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Lear Corporation (LEA)



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Upturn Advisory Summary
08/14/2025: LEA (1-star) is currently NOT-A-BUY. Pass it for now.
1 Year Target Price $114.17
1 Year Target Price $114.17
3 | Strong Buy |
3 | Buy |
10 | Hold |
0 | Sell |
0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -9.78% | Avg. Invested days 32 | Today’s Advisory PASS |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 5.45B USD | Price to earnings Ratio 14.49 | 1Y Target Price 114.17 |
Price to earnings Ratio 14.49 | 1Y Target Price 114.17 | ||
Volume (30-day avg) 16 | Beta 1.31 | 52 Weeks Range 73.21 - 115.43 | Updated Date 08/15/2025 |
52 Weeks Range 73.21 - 115.43 | Updated Date 08/15/2025 | ||
Dividends yield (FY) 2.98% | Basic EPS (TTM) 7.07 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date 2025-07-25 | When Before Market | Estimate 3.3 | Actual 3.47 |
Profitability
Profit Margin 2.05% | Operating Margin (TTM) 4.15% |
Management Effectiveness
Return on Assets (TTM) 4.27% | Return on Equity (TTM) 11.16% |
Valuation
Trailing PE 14.49 | Forward PE 8.43 | Enterprise Value 7352868045 | Price to Sales(TTM) 0.24 |
Enterprise Value 7352868045 | Price to Sales(TTM) 0.24 | ||
Enterprise Value to Revenue 0.42 | Enterprise Value to EBITDA 5.82 | Shares Outstanding 53206100 | Shares Floating 52950704 |
Shares Outstanding 53206100 | Shares Floating 52950704 | ||
Percent Insiders 0.56 | Percent Institutions 110.07 |
Upturn AI SWOT
Lear Corporation

Company Overview
History and Background
Lear Corporation was founded in 1917 as American Metal Products in Detroit, initially manufacturing tubular, stamped and welded auto parts. It transitioned to seating in the 1980s and grew through acquisitions to become a leading automotive supplier.
Core Business Areas
- Seating: Designs, develops, engineers, and manufactures complete seating systems, including frames, mechanisms, foams, trim, and fabrics for automotive and commercial vehicle manufacturers.
- E-Systems: Designs, develops, engineers, and manufactures electrical and electronic systems, including wire harnesses, connectivity systems, electronic control units (ECUs), and software for vehicle electrification, connectivity, and advanced driver-assistance systems (ADAS).
Leadership and Structure
Lear Corporation is led by a Chief Executive Officer (CEO) and a senior management team. The organizational structure is divided into business segments (Seating and E-Systems) with functional support areas like finance, HR, and operations.
Top Products and Market Share
Key Offerings
- Complete Seating Systems: Provides complete seating solutions for a wide range of vehicles. Lear is a major player in this area, holding a significant market share but difficult to estimate the exact share. Competitors include Adient and Magna.
- Electrical Distribution Systems: Produces wire harnesses and electrical distribution systems. Revenue generated from this product is a significant portion of the E-Systems segment. Competitors include Aptiv and Yazaki.
- Connectivity Systems: Develops and manufactures connectivity modules and solutions for vehicles. Growth in the market is expected. Competitors include HARMAN International and Visteon.
Market Dynamics
Industry Overview
The automotive supply industry is undergoing significant transformation driven by electrification, connectivity, autonomous driving, and shared mobility. Demand is influenced by vehicle production volumes, technology adoption rates, and regulatory changes.
Positioning
Lear Corporation is a leading global automotive supplier with a strong position in seating and electrical systems. Its competitive advantage lies in its global scale, technological expertise, and long-standing relationships with automotive manufacturers.
Total Addressable Market (TAM)
The TAM for automotive seating and E-Systems is estimated to be in the hundreds of billions of dollars. Lear is positioned to capture a substantial portion of this market due to its leading market position and diverse product offerings.
Upturn SWOT Analysis
Strengths
- Global Scale and Presence
- Strong Customer Relationships
- Technological Expertise
- Diversified Product Portfolio
- Strong Free Cash Flow Generation
Weaknesses
- Dependence on Automotive Industry Cycles
- Exposure to Raw Material Price Fluctuations
- High Capital Expenditure Requirements
- Reliance on Key Customers
Opportunities
- Growth in Electric Vehicle Market
- Expansion into New Geographies
- Development of Advanced Technologies
- Increased Content per Vehicle
- Strategic Acquisitions
Threats
- Intense Competition
- Disruptive Technologies
- Economic Downturns
- Changing Consumer Preferences
- Geopolitical Risks
Competitors and Market Share
Key Competitors
- ADT
- MGA
- ALV
Competitive Landscape
Lear Corporation faces intense competition from other automotive suppliers. Its competitive advantage lies in its global scale, technological expertise, and strong customer relationships.
Major Acquisitions
I.G. Bauerhin GmbH
- Year: 2022
- Acquisition Price (USD millions): 208
- Strategic Rationale: Acquisition to expand capabilities in sustainable materials and technologies for automotive seating.
Growth Trajectory and Initiatives
Historical Growth: Lear Corporation has experienced moderate growth in recent years, driven by increased vehicle production and demand for its products.
Future Projections: Analysts project continued growth for Lear Corporation, driven by the increasing demand for electric vehicles and advanced automotive technologies. Single to low double digit growth is expected in the next 3-5 years.
Recent Initiatives: Recent initiatives include investments in electric vehicle technology, acquisitions of companies in related fields, and expansion into new markets.
Summary
Lear Corporation is a strong player in the automotive supply industry, with its leading positions in seating and E-Systems. It faces competition and industry cyclicality. Investing in growth, improving efficiency, and mitigating risks are key factors for Lear Corporation.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company SEC Filings (10-K, 10-Q)
- Earnings Call Transcripts
- Industry Reports
- Analyst Research Reports
- Company Website
Disclaimers:
This analysis is based on publicly available information and is not financial advice. Market conditions and company performance can change, so perform independent research before making any investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Lear Corporation
Exchange NYSE | Headquaters Southfield, MI, United States | ||
IPO Launch date 2009-11-09 | President, CEO & Director Mr. Raymond E. Scott Jr. | ||
Sector Consumer Cyclical | Industry Auto Parts | Full time employees 173700 | Website https://www.lear.com |
Full time employees 173700 | Website https://www.lear.com |
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, seat subsystems, keyseat components, seat trim covers, seat mechanisms, seat foams, and headrests, as well as surface materials, such as leather and fabric for automobiles and 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, smart and passive junction boxes, gateway and communication modules, integrated power modules, and high voltage switching and power control systems. It also offers software and connected services comprising Xevo Market, an in-vehicle commerce and service platform; and software and services for the cloud, vehicles, and mobile devices. In addition, this segment provides cybersecurity software; advanced vehicle positioning for automated and autonomous driving applications; and short-range communication and cellular protocols for vehicle connectivity. It offers its products and services under the XEVO, GUILFORD, EAGLE OTTAWA, ConfigurE+, INTUTM, LEAR CONNEXUSTM, EXO, JOURNEYWARE, ProTec, SMART JUNCTION BOX, STRUCSURE, AVENTINO, and TeXstyle brands. Lear Corporation was founded in 1917 and is headquartered in Southfield, Michigan.

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