Fair Value: LEA is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: LEA is good value based on its PE Ratio (18.4x) compared to the US Auto Components industry average (18.7x).
PE vs Market: LEA is poor value based on its PE Ratio (18.4x) compared to the US market (16.5x).
Price to Earnings Growth Ratio
PEG Ratio: LEA is good value based on its PEG Ratio (0.7x)
Price to Book Ratio
PB vs Industry: LEA is overvalued based on its PB Ratio (2.2x) compared to the US Auto Components industry average (1.8x).
How is Lear forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: LEA's forecast earnings growth (26.8% per year) is above the savings rate (2%).
Earnings vs Market: LEA's earnings (26.8% per year) are forecast to grow faster than the US market (13% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: LEA's revenue (11.5% per year) is forecast to grow faster than the US market (9.1% per year).
High Growth Revenue: LEA's revenue (11.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: LEA's Return on Equity is forecast to be high in 3 years time (20.9%)
How has Lear performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LEA has a large one-off loss of $231.3M impacting its October 2 2021 financial results.
Growing Profit Margin: LEA's current net profit margins (2.8%) are higher than last year (0.7%).
Past Earnings Growth Analysis
Earnings Trend: LEA's earnings have declined by 22% per year over the past 5 years.
Accelerating Growth: LEA's earnings growth over the past year (404.1%) exceeds its 5-year average (-22% per year).
Earnings vs Industry: LEA earnings growth over the past year (404.1%) exceeded the Auto Components industry 102.9%.
Return on Equity
High ROE: LEA's Return on Equity (13.3%) is considered low.
How is Lear's financial position?
Financial Position Analysis
Short Term Liabilities: LEA's short term assets ($6.6B) exceed its short term liabilities ($5.0B).
Long Term Liabilities: LEA's short term assets ($6.6B) exceed its long term liabilities ($3.3B).
Debt to Equity History and Analysis
Debt Level: LEA's net debt to equity ratio (25.2%) is considered satisfactory.
Reducing Debt: LEA's debt to equity ratio has reduced from 60.1% to 48.4% over the past 5 years.
Debt Coverage: LEA's debt is well covered by operating cash flow (39.3%).
Interest Coverage: LEA's interest payments on its debt are well covered by EBIT (12.7x coverage).
What is Lear current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: LEA's dividend (1.8%) is higher than the bottom 25% of dividend payers in the US market (1.36%).
High Dividend: LEA's dividend (1.8%) is low compared to the top 25% of dividend payers in the US market (3.57%).
Stability and Growth of Payments
Stable Dividend: LEA's dividend payments have been volatile in the past 10 years.
Growing Dividend: LEA's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (13.6%), LEA's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: LEA's dividends in 3 years are forecast to be thoroughly covered by earnings (13.8% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Ray Scott (56 yo)
Mr. Raymond E. Scott Jr., also known as Ray, serves as President, Chief Executive Officer and Director at Lear Corporation since May 1, 2018 and had been its Interim President of E-Systems since January 28...
CEO Compensation Analysis
Compensation vs Market: Ray's total compensation ($USD14.71M) is about average for companies of similar size in the US market ($USD11.47M).
Compensation vs Earnings: Ray's compensation has been consistent with company performance over the past year.
Experienced Management: LEA's management team is considered experienced (3.8 years average tenure).
Experienced Board: LEA's board of directors are considered experienced (4.8 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: LEA insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Lear Corporation's employee growth, exchange listings and data sources
- Name: Lear Corporation
- Ticker: LEA
- Exchange: NYSE
- Founded: 1917
- Industry: Auto Parts and Equipment
- Sector: Automobiles
- Implied Market Cap: US$10.194b
- Shares outstanding: 59.62m
- Website: https://www.lear.com
Number of Employees
- Lear Corporation
- 21557 Telegraph Road
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/01/26 00:51|
|End of Day Share Price||2022/01/25 00:00|