(LEA) Lear - Overview
Sector: Consumer Cyclical | Industry: Auto Parts | Exchange: NYSE (USA) | Market Cap: 6.935m USD | Total Return: 56.3% in 12m
Avg Turnover: 80.4M
EPS Trend: -6.9%
Qual. Beats: 2
Rev. Trend: 17.0%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Lear Corporation is a Tier 1 automotive supplier headquartered in Southfield, Michigan, specializing in two primary segments: Seating and E-Systems. The Seating division provides complete seat systems and components, including thermal comfort technologies and surface materials like leather and fabric. The E-Systems segment develops electrical distribution architectures, high-voltage power management systems for electric vehicles, and cybersecurity software.
The company operates in a highly cyclical sector where revenue is closely tied to global light vehicle production volumes and OEM outsourcing trends. As vehicles transition toward electrification, suppliers like Lear are increasingly focusing on high-voltage wiring and electronic control modules to support complex powertrain requirements. Examining the companys historical performance on ValueRay can provide deeper insights into its valuation relative to industry peers.
Lear serves major global automakers across North America, Europe, and Asia, utilizing a portfolio of proprietary brands such as Eagle Ottawa and Guilford. Its business model relies on long-term supply contracts and integrated manufacturing facilities located near customer assembly plants to minimize logistical costs.
- Global light vehicle production volumes dictate primary revenue and seating demand
- High-voltage E-Systems growth depends on electric vehicle adoption rates
- Commodity price fluctuations in steel and copper impact manufacturing margins
- Labor cost inflation in North America and Europe pressures operating income
- Vertical integration of seat components enhances competitive positioning and profit margins
| Net Income: 528.4m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.05 > 0.02 and ΔFCF/TA 1.47 > 1.0 |
| NWC/Revenue: 8.67% < 20% (prev 8.17%; Δ 0.49% < -1%) |
| CFO/TA 0.09 > 3% & CFO 1.31b > Net Income 528.4m |
| Net Debt (2.80b) to EBITDA (1.61b): 1.74 < 3 |
| Current Ratio: 1.33 > 1.5 & < 3 |
| Outstanding Shares: last quarter (51.5m) vs 12m ago -4.94% < -2% |
| Gross Margin: 7.23% > 18% (prev 0.07%; Δ 715.4% > 0.5%) |
| Asset Turnover: 156.4% > 50% (prev 156.4%; Δ 0.02% > 0%) |
| Interest Coverage Ratio: 10.24 > 6 (EBITDA TTM 1.61b / Interest Expense TTM 98.2m) |
| A: 0.13 (Total Current Assets 8.25b - Total Current Liabilities 6.22b) / Total Assets 15.5b |
| B: 0.41 (Retained Earnings 6.32b / Total Assets 15.5b) |
| C: 0.07 (EBIT TTM 1.01b / Avg Total Assets 15.0b) |
| D: 0.57 (Book Value of Equity 5.77b / Total Liabilities 10.2b) |
| Altman-Z'' = 3.24 = A |
| DSRI: 0.96 (Receivables 4.17b/4.22b, Revenue 23.5b/22.9b) |
| GMI: 1.02 (GM 7.23% / 7.34%) |
| AQI: 1.02 (AQ_t 0.23 / AQ_t-1 0.23) |
| SGI: 1.03 (Revenue 23.5b / 22.9b) |
| TATA: -0.05 (NI 528.4m - CFO 1.31b) / TA 15.5b) |
| Beneish M = -3.06 (Cap -4..+1) = AA |
As of May 25, 2026, the stock is trading at USD 139.80 with a total of 296,095 shares traded.
Over the past week, the price has changed by +5.33%,
over one month by +8.95%,
over three months by +4.89% and
over the past year by +56.31%.
Lear has received a consensus analysts rating of 3.50. Therefore, it is recommended to hold LEA.
- StrongBuy: 3
- Buy: 2
- Hold: 11
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 146 | 4.4% |
P/E Trailing = 13.3362
P/E Forward = 9.1408
P/S = 0.2948
P/B = 1.3129
P/EG = 0.3584
Revenue TTM = 23.5b USD
EBIT TTM = 1.01b USD
EBITDA TTM = 1.61b USD
Long Term Debt = 2.71b USD (from longTermDebt, last quarter)
Short Term Debt = 201.7m USD (from shortTermDebt, last quarter)
Debt = 3.69b USD (from shortLongTermDebtTotal, last quarter) + Leases 169.4m
Net Debt = 2.80b USD (calculated: Debt 3.69b - CCE 889.1m)
Enterprise Value = 9.74b USD (6.93b + Debt 3.69b - CCE 889.1m)
Interest Coverage Ratio = 10.24 (Ebit TTM 1.01b / Interest Expense TTM 98.2m)
EV/FCF = 13.30x (Enterprise Value 9.74b / FCF TTM 732.4m)
FCF Yield = 7.52% (FCF TTM 732.4m / Enterprise Value 9.74b)
FCF Margin = 3.11% (FCF TTM 732.4m / Revenue TTM 23.5b)
Net Margin = 2.25% (Net Income TTM 528.4m / Revenue TTM 23.5b)
Gross Margin = 7.23% ((Revenue TTM 23.5b - Cost of Revenue TTM 21.8b) / Revenue TTM)
Gross Margin QoQ = 7.59% (prev 6.89%)
Tobins Q-Ratio = 0.63 (Enterprise Value 9.74b / Total Assets 15.5b)
Interest Expense / Debt = 2.66% (Interest Expense 98.2m / Debt 3.69b)
Taxrate = 16.62% (38.4m / 231.1m)
NOPAT = 838.5m (EBIT 1.01b * (1 - 16.62%))
Current Ratio = 1.33 (Total Current Assets 8.25b / Total Current Liabilities 6.22b)
Debt / Equity = 0.73 (Debt 3.69b / totalStockholderEquity, last quarter 5.09b)
Debt / EBITDA = 1.74 (Net Debt 2.80b / EBITDA 1.61b)
Debt / FCF = 3.83 (Net Debt 2.80b / FCF TTM 732.4m)
Total Stockholder Equity = 5.08b (last 4 quarters mean from totalStockholderEquity)
RoA = 3.51% (Net Income 528.4m / Total Assets 15.5b)
RoE = 10.41% (Net Income TTM 528.4m / Total Stockholder Equity 5.08b)
RoCE = 12.91% (EBIT 1.01b / Capital Employed (Equity 5.08b + L.T.Debt 2.71b))
RoIC = 8.95% (NOPAT 838.5m / Invested Capital 9.37b)
WACC = 7.19% (E(6.93b)/V(10.6b) * Re(9.84%) + D(3.69b)/V(10.6b) * Rd(2.66%) * (1-Tc(0.17)))
Discount Rate = 9.84% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -100.00 | Cagr: -5.47%
[DCF] Terminal Value 77.97% ; FCFF base≈630.6m ; Y1≈722.9m ; Y5≈1.06b
[DCF] Fair Price = 263.6 (EV 16.0b - Net Debt 2.80b = Equity 13.2b / Shares 50.1m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: -6.95 | EPS CAGR: -0.59% | SUE: 0.92 | # QB: 2
Revenue Correlation: 17.04 | Revenue CAGR: 0.30% | SUE: -0.25 | # QB: 0
EPS current Quarter (2026-06-30): EPS=3.87 | Chg30d=+0.96% | Revisions=+7% | Analysts=14
EPS next Quarter (2026-09-30): EPS=3.43 | Chg30d=+3.05% | Revisions=+7% | Analysts=14
EPS current Year (2026-12-31): EPS=14.79 | Chg30d=+2.43% | Revisions=+29% | GrowthEPS=+15.6% | GrowthRev=+2.0%
EPS next Year (2027-12-31): EPS=17.31 | Chg30d=+2.58% | Revisions=+33% | GrowthEPS=+17.0% | GrowthRev=+3.2%
[Analyst] Revisions Ratio: +33%