LEA Stock Analysis: Lear | NYSE
Auto Parts | NYSE, USA | Market Cap: 8.558m USD | 12M Return: 15.7% | US5218652049 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 84.5M
EPS Trend: 78.4%
Qual. Beats: 3
Rev. Trend: 2.2%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 11.6 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Lear Corporation (NYSE: LEA) is a global Tier 1 automotive supplier that designs, manufactures, and assembles automotive seating and electrical distribution systems for original equipment manufacturers (OEMs) across North America, Europe, Africa, Asia, and South America. The company operates through two main segments: Seating, which produces complete seat systems, mechanisms, thermal comfort features (heating, ventilation, cooling, massage), and surface materials; and E-Systems, which provides wire harnesses, terminals, connectors, junction boxes, body domain control modules, and high-voltage power control systems for managing electrical networks and power distribution within vehicles.
The E-Systems segment also includes software, connected services, and cybersecurity offerings, reflecting the broader automotive industry trend toward vehicle electrification and software-defined architectures. Lear sells its products under numerous brands, including GUILFORD, EAGLE OTTAWA, and COMFORTFLEX BY LEAR.
Founded in 1917 and headquartered in Southfield, Michigan, Lear is classified within the Consumer Discretionary sector and the Automotive Parts & Equipment sub-industry. As a Tier 1 supplier, it typically works under long-term platform contracts with major automakers and operates on tight just-in-time delivery schedules that mirror its customers production cycles.
- E-Systems revenue grows on EV high-voltage power control demand
- Seating margins pressured by raw material and labor inflation
- North America and Europe OEM production volumes drive segment revenue
| Net Income: 556.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.05 > 0.02 and ΔFCF/TA 2.31 > 1.0 |
| NWC/Revenue: 8.45% < 20% (prev 9.15%; Δ -0.69% < -1%) |
| CFO/TA 0.09 > 3% & CFO 1.48b > Net Income 556.0m |
| Net Debt (2.68b) to EBITDA (1.46b): 1.84 < 3 |
| Current Ratio: 1.31 > 1.5 & < 3 |
| Outstanding Shares: last quarter (51.2m) vs 12m ago -5.28% < -2% |
| Gross Margin: 7.05% > 18% (prev 7.54%; Δ -0.49% > 0.5%) |
| Asset Turnover: 153.0% > 50% (prev 149.4%; Δ 3.66% > 0%) |
| Interest Coverage Ratio: 8.73 > 6 (EBIT TTM 847.0m / Interest Expense TTM 97.0m) |
| A: 0.13 (Total Current Assets 8.39b - Total Current Liabilities 6.38b) / Total Assets 15.7b |
| B: 0.41 (Retained Earnings 6.47b / Total Assets 15.7b) |
| C: 0.05 (EBIT TTM 847.0m / Avg Total Assets 15.5b) |
| D: 0.50 (Book Value of Equity 5.18b / Total Liabilities 10.3b) |
| Altman-Z'' = 3.08 = A |
| DSRI: 0.90 (Receivables 4.21b/4.53b, Revenue 23.7b/22.9b) |
| GMI: 1.07 (GM 7.54% / 7.05%) |
| AQI: 1.04 (AQ_t 0.23 / AQ_t-1 0.23) |
| SGI: 1.04 (Revenue 23.7b / 22.9b) |
| TATA: -0.06 (NI 556.0m - CFO 1.48b) / TA 15.7b) |
| Beneish M = -3.01 (Cap -4..+1) = AA |
As of August 27, 2026, the stock is trading at USD 124.42 with a total of 444,940 shares traded. Over the past week, the price has changed by -0.20%, over one month by -14.72%, over three months by -13.33% and over the past year by +15.74%.
Current recommended Stop Loss: 118.50 (which is 4.8% or 1.6 ATR below the current price).
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 | 150.5 | 21% |
P/E Trailing = 11.6855
P/E Forward = 8.4746
P/S = 0.3611
P/B = 1.1942
P/EG = 0.3584
Revenue TTM = 23.7b USD
EBIT TTM = 847.0m USD
EBITDA TTM = 1.46b USD
Long Term Debt = 2.71b USD (from longTermDebt, last quarter)
Short Term Debt = 205.3m USD (from shortTermDebt, last quarter)
Debt = 3.69b USD (from shortLongTermDebtTotal, last quarter) + Leases 169.4m
Net Debt = 2.68b USD (calculated: Debt 3.69b - CCE 1.01b)
Enterprise Value = 11.2b USD (8.56b + Debt 3.69b - CCE 1.01b)
Interest Coverage Ratio = 8.73 (Ebit TTM 847.0m / Interest Expense TTM 97.0m)
EV/FCF = 13.23x (Enterprise Value 11.2b / FCF TTM 849.4m)
FCF Yield = 7.56% (FCF TTM 849.4m / Enterprise Value 11.2b)
FCF Margin = 3.58% (FCF TTM 849.4m / Revenue TTM 23.7b)
Net Margin = 2.35% (Net Income TTM 556.0m / Revenue TTM 23.7b)
Gross Margin = 7.05% ((Revenue TTM 23.7b - Cost of Revenue TTM 22.0b) / Revenue TTM)
Gross Margin QoQ = 7.07% (prev 7.59%)
Tobins Q-Ratio = 0.72 (Enterprise Value 11.2b / Total Assets 15.7b)
Interest Expense / Debt = 2.63% (Interest Expense 97.0m / Debt 3.69b)
Taxrate = 19.07% (150.1m / 787.2m)
NOPAT = 685.5m (EBIT 847.0m * (1 - 19.07%))
Current Ratio = 1.31 (Total Current Assets 8.39b / Total Current Liabilities 6.38b)
Debt / Equity = 0.71 (Debt 3.69b / totalStockholderEquity, last quarter 5.18b)
Debt / EBITDA = 1.84 (Net Debt 2.68b / EBITDA 1.46b)
Debt / FCF = 3.15 (Net Debt 2.68b / FCF TTM 849.4m)
Total Stockholder Equity = 5.10b (last 4 quarters mean from totalStockholderEquity)
RoA = 3.59% (Net Income 556.0m / Total Assets 15.7b)
RoE = 10.90% (Net Income TTM 556.0m / Total Stockholder Equity 5.10b)
RoCE = 10.84% (EBIT 847.0m / Capital Employed (Equity 5.10b + L.T.Debt 2.71b))
RoIC = 8.10% (NOPAT 685.5m / Invested Capital 8.46b)
WACC = 6.55% (E(8.56b)/V(12.2b) * Re(8.45%) + D(3.69b)/V(12.2b) * Rd(2.63%) * (1-Tc(0.19)))
Discount Rate = 8.45% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -98.83 | Cagr: -5.08%
[DCF] Terminal Value 77.97% ; FCFF base≈701.0m ; Y1≈803.5m ; Y5≈1.18b
[DCF] Fair Price = 227.1 (EV 17.8b - Net Debt 2.68b = Equity 15.1b / Shares 66.6m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 78.41 | EPS CAGR: 4.63% | SUE: 2.14 | # QB: 3
Revenue Correlation: 2.23 | Revenue CAGR: 0.03% | SUE: 0.73 | # QB: 0
EPS current Quarter (2026-09-30): EPS=3.34 | Chg30d=-4.27% | Revisions=-21% | Analysts=14
EPS current Year (2026-12-31): EPS=15.02 | Chg30d=+0.71% | Revisions=+36% | GrowthEPS=+17.4% | GrowthRev=+2.4%
EPS next Year (2027-12-31): EPS=17.04 | Chg30d=-2.27% | Revisions=-7% | GrowthEPS=+13.4% | GrowthRev=+1.5%
[Analyst] Revisions Ratio: +3% (up=17, down=16)