Lear Corporation (LEA) — Fundamental Analysis & Key Financial Ratios

Kaplio overview: Lear Corporation

Market cap $6B · 52 weeks $99 – $149 (21 % below the high) · P/E 10.9× · 2027 expected P/E 7.0× · Dividend 2.6 % · Next earnings October 30, 2026 · expected EPS $3.31 · Closing price, Oct 28 · accounts published Jul 31.

• Valuation: P/E 10.9× (no verdict).
• Business: 5-year ROIC 7.5 % (weak).
• Balance sheet: Net debt/EBITDA 2.2× (solid).
• Earnings: 8 of 8 (on track).

What would it be worth at its usual multiples?

No valuation verdict: it is a cyclical and today's P/E (10.9) does not tell whether it is cheap.

In cyclicals the P/E misleads; on its average earnings over 10 years it trades at 11.3 times.

What matters in consumer cyclicals: 4 of 8 pass

• 5y avg operating margin 4.0 %, fails.
• 5y avg ROIC 7.5 %, fails.
• Current Ratio 1.31, fails.
• P/E read in reverse (cyclicals) 10.9×, fails.
• Inventory turnover 12.6×, passes.
• Net debt / EBITDA 2.2×, passes.
• Altman Z-Score 2.9, passes.
• EV/Sales vs history 0.4×, passes.

Against its peers (reference peers) — Lear Corporation: P/E 10.9×; EV/EBITDA 5.7×; ROIC 8.2 %; $5.8B. Gentex Corporation (P/E 10.6×; EV/EBITDA 7.5×; ROIC 16.5 %; $4.2B), Dorman Products, Inc. (P/E 18.0×; EV/EBITDA 11.8×; ROIC 12.1 %; $3.9B), Allison Transmission Holdings, Inc. (P/E 17.0×; EV/EBITDA 11.6×; ROIC 9.6 %; $8.9B).

Expensive or cheap against its last ten years?

P/E at each close: today 10.9× · median 11.6× · minimum 5.7× · maximum 28.1× · cheap below 9.9× · expensive above 20.5×. It has been cheaper than today only 43% of the time over its last ten years.

Dividend

tight (only raised recently) · Yield 2.6 % ($3.10 per share in 2025) · Years raising it 2 · 5-year growth +23 % a year · Free cash flow coverage 3.3× · With $1,000 invested today you'd collect $26.40 a year ($2.20 a month).