Lear
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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
1 Year Returns
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.
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.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Lear.
| 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.
| 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.
| 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 | ||
| 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 |
| 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 |
| 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
Current Discount Checks
- 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?
| 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.
| 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?
| 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 .
| 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?
| 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 |
| 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.
Value checks
We assess Lear's value by looking at:- 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. )
- Is the PE ratio less than the market average, and/ or less than the Auto Components industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Auto Components industry average (and greater than 0)? (1 check) 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!
Earnings growth vs Low Risk Savings
- 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
| 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
| 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 |
| 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 |
| 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.
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.
| 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 |
| 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.
Future performance checks
We assess Lear's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
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
Past Earnings growth analysis
- 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
All data from Lear Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| 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).
Past performance checks
We assess Lear's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Auto Components industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
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.
- 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
Assets
Liabilities and shares
- 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.
All data from Lear Company Filings, last reported 3 months ago.
| 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).
Financial health checks
We assess Lear's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Lear has a total score of 4/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- 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
If you bought
$2,000 of
Lear
shares you are expected to receive
$45
in your first year as a dividend.
Dividend Amount
- 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.
| 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.
| 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 |
| 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.
Income/ dividend checks
We assess Lear's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- 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) 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
CEO
| 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:
- The average tenure for the Lear management team is less than 2 years, this suggests a new team.
Management Team
Ray Scott
President
$10M
54
1.3 yrs
Jeff Vanneste
Senior VP & CFO
$4M
59
7.3 yrs
Tom DiDonato
Senior VP & Chief Administrative Officer
$3M
60
0.5 yrs
Terry Larkin
Executive VP of Business Development
$4M
64
11.5 yrs
Frank Orsini
Executive VP & President of Seating
$4M
46
7.8 yrs
Amy Doyle
VP & Chief Accounting Officer
51
2.2 yrs
John Absmeier
Chief Technology Officer
44
1.1 yrs
Alicia Davis
Vice President of Investor Relations
0.9 yrs
Dave Mullin
Vice President of Sales & Marketing
14.8 yrs
Rashida Thomas
Chief Diversity Officer & Director of Talent Management
1.2 yrs
Board of Directors Tenure
Average tenure and age of the Lear board of directors in years:
- The tenure for the Lear board of directors is about average.
Board of Directors
Henry Daniel Wallace
Non-Executive Chairman
$475K
73
8.9 yrs
Ray Scott
President
$10M
54
1.3 yrs
Thomas Capo
Independent Director
$295K
68
9.7 yrs
Jon Foster
Independent Director
$655K
58
9.7 yrs
Kathleen Ligocki
Independent Director
$290K
63
6.8 yrs
Conrad Mallett
Independent Director
$275K
65
16.9 yrs
Greg Smith
Independent Director
$275K
67
9.7 yrs
Mary Jepsen
Independent Director
$275K
54
3.3 yrs
Mei-Wei Cheng
Director
69
0.5 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | 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 | ||
Management checks
We assess Lear's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) 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 - – Full articleShould 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 - – Full articleIntroducing 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 - – Full articleHere'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 $1 of company earnings. … The P/E ratio indicates whether the market has higher or lower expectations of a company.
Simply Wall St - – Full articleIs There An Opportunity With Lear Corporation's (NYSE:LEA) 30% Undervaluation?
Today, we will estimate the stock's intrinsic value by taking the expected future cash flows and discounting them to today's value. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, 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 - – Full articleShould 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 - – Full articleHave 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 - – Full articleA 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 - – Full articleIs 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 - – Full articleLear 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 - – Full articleCompany 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
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.
