Lear (LEA) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Lear

NYSE•Consumer Cyclical•Auto Parts

$120.64-2.08(-0.02%)Market closed

Market Cap

$6.07B

P/E

10.9x

P/S

0.3x

P/B

1.1x

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. Its Seating segment offers seat systems, keyseat components, seat trim covers, seat mechanisms, thermal comfort systems such as seat heating, ventilation, active cooling, pneumatic lumbar and massage products, seat cushioning, and headrests, as well as surface materials, such as leather and fabric for light trucks, compact cars, pick-up trucks, and sport utility vehicles. The company's E-Systems segment provides electrical distribution and connection systems that route electrical signals and networks; and manage electrical power within the vehicle for various powertrains. This segment's products comprise wire harnesses, terminals and connectors, engineered components, and junction boxes; electronic system products, including body domain control modules, and high voltage switching and power control systems. It also offers software and connected services. In addition, this segment provides cybersecurity software. It offers its products and services under the GUILFORD, EAGLE OTTAWA, THAGORA, IGB AUTOMOTIVE, COMFORTFLEX BY LEARTM, LEAR, CONFIGURE+, FLEXAIR , INTU, RENEWKNIT, SOYFOAM, ProTec, and TeXstyle brands. The company was founded in 1917 and is headquartered in Southfield, Michigan.

How this company scores

GoodMetricSide Score: 67/100

Strongest: Cash & Earnings Quality (23/25); weakest: Profitability (13/25).

Profitability13/25

Growth17/25

Balance Sheet & Red Flags14/25

Cash & Earnings Quality23/25

Strengths

Rising free cash flowRising earningsCash-backed earningsNo share dilution

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 10.9x5y range 9.9x – 67.2x

Currently near its 20-quarter median.

P/S · 0.3x5y range 0.2x – 0.6x

Currently below its 20-quarter median.

P/B · 1.1x5y range 1.0x – 2.3x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

Some Concerns

Earnings Quality

Watch

FCF/Net Income has dropped below 0.7x in 3 quarters — monitor for earnings quality deterioration.

Cash Burn

Watch

FCF turned negative in 2 of the last 8 quarters — occasional cash consumption.

Price & Volume

Market Cap $6.07B

Metrics at a Glance

as of July 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $23.70B
Q. Revenue: $6.21B
TTM EBITDA: $1.48B
TTM Op. Income: $870.50M
Q. Op. Income: $267.90M
TTM Net Income: $556.00M
Q. Net Income: $192.80M
EPS: $3.83
Shares Out.: $50.30M

$23.70B in TTM revenue grew 3.5% YoY, reaching $6.21B last quarter. TTM EBITDA of $1.48B and TTM operating income of $870.50M show growth is flowing through to the bottom line. TTM net income of $556.00M means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 5 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 7.6%
EBITDA Margin: 6.7%
Op. Margin: 4.3%
Net Margin: 3.1%

Op. margin of 4.3% is up 0.2% YoY — cost efficiency is improving. Net margin at 3.1% and gross margin of 7.6% show how much of each revenue dollar survives to profit. Over the past year, operating margin is up 5% — a weakening trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 10.9x
P/S Ratio: 0.3x
P/B Ratio: 1.1x

At 10.9x P/E, the stock trades below typical market levels. P/S of 0.3x and P/B of 1.1x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Across the last 8 quarters, P/E has fallen for 2 consecutive quarters — an improving trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $15.65B
Cash: $1.00B
Long-Term Debt: $2.71B
Book Value: $5.32B
D/E Ratio: 0.5
Debt/EBITDA: 6.5

With $15.65B in assets and $2.71B in long-term debt, D/E is 0.5and book value is $5.32B — a conservative capital structure with a cushion to weather downturns. Across the last 8 quarters, debt/equity has fallen for 6 consecutive quarters — an improving trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $460.50M
TTM Free Cash Flow: $849.40M
FCF Margin: 3.6%
FCF / Net Income: 1.5

TTM FCF of $849.40M on $460.50M in operating cash flow. The FCF / Net Income ratio of 1.5x means free cash flow covers net income — earnings are backed by cash. Across the last 8 quarters, free cash flow has risen for 2 consecutive quarters — an improving trend.