Based on the analysis of Lear's profitability, liquidity, and operating efficiency, Lear Corporation may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter. At present, Lear's Net Debt is projected to increase significantly based on the last few years of reporting. The current year's Retained Earnings is expected to grow to about 6.2 B, whereas Total Assets are forecasted to decline to about 9.3 B. Key indicators impacting Lear's financial strength include:
The financial analysis of Lear is a critical element in measuring its lifeblood. Investors should not minimize Lear's ability to pay suppliers or employees on time, ensuring interest payments are not accumulating.
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.
Lear Stock Summary
Lear competes with Fox Factory, LKQ, Dorman Products, Stoneridge, and Autoliv. 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. Lear Corporation was founded in 1917 and is headquartered in Southfield, Michigan. Lear Corp operates under Auto Parts classification in the United States and is traded on New York Stock Exchange. It employs 160100 people.
Comparative valuation techniques use various fundamental indicators to help in determining Lear's current stock value. Our valuation model uses many indicators to compare Lear value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Lear competition to find correlations between indicators driving Lear's intrinsic value. More Info.
Lear Corporation is rated below average in return on equity category among its peers. It is rated below average in return on asset category among its peers reporting about 0.37 of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Lear Corporation is roughly 2.73 . At present, Lear's Return On Equity is projected to increase slightly based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Lear's earnings, one of the primary drivers of an investment's value.
Lear's Earnings Breakdown by Geography
Lear Systematic Risk
Lear's systematic risk plays a vital role in portfolio allocation when considering its stock to be added to a well-diversified portfolio. Lear volatility which cannot be eliminated through diversification, requires returns over the risk-free rate. Over the long run, a well-diversified portfolio provides returns that match its exposure to systematic risk. In this case, investors face a trade-off between expected returns and systematic risk and, therefore, can only reduce a portfolio's exposure to systematic risk by sacrificing expected returns on the portfolio.
Incorrect Input. Please change your parameters or increase the time horizon required for running this function. The output start index for this execution was zero with a total number of output elements of zero. The Beta measures systematic risk based on how returns on Lear correlated with the market. If Beta is less than 0 Lear generally moves in the opposite direction as compared to the market. If Lear Beta is about zero movement of price series is uncorrelated with the movement of the benchmark. if Beta is between zero and one Lear is generally moves in the same direction as, but less than the movement of the market. For Beta = 1 movement of Lear is generally in the same direction as the market. If Beta > 1 Lear moves generally in the same direction as, but more than the movement of the benchmark.
Lear Thematic Clasifications
Lear Corporation is part of Automobiles and Trucks investing theme. If you are a theme-oriented, socially responsible, and at the same time, a result-driven investor, you can align your investing habits with your values without jeopardizing your expectations about returns. You can easily create an optimal portfolio of stocks, ETFs, funds, or cryptocurrencies based on a specific theme of your liking. USA Equities from Automobiles and Trucks industry as classified by Fama & French. Fama and French investing themes focus on testing asset pricing under different economic assumptions
This theme covers USA Equities from Automobiles and Trucks industry as classified by Fama & French. Fama and French investing themes focus on testing asset pricing under different economic assumptions. Get More Thematic Ideas
Today, most investors in Lear Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Lear's growth ratios. Consistent increases or decreases in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's growth growth rates may not be enough to decide which company is a better investment. That's why investors frequently use static breakdown of Lear growth as a starting point in their analysis.
Price Earnings To Growth Ratio
(3.43)
At present, Lear's Price Earnings To Growth Ratio is projected to slightly decrease based on the last few years of reporting.
Lear March 21, 2025 Opportunity Range
Along with financial statement analysis, the daily predictive indicators of Lear help investors to analyze its daily demand and supply, volume, patterns, and price swings to determine the real value of Lear Corporation. We use our internally-developed statistical techniques to arrive at the intrinsic value of Lear Corporation based on widely used predictive technical indicators. In general, we focus on analyzing Lear Stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Lear's daily price indicators and compare them against related drivers.
When running Lear's price analysis, check to measure Lear's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Lear is operating at the current time. Most of Lear's value examination focuses on studying past and present price action to predict the probability of Lear's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Lear's price. Additionally, you may evaluate how the addition of Lear to your portfolios can decrease your overall portfolio volatility.