Lear Corp (LEA)

Price$134.68Cached quoteAs of 2026-09-05 18:13 UTC

AI: Undervalued

Price checkLear trades near eight times expected earnings, a deep discount that looks undervalued given its cash generation.

At the observed price, Lear trades at about twelve times its last year of earnings and about eight times what analysts expect next year, versus roughly twenty times for the typical large US company. Including debt, the whole business sells for about five times annual operating earnings before depreciation. Free cash flow — cash left after running and investing in the business — equals nearly fourteen percent of the company's market value yearly. The stock sits well below its 52-week high despite results beating forecasts and guidance rising, and the average analyst target sits about one-fifth higher, supporting an undervalued verdict.

Big pictureSupplying car parts is cyclical, and Lear's sales have stayed near twenty-three billion dollars for three years.

Lear's revenue has hovered around $23 billion for three straight years, because its fortunes track how many vehicles customers such as General Motors and Ford build. Yet the first half of this year set records: second-quarter sales rose about three percent to $6.2 billion even with worldwide vehicle production roughly flat, helped by new business wins. Management raised its full-year outlook to $23.5–24.0 billion of sales and $590–690 million of free cash flow, while flagging weak China demand and discontinued platforms. The low share price assumes stagnation; if the touted backlog converts into growth later this decade, expectations would improve.

Business strengthThin margins still convert into more than a billion dollars of yearly operating cash, with manageable debt.

As a parts maker, Lear runs on slim margins — about five cents of operating profit per sales dollar. But scale makes that meaningful: over the past year it generated $1.48 billion of operating cash flow, and after about $630 million invested in factories and equipment, roughly $850 million remained as free cash flow. Balance-sheet risk looks contained: cash of about $1.0 billion against $2.7 billion of debt leaves net borrowings a bit above one year of operating earnings before depreciation, with interest covered about eleven times and $3.0 billion of liquidity. That cushion matters because car production moves in cycles.

What could change the storyOngoing buybacks and a safe dividend reward patience, but any car-production slump would hit earnings quickly.

Lear spent $100 million buying back stock last quarter and $175 million in the year's first half, shrinking the share count five percent in a year; the $0.77 quarterly dividend consumes under thirty percent of earnings and looks well covered. Repurchases plus dividends return about seven percent of company value yearly. The bear case: customer production cuts, tariff disputes, or lost volume as older platforms wind down would compress thin margins. The bull case: management expects record new-business awards to lift growth above the market within a few years. Watch whether free cash flow lands in the $590–690 million range.

AI: News

Earnings beat, outlook raisedLear beat profit forecasts and raised its full-year outlook, yet the stock fell about a tenth.

Reporting late last month, Lear posted second-quarter revenue of $6.2 billion, up three percent despite flat global vehicle production, and adjusted earnings per share of $4.28 versus $3.98 expected. Operating cash flow jumped fifty-five percent to $461 million; free cash flow rose sixty-nine percent to $288 million. Full-year targets rose to $23.5–24.0 billion of sales and $590–690 million of free cash flow. Yet shares fell roughly a tenth that day; attribution is uncertain, but profit-taking after a run toward its 52-week high and doubt about second-half assumptions are plausible causes.

Quarterly dividend maintainedThe board declared another seventy-seven-cent quarterly dividend, confirming steady cash returns continue alongside sizable buybacks.

About a week ago the board declared a $0.77-per-share dividend, payable in late September to holders of record in early September. That annualizes to about $3.08, a yield near two and a half percent at the current price, and consumes under thirty percent of recent earnings. With $39 million paid in dividends alongside $100 million of buybacks last quarter, the message is that cash returns remain intact even after the post-earnings sell-off, supported by $1.0 billion of cash and $3.0 billion of liquidity on hand.

Analysts split after resultsSeveral banks trimmed ratings or targets after earnings, yet the average target still implies solid upside.

Within two weeks of the report, BNP Paribas cut Lear to Neutral and Deutsche Bank lowered its target to $131 while keeping a Hold view; Goldman Sachs nudged its target up to $140, also Neutral. Earlier in the summer, TD Cowen had upgraded the stock to Buy with a $165 target, citing improving North American production. The average target sits near $150, roughly twenty percent above the current price — a spread that captures the core debate over whether recent records mark a durable step-up or a cyclical peak.

Loading local price history

Revenue

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Net income

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Free cash flow

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Total cash / debt

CashTotal debt

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010
Revenue	$23.26B	$23.31B	$23.47B	$20.89B	$19.26B	$17.05B	$19.81B	$21.15B	$20.47B	$18.56B	$18.21B	$17.73B	$16.23B	$14.57B	$14.16B	$11.95B
Gross profit	$1.50B	$1.64B	$1.71B	$1.41B	$1.39B	$1.11B	$1.74B	$2.32B	$2.29B	$2.12B	$1.82B	$1.49B	$1.30B	$1.22B	$1.19B	$1.02B
Gross margin	6.47%	7.03%	7.29%	6.75%	7.23%	6.51%	8.77%	10.96%	11.19%	11.44%	9.99%	8.42%	8.01%	8.36%	8.43%	8.52%
Research & development	—	—	—	—	—	—	$151.2M	$153.5M	$147.9M	$143.7M	$126.8M	$102.0M	$108.4M	$104.3M	$110.7M	$81.4M
Operating expenses	$727.1M	$751.6M	$777.2M	$755.6M	$716.5M	$654.8M	$667.3M	$664.2M	$682.8M	$661.2M	$633.0M	$563.6M	$563.1M	—	—	—
Operating income	$777.3M	$887.7M	$933.2M	$654.3M	$675.4M	$454.1M	$1.07B	$1.65B	$1.61B	$1.46B	$1.19B	$929.2M	$736.6M	—	—	—
Operating margin	3.34%	3.81%	3.98%	3.13%	3.51%	2.66%	5.40%	7.82%	7.86%	7.87%	6.52%	5.24%	4.54%	—	—	—
EBITDA	$1.38B	$1.51B	$1.54B	$1.23B	$1.25B	$994.0M	$1.58B	$2.14B	$2.04B	$1.84B	$1.53B	$1.24B	$1.02B	—	—	—
EBITDA margin	5.94%	6.47%	6.55%	5.89%	6.49%	5.83%	7.98%	10.11%	9.95%	9.91%	8.43%	7.00%	6.30%	—	—	—
Net income	$436.8M	$506.6M	$572.5M	$327.7M	$373.9M	$158.5M	$753.6M	$1.15B	$1.31B	$975.1M	$745.5M	$672.4M	$431.4M	$1.28B	$540.7M	$438.3M
Net profit margin	1.88%	2.17%	2.44%	1.57%	1.94%	0.93%	3.80%	5.44%	6.42%	5.25%	4.09%	3.79%	2.66%	8.81%	3.82%	3.67%
Basic EPSper basic share	$8.22	$9.02	$9.73	$5.49	$6.22	$2.63	$12.80	$17.35	$18.79	$13.48	$9.71	$8.39	$5.07	$13.04	$5.21	$4.30
Diluted EPSper diluted share	$8.15	$8.97	$9.68	$5.47	$6.19	$2.62	$12.75	$17.22	$18.59	$13.33	$9.59	$8.23	$4.99	$12.85	$5.08	$4.05

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

Reported holdings Number of shares

View holders

Top 20 reported holders of LEA
Holder	Shares held
PZENA INVESTMENT MANAGEMENT LLC	6.64M
BlackRock, Inc.	5.26M
VANGUARD PORTFOLIO MANAGEMENT LLC	3.43M
DIMENSIONAL FUND ADVISORS LP	3.02M
VANGUARD CAPITAL MANAGEMENT LLC	2.26M
AMERICAN CENTURY COMPANIES INC	2.09M
STATE STREET CORP	1.69M
GREENHAVEN ASSOCIATES INC	1.46M
MASSACHUSETTS FINANCIAL SERVICES CO /MA/	1.44M
SCHRODER INVESTMENT MANAGEMENT GROUP	1.24M
FMR LLC	1.19M
AQR CAPITAL MANAGEMENT LLC	1.19M
GEODE CAPITAL MANAGEMENT, LLC	1.03M
LSV ASSET MANAGEMENT	763.3K
MORGAN STANLEY	719.61K
CHARLES SCHWAB INVESTMENT MANAGEMENT INC	685.21K
JACOBS LEVY EQUITY MANAGEMENT, INC	653.54K
FULLER & THALER ASSET MANAGEMENT, INC.	597.38K
Caisse de depot et placement du Quebec	569.81K
NORGES BANK	552.45K

Bars compare reported share counts. A matching total for this share class and reporting period is unavailable, so percentages are not shown.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys1$199.9K disclosed value

Sells (SEC code S)28$17.36M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 24, 2026Form 4	SCOTT RAYMOND EPresident and CEO	SellCommon Stock	3.3K	$137.21	$459.1K	49.8K
Jun 24, 2026Form 4	SCOTT RAYMOND EPresident and CEO	SellCommon Stock	7.9K	$136.41	$1.08M	53.1K
Jun 24, 2026Form 4	SCOTT RAYMOND EPresident and CEO	SellCommon Stock	22.5K	$135.40	$3.04M	61.0K
Jun 24, 2026Form 4	SCOTT RAYMOND EPresident and CEO	SellCommon Stock	16.3K	$134.44	$2.19M	83.5K
Jun 10, 2026Form 4	MALLETT CONRAD L JRDirector	SellCommon Stock	190	$141.34	$26.9K	1.7K

Review ownership filings at SEC.gov ↗

Community posts

View community

It’s quiet here.

No posts about LEA yet. Start the conversation.

Write the first post

Lear Corp (LEA)

Financial charts

Financial statements

Owners

Insider buys & sells

Community posts

It’s quiet here.