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Lear Corp

LEA

Motor Vehicle Parts & Accessories

Mkt Cap

$7.867B

PE

13.74

Debt

$2.778B

Cash

$1.199B

EV

$9.446B

FCF

$622.8M

Market Cap

$7.867B

P/E Ratio

13.74

Debt

$2.778B

Cash

$1.199B

EV

$9.446B

FCF

$622.8M
Charts data: {"Earnings":[{"time":"2014-12-30","value":672400000},{"time":"2015-12-30","value":745500000},{"time":"2016-12-30","value":975100000},{"time":"2017-12-30","value":1287900000},{"time":"2018-12-30","value":1139400000},{"time":"2019-12-30","value":753600000},{"time":"2020-12-30","value":158500000},{"time":"2021-12-30","value":373900000},{"time":"2022-12-30","value":327700000},{"time":"2023-12-30","value":572500000}],"Sales":[{"time":"2014-12-30","value":17727300000},{"time":"2015-12-30","value":18211400000},{"time":"2016-12-30","value":18557600000},{"time":"2017-12-30","value":20467000000},{"time":"2018-12-30","value":21148500000},{"time":"2019-12-30","value":19810300000},{"time":"2020-12-30","value":17045500000},{"time":"2021-12-30","value":19263100000},{"time":"2022-12-30","value":20891500000},{"time":"2023-12-30","value":23466900000}],"Net Margins":[{"time":"2014-12-30","value":0.037930198056105556},{"time":"2015-12-30","value":0.04093589729510087},{"time":"2016-12-30","value":0.052544510065956805},{"time":"2017-12-30","value":0.0629256852494259},{"time":"2018-12-30","value":0.053876161429888644},{"time":"2019-12-30","value":0.038040817150674144},{"time":"2020-12-30","value":0.009298641870288346},{"time":"2021-12-30","value":0.019410167626186855},{"time":"2022-12-30","value":0.015685805231792836},{"time":"2023-12-30","value":0.024396064243679395}],"Assets":[{"time":"2014-12-30","value":9150200000},{"time":"2015-12-30","value":9405800000},{"time":"2016-12-30","value":9900600000},{"time":"2017-12-30","value":11945900000},{"time":"2018-12-30","value":11600700000},{"time":"2019-12-30","value":12680700000},{"time":"2020-12-30","value":13198600000},{"time":"2021-12-30","value":13352400000},{"time":"2022-12-30","value":13763000000},{"time":"2023-12-30","value":14695500000}],"Stockholders Equity":[{"time":"2014-12-30","value":3029300000},{"time":"2015-12-30","value":3017700000},{"time":"2016-12-30","value":3192900000},{"time":"2017-12-30","value":4292600000},{"time":"2018-12-30","value":4360600000},{"time":"2019-12-30","value":4501100000},{"time":"2020-12-30","value":4614900000},{"time":"2021-12-30","value":4808400000},{"time":"2022-12-30","value":4830300000},{"time":"2023-12-30","value":5060600000}],"ROE":[{"time":"2014-12-30","value":0.2219654705707589},{"time":"2015-12-30","value":0.24704244954766874},{"time":"2016-12-30","value":0.30539634814745215},{"time":"2017-12-30","value":0.30002795508549596},{"time":"2018-12-30","value":0.261294317295785},{"time":"2019-12-30","value":0.1674257403745751},{"time":"2020-12-30","value":0.0343452729203233},{"time":"2021-12-30","value":0.0777597537642459},{"time":"2022-12-30","value":0.06784257706560669},{"time":"2023-12-30","value":0.11312887799865629}],"ROA":[{"time":"2014-12-30","value":0.10154969290288737},{"time":"2015-12-30","value":0.12617746496842375},{"time":"2016-12-30","value":0.14415287962345716},{"time":"2017-12-30","value":0.13497517976879098},{"time":"2018-12-30","value":0.142586223245149},{"time":"2019-12-30","value":0.08439597183120806},{"time":"2020-12-30","value":0.03440516418408013},{"time":"2021-12-30","value":0.05058266678649531},{"time":"2022-12-30","value":0.04754050715686987},{"time":"2023-12-30","value":0.06350243271749856}]}

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. This segment's products comprise wire harnesses, terminals and connectors, engineered components, and junction boxes; electronic system products, including body domain control modules, smart and passive junction boxes, gateway and communication modules, integrated power modules, and high voltage switching and power control systems. It also offers software and connected services comprising Xevo Market, an in-vehicle commerce and service platform; and software and services for the cloud, vehicles, and mobile devices. In addition, this segment provides cybersecurity software; advanced vehicle positioning for automated and autonomous driving applications; and short-range communication and cellular protocols for vehicle connectivity. It offers its products and services under the XEVO, GUILFORD, EAGLE OTTAWA, ConfigurE+, INTUTM, LEAR CONNEXUSTM, EXO, JOURNEYWARE, ProTec, SMART JUNCTION BOX, STRUCSURE, AVENTINO, and TeXstyle brands. Lear Corporation was founded in 1917 and is headquartered in Southfield, Michigan.

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Growth

%

%

Discount

%

%

Multiple

g\r+10%+11%+12%+13%+14%
0%109887
+1%1110988
+2%13111098
+3%141311109
+4%1714121110
Years012345678910TV
FCF$622.8M$492.5M$389.5M$308.1M$243.6M$192.7M$152.4M$120.5M$95.3M$75.37M$59.61M$596.1M
DCF$428.3M$294.5M$202.6M$139.3M$95.79M$65.88M$45.3M$31.15M$21.42M$14.73M$147.3M
Value$1.486B

In the chart Earnings are multiplied by this value.

Earnings Growth -16%
Earnings Stability 33%


Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years12-201512-201612-201712-201812-201912-202012-202112-202212-2023TTM
Net Margin4.1%5.3%6.3%5.4%3.8%0.93%1.9%1.6%2.4%2.4%
ROA13%14%13%14%8.4%3.4%5.1%4.8%6.4%6.4%
ROE25%31%30%26%17%3.4%7.8%6.8%11%11%

What is the average Net Margin?

The average Net Margin over the past 5 years is +2.68%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is -0.58%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +7.05%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -1.4%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +12.03%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -2.85%.


Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years12-201512-201612-201712-201812-201912-202012-202112-202212-2023TTM
Debt FCF2.531.811.671.803.4611.0730.606.814.464.46
Debt Equity0.660.620.460.450.520.510.540.540.550.55
MIN
Graham Stability--100%100%66%15%55%76%100%15%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 4.46.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 1.23.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.15.


Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years12-201612-201812-202012-2022Trend
Revenue3.4%2.1%11%12%0.77%
Net Income-7.3%-13%53%75%4.4%
Stockholders Equity6.8%3%3.1%4.8%-0.92%
FCF-7.7%-11%43%63%13%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +2.1%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +0.77%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is -12.86%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +4.43%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +3.02%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -0.92%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is -10.8%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +12.71%.