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$132.76|
|52 Week High||US$204.91|
|52 Week Low||US$122.67|
|1 Month Change||-0.98%|
|3 Month Change||-22.71%|
|1 Year Change||-29.49%|
|3 Year Change||5.49%|
|5 Year Change||-10.04%|
|Change since IPO||372.04%|
Recent News & Updates
Lear - Fasten Your Seatbelts
Lear has been hurt by the pandemic, chip shortages and now a softer economy and inflationary pressures. The company has been underperforming for a while, as the recent pullback in the shares seems perfectly explainable. I am not actively considering Lear shares here even as it is making bolt-on deals to diversify from the core seating business.
There Are Reasons To Feel Uneasy About Lear's (NYSE:LEA) Returns On Capital
If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...
|LEA||US Auto Components||US Market|
Return vs Industry: LEA exceeded the US Auto Components industry which returned -34.2% over the past year.
Return vs Market: LEA underperformed the US Market which returned -12.9% over the past year.
|LEA Average Weekly Movement||7.5%|
|Auto Components Industry Average Movement||8.7%|
|Market Average Movement||7.8%|
|10% most volatile stocks in US Market||16.8%|
|10% least volatile stocks in US Market||2.9%|
Stable Share Price: LEA is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: LEA's weekly volatility (7%) 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, keyseat 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$17.78b|
Last Reported Earnings
Apr 02, 2022
Next Earnings Date
|Earnings per share (EPS)||3.67|
|Net Profit Margin||1.15%|
How did LEA perform over the long term?See historical performance and comparison
2.3%Current Dividend Yield
Is Lear undervalued compared to its fair value and its price relative to the market?
Valuation Score 3/6
Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PB vs Industry
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: LEA ($132.76) is trading below our estimate of fair value ($313.28)
Significantly Below Fair Value: LEA is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: LEA is poor value based on its PE Ratio (36.1x) compared to the US Auto Components industry average (14.5x).
PE vs Market: LEA is poor value based on its PE Ratio (36.1x) compared to the US market (15.3x).
Price to Earnings Growth Ratio
PEG Ratio: LEA is good value based on its PEG Ratio (0.8x)
Price to Book Ratio
PB vs Industry: LEA is overvalued based on its PB Ratio (1.7x) compared to the US Auto Components industry average (1.6x).
How is Lear forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?
Future Growth Score4/6
Future Growth Score 4/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: LEA's forecast earnings growth (44.2% per year) is above the savings rate (1.9%).
Earnings vs Market: LEA's earnings (44.2% per year) are forecast to grow faster than the US market (12.5% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: LEA's revenue (8.7% per year) is forecast to grow faster than the US market (7.8% per year).
High Growth Revenue: LEA's revenue (8.7% 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 (18.9%).
How has Lear performed over the past 5 years?
Past Performance Score0/6
Past Performance Score 0/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LEA has a large one-off loss of $138.6M impacting its April 2 2022 financial results.
Growing Profit Margin: LEA's current net profit margins (1.1%) are lower than last year (1.6%).
Past Earnings Growth Analysis
Earnings Trend: LEA's earnings have declined by 28.8% 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 (-22.8%) over the past year, making it difficult to compare to the Auto Components industry average (24.5%).
Return on Equity
High ROE: LEA's Return on Equity (6.3%) is considered low.
How is Lear's financial position?
Financial Health Score6/6
Financial Health Score 6/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: LEA's short term assets ($6.9B) exceed its short term liabilities ($5.1B).
Long Term Liabilities: LEA's short term assets ($6.9B) exceed its long term liabilities ($3.8B).
Debt to Equity History and Analysis
Debt Level: LEA's net debt to equity ratio (29.7%) is considered satisfactory.
Reducing Debt: LEA's debt to equity ratio has reduced from 55.8% to 53.8% over the past 5 years.
Debt Coverage: LEA's debt is well covered by operating cash flow (24.8%).
Interest Coverage: LEA's interest payments on its debt are well covered by EBIT (6.9x coverage).
What is Lear current dividend yield, its reliability and sustainability?
Dividend Score 4/6
Future Dividend Coverage
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: LEA's dividend (2.32%) is higher than the bottom 25% of dividend payers in the US market (1.58%).
High Dividend: LEA's dividend (2.32%) is low compared to the top 25% of dividend payers in the US market (4.11%).
Stability and Growth of Payments
Stable Dividend: LEA's dividend payments have been volatile in the past 10 years.
Growing Dividend: LEA's dividend payments have increased over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonable payout ratio (62.6%), LEA's dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its high cash payout ratio (451.3%), LEA's dividend payments are not well covered by cash flows.
Discover strong dividend paying companies
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Ray Scott (56 yo)
Mr. Raymond E. Scott Jr., also known as Ray, serves as President, Chief Executive Officer and Director at Lear Corporation since May 1, 2018 and had been its Interim President of E-Systems since January 28...
CEO Compensation Analysis
Compensation vs Market: Ray's total compensation ($USD13.31M) is above average for companies of similar size in the US market ($USD8.23M).
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 (4 years average tenure).
Experienced Board: LEA's board of directors are considered experienced (5.2 years average tenure).
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.
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$7.936b
- Shares outstanding: 59.78m
- 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||2022/05/21 00:00|
|End of Day Share Price||2022/05/20 00:00|
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.