Lear Corp

Consumer Discretionary
Auto Parts:O.E.M.
www.lear.com

Earnings Score
Moat Score
Safety Score

Market Cap $5.41B
PE 11
Debt $2.76B
Cash $1.06B
EV $7.12B
FCF $561.40M

Earnings

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Sales & Net Margins

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Earnings	$506.60M
EBIT	$887.70M
ROE	11%
ROA	6%
FCF	$561.40M
Equity	$4.60B
Growth Stability	15%
PE	10.68
PEG	0.43
PB	1.18
P/FCF	9.64
P/S	0.23
Price/Cash	0.2
Debt/Equity	0.6
Debt/FCF	4.92
Net Margins	2%
Gross Margins	7%
Op. Margins	4%
Earnings CAGR	-14%
Sales Growth YoY	-2%
Sales Growth QoQ	2%
Sales CAGR	2%
FCF CAGR	-16%
Equity CAGR	5%
Earnings Stability	0.27
Earnings Growth YoY	-31%
Earnings Growth QoQ	-35%
Earnings CAGR 5Y	25%

Sales CAGR 5Y	8%
FCF CAGR 5Y	15%
Equity CAGR 5Y	3%
Earnings CAGR 3Y	8%
Sales CAGR 3Y	8%
FCF CAGR 3Y	178%
Equity CAGR 3Y	1%
Market Cap	$5.41B
Revenue	$23.31B
Dividend Yield	3%
Payout Ratio	34%
Assets	$14.03B
Total Debt	$2.76B
Cash	$1.06B
Shares Outstanding	56.14M
EV	7.12B
Earnings Score	4%
Moat Score	76%
Safety Score	56%
Final Score	45%
Working Capital	1.74B
Current Ratio	1.32
Gross Profit	$1.64B
Shares Growth 3y	-3%
Equity Growth QoQ	-6%
Equity Growth YoY	-9%

Assets & ROA

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Stockholders Equity & ROE

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Lear designs, develops, and manufactures automotive seating and electrical systems and components. Seating components include frames and mechanisms, covers (leather and woven fabric), seat heating and cooling, foam, and headrests. Automotive electrical distribution and connection systems and electronic systems include wiring harnesses, terminals and connectors, on-board battery chargers, high voltage battery management systems, high voltage power distribution systems, domain controllers, telematics control units, gateway modules, vehicle positioning for automated and autonomous driving, embedded control software, cloud and mobile device software and services, and cybersecurity.

SEC Filings

Direct access to Lear Corp (LEA) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-K Dec 31
- 10-Q Sep 28
- 10-Q Jun 29
- 10-Q Mar 30
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jul 01
- 10-Q Apr 01
2022
- 10-K Dec 31
- 10-Q Oct 01
- 10-Q Jul 02
- 10-Q Apr 02

Sector Comparison

How does Lear Corp compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Lear Corp compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR -14%

Stability 27%

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Lear Corp Discounted Cash Flow

Fully customizable DCF calculator online for Lear Corp.

Years

Calculation mode

= $2.1B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$561M	$474M	$399M	$337M	$284M	$240M	$202M	$171M	$144M	$121M	$102M	$1B
DCF		$430M	$330M	$253M	$194M	$149M	$114M	$88M	$67M	$51M	$39M	$395M
Value	$2.1B

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.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Net Margins	4%	5%	6%	5%	4%	1%	2%	2%	2%	2%	2%
ROA	-	14%	13%	14%	8%	3%	5%	5%	6%	6%	6%
ROE	-	31%	30%	26%	17%	3%	8%	7%	11%	11%	11%

Bad Net Margins (2.17%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

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.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Debt over FCF	-	1.81	1.67	1.8	3.46	11.07	30.6	6.81	4.46	4.92	4.92
Debt over Equity	0.66	0.62	0.46	0.45	0.52	0.51	0.54	0.54	0.55	0.6	0.6
Growth Stability	-	-	-	100%	66%	15%	55%	76%	100%	100%	15%

Bad Debt/FCF ratio (4.92)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Good Debt/Equity ratio (0.6)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (15%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

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.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	CAGR 5Y
Revenue YoY growth	-	2%	10%	3%	-6%	-14%	13%	8%	12%	-1%	8%
Earnings YoY growth	-	31%	32%	-12%	-34%	-79%	136%	-12%	75%	-12%	25%
Equity YoY growth	-	6%	34%	2%	3%	3%	4%	0%	5%	-9%	3%
FCF YoY growth	-	39%	9%	-7%	-38%	-69%	-60%	351%	63%	-10%	15%