Lear Corporation (LEA)
Consumer Cyclical · NYQ · US
Fundamentals
Valuation and ratings
Lear Corporation trades at USD143.66, which is 108% below the USD299.00 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 28 out of 100, which is little in the way of a moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 13.6 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Lear Corporation
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 power within the vehicle for various powertrains. This segment's products comprise wire harnesses, terminals and connectors, engineered components, and junction boxes; electronic system products, including body domain control modules, and high voltage switching and power control systems. It also offers software and connected services. In addition, this segment provides cybersecurity software. It offers its products and services under the GUILFORD, EAGLE OTTAWA, THAGORA, IGB AUTOMOTIVE, COMFORTFLEX BY LEARTM, LEAR, CONFIGURE+, FLEXAIR , INTU, RENEWKNIT, SOYFOAM, ProTec, and TeXstyle brands. The company was founded in 1917 and is headquartered in Southfield, Michigan.
LEA passes 1 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
12 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Richard Pzena, PZENA INVESTMENT MANAGEMENT LLC$818.32M · 2.7% of book
- Greenhaven Associates, GREENHAVEN ASSOCIATES INC$205.52M · 3.4% of book
- Cliff Asness, AQR CAPITAL MANAGEMENT LLC$114.59M · 0.1% of book
- Arrowstreet Capital, ARROWSTREET CAPITAL, LIMITED PARTNERSHIP$43.49M · 0.0% of book
- Joel Greenblatt, Gotham Asset Management, LLC$32.27M · 0.1% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is Lear Corporation (LEA) undervalued?
Against our discounted cash flow estimate of USD299.00, LEA at USD143.66 is 108% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own LEA?
12 of the institutions we track reported a position in LEA in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is LEA's P/E ratio?
LEA trades at 13.6 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
The full research page for LEA, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.