NYSE
LEA
Last Price
US $134.06
KEY FIGURES
MKT CAP
$6.9B
EPS
TTM
$10.35
PEG
TTM
N/M
P/E
TTM
13.56x
P/S
TTM
0.29x
YIELD
2.25%
GROWTH
Revenue Y/Y
Profit margin
Current Ratio
Capital Returns
10.41%
Return on equity
ROIC: 8.65%
Valuation History
13.6X
Price to Earnings
EV/EBITDA: 6.5X
Cash flow
Profit margin
6.41%
(FY vs FY)
EBITDA Y/Y
8.06%
(FY vs FY)
Cash flow Y/Y
20.12%
(FY vs FY)
Cash Flow (DCF)
Fair Value
Market $134.06
-7.51%
Default assumptions
EBITDA Multiple
Fair Value
Market $134.06
-70.39%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.
Valuation
Financial
Performance
Financial stability - Cash flow debt coverage.
Lear Corporation cash flow to debt ratio of 26.54% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.
Financial risk - Healthy cash flow growth.
Lear Corporation's free cash flow has decreased -6.09% from $561.40M last year to $527.20M, signaling decreasing performance
Financial risk - Healthy debt to equity ratio.
Lear Corporation's debt to equity ratio is 0.69, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy
Financial stability - Healthy debt to equity ratio development.
Lear Corporation's debt has decreased relative to shareholder equity from 0.92 last year to 0.69 today, signaling strengthened financials
Financial stability - Net debt/EBITDA.
Lear Corporation has a net debt to EBITDA ratio of 2.22x, which is below the 3.00x threshold, indicating healthy leverage and financial stability
Financial stability - ICR.
Lear Corporation's interest coverage ratio of 10.24 indicates that earnings with good margin can cover interest payments on company debt
Financial stability - Profit margin growth.
Lear Corporation's profit margin has increased (3.33%) in the last year from 2.17% to 2.25%, signaling increasing performance
Financial stability - Short term assets vs short term liabilities.
Lear Corporation's short-term assets of $7.66G exceed its short-term liabilities of $5.67G
Decreasing performance - ROA.
Lear Corporation's return on assets of 3.42% is lower than the 5.00% threshold, indicating inefficient asset utilization
Decreasing performance - Absolute return on equity.
Lear Corporation's return on equity of 10.41%, is lower than 15.00%, indicating bad performance
Increasing performance - Earnings quality.
Lear Corporation's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
Lear Corporation had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
Lear Corporation has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
Lear Corporation has a free cash flow yield of 7.69%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Decreasing performance - Healthy earnings growth.
Lear Corporation's yearly earnings has decreased -13.78% since last year from $506.60M to $436.80M, signaling decreasing performance
Decreasing performance - Healthy revenue growth.
Lear Corporation's yearly revenue has decreased -0.20% since last year from $23.31G to $23.26G, signaling decreasing performance
Increasing performance - ROIC.
ROIC 8.65% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.
Increasing performance - 3-year revenue CAGR.
Lear Corporation's 3-year revenue CAGR of 3.66% is positive, indicating growing revenue over the past 3 years
Increasing performance - Revenue consistency.
Lear Corporation had revenue growth in 3.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
Lear Corporation had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
Lear Corporation is overvalued relative to its fair value price of 123.99 based on Discounted Cash Flow model
Undervalued - Earnings yield.
Lear Corporation has an earnings yield of 7.57%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings
Overvalued - EBITDA valuation.
Lear Corporation is overvalued relative to its fair value price of 39.69 based on EBITDA multiple model
Undervalued - EV/EBITDA.
Lear Corporation has an EV/EBITDA ratio of 6.48x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Undervalued - PEG ratio value.
Lear Corporation has a PEG-ratio under 1 which is considered undervalued
Undervalued - P/B ratio.
Lear Corporation has a price-to-book ratio of 1.37x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Undervalued - P/S ratio.
Lear Corporation has a price-to-sales ratio of 0.29x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue