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Lear Corporation (LEA) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

Lear Corporation

LEAMarket cap $6.02BPrice $122.0

Country🇺🇸United States

SectorConsumer

IndustryAuto Components

Manufactures seating systems and electrical distribution architecture for nearly every major automaker on the planet. Sits inside roughly half of all vehicles built worldwide, making it one of the biggest suppliers you've never heard of.

In Bastion Portfolios?

52W Return+24%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)+4%4

Revenue Forecast

Rev CAGR (1y)+2%3

Rev CAGR (3y)+2%2

Rev CAGR (5y)+2%2

Earnings Forecast

EPS Growth Y+1+88%10

EPS Growth Y+2+7%6

EPS Growth Y+3+10%6

Quality

Margins

EBIT Margin5%3

Net Income Margin2%3

Free Cash Flow Margin4%4

Debt

Net Debt/EBITDA1.25

Efficiency

ROE11%5

ROA4%5

Earnings Stability55

GEAR+AVERAGE41

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)810

P/E Ratio (Forward 3y)710

P/BV1.29

EV Multiples

EV/EBITDA Fwd510

EV/EBIT Fwd710

Yield

Free Cash Flow Yield14.1%10

Dividend Yield2.5%6

Momentum

Short term

1 month return-9%3

3 month return-7%4

YTD return+8%6

Mid term

Price vs 52wHigh82%5

1 year return+26%7

Long term

3 year return-2%3

5 year return-16%3

Risk Shield

Price Risk

Beta0.67

Volatility35%6

Free Cash Flow

Free Cash Flow Margin4%4

Free Cash Flow Yield14.1%10

Quality

ROCE12%6

Earnings Stability55

Net Debt/EBITDA1.25

02Growth

Is it actually growing, and how fast?

LEALear

Revenue FY25$23.3B

GROWTH RATING↗

WEAK19 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+4%4

Revenue, next 1Y+2%3

Revenue, next 3Y, CAGR+2%2

Revenue, next 5Y, CAGR+2%2

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+88%10

EPS growth, FY27E+7%6

EPS growth, FY28E+10%6

GROWTH ASSESSMENT

STRENGTHS

Earnings are set to grow faster than sales (EPS about 10%/yr vs revenue 2%/yr), so margins should widen.

WATCH

Revenue grew 4%/yr over the last 3 years and is set to keep growing around 2%/yr.

WEAKNESSES

Growth is the weak spot here, trailing 81% of companies worldwide.

Revenue is set to grow 2%/yr over the next 3 years, behind most of the market.2/10

Over five years revenue is set to grow 2%/yr, behind 80% of companies worldwide.2/10

BOTTOM LINE

Stalled Business

Growth is a weak point here. The one thing to watch: forward revenue growth trails the market.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

WEAK27 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-9%3

3-month return-7%4

YTD return+8%6

MID & LONG-TERM▾SCORE

% of 52-week high82%5

1-year return+26%7

3-year return-2%3

5-year return-16%3

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

It's up 26% over the past year, but 18% below its 52-week high. That is a touch ahead of the market.

Returns sit at the market level over three months (-7%) and so far this year (+8%).

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (-2.2% over three years and -16% over five), behind 70% of the market.

The stock is underperforming over the past month (-9%).

BOTTOM LINE

Falling Knife

Returns rank poorly over both the short and long run, and the price is still falling. Momentum is firmly negative — catching this is a bet against the tape, not with it. Wait for a base to form. The one thing to watch: the multi-year record is weak.

04Value

Are you paying a fair price for it?

Stop guessing on Lear Corporation. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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02Growth

Is it actually growing, and how fast?

LEALear

Revenue FY25$23.3B

GROWTH RATING↗

WEAK19 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+4%4

Revenue, next 1Y+2%3

Revenue, next 3Y, CAGR+2%2

Revenue, next 5Y, CAGR+2%2

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+88%10

EPS growth, FY27E+7%6

EPS growth, FY28E+10%6

GROWTH ASSESSMENT

STRENGTHS

Earnings are set to grow faster than sales (EPS about 10%/yr vs revenue 2%/yr), so margins should widen.

WATCH

Revenue grew 4%/yr over the last 3 years and is set to keep growing around 2%/yr.

WEAKNESSES

Growth is the weak spot here, trailing 81% of companies worldwide.

Revenue is set to grow 2%/yr over the next 3 years, behind most of the market.2/10

Over five years revenue is set to grow 2%/yr, behind 80% of companies worldwide.2/10

BOTTOM LINE

Stalled Business

Growth is a weak point here. The one thing to watch: forward revenue growth trails the market.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

WEAK27 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-9%3

3-month return-7%4

YTD return+8%6

MID & LONG-TERM▾SCORE

% of 52-week high82%5

1-year return+26%7

3-year return-2%3

5-year return-16%3

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

It's up 26% over the past year, but 18% below its 52-week high. That is a touch ahead of the market.

Returns sit at the market level over three months (-7%) and so far this year (+8%).

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (-2.2% over three years and -16% over five), behind 70% of the market.

The stock is underperforming over the past month (-9%).

BOTTOM LINE

Falling Knife

04Value

Are you paying a fair price for it?

Stop guessing on Lear Corporation. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community