# Lear Corporation (LEA) fundamentals

Data as of 2026-11-04. NYSE, United States. Sector: Consumer Cyclical / Auto Parts. Price $116.77, market value $5.6 billion.

## Valuation
- **P/E (trailing): 10.2×** (5-yr avg 16.9×, 3-yr avg 12.5×). Lear Corporation trades at 10.2× trailing earnings, well below its own five-year average of 16.9×: cheap by its own standards. The Consumer Cyclical median in the September 2026 study was 19.5×. Forward P/E is 7.0×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 0.2×**. Each dollar of revenue is priced at 0.2×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 1.1×**. The shares trade at 1.1× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 3.1×**. Enterprise value is 3.1× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 12.5%** (5-yr avg 6.8%). Free cash flow equals 12.5% of the market value, above its five-year average of 6.8%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 9.8%**. The inverse of the P/E: 9.8% of the price is earned each year.

## Profitability
- **Gross margin: 6.9%**. Lear Corporation keeps 6.9% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: 3.7%**. 3.7% of revenue is left after running the business, which leaves little cushion in a downturn.
- **Net margin: 1.9%**. 1.9% of each dollar of sales reaches the bottom line.
- **Return on equity: 8.7%**. 8.7% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 17.2%**. Return on all capital, debt included, is 17.2%: comfortably above what that capital costs.
- **Return on assets: 3.9%**. Each dollar of assets produces 3.9% of profit.

## Growth
- **Revenue growth (1 yr): -0.2%** (3-yr 3.6%/yr, 5-yr 6.4%/yr). Revenue fell 0.2% over the last year, against 6.4% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -9.1%** (3-yr 14.2%/yr, 5-yr 25.5%/yr). Earnings per share fell 9.1%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 11.2%/yr**. Free cash flow has compounded at 11.2% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.01**. Debt is 0.01 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. Lear Corporation holds more cash than debt.
- **Current ratio: 1.35** (quick 1.35). Current assets cover the next year's liabilities 1.35 times.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 2.64%** ($3.08 per share, trailing). Lear Corporation yields 2.64%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 38%** (23% of free cash flow). 38% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 5**. 5 straight years of increases.
- **Dividend growth (5 yr): 24.7%/yr** (1-yr 0.0%). The dividend has compounded at 24.7% a year over five years, doubling roughly every 3 years at that pace.

## Analyst view
- **Analyst consensus: buy** (14 analysts). 14 analysts cover Lear Corporation; the consensus is buy, with an average price target of $146.21 (+25% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 10.0%** (YTD 3.1%, 3-mo -7.3%). The shares are up 10.0% over twelve months including dividends.
- **From 52-week high: -22.3%** (17.9% above the low). Trading 22% below its 52-week high.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 44**. An RSI of 44 is neutral.
- **Beta (1 yr): 0.94** (volatility 35%). Beta of 0.94 against the S&P 500: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=LEA · Page: https://foliofundamentals.com/stocks/lea

Not investment advice.