Market Cap
US$7.6b
Last Updated
2019/12/12 00:16 UTC
Data Sources
Company Financials +
Executive Summary
Lear Corporation designs, develops, engineers, manufactures, assembles, and supplies automotive seating, and electrical distribution systems and related components for automotive original equipment manufacturers worldwide.
Rewards
Risk Analysis
Snowflake Analysis
Good value with adequate balance sheet.
Similar Companies
Share Price & News
How has Lear's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: LEA has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
4.8%
LEA
2.4%
US Auto Components
0.8%
US Market
1 Year Return
2.0%
LEA
11.5%
US Auto Components
17.8%
US Market
Return vs Industry: LEA underperformed the US Auto Components industry which returned 11.5% over the past year.
Return vs Market: LEA underperformed the US Market which returned 17.8% over the past year.
Shareholder returns
| LEA | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.8% | 2.4% | 0.8% |
| 30 Day | -0.04% | -1.8% | 1.8% |
| 90 Day | 0.1% | 3.4% | 4.1% |
| 1 Year | 4.4%2.0% | 13.2%11.5% | 20.4%17.8% |
| 3 Year | -0.6%-5.8% | 3.6%-6.9% | 45.9%36.4% |
| 5 Year | 43.8%33.6% | 18.9%1.9% | 68.1%49.6% |
Price Volatility Vs. Market
How volatile is Lear's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 day ago | Simply Wall St
At US$125, Is It Time To Put Lear Corporation (NYSE:LEA) On Your Watch List?1 week ago | Simply Wall St
Lear Corporation (NYSE:LEA) Passed Our Checks, And It's About To Pay A US$0.75 Dividend2 weeks ago | Simply Wall St
These 4 Measures Indicate That Lear (NYSE:LEA) Is Using Debt Reasonably WellValuation
Is Lear undervalued compared to its fair value and its price relative to the market?
35.4%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: LEA ($126.48) is trading below our estimate of fair value ($195.82)
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 (9.2x) compared to the Auto Components industry average (17.2x).
PE vs Market: LEA is good value based on its PE Ratio (9.2x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: LEA is poor value based on its PEG Ratio (1.1x)
Price to Book Ratio
PB vs Industry: LEA is overvalued based on its PB Ratio (1.8x) compared to the US Auto Components industry average (1.2x).
Next Steps
Future Growth
How is Lear forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
8.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: LEA's forecast earnings growth (8.7% per year) is above the savings rate (1.7%).
Earnings vs Market: LEA's earnings (8.7% per year) are forecast to grow slower than the US market (14.2% per year).
High Growth Earnings: LEA's earnings are forecast to grow, but not significantly.
Revenue vs Market: LEA's revenue (3.1% per year) is forecast to grow slower than the US market (7.4% per year).
High Growth Revenue: LEA's revenue (3.1% 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 (20.2%)
Next Steps
Past Performance
How has Lear performed over the past 5 years?
11.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LEA has high quality earnings.
Growing Profit Margin: LEA's current net profit margins (4.3%) are lower than last year (6.1%).
Past Earnings Growth Analysis
Earnings Trend: LEA's earnings have grown by 11.2% per year over the past 5 years.
Accelerating Growth: LEA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: LEA had negative earnings growth (-35.1%) over the past year, making it difficult to compare to the Auto Components industry average (4.1%).
Return on Equity
High ROE: LEA's Return on Equity (20.6%) is considered high.
Return on Assets
Return on Capital Employed
Next Steps
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 ($4.9B).
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 debt to equity ratio (51.6%) is considered high.
Reducing Debt: LEA's debt to equity ratio has increased from 34.3% to 51.6% over the past 5 years.
Debt Coverage: LEA's debt is well covered by operating cash flow (66.7%).
Interest Coverage: LEA's interest payments on its debt are well covered by EBIT (16.2x coverage).
Balance Sheet
Inventory Level: LEA has a high level of physical assets or inventory.
Debt Coverage by Assets: LEA's debt is covered by short term assets (assets are 2.8x debt).
Next Steps
Dividend
What is Lear's current dividend yield, its reliability and sustainability?
2.37%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: LEA's dividend (2.37%) is higher than the bottom 25% of dividend payers in the US market (1.43%).
High Dividend: LEA's dividend (2.37%) is low compared to the top 25% of dividend payers in the US market (3.72%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, LEA has been paying a dividend for less than 10 years.
Growing Dividend: LEA's dividend payments have increased, but the company has only paid a dividend for 9 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (21.6%), LEA's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: LEA's dividends in 3 years are forecast to be well covered by earnings (17.1% payout ratio).
Next Steps
Management
What is the CEO of Lear's salary, the management and board of directors tenure and is there insider trading?
1.1yrs
Average management tenure
CEO
Ray Scott (54yo)
1.8yrs
Tenure
US$9,936,305
Compensation
Mr. Raymond E. Scott Jr., also known as Ray, serves as President, Chief Executive Officer and Director at Lear Corporation since 2019 and had been its Interim President of E-Systems since February 2019 unt ...
CEO Compensation Analysis
Compensation vs Market: Ray's total compensation ($USD9.94M) is above average for companies of similar size in the US market ($USD6.70M).
Compensation vs Earnings: Ray's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Management Age and Tenure
1.1yrs
Average Tenure
51yo
Average Age
Experienced Management: LEA's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.
Board Age and Tenure
9.3yrs
Average Tenure
65yo
Average Age
Experienced Board: LEA's board of directors are considered experienced (9.3 years average tenure).
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Shares | 3,500 |
| Max Price | US$156.00 |
| Entity | Individual |
| Role | Senior Key Executive |
| Shares | 18,985 |
| Max Price | US$155.28 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Ray Scott (54yo)
President
- Tenure: 1.8yrs
- Compensation: US$9.94m
Jeff Vanneste (59yo)
- Tenure: 0.08yrs
- Compensation: US$4.36m
Frank Orsini (46yo)
Executive VP & President of Seating
- Tenure: 7.3yrs
- Compensation: US$4.16m
Terry Larkin (64yo)
- Tenure: 0.3yrs
- Compensation: US$4.20m
Tom DiDonato (60yo)
Senior VP & Chief Administrative Officer
- Tenure: 0.9yrs
- Compensation: US$3.47m
Jason Cardew (49yo)
Senior VP & CFO
- Tenure: 0.08yrs
- Compensation: US$1.52m
Amy Doyle (51yo)
VP & Chief Accounting Officer
- Tenure: 2.6yrs
John Absmeier (44yo)
Chief Technology Officer
- Tenure: 1.5yrs
Alicia Davis
Senior Vice President of Corporate Development & Investor Relations
- Tenure: 1.3yrs
Harry Kemp (43yo)
Senior VP
- Tenure: 0.3yrs
Board Members
Henry Daniel Wallace (73yo)
Non-Executive Chairman
- Tenure: 9.3yrs
- Compensation: US$474.80k
Thomas Capo (68yo)
Independent Director
- Tenure: 10.1yrs
- Compensation: US$294.97k
Jon Foster (58yo)
Independent Director
- Tenure: 10.1yrs
- Compensation: US$655.49k
Kathleen Ligocki (63yo)
Independent Director
- Tenure: 7.3yrs
- Compensation: US$289.97k
Greg Smith (67yo)
Independent Director
- Tenure: 10.1yrs
- Compensation: US$274.97k
Ray Scott (54yo)
President
- Tenure: 1.8yrs
- Compensation: US$9.94m
Conrad Mallett (65yo)
Independent Director
- Tenure: 17.3yrs
- Compensation: US$274.97k
Mei-Wei Cheng (69yo)
Director
- Tenure: 0.9yrs
Mary Jepsen (54yo)
Independent Director
- Tenure: 3.8yrs
- Compensation: US$274.97k
Company Information
Lear Corporation's company bio, 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
- Market Cap: US$7.648b
- Shares outstanding: 60.47m
- Website: https://www.lear.com
Number of Employees
Location
- Lear Corporation
- 21557 Telegraph Road
- Southfield
- Michigan
- 48033
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| LEA | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Nov 2009 |
| LE6N | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Nov 2009 |
| LEA * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Nov 2009 |
| 0JTQ | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Nov 2009 |
Biography
Lear Corporation designs, develops, engineers, manufactures, assembles, and supplies automotive seating, and electrical distribution systems and related components for automotive original equipment manufac ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/12/12 00:16 |
| End of Day Share Price | 2019/12/11 00:00 |
| Earnings | 2019/09/28 |
| Annual Earnings | 2018/12/31 |
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.