Lear Corporation (LEA)
Manufacturer of automotive seating and electrical systems. A boring, steady type of company that Peter Lynch would love!
LEA - Lear Corporation, USA, founded 1917.
Date of research: 25 August 2017.
Industry: automotive components.
HQ: Southfield, Michigan, USA.
Industry outlook: we think this is going to grow for this major player, because even with changing engine technology (towards electric battery), car seats stay the same.
Stock price performance 5 years: was $37 in September 2012, today it's $146, an increase of over 290% on price alone. ✅
Dividend yield: 1.3%. $2 per year currently, it has grown over the last 3 years.
Payout ratio: only 10%, which is low compared to other companies of its profile.
P/E TTM: 10x ✅
Price / Sales: 0.5
Price / Cash flow: 6.9x ✅
RoE: 32% ✅
Profit margin: 5.5%
Operating margin: 8%
Debt / Equity: 59% ✅
Growth rates over last 5 years:-
EPS: 21% vs 12% for industry (CAGR) ✅
Revenue: 5.5% vs 2.5% for industry (CAGR)
Enterprise Value: $10.6 billion, within 10% of its market cap (for stock buyers, the lower this figure, the better).
Market Capitalization: $9.92 billion USD