📊 LEA Key Takeaways
Is LEA a Good Investment? Thesis Analysis
Lear Corp faces fundamental headwinds with flat revenue growth (0.0% YoY) coupled with deteriorating profitability (net income -17.1% YoY), indicating operational underperformance beyond cyclical market pressures. Extremely thin margins (net 1.9%, operating 3.3%) and low returns on capital (ROE 8.7%, ROA 2.9%) characterize a mature, commoditized supplier with limited growth visibility.
Why Buy LEA? Key Strengths
- Strong debt service capacity with 29.8x interest coverage ratio
- Positive free cash flow generation of $527.2M supporting potential dividends/debt paydown
- Conservative leverage position with 0.54x debt-to-equity ratio
LEA Investment Risks to Consider
- Zero organic revenue growth in a stagnant market signals lost competitiveness or market share erosion
- Net income declining 17% while revenue flat indicates margin compression and operational deterioration
- Tight quick ratio of 1.05x limits financial flexibility amid cyclical automotive sector downturns
- Extremely thin margins leave no cushion for cost inflation or demand disruptions
Key Metrics to Watch
- Operating margin trend and gross margin recovery drivers
- Year-over-year revenue growth acceleration
- Free cash flow sustainability relative to capital intensity and debt service obligations
LEA Financial Metrics
💡 AI Analyst Insight
The relatively thin 2.3% FCF margin may limit capital allocation flexibility.
LEA Profitability Ratios
LEA vs Default Sector
How LEAR CORP compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is LEA Overvalued or Undervalued?
Based on fundamental analysis, LEAR CORP shows some fundamental concerns relative to the Default sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
LEA Balance Sheet & Liquidity
LEA 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: LEAR CORP's revenue has grown significantly by 18% over the 5-year period, indicating strong business expansion. The most recent EPS of $9.68 reflects profitable operations.
LEA Growth Metrics (YoY)
LEA Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $5.6B | $108.2M | $2.02 |
| Q2 2025 | $6.0B | $165.2M | $3.02 |
| Q1 2025 | $5.6B | $80.7M | $1.49 |
| Q3 2024 | $5.6B | $132.9M | $2.25 |
| Q2 2024 | $6.0B | $168.7M | $2.84 |
| Q1 2024 | $5.8B | $109.6M | $1.90 |
| Q3 2023 | $5.2B | $92.3M | $1.54 |
| Q2 2023 | $5.1B | $68.5M | $1.14 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
LEA Capital Allocation
LEA SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for LEAR CORP (CIK: 0000842162)
📋 Recent SEC Filings
❓ Frequently Asked Questions about LEA
What is the AI rating for LEA?
LEAR CORP (LEA) has an AI rating of SELL with 75% confidence, based on fundamental analysis of SEC EDGAR filings.
What are LEA's key strengths?
Claude: Strong debt service capacity with 29.8x interest coverage ratio. Positive free cash flow generation of $527.2M supporting potential dividends/debt paydown.
What are the risks of investing in LEA?
Claude: Zero organic revenue growth in a stagnant market signals lost competitiveness or market share erosion. Net income declining 17% while revenue flat indicates margin compression and operational deterioration.
What is LEA's revenue and growth?
LEAR CORP reported revenue of $23.3B.
Does LEA pay dividends?
LEAR CORP pays dividends, with $164.8M distributed to shareholders in the trailing twelve months.
Where can I find LEA SEC filings?
Official SEC filings for LEAR CORP (CIK: 0000842162) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is LEA's EPS?
LEAR CORP has a diluted EPS of $8.15.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is LEA a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, LEAR CORP has a SELL rating with 75% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is LEA stock overvalued or undervalued?
Valuation metrics for LEA: ROE of 8.7% (sector avg: 15%), net margin of 1.9% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy LEA stock in 2026?
Our dual AI analysis gives LEAR CORP a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is LEA's free cash flow?
LEAR CORP's operating cash flow is $1.1B, with capital expenditures of $561.6M. FCF margin is 2.3%.
How does LEA compare to other Default stocks?
Vs Default sector averages: Net margin 1.9% (avg: 12%), ROE 8.7% (avg: 15%), current ratio 1.35 (avg: 1.8).