Lear Corporation Stock Fair Value Calculator – LEAR CORPORATION Reports 18.3% Increase in Revenue for Q2 of FY2023
August 6, 2023
☀️Earnings Overview
On August 1 2023, LEAR CORPORATION ($NYSE:LEA) released their earnings results for the second quarter of FY2023, showing total revenue of USD 5999.2 million, a rise of 18.3% from the same period in the previous year. Furthermore, net income was USD 168.7 million which represents an impressive 146.3% increase compared to the corresponding quarter in the prior year.
Analysis – Lear Corporation Stock Fair Value Calculator
GoodWhale conducted an analysis of LEAR CORPORATION‘s wellbeing and determined that its intrinsic value is around $173.8 using a proprietary valuation method called the Valuation Line. Currently, LEAR CORPORATION’s stock is trading at $154.4, which is 11.2% undervalued. This indicates that now may be a good time to purchase LEAR CORPORATION stock in order to benefit from the price discrepancy. The intrinsic value of the share also suggests that the company remains a solid investment and has good potential for long-term growth. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Lear Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 22.46k | 522.1 | 2.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Lear Corporation. More…
| Operations | Investing | Financing |
| 1.07k | -795.3 | -213.7 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Lear Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 14.8k | 9.71k | 84.78 |
Key Ratios Snapshot
Some of the financial key ratios for Lear Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 10.7% | 38.3% | 3.7% |
| FCF Margin | ROE | ROA |
| 2.0% | 10.7% | 3.5% |
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 experienced strong financial performance in the second quarter of their fiscal year 2023, with total revenue increasing 18.3% year-over-year to USD 5999.2 million and a significant 146.3% rise in net income to USD 168.7 million. This successful quarter provides investors with a positive outlook for future growth and profitability, signaling that LEAR Corporation is well-positioned to capitalize on opportunities in the market and continue to deliver strong returns.
