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LEA

LearNYSE:LEA Stock Report

Last Price

US$171.00

Market Cap

US$10.2b

7D

-8.9%

1Y

9.7%

Updated

26 Jan, 2022

Data

Company Financials +
LEA fundamental analysis
Snowflake Score
Valuation4/6
Future Growth5/6
Past Performance3/6
Financial Health6/6
Dividends4/6

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.

Lear Competitors

Autoliv

NYSE:ALV

US$8.6b

Adient

NYSE:ADNT

US$4.2b

Gentherm

NasdaqGS:THRM

US$3.1b

Dorman Products

NasdaqGS:DORM

US$3.0b

Price History & Performance

Summary of all time highs, changes and price drops for Lear
Historical stock prices
Current Share PriceUS$171.00
52 Week HighUS$204.91
52 Week LowUS$144.78
Beta1.53
1 Month Change-5.01%
3 Month Change2.46%
1 Year Change9.67%
3 Year Change10.88%
5 Year Change20.35%
Change since IPO508.00%

Recent News & Updates

Dec 31
Lear Corporation (NYSE:LEA) Shares Could Be 45% Below Their Intrinsic Value Estimate

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...

Dec 05
Lear (NYSE:LEA) Is Paying Out A Larger Dividend Than Last Year

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...

Nov 21
Lear (NYSE:LEA) Is Increasing Its Dividend To US$0.77

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...

Shareholder Returns

LEAUS Auto ComponentsUS Market
7D-8.9%-9.6%-5.1%
1Y9.7%-14.5%3.3%

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.

Price Volatility

Is LEA's price volatile compared to industry and market?
LEA volatility
LEA Average Weekly Movement4.7%
Auto Components Industry Average Movement6.4%
Market Average Movement6.7%
10% most volatile stocks in US Market15.4%
10% least volatile stocks in US Market2.4%

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

FoundedEmployeesCEOWebsite
1917174,600Ray Scotthttps://www.lear.com

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

How do Lear's earnings and revenue compare to its market cap?
LEA fundamental statistics
Market CapUS$10.19b
Earnings (TTM)US$554.00m
Revenue (TTM)US$19.63b

18.4x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LEA income statement (TTM)
RevenueUS$19.63b
Cost of RevenueUS$17.87b
Gross ProfitUS$1.76b
ExpensesUS$1.21b
EarningsUS$554.00m

Last Reported Earnings

Oct 02, 2021

Next Earnings Date

n/a

Earnings per share (EPS)9.29
Gross Margin8.96%
Net Profit Margin2.82%
Debt/Equity Ratio48.4%

How did LEA perform over the long term?

See historical performance and comparison

Dividends

1.8%

Current Dividend Yield

14%

Payout Ratio

Valuation

Is Lear undervalued compared to its fair value and its price relative to the market?

43.4%

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).


Future Growth

How is Lear forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

26.8%

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%)


Past Performance

How has Lear performed over the past 5 years?

-22.0%

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.


Financial Health

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).


Balance Sheet


Dividend

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

1.80%

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).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

Ray Scott (56 yo)

3.83yrs

Tenure

US$14,714,769

Compensation

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.


Leadership Team

Experienced Management: LEA's management team is considered experienced (3.8 years average tenure).


Board Members

Experienced Board: LEA's board of directors are considered experienced (4.8 years average tenure).


Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Lear Corporation's employee growth, exchange listings and data sources


Key Information

  • 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


Location

  • Lear Corporation
  • 21557 Telegraph Road
  • Southfield
  • Michigan
  • 48033
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/26 00:51
End of Day Share Price2022/01/25 00:00
Earnings2021/10/02
Annual Earnings2020/12/31


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.