Lear Corporation Common Stock (LEA)

FairStock Score: 53/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at Lear as a cyclical auto-parts supplier, not a wonderful consumer franchise. FairStock's Lynch category is CYCLICAL — Auto Parts: earnings follow the economic cycle. The company earned $436.8 million in fiscal year 2025, down from $506.6 million in fiscal year 2024 and $572.5 million in fiscal year 2023—profitability has been sliding while revenue was essentially flat: $23.3 billion in fiscal 2025 versus $23.3 billion in fiscal 2024 and $23.5 billion in fiscal 2023. The latest filing shows improvement: in fiscal Q2 2026, the quarter ended 2026-07-04, revenue was $6.2 billion, net income $192.8 million, and diluted EPS $3.79, up from fiscal Q2 2025 revenue of $6.0 billion, net income $165.2 million, and diluted EPS $3.06. That is a cyclical bounce, not proof of durable pricing power. The moat is modest. As a large seating and electrical-distribution supplier, scale and OEM relationships matter, but customers have bargaining power. Financial health is mixed: FairStock's Piotroski F-Score is 7/9, but its Altman Z-Score is 1.53 and debt-to-equity is 0.66. Free cash flow of $849.4 million trailing twelve months supports a 14.4% FCF yield. At the 2026-10-13 close of $119.60, FairStock calculates a P/E of 11.14, P/B of 1.14, EV/EBITDA of 5.32, and Graham Number of $158.98, implying a 24.77% margin of safety. ROCE of 4.40% is low. I would call it cheap on assets and cash flow, but only if the auto cycle cooperates.

In plain English: Lear makes car seats and electrical systems for automakers around the world. Its results rise and fall with car production, and annual profits have slipped even though the latest quarter improved. At $119.60 on 2026-10-13, the price looks fairly cheap against its earnings and book value, but the industry cycle and some balance-sheet risks keep it from being a clear bargain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-07-04) · fiscal Q1 2026 10-Q (period ended 2026-04-04) · fiscal Q3 2025 10-Q (period ended 2025-09-27) · fiscal Q2 2025 10-Q (period ended 2025-06-28) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer