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 ✅

PEG: 2.2

P/Book: 3x

Price / Sales: 0.5

Price / Cash flow: 6.9x ✅

RoA: 10%

RoI: 20%

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

Categories: Stock Opinion

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