Is Lear Stock a Good Investment?
Lear Investment Advice | LEA |
- Examine Lear's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Lear's leadership team and their track record. Good management can help Lear navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Automotive Parts & Equipment space and any emerging trends that could impact Lear's business and its evolving consumer preferences.
- Compare Lear's performance and market position to its competitors. Analyze how Lear is positioned in terms of product offerings, innovation, and market share.
- Check if Lear pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Lear's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Lear Corporation stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Lear Corporation is a good investment.
Sell | Buy |
Strong Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Responds to the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Lear Stock
Researching Lear's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 100.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 1.11. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Lear has Price/Earnings To Growth (PEG) ratio of 0.36. The entity recorded earning per share (EPS) of 9.51. The firm last dividend was issued on the 11th of December 2024. Lear had 2:1 split on the 18th of March 2011.
To determine if Lear is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Lear's research are outlined below:
| Lear generated a negative expected return over the last 90 days | |
| Over 100.0% of the company shares are owned by institutional investors | |
| Latest headline from simplywall.st: While shareholders of Lear are in the red over the last three years, underlying earnings have actually grown |
Lear Quarterly Cost Of Revenue |
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Lear uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Lear Corporation. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Lear's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 6th of February 2024 Upcoming Quarterly Report | View | |
| 25th of April 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 6th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Lear's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Lear's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2006-04-26 | 2006-03-31 | 0.03 | 0.04 | 0.01 | 33 | ||
1995-10-18 | 1995-09-30 | 0.1 | 0.11 | 0.01 | 10 | ||
2001-10-23 | 2001-09-30 | 0.16 | 0.18 | 0.02 | 12 | ||
1996-10-21 | 1996-09-30 | 0.17 | 0.19 | 0.02 | 11 | ||
2005-04-22 | 2005-03-31 | 0.02 | -0.01 | -0.03 | 150 | ||
1997-10-21 | 1997-09-30 | 0.24 | 0.27 | 0.03 | 12 | ||
2006-01-25 | 2005-12-31 | 0.38 | 0.43 | 0.05 | 13 | ||
2002-04-22 | 2002-03-31 | 0.3 | 0.35 | 0.05 | 16 |
Know Lear's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Lear is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Lear Corporation backward and forwards among themselves. Lear's institutional investor refers to the entity that pools money to purchase Lear's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Geode Capital Management, Llc | 2024-09-30 | 1.1 M | Lyrical Asset Management Lp | 2024-09-30 | 1 M | Pacer Advisors, Inc. | 2024-06-30 | 1 M | Boston Partners Global Investors, Inc | 2024-09-30 | 964.8 K | Jacobs Levy Equity Management, Inc. | 2024-09-30 | 715.8 K | Norges Bank | 2024-06-30 | 682.7 K | Bank Of New York Mellon Corp | 2024-06-30 | 637.7 K | Lsv Asset Management | 2024-09-30 | 630.1 K | Harris Associates L.p. | 2024-06-30 | 621.4 K | Pzena Investment Management, Llc | 2024-09-30 | 7.7 M | Blackrock Inc | 2024-06-30 | 7.6 M |
Lear's market capitalization trends
The company currently falls under 'Mid-Cap' category with a total capitalization of 5.32 B.Market Cap |
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Lear's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.04 | 0.03 | |
| Return On Capital Employed | 0.06 | 0.06 | |
| Return On Assets | 0.04 | 0.03 | |
| Return On Equity | 0.12 | 0.12 |
Determining Lear's profitability involves analyzing its financial statements and using various financial metrics to determine if Lear is a good buy. For example, gross profit margin measures Lear's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Lear's profitability and make more informed investment decisions.
Lear's Earnings Breakdown by Geography
Please note, the presentation of Lear's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Lear's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Lear's management manipulating its earnings.
Evaluate Lear's management efficiency
Lear has Return on Asset of 0.0442 % which means that on every $100 spent on assets, it made $0.0442 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.1256 %, implying that it generated $0.1256 on every 100 dollars invested. Lear's management efficiency ratios could be used to measure how well Lear manages its routine affairs as well as how well it operates its assets and liabilities. The current year's Return On Equity is expected to grow to 0.12, whereas Return On Tangible Assets are forecasted to decline to 0.03. At present, Lear's Non Currrent Assets Other are projected to increase significantly based on the last few years of reporting. The current year's Other Assets is expected to grow to about 2.7 B, whereas Total Assets are forecasted to decline to about 9.1 B.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 86.02 | 90.32 | |
| Tangible Book Value Per Share | 56.48 | 59.30 | |
| Enterprise Value Over EBITDA | 6.06 | 3.50 | |
| Price Book Value Ratio | 1.69 | 1.60 | |
| Enterprise Value Multiple | 6.06 | 3.50 | |
| Price Fair Value | 1.69 | 1.60 | |
| Enterprise Value | 10 B | 5.4 B |
Lear Corporation benefits from a proactive management team that anticipates market trends. Our analysis delves into how this proactive stance influences financial metrics and stock valuation.
Dividend Yield 0.0317 | Forward Dividend Yield 0.0317 | Forward Dividend Rate 3.08 | Beta 1.465 |
Basic technical analysis of Lear Stock
As of the 30th of November, Lear secures the Risk Adjusted Performance of (0.08), mean deviation of 1.49, and Standard Deviation of 1.95. In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of Lear, as well as the relationship between them.Lear's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Lear insiders, such as employees or executives, is commonly permitted as long as it does not rely on Lear's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Lear insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Lear's Outstanding Corporate Bonds
Lear issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Lear uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Lear bonds can be classified according to their maturity, which is the date when Lear Corporation has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| LEAR P 38 Corp BondUS521865AY17 | View | |
| US521865AZ81 Corp BondUS521865AZ81 | View | |
| US521865BB05 Corp BondUS521865BB05 | View | |
| LEA 26 15 JAN 32 Corp BondUS521865BC87 | View | |
| LEA 355 15 JAN 52 Corp BondUS521865BD60 | View | |
| US521865BA22 Corp BondUS521865BA22 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View |
Understand Lear's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Lear's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.08) | |||
| Market Risk Adjusted Performance | (0.18) | |||
| Mean Deviation | 1.49 | |||
| Coefficient Of Variation | (863.82) | |||
| Standard Deviation | 1.95 | |||
| Variance | 3.8 | |||
| Information Ratio | (0.19) | |||
| Jensen Alpha | (0.40) | |||
| Total Risk Alpha | (0.56) | |||
| Treynor Ratio | (0.19) | |||
| Maximum Drawdown | 9.76 | |||
| Value At Risk | (3.53) | |||
| Potential Upside | 3.0 | |||
| Skewness | (0.62) | |||
| Kurtosis | 0.815 |
| Risk Adjusted Performance | (0.08) | |||
| Market Risk Adjusted Performance | (0.18) | |||
| Mean Deviation | 1.49 | |||
| Coefficient Of Variation | (863.82) | |||
| Standard Deviation | 1.95 | |||
| Variance | 3.8 | |||
| Information Ratio | (0.19) | |||
| Jensen Alpha | (0.40) | |||
| Total Risk Alpha | (0.56) | |||
| Treynor Ratio | (0.19) | |||
| Maximum Drawdown | 9.76 | |||
| Value At Risk | (3.53) | |||
| Potential Upside | 3.0 | |||
| Skewness | (0.62) | |||
| Kurtosis | 0.815 |
Consider Lear's intraday indicators
Lear intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Lear stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Lear Corporate Filings
F4 | 21st of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
8K | 24th of October 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
| 7th of October 2024 Other Reports | ViewVerify | |
F3 | 14th of August 2024 The report used by insiders such as officers, directors, and major shareholders (beneficial owners holding more than 10% of any class of the company's equity securities) to declare their ownership of a company's stock | ViewVerify |
Lear Stock media impact
Far too much social signal, news, headlines, and media speculation about Lear that are available to investors today. That information is available publicly through Lear media outlets and privately through word of mouth or via Lear internal channels. However, regardless of the origin, that massive amount of Lear data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Lear news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Lear relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Lear's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Lear alpha.
Lear Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Lear can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Lear Historical Investor Sentiment
Investor biases related to Lear's public news can be used to forecast risks associated with an investment in Lear. The trend in average sentiment can be used to explain how an investor holding Lear can time the market purely based on public headlines and social activities around Lear Corporation. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Lear's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Lear and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Lear news discussions. The higher the estimate score, the more favorable the investor's outlook on Lear.
Lear Corporate Directors
| Roger Krone | Independent Director | Profile | |
| MeiWei Cheng | Independent Director | Profile | |
| Jonathan Foster | Independent Director | Profile | |
| Mary Jepsen | Independent Director | Profile |
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Lear Corporation. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in income. You can also try the Stocks Directory module to find actively traded stocks across global markets.
Is Automotive Parts & Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Lear. If investors know Lear will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Lear listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.071 | Dividend Share 3.08 | Earnings Share 9.51 | Revenue Per Share 410.529 | Quarterly Revenue Growth (0.03) |
The market value of Lear is measured differently than its book value, which is the value of Lear that is recorded on the company's balance sheet. Investors also form their own opinion of Lear's value that differs from its market value or its book value, called intrinsic value, which is Lear's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Lear's market value can be influenced by many factors that don't directly affect Lear's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Lear's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Lear is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Lear's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.