ScoreWhy is Lear Corp. ?
1
High Management Efficiency with a high ROCE of 12.45%
2
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.23 times
3
Flat results in Jun 25
- OPERATING CASH FLOW(Y) Lowest at USD 1,032 MM
- ROCE(HY) Lowest at 9.51%
- CASH AND EQV(HY) Lowest at USD 1,688.1 MM
4
With ROCE of 14.91%, it has a very expensive valuation with a 1.08 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 11.43%, its profits have fallen by -7.6%
- At the current price, the company has a high dividend yield of 350.1
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Lear Corp. should be less than 10%
- Overall Portfolio exposure to Auto Components & Equipments should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Lear Corp. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Lear Corp.
53.13%
-0.22
34.57%
S&P 500
25.41%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
6.41%
EBIT Growth (5y)
11.26%
EBIT to Interest (avg)
8.23
Debt to EBITDA (avg)
1.23
Net Debt to Equity (avg)
0.46
Sales to Capital Employed (avg)
2.99
Tax Ratio
27.52%
Dividend Payout Ratio
37.79%
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
12.45%
ROE (avg)
12.45%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
9
Industry P/E
Price to Book Value
1.31
EV to EBIT
8.27
EV to EBITDA
5.20
EV to Capital Employed
1.22
EV to Sales
0.36
PEG Ratio
0.89
Dividend Yield
138.59%
ROCE (Latest)
14.81%
ROE (Latest)
14.55%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
No Trend
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend7What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 1,314.6 MM
PRE-TAX PROFIT(Q)
Highest at USD 258.8 MM
NET PROFIT(Q)
Highest at USD 206.94 MM
EPS(Q)
Highest at USD 3.34
-2What is not working for the Company
DIVIDEND PAYOUT RATIO(Y)
Lowest at 23.04%
RAW MATERIAL COST(Y)
Grown by 5.04% (YoY
Here's what is working for Lear Corp.
Operating Cash Flow
Highest at USD 1,314.6 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Pre-Tax Profit
Highest at USD 258.8 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 206.94 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 3.34
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Here's what is not working for Lear Corp.
Dividend Payout Ratio
Lowest at 23.04%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)
Raw Material Cost
Grown by 5.04% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
GET THE MARKETSMOJO APP
Company
Stocks
Portfolio
"Investment in securities markets are subject to market risk. Read all the related documents carefully before investing."
