Lear Corporation Intrinsic Value Calculation – Lear Corporation Leads Market with Impressive Free Cash Flow Yield

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Lear Corporation ($NYSE:LEA) is a leader in the automotive seating and electrical power management systems market, with an impressive free cash flow yield. The company’s portfolio includes complete seat systems, seat components, electrical power management systems, and other related products. The company’s impressive free cash flow yield is one of the many factors that has made it a leader in the automotive seating and electrical power management systems market. Free cash flow yield is the amount of cash that a company generates per dollar invested in assets. Lear Corporation has consistently delivered free cash flow yields higher than its competitors, demonstrating its ability to generate returns on capital investments.

The company has consistently achieved strong financial performance, with a record of steady growth in both sales and net income over the last few years. Overall, Lear Corporation’s impressive free cash flow yield and track record of consistent financial performance has made it a leader in the automotive seating and electrical power management systems market. With its global presence, the company is well-positioned to continue to be a strong performer in the future.

Market Price

On Thursday, LEAR CORPORATION stock opened at $135.0 and closed at $133.8, down by 0.8% from prior closing price of 134.8. The company’s impressive free cash flow yield has helped to place them above their competitors and has made them an attractive investment option for many investors. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Lear Corporation. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Lear Corporation. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Lear Corporation. More…

Key Ratios Snapshot

Some of the financial key ratios for Lear Corporation are shown below. More…

Analysis – Lear Corporation Intrinsic Value Calculation

GoodWhale has completed an analysis of LEAR CORPORATION‘s financials and the results of our proprietary Valuation Line are now in. Our team has calculated a fair value of around $175.4 per share of LEAR CORPORATION stock. This figure suggests that the stock is currently trading at $133.8, which is 23.7% below its fair value. This could be a great opportunity for investors to acquire LEAR CORPORATION stock at a discount. More…

Peers

In the automotive industry, suppliers of parts and systems are constantly vying for business from the major carmakers. Two of the biggest players in this space are Lear Corporation and Ningbo Joyson Electronic Corporation. Both companies are based in China and have a long history of supplying carmakers with everything from seats and electrical systems to instrument panels and body control modules. While Lear is the bigger company, with annual sales of around $19 billion, Ningbo Joyson is no slouch, with sales of $7.4 billion. The two companies are constantly jockeying for position in the market, with each trying to undercut the other on price while also offering better quality and more innovative products. The competition between these two companies is fierce, but it is also healthy, as it helps to keep both companies on their toes and provides carmakers with a choice of two very competent suppliers.

– Ningbo Joyson Electronic Corp ($SHSE:600699)

Ningbo Joyson Electronic Corp is a Chinese multinational automotive electronic components company headquartered in Ningbo, Zhejiang. The company has a market cap of 21.55B as of 2022 and a Return on Equity of -18.07%. The company manufactures and supplies automotive electronic components and systems for vehicles worldwide. Its products include airbags, seatbelts, steering wheels, instrument panels, door modules, and other safety-related products.

– Denso Corp ($TSE:6902)

Denso Corp is a Japanese company that manufactures automotive components and systems. It has a market cap of 5.37 trillion as of 2022 and a return on equity of 5.0%. The company produces a wide range of products including engine components, electrical components, and air conditioning systems. It also provides services such as engineering, design, and testing. Denso is a leading supplier of components to the automotive industry.

– Aptiv PLC ($NYSE:APTV)

Aptiv PLC is a global technology company that develops safer, greener and more connected solutions that enable the future of mobility. The company has a market cap of 22.94B as of 2022 and a Return on Equity of 4.8%. Aptiv’s products are used in a variety of vehicles, including cars, trucks, buses and trains. The company’s products are designed to make vehicles safer, more efficient and more connected.

Summary

LEAR Corporation is a market leader in the automotive industry and has consistently shown impressive financial performance. Its strong balance sheet and cash flow provide a high FCF yield, making it an attractive investment opportunity for those seeking income. It has a diversified portfolio of customers, including top carmakers, helping to reduce risk. The company has an efficient global supply chain and advanced manufacturing capabilities, which enable it to deliver high-quality products at competitive prices.

In addition, its ability to innovate quickly and anticipate customer needs has allowed it to remain at the forefront of the automotive industry. LEAR Corporation has also demonstrated a commitment to sustainability, including environmental and social responsibility initiatives. All these factors make LEAR Corporation a solid investment choice for investors seeking long-term growth.