Market Cap
US$5.3b
Last Updated
2020/04/09 04:58 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 in North America, Europe, Africa, Asia, South America, and internationally.
Rewards
Risk Analysis
Snowflake Analysis
Undervalued with excellent 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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
23.4%
LEA
23.7%
US Auto Components
9.4%
US Market
1 Year Return
-42.5%
LEA
-38.9%
US Auto Components
-6.8%
US Market
Return vs Industry: LEA exceeded the US Auto Components industry which returned -50.8% over the past year.
Return vs Market: LEA underperformed the US Market which returned -15.9% over the past year.
Shareholder returns
| LEA | Industry | Market | |
|---|---|---|---|
| 7 Day | 23.4% | 23.7% | 9.4% |
| 30 Day | -12.7% | -13.9% | -3.9% |
| 90 Day | -34.7% | -33.7% | -16.5% |
| 1 Year | -41.0%-42.5% | -38.0%-38.9% | -4.8%-6.8% |
| 3 Year | -28.6%-32.5% | -33.2%-39.9% | 23.4%15.2% |
| 5 Year | -15.8%-22.1% | -30.9%-41.0% | 41.3%25.7% |
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
3 weeks ago | Simply Wall St
A Sliding Share Price Has Us Looking At Lear Corporation's (NYSE:LEA) P/E Ratio4 weeks ago | Simply Wall St
These 4 Measures Indicate That Lear (NYSE:LEA) Is Using Debt Reasonably Well1 month ago | Simply Wall St
Here's How P/E Ratios Can Help Us Understand Lear Corporation (NYSE:LEA)Valuation
Is Lear undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: LEA ($79.94) is trading below our estimate of fair value ($232.29)
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 (6.2x) compared to the Auto Components industry average (10.8x).
PE vs Market: LEA is good value based on its PE Ratio (6.2x) compared to the US market (12.2x).
Price to Earnings Growth Ratio
PEG Ratio: LEA is good value based on its PEG Ratio (0.6x)
Price to Book Ratio
PB vs Industry: LEA is overvalued based on its PB Ratio (1.1x) compared to the US Auto Components industry average (0.6x).
Next Steps
Future Growth
How is Lear forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
10.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: LEA's forecast earnings growth (10.7% per year) is above the savings rate (1.7%).
Earnings vs Market: LEA's earnings (10.7% per year) are forecast to grow slower than the US market (13.4% per year).
High Growth Earnings: LEA's earnings are forecast to grow, but not significantly.
Revenue vs Market: LEA's revenue (2.3% per year) is forecast to grow slower than the US market (7% per year).
High Growth Revenue: LEA's revenue (2.3% 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 low in 3 years time (13.5%).
Next Steps
Past Performance
How has Lear performed over the past 5 years?
7.3%
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%) are lower than last year (5.4%).
Past Earnings Growth Analysis
Earnings Trend: LEA's earnings have grown by 7.3% 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 (-30.7%) over the past year, making it difficult to compare to the Auto Components industry average (-4.2%).
Return on Equity
High ROE: LEA's Return on Equity (18%) is considered low.
Next Steps
Financial Health
How is Lear's financial position?
Financial Position Analysis
Short Term Liabilities: LEA's short term assets ($6.4B) exceed its short term liabilities ($4.7B).
Long Term Liabilities: LEA's short term assets ($6.4B) exceed its long term liabilities ($3.4B).
Debt to Equity History and Analysis
Debt Level: LEA's debt to equity ratio (50.4%) is considered high.
Reducing Debt: LEA's debt to equity ratio has reduced from 56.1% to 50.4% over the past 5 years.
Debt Coverage: LEA's debt is well covered by operating cash flow (55.2%).
Interest Coverage: LEA's interest payments on its debt are well covered by EBIT (13.7x coverage).
Balance Sheet
Next Steps
Dividend
What is Lear's current dividend yield, its reliability and sustainability?
3.47%
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate LEA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate LEA's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if LEA's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if LEA's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: LEA is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of LEA's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.9yrs
Average management tenure
CEO
Ray Scott (54yo)
2.08s
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 ($USD5.71M).
Compensation vs Earnings: Ray's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 2.08yrs | US$9.94m | 0.060% $3.2m | |
| Senior VP & Chief Administrative Officer | 1.25yrs | US$3.47m | 0.037% $2.0m | |
| Executive VP & President of Seating | 8.5yrs | US$4.16m | 0.052% $2.7m | |
| Senior VP & CFO | 0.42yr | US$1.52m | 0.0099% $526.8k | |
| VP & Chief Accounting Officer | 2.92yrs | no data | 0.00034% $18.1k | |
| Chief Technology Officer | 1.83yrs | no data | no data | |
| Senior Vice President of Corporate Development & Investor Relations | 1.67yrs | no data | 0.0012% $62.7k | |
| Senior VP | 0.67yr | no data | 0.00077% $40.9k | |
| Vice President of Sales & Marketing | 15.58yrs | no data | no data | |
| Chief Diversity Officer & Director of Talent Management | 1.92yrs | no data | no data |
1.9yrs
Average Tenure
48.5yo
Average Age
Experienced Management: LEA's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 2.08yrs | US$9.94m | 0.060% $3.2m | |
| Independent Non-Executive Chairman | 9.67yrs | US$474.80k | no data | |
| Independent Director | 10.42yrs | US$294.97k | 0.00023% $12.2k | |
| Independent Director | 10.42yrs | US$655.49k | 0.014% $741.4k | |
| Independent Director | 7.58yrs | US$289.97k | 0.0043% $228.9k | |
| Independent Director | 10.42yrs | US$274.97k | 0.017% $908.7k | |
| Independent Director | 17.67yrs | US$274.97k | no data | |
| Independent Director | 1.25yrs | no data | 0.00060% $31.9k | |
| Independent Director | 4.08yrs | US$274.97k | 0.0039% $205.0k |
9.7yrs
Average Tenure
65yo
Average Age
Experienced Board: LEA's board of directors are considered experienced (9.7 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
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$5.311b
- Shares outstanding: 59.61m
- 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 manufacturers in North America, Europe, Africa, Asia, South America, and internationally. Its Seating segment offers leather and fabric products, seat covers, recliner mechanisms, seat tracks and foams, seat structures and mechanisms, and headrests for automobiles and light trucks, compact cars, and sport utility vehicles. The company’s E-Systems segment offers electrical distribution systems that route electrical signals and networks, and manage electrical power within the vehicle for various powertrains, such as traditional internal combustion engine architectures, hybrid, plug-in hybrid, and battery electric architectures. 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 modules, wireless receiver and transmitter technology, lighting control modules, audio domain controllers, amplifiers, and communication modules. It also provides electrification products comprising charging systems that include onboard charging modules and cord set charging equipment; 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; 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 Xevo Journeyware, a platform for the cloud, vehicles, and mobile devices; and connectivity products. The company was founded in 1917 and is headquartered in Southfield, Michigan.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/09 04:58 |
| End of Day Share Price | 2020/04/08 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.