Lear LEA
United StatesConsumer Cyclical · Auto PartsUSD
149.71 USD (+25.1%)
14 analysts
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Lear Corporation is a global supplier of automotive seating and electrical systems, designing and manufacturing components for major vehicle manufacturers.
Key points
from its scores- ✓Attractive valuation8.9
- ✓Good share-price trend8.6
- ✕Little competitive advantage4.5
- ✕Unfavourable risk and backdrop4.8
AI analysis
bottom line, main risk, context and newsThe valuation is compelling and growth is solid, but watch the operating margin and the automotive sector's evolution.
Lear Corporation presents a very attractive valuation (P/E 11.14, EV/EBITDA 5.03, FCF yield 14.56%) with earnings growth of 23.9%, although its operating margin is low (4.15%) and its financial health is moderate (ND/EBITDA 1.48).
The main risk is dependence on the global automotive cycle and margin pressure in a high-cost environment, reflected in an operating margin of only 4.15%.
Context and risks
Lear Corporation has no recent relevant news or identifiable material regulatory or geopolitical exposure. Its automotive components business is geographically diversified and does not depend on critical shipping routes or government subsidies. The governance risk of the country of domicile (USA) is moderate and already reflected in the base score.
Is Lear stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 46% below the Consumer Cyclical median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 11.1 | 17.8 | −38% |
| EV / EBITDA | 5.0 | 11.2 | −55% |
| Price / book | 1.1 | 2.9 | −60% |
| Price / sales | 0.2 | 1.3 | −80% |
Sector: median of the 228 Consumer Cyclical companies analysed. In bold, the multiples used for the comparison.
Valuation score: 8.9 out of 10 (median for Consumer Cyclical: 6.6).
Average analyst target: 149.71 USD, +25.1% versus the price.
A discount may reflect more risk or slower growth than its sector: Financial health 6.0 (sector 5.7), Growth 6.3 (sector 5.9).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Consumer Cyclical medianValuation
- P/E
- 11.1
- Forward P/E
- 7.1
- EV / EBITDA
- 5.0
- Price / book
- 1.1
- Price / sales
- 0.2
- PEG
- 0.36
- Market cap
- 5.9B USD
- Enterprise value
- 8.6B USD
Profitability
- ROE
- 12.1%
- ROA
- 4.4%
- ROIC (approx.)
- 11.3%
- Gross margin
- 7.7%
- Operating margin
- 4.2%
- Net margin
- 2.3%
- Free cash flow
- 859.0M USD
- FCF yield
- 14.6%
- Cash conversion
- 51%
Solvency
- Total debt
- 3.5B USD
- Net debt
- 2.5B USD
- Cash
- 1.0B USD
- EBITDA
- 1.7B USD
- Net debt / EBITDA
- 1.48
- Debt / equity
- 66.03
- Current ratio
- 1.31
- Quick ratio
- 0.85
Growth
- Revenue growth
- +3.0%
- Earnings growth
- +23.9%
- EPS (TTM)
- 10.74 USD
- EPS (forward)
- 16.89 USD
Dividend
- Dividend yield
- 2.6%
- Payout
- 28.7%
Risk and market
- Beta
- 1.30
- Analyst consensus
- Buy (14)
- Target price
- 149.71 USD
- 52-week range
- 96.04 – 150.33
Recent news
All LEA news →Compare it with its sector
All 228 in Consumer Cyclical →Frequently asked questions about Lear
Is Lear stock cheap or expensive?
On P/E and EV / EBITDA, it trades 46% below the Consumer Cyclical median on average. Valuation score: 8.9 out of 10 (median for Consumer Cyclical: 6.6). Average analyst target: 149.71 USD, +25.1% versus the price. This is not investment advice.
What score does Lear get on MeridIAn Screener?
It scores 6.4 out of 10, rank 640 of 2,130 (better than 68% of the companies analysed). Its strongest category is Valuation (8.9) and its weakest, Quality / Moat (4.5). Analysis of 08/10/2026.
What is Lear's P/E ratio?
Its P/E is 11.1: the share price equals 11.1 times earnings per share over the last 12 months. The Consumer Cyclical median is 17.8. Based on the earnings analysts expect, the forward P/E is 7.1.
How much is Lear worth on the stock market?
Its market capitalisation is 5.9B USD and its enterprise value, debt included, is 8.6B USD.
How much debt does Lear have?
Its net debt (debt minus cash) is 2.5B USD. That is 1.48 times its EBITDA; the Consumer Cyclical median is 1.91.
Does Lear pay a dividend?
Yes: its dividend yield is 2.57% and it pays out 29% of its earnings.
How has Lear stock performed over the last year?
It has risen 26.7% over the last year, excluding dividends. Over the last 52 weeks it has traded between 96.04 and 150.33 USD. Past performance does not guarantee future results.
What do analysts think of Lear?
14 analysts cover it; their average recommendation is “Buy” and their average target is 149.71 USD (+25.1% versus the price). It is an estimate, not market data.