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Lear

DB:LE6N
Snowflake Description

Undervalued with excellent balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
LE6N
DB
$5B
Market Cap
  1. Home
  2. DE
  3. Automobiles
Company description

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, South America, and internationally. The last earnings update was 62 days ago. More info.


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  • Lear has significant price volatility in the past 3 months.
LE6N Share Price and Events
7 Day Returns
-8.2%
DB:LE6N
-3.6%
DE Auto Components
-0.6%
DE Market
1 Year Returns
-44.6%
DB:LE6N
-52.5%
DE Auto Components
-20.9%
DE Market
LE6N Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Lear (LE6N) -8.2% -21.9% -39.7% -44.6% -42.3% -31.8%
DE Auto Components -3.6% -26.6% -44.8% -52.5% -66.5% -71.2%
DE Market -0.6% -16.6% -26% -20.9% -25.8% -31.8%
1 Year Return vs Industry and Market
  • LE6N outperformed the Auto Components industry which returned -52.5% over the past year.
  • LE6N underperformed the Market in Germany which returned -20.9% over the past year.
Price Volatility
LE6N
Industry
5yr Volatility vs Market
Related Companies

LE6N Value

 Is Lear undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Lear to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Lear.

DB:LE6N Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 17 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.2%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:LE6N
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 5.4%
Auto Components Unlevered Beta Simply Wall St/ S&P Global 1.08
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.077 (1 + (1- 21%) (60.06%))
1.394
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.39
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (1.394 * 5.44%)
7.19%

Discounted Cash Flow Calculation for DB:LE6N using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Lear is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:LE6N DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.19%)
2020 683.97 Analyst x9 638.07
2021 734.86 Analyst x8 639.54
2022 961.79 Analyst x2 780.87
2023 1,039.63 Est @ 8.09% 787.44
2024 1,097.32 Est @ 5.55% 775.36
2025 1,138.65 Est @ 3.77% 750.58
2026 1,167.35 Est @ 2.52% 717.86
2027 1,186.57 Est @ 1.65% 680.72
2028 1,198.86 Est @ 1.04% 641.62
2029 1,206.15 Est @ 0.61% 602.20
Present value of next 10 years cash flows $7,014.00
DB:LE6N DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $1,206.15 × (1 + -0.39%) ÷ (7.19% – -0.39%)
$15,844.29
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $15,844.29 ÷ (1 + 7.19%)10
$7,910.68
DB:LE6N Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $7,014.00 + $7,910.68
$14,924.68
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $14,924.68 / 59.61
$250.36
DB:LE6N Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:LE6N represents 0.91318x of NYSE:LEA
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.91318x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 250.36 x 0.91318
€228.62
Value per share (EUR) From above. €228.62
Current discount Discount to share price of €73.00
= -1 x (€73.00 - €228.62) / €228.62
68.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Lear is available for.
Intrinsic value
>50%
Share price is €73 vs Future cash flow value of €228.62
Current Discount Checks
For Lear to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Lear's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Lear's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Lear's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Lear's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:LE6N PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $12.80
NYSE:LEA Share Price ** NYSE (2020-04-06) in USD $79.94
Germany Auto Components Industry PE Ratio Median Figure of 9 Publicly-Listed Auto Components Companies 11.43x
Germany Market PE Ratio Median Figure of 401 Publicly-Listed Companies 16.45x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Lear.

DB:LE6N PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:LEA Share Price ÷ EPS (both in USD)

= 79.94 ÷ 12.80

6.25x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Lear is good value based on earnings compared to the DE Auto Components industry average.
  • Lear is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does Lear's expected growth come at a high price?
Raw Data
DB:LE6N PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 6.25x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts
10.7%per year
Germany Auto Components Industry PEG Ratio Median Figure of 7 Publicly-Listed Auto Components Companies 0.49x
Germany Market PEG Ratio Median Figure of 256 Publicly-Listed Companies 1.16x

*Line of best fit is calculated by linear regression .

DB:LE6N PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 6.25x ÷ 10.7%

0.58x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Lear is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Lear's assets?
Raw Data
DB:LE6N PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $71.97
NYSE:LEA Share Price * NYSE (2020-04-06) in USD $79.94
Germany Auto Components Industry PB Ratio Median Figure of 13 Publicly-Listed Auto Components Companies 0.69x
Germany Market PB Ratio Median Figure of 572 Publicly-Listed Companies 1.44x
DB:LE6N PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:LEA Share Price ÷ Book Value per Share (both in USD)

= 79.94 ÷ 71.97

1.11x

* Primary Listing of Lear.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Lear is overvalued based on assets compared to the DE Auto Components industry average.
X
Value checks
We assess Lear's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Auto Components industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Auto Components industry average (and greater than 0)? (1 check)
  5. Lear has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

LE6N Future Performance

 How is Lear expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
10.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Lear expected to grow at an attractive rate?
  • Lear's earnings growth is expected to exceed the low risk savings rate of -0.4%.
Growth vs Market Checks
  • Lear's earnings growth is positive but not above the Germany market average.
  • Lear's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:LE6N Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:LE6N Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts 10.7%
DB:LE6N Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 17 Analysts 2.3%
Germany Auto Components Industry Earnings Growth Rate Market Cap Weighted Average 48.7%
Germany Auto Components Industry Revenue Growth Rate Market Cap Weighted Average 2.4%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14.1%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:LE6N Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:LE6N Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 21,180 1,859 968 7
2021-12-31 20,134 1,393 886 16
2020-12-31 18,328 1,212 636 17
2020-04-06
DB:LE6N Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 19,810 1,284 790
2019-09-28 19,935 1,558 856
2019-06-29 20,002 1,482 886
2019-03-30 20,575 1,595 1,027
2018-12-31 21,149 1,780 1,139
2018-09-29 21,570 1,620 1,318
2018-06-30 21,660 1,692 1,341
2018-03-31 21,202 1,741 1,330
2017-12-31 20,467 1,783 1,288
2017-09-30 19,747 1,710 1,120
2017-07-01 19,292 1,647 1,062
2017-04-01 18,893 1,610 1,033

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Lear's earnings are expected to grow by 10.7% yearly, however this is not considered high growth (20% yearly).
  • Lear's revenue is expected to grow by 2.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:LE6N Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below

All data from Lear Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:LE6N Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 18.25 18.92 17.25 3.00
2021-12-31 14.90 17.10 11.50 9.00
2020-12-31 9.72 14.47 0.89 10.00
2020-04-06
DB:LE6N Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 12.80
2019-09-28 13.69
2019-06-29 13.94
2019-03-30 15.89
2018-12-31 17.35
2018-09-29 19.80
2018-06-30 19.94
2018-03-31 19.59
2017-12-31 18.79
2017-09-30 16.19
2017-07-01 15.18
2017-04-01 14.52

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Lear is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Lear's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Lear has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

LE6N Past Performance

  How has Lear performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Lear's growth in the last year to its industry (Auto Components).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Lear's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • Lear's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Lear's 1-year earnings growth is negative, it can't be compared to the DE Auto Components industry average.
Earnings and Revenue History
Lear's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Lear Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:LE6N Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 19,810.30 789.50 576.70
2019-09-28 19,935.10 855.70 568.10
2019-06-29 20,001.70 886.40 559.90
2019-03-30 20,574.90 1,026.70 577.70
2018-12-31 21,148.50 1,139.40 588.10
2018-09-29 21,569.90 1,318.40 605.00
2018-06-30 21,659.80 1,340.70 631.60
2018-03-31 21,202.20 1,330.40 616.90
2017-12-31 20,467.00 1,287.90 618.70
2017-09-30 19,746.70 1,120.10 627.90
2017-07-01 19,291.60 1,062.00 623.00
2017-04-01 18,893.20 1,032.50 620.10
2016-12-31 18,557.60 975.10 633.80
2016-10-01 18,638.70 980.50 569.60
2016-07-02 18,442.60 947.10 553.60
2016-04-02 18,352.90 846.60 550.80
2015-12-31 18,211.40 745.50 562.10
2015-09-26 18,036.50 772.00 548.70
2015-06-27 17,938.90 731.10 539.20
2015-03-28 17,888.90 697.70 525.70
2014-12-31 17,727.30 672.40 510.70
2014-09-27 17,433.70 483.40 520.10
2014-06-28 17,118.70 456.10 520.60
2014-03-29 16,646.70 444.90 510.50
2013-12-31 16,234.00 431.40 503.40
2013-09-28 15,697.30 1,240.50 508.20
2013-06-29 15,318.20 1,249.10 493.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Lear has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Lear used its assets more efficiently than the DE Auto Components industry average last year based on Return on Assets.
  • Lear's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Lear's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Auto Components industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Lear has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

LE6N Health

 How is Lear's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Lear's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Lear is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Lear's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Lear's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Lear Company Filings, last reported 3 months ago.

DB:LE6N Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 4,619.50 2,327.00 1,504.80
2019-09-28 4,521.60 2,348.10 1,317.00
2019-06-29 4,554.50 2,329.40 1,284.70
2019-03-30 4,550.30 1,967.30 1,213.20
2018-12-31 4,518.70 1,958.70 1,498.00
2018-09-29 4,597.30 1,963.80 1,206.90
2018-06-30 4,594.90 1,959.90 1,331.50
2018-03-31 4,724.90 1,962.00 1,268.50
2017-12-31 4,446.00 1,952.40 1,503.60
2017-09-30 4,175.00 1,963.80 1,294.40
2017-07-01 3,756.20 1,923.00 1,210.00
2017-04-01 3,463.50 1,938.00 1,245.30
2016-12-31 3,192.90 1,942.20 1,301.80
2016-10-01 3,243.00 1,948.60 1,370.40
2016-07-02 3,156.10 1,950.80 1,421.10
2016-04-02 3,144.40 1,957.50 1,199.10
2015-12-31 3,017.70 1,954.80 1,219.60
2015-09-26 2,924.80 1,979.50 922.80
2015-06-27 2,978.30 1,982.80 967.90
2015-03-28 2,891.80 1,983.00 748.20
2014-12-31 3,029.30 1,694.50 1,112.10
2014-09-27 3,155.80 1,068.70 872.70
2014-06-28 3,221.20 1,068.60 865.10
2014-03-29 3,242.50 1,068.60 919.40
2013-12-31 3,149.50 1,057.10 1,137.70
2013-09-28 2,920.00 1,057.00 884.00
2013-06-29 2,790.30 1,056.90 841.10
  • Lear's level of debt (50.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (56.1% vs 50.4% today).
  • Debt is well covered by operating cash flow (55.2%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 13.7x coverage).
X
Financial health checks
We assess Lear's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Lear has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

LE6N Dividends

 What is Lear's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Lear dividends. Estimated to be 3.87% next year.
If you bought €2,000 of Lear shares you are expected to receive €0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Lear's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Lear's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:LE6N Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
Germany Auto Components Industry Average Dividend Yield Market Cap Weighted Average of 9 Stocks 6.1%
Germany Market Average Dividend Yield Market Cap Weighted Average of 315 Stocks 3.9%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.9%
Germany Bottom 25% Dividend Yield 25th Percentile 1.7%
Germany Top 25% Dividend Yield 75th Percentile 4.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:LE6N Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 3.36 2.00
2021-12-31 3.12 6.00
2020-12-31 2.99 7.00
2020-04-06
DB:LE6N Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2020-02-06 0.000 0.000
2019-11-14 3.000 2.310
2019-08-07 3.000 2.562
2019-05-16 3.000 2.286
2019-02-07 3.000 2.050
2018-11-15 2.800 2.060
2018-08-08 2.800 1.870
2018-05-17 2.800 1.463
2018-02-14 2.800 1.472
2017-11-16 2.000 1.095
2017-08-10 2.000 1.226
2017-05-18 2.000 1.377
2017-02-13 2.000 1.421
2016-11-17 1.200 0.879
2016-08-10 1.200 1.018
2016-05-19 1.200 1.074
2016-02-12 1.200 1.097
2015-11-19 1.000 0.885
2015-08-10 1.000 0.898
2015-05-14 1.000 0.909
2015-02-17 1.000 0.897
2014-11-20 0.800 0.815
2014-08-14 0.800 0.861
2014-05-16 0.800 0.874
2014-02-07 0.800 0.975
2013-11-14 0.680 0.854
2013-08-15 0.680 0.931
2013-05-16 0.680 1.076
2013-02-07 0.680 1.234
2012-11-14 0.560 1.219
2012-08-15 0.560 1.387
2012-05-16 0.560 1.472
2012-02-09 0.560 1.263
2011-11-10 0.500 1.217
2011-08-10 0.500 1.122
2011-05-13 0.500 1.007
2011-02-17 0.500 1.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Lear has not reported any payouts.
  • Unable to verify if Lear's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Lear's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Lear has not reported any payouts.
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (5x coverage).
X
Income/ dividend checks
We assess Lear's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Lear afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Lear has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

LE6N Management

 What is the CEO of Lear's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ray Scott
COMPENSATION $9,936,305
AGE 54
TENURE AS CEO 2.1 years
CEO Bio

Mr. Raymond E. Scott Jr., also known as Ray, serves as President, Chief Executive Officer and Director at Lear Corporation since 2019 and had been its Interim President of E-Systems since February 2019 until 2019. Mr. Scott served as Interim President of E-Systems at Lear Corporation since January 28, 2019 until February 2019. Mr. Scott is responsible for the strategic direction and operational leadership. He was an Executive Vice President of Lear Corporation since November 2011 until March 1, 2018. Mr. Scott was President of Seating at Lear Corporation since November 2011 until March 1, 2018. He was responsible for implementing global initiatives to further grow and diversify sales for the seating division, accelerate product innovation efforts, improve financial results and sustain world-class competitiveness at Lear. He served as the President of Global Electrical Power Management Systems at Lear Corporation from February 2008 to October 24, 2011. He has been with Lear Corporation since 1988 in such positions as President of General Motors Europe and Fiat Customer Focused Divisions since February 2000, Vice President and General Manager, Lear GM-Europe since September 1999, Vice President of Operations-Saab since May 1998 and Director of Sales for General Motors Division since April 1996. He served as Senior Vice President of Lear Corporation since August 2005 and served as its President of Global Electrical & Electronic Systems Division since February 2008. Mr. Scott served as the President of North American Seating Systems of Lear Corporation since August 2006 and was responsible for all seating-related activities in the United States, Canada and Mexico. He served as President of North American Customer Group of Lear Corporation since June 2005. Mr. Scott served as the President of General Motors Fiat Division of Lear Corporation since November 2000. He also served as the President of European Customer Focused Division of Lear Corporation since June 2004. Mr. Scott serves as a Director of Tempronics, Inc. Mr. Scott earned a Bachelor of Science degree in economics from the University of Michigan. He has also earned a Master of Business Administration degree from Michigan State University's Advanced Management Program.

CEO Compensation
  • Ray's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • Ray's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Lear management team in years:

1.9
Average Tenure
48.5
Average Age
  • The average tenure for the Lear management team is less than 2 years, this suggests a new team.
Management Team

Ray Scott

TITLE
President
COMPENSATION
$10M
AGE
54
TENURE
2.1 yrs

Tom DiDonato

TITLE
Senior VP & Chief Administrative Officer
COMPENSATION
$3M
AGE
60
TENURE
1.3 yrs

Frank Orsini

TITLE
Executive VP & President of Seating
COMPENSATION
$4M
AGE
46
TENURE
8.5 yrs

Jason Cardew

TITLE
Senior VP & CFO
COMPENSATION
$2M
AGE
49
TENURE
0.4 yrs

Amy Doyle

TITLE
VP & Chief Accounting Officer
AGE
51
TENURE
2.9 yrs

John Absmeier

TITLE
Chief Technology Officer
AGE
43
TENURE
1.8 yrs

Alicia Davis

TITLE
Senior Vice President of Corporate Development & Investor Relations
AGE
48
TENURE
1.7 yrs

Harry Kemp

TITLE
Senior VP
AGE
43
TENURE
0.7 yrs

Dave Mullin

TITLE
Vice President of Sales & Marketing
TENURE
15.6 yrs

Rashida Thomas

TITLE
Chief Diversity Officer & Director of Talent Management
TENURE
1.9 yrs
Board of Directors Tenure

Average tenure and age of the Lear board of directors in years:

9.7
Average Tenure
65
Average Age
  • The tenure for the Lear board of directors is about average.
Board of Directors

Henry Daniel Wallace

TITLE
Non-Executive Chairman
COMPENSATION
$475K
AGE
73
TENURE
9.7 yrs

Ray Scott

TITLE
President
COMPENSATION
$10M
AGE
54
TENURE
2.1 yrs

Thomas Capo

TITLE
Independent Director
COMPENSATION
$295K
AGE
68
TENURE
10.4 yrs

Jon Foster

TITLE
Independent Director
COMPENSATION
$655K
AGE
58
TENURE
10.4 yrs

Kathleen Ligocki

TITLE
Independent Director
COMPENSATION
$290K
AGE
63
TENURE
7.6 yrs

Conrad Mallett

TITLE
Independent Director
COMPENSATION
$275K
AGE
65
TENURE
17.7 yrs

Greg Smith

TITLE
Independent Director
COMPENSATION
$275K
AGE
67
TENURE
10.4 yrs

Mary Jepsen

TITLE
Independent Director
COMPENSATION
$275K
AGE
54
TENURE
4.1 yrs

Mei-Wei Cheng

TITLE
Director
AGE
69
TENURE
1.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess Lear's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Lear has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

LE6N News

Simply Wall St News

LE6N Company Info

Description

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, South America, and internationally. Its Seating segment offers leather and fabric products, seat covers, recliner mechanisms, seat tracks and foams, seat structures and mechanisms, and headrests for automobiles and light trucks, compact cars, and sport utility vehicles. The company’s E-Systems segment offers electrical distribution systems that route electrical signals and networks, and manage electrical power within the vehicle for various powertrains, such as traditional internal combustion engine architectures, hybrid, plug-in hybrid, and battery electric architectures. This segment’s products comprise wire harnesses, terminals and connectors, and junction boxes; and electronic control modules, such as body control modules, smart junction boxes, gateway modules, wireless receiver and transmitter technology, lighting control modules, audio domain controllers, amplifiers, and communication modules. It also provides electrification products comprising charging systems that include onboard charging modules and cord set charging equipment; battery electronics, which comprise battery disconnect units, cell monitoring supervisory systems, and integrated total battery control modules; and other power management modules, including converter and inverter systems. In addition, this segment offers cybersecurity software; advanced vehicle positioning for automated and autonomous driving applications; roadside modules that communicate real-time traffic information; and cellular protocols for vehicle connectivity, as well as Xevo Journeyware, a platform for the cloud, vehicles, and mobile devices; and connectivity products. The company was founded in 1917 and is headquartered in Southfield, Michigan.

Details
Name: Lear Corporation
LE6N
Exchange: DB
Founded: 1917
$4,408,287,029
59,613,128
Website: http://www.lear.com
Address: Lear Corporation
21557 Telegraph Road,
Southfield,
Michigan, 48033,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE LEA Common Stock New York Stock Exchange US USD 09. Nov 2009
DB LE6N Common Stock Deutsche Boerse AG DE EUR 09. Nov 2009
LSE 0JTQ Common Stock London Stock Exchange GB USD 09. Nov 2009
BMV LEA * Common Stock Bolsa Mexicana de Valores MX MXN 09. Nov 2009
Number of employees
Current staff
Staff numbers
164,100
Lear employees.
Industry
Auto Parts and Equipment
Automobiles
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/06 23:06
End of day share price update: 2020/04/06 00:00
Last estimates confirmation: 2020/04/02
Last earnings filing: 2020/02/04
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.