Lear Corporation

Valuation Analysis

About the Company

Lear Corporation designs, develops, engineers, manufactures, assembles, and supplies automotive seating, and electrical distribution systems and related components for automotive original equipment manufacturers in North America, Europe, Africa, Asia, and South America. Its Seating segment offers seat systems, keyseat components, seat trim covers, seat mechanisms, thermal comfort systems such as seat heating, ventilation, active cooling, pneumatic lumbar and massage products, seat cushioning, and headrests, as well as surface materials, such as leather and fabric for light trucks, compact cars, pick-up trucks, and sport utility vehicles. The company's E-Systems segment provides electrical distribution and connection systems that route electrical signals and networks; and manage electrical

Lear Corporation Stock at a Glance

Lear Corporation (LEA) is currently trading at $145.16 with a market capitalization of $7.3B. The trailing P/E ratio stands at 14.52x, with a forward P/E of 8.38x. The 52-week range spans from $89.30 to $150.33; the current price is 3.4% below the yearly high. Year-over-year revenue growth stands at +4.7%. The net profit margin stands at 2.25%.

💰 Dividend

Lear Corporation pays an annual dividend of $3.08 per share, representing a yield of 2.12%. The payout ratio stands at 30.8%.

📊 Analyst Rating

14 analysts rate Lear Corporation (LEA) on consensus: None. The average price target is $147.93, implying +1.91% from the current price. Analyst price targets range from $130.00 to $179.00.

Lear Corporation: The Investment Case in Detail

Lear Corporation (LEA) operates in the Consumer Cyclical — specifically Auto Parts — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Earnings growth of 124.2% is outpacing revenue, a sign of operational leverage — fixed costs are being absorbed across a larger base. Our valuation screen flags the stock as undervalued relative to its fundamentals — multiples are running below where the cash flow profile would normally justify.

The Bear Case

Revenue growth has slowed to just 4.7%, which is below nominal GDP — the business is no longer outgrowing the broader economy. With a net margin of just 2.25%, the business has little room to absorb cost shocks or pricing pressure — a single bad quarter can swing the company to a loss.

Valuation in Context

With a PEG ratio of 0.36, the price-to-earnings multiple is actually below the company's growth rate — classic value-meets-growth territory that Peter Lynch would have called a 'GARP' opportunity. The EV/EBITDA multiple of 6.03x is below the historical equity-market average — strategic acquirers would find the cash-flow profile attractive at this level.

What to Watch Next

• The forward P/E of 8.38x is meaningfully below the trailing 14.52x — analysts expect earnings to step up; the next earnings release is the test.
• The share is trading at 91.5% of its 52-week range — a break above the recent high opens technical upside, a failure here often invites profit-taking.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price trades above both the 50- and 200-day moving averages, with 50d above 200d — a classic bullish setup (golden-cross alignment).

Risk Profile

The data points to market-like volatility, elevated short interest (5.52%).

Trading Data

💵 Dividend Info

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