LEA
Consumer CyclicalLear Corporation · Auto - Parts · $7B
What is Lear Corporation?
Lear Corporation is a global automotive supplier headquartered in Southfield, Michigan, serving original equipment manufacturers across North America, Europe, Asia, Africa, and South America. The company operates through two core segments: Seating and E-Systems.
Lear generates revenue by designing, engineering, and manufacturing automotive seating systems and electrical distribution components for vehicle makers worldwide. Its Seating segment supplies complete seat systems, trim covers, foams, and mechanisms for cars, trucks, and SUVs. Its E-Systems segment delivers wire harnesses, connectors, junction boxes, and electronic control modules that manage power and data across modern vehicle architectures — including high-voltage systems for electric vehicles and connected-vehicle software platforms.
Lear Corporation was incorporated in its current public form in 2009 and is headquartered in Southfield, Michigan.
- Complete automotive seat systems and subsystems for light vehicles
- Wire harnesses, terminals, and connectors for vehicle electrical networks
- High-voltage power control systems for electric and hybrid vehicles
- Body domain control modules and gateway communication modules
- Xevo Market in-vehicle commerce platform and cybersecurity software
Is LEA a Good Stock to Buy?
UQS Score rates LEA as Below Average overall, reflecting broad weakness across most of its five scoring pillars.
The one area where LEA stands out is Valuation, which is rated Attractive — suggesting the market may already be pricing in many of the company's challenges, leaving limited downside from a pure valuation perspective.
Quality, Moat, Growth, and Risk are all rated Weak, indicating thin competitive differentiation, limited pricing power, constrained earnings trajectory, and meaningful exposure to automotive cycle volatility.
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Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.
Does LEA pay dividends?
Yes — Lear Corporation pays a dividend.
Lear pays a regular dividend, which is relatively uncommon among automotive suppliers navigating cyclical demand and capital-intensive operations. The dividend signals management's commitment to returning cash to shareholders even in a challenging environment. Investors should weigh the sustainability of that payout against the company's Weak Quality and Risk pillar ratings before relying on it as a core income source.
When does LEA report earnings?
Lear Corporation reports earnings on a quarterly cadence, consistent with standard practice for US-listed equities.
Results have reflected the pressures common across the automotive supply chain — including production volatility at OEM customers, raw material cost fluctuations, and the ongoing transition toward electric vehicle platforms. Revenue trends and margin dynamics are best evaluated in the context of Lear's Weak Growth and Quality pillar ratings.
For the most recent quarter's results and guidance, visit Lear Corporation's investor relations page directly.
LEA Price History
-25.4% over 5Y
Monthly close, adjusted for stock splits and dividend reinvestment.
What if I invested in Lear Corporation?
Based on Lear Corporation's historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.
LEA Long-term Outlook
Lear's fundamental outlook is shaped by its Weak Growth and Weak Risk pillar ratings, pointing to a cautious near-term trajectory. The E-Systems segment offers a potential long-term tailwind as vehicle electrification accelerates demand for high-voltage wiring and power management. However, the company's limited moat and exposure to OEM production schedules create meaningful uncertainty around the pace and durability of any recovery.
Growth drivers
- Rising electric vehicle content driving demand for high-voltage E-Systems products
- Expansion of connected-vehicle software and cybersecurity offerings
- Geographic diversification across major global automotive production regions
Key risks
- Heavy dependence on OEM production volumes, which are sensitive to economic cycles
- Weak competitive moat leaves Lear exposed to pricing pressure from rival suppliers
- Elevated capital requirements and cost inflation can compress already-thin margins
LEA vs Peers
Lear competes in a fragmented automotive supplier landscape alongside companies spanning advanced driver-assistance technology, aftermarket parts, and diversified vehicle components.
Mobileye focuses on camera-based ADAS and autonomous driving technology, operating at a higher software intensity than Lear's hardware-centric E-Systems business.
LKQ distributes aftermarket and salvage vehicle parts, serving the repair market rather than OEM production lines, which gives it a different demand cycle than Lear.
Linamar is a Canadian diversified manufacturer supplying both automotive driveline components and industrial equipment, competing with Lear across several OEM customer relationships.
Frequently Asked Questions
What does Lear Corporation do?
Lear Corporation designs and manufactures two categories of automotive components: seating systems — including full seat assemblies, foams, and trim covers — and E-Systems products such as wire harnesses, connectors, and electronic control modules. It supplies these to vehicle makers globally across multiple powertrain types, including electric vehicles.
Does LEA pay dividends?
Yes, Lear pays a regular dividend. For an automotive supplier operating in a cyclical, capital-intensive industry, maintaining a dividend reflects a deliberate capital allocation choice. Investors should review the payout alongside the company's Weak Quality and Risk pillar ratings to assess sustainability.
When does LEA report earnings?
Lear reports on a quarterly cadence, as is standard for US-listed companies. The company does not pre-announce specific dates far in advance. Check Lear's investor relations page or financial data providers for the current quarter's scheduled release.
Is LEA a good stock to buy?
UQS Score rates LEA as Below Average. The Valuation pillar is Attractive, but Quality, Moat, Growth, and Risk are all rated Weak. That combination suggests the low price may reflect real fundamental challenges rather than a simple market mispricing. The full pillar breakdown is available to Pro members.
Is LEA overvalued?
Based on the UQS Valuation pillar, LEA is rated Attractive — meaning the stock does not appear expensive relative to its fundamentals. However, an attractive valuation alone does not offset the Weak ratings across the other four pillars. Value investors should weigh both sides carefully.
How does LEA compare to its competitors?
Lear operates in a different niche than peers like Mobileye, which focuses on software-driven ADAS, or LKQ, which serves the aftermarket repair segment. Linamar is the closest structural peer as a diversified OEM supplier. Lear's broad geographic footprint is a relative strength, but its Weak Moat rating suggests limited pricing differentiation versus rivals.
What is LEA's market cap bracket?
Lear Corporation is classified as a mid-cap company. This places it in a range that typically offers more liquidity than small-cap peers but less index-driven buying pressure than large-cap names. Mid-cap automotive suppliers can be sensitive to both macro cycles and sector-specific OEM production trends.
Who founded Lear Corporation?
Lear Corporation traces its roots to the early twentieth century as an automotive parts business, though its current public corporate structure dates to 2009. Founding history and leadership background are widely documented on the company's official website and in public filings.
Is LEA a long-term quality investment?
As a long-term quality indicator, LEA's UQS profile raises caution. Weak ratings across Quality, Moat, Growth, and Risk suggest the business lacks the durable competitive advantages typically associated with compounding long-term returns. The Attractive Valuation may limit near-term downside, but quality-focused long-term investors should review the full analysis before committing.
What is the main competitive advantage of Lear Corporation?
Lear's scale and global manufacturing footprint allow it to serve major OEMs across multiple continents. Its E-Systems segment is positioned to benefit from vehicle electrification trends. However, the UQS Moat pillar is rated Weak, indicating these advantages have not yet translated into durable pricing power or above-average returns.
What sector does LEA belong to?
Lear Corporation belongs to the Consumer Cyclical sector, specifically within the auto parts and equipment industry. Consumer Cyclical stocks tend to perform in line with broader economic conditions, making them sensitive to consumer spending, interest rates, and OEM production schedules.
Is LEA a growth stock or value stock?
Based on UQS pillar labels, LEA leans toward value territory — the Valuation pillar is Attractive while the Growth pillar is rated Weak. This profile is more consistent with a value or turnaround framing than a growth investment, though neither label guarantees future performance.
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Pro Analysis
LEA — Score History
| Date | UQS | Quality | Moat | Growth | Risk | Value | Change |
|---|---|---|---|---|---|---|---|
| May 17, 2026 | 43.5 | 39.0 | 21.0 | 31.0 | 50.4 | 98.1 | +8.0 |
| May 10, 2026 | 35.5 | 4.9 | 21.0 | 30.9 | 52.4 | 100.0 | -8.0 |
| May 9, 2026 | 43.5 | 39.0 | 21.0 | 30.9 | 50.4 | 98.1 | +8.1 |
| May 8, 2026 | 35.4 | 4.9 | 21.0 | 30.6 | 52.4 | 100.0 | -5.2 |
| May 7, 2026 | 40.6 | 36.9 | 21.0 | 30.6 | 38.7 | 94.7 | +0.3 |
| May 3, 2026 | 40.3 | 35.7 | 21.0 | 30.6 | 38.7 | 94.8 | 0.0 |
| May 1, 2026 | 40.3 | 35.7 | 21.0 | 30.2 | 38.7 | 95.0 | 0.0 |
| Apr 28, 2026 | 40.3 | 35.7 | 21.0 | 30.3 | 38.7 | 95.0 | 0.0 |
| Apr 26, 2026 | 40.3 | 35.7 | 21.0 | 30.5 | 38.7 | 95.0 | -0.1 |
| Apr 19, 2026 | 40.4 | 35.7 | 21.0 | 30.5 | 38.7 | 95.4 | +0.1 |
LEA — Pillar Breakdown
Quality
— 39.0/100 (25%)Lear Corporation has average quality metrics, with room for improvement in margins or capital efficiency.
How effectively capital is deployed to generate returns.
Profitability relative to shareholders' equity.
Ability to convert revenue into operating profit.
Bottom-line profit as a share of revenue.
Asset productivity — how much gross profit each dollar of assets generates.
Free cash flow relative to market value.
Growth
— 30.8/100 (20%)Lear Corporation faces growth headwinds with declining or stagnant revenue trends.
Revenue trajectory over the last twelve months.
Compound annual revenue growth rate over 3 years.
Year-over-year earnings per share growth.
Analyst consensus for future revenue growth.
Analyst consensus for future earnings growth.
Risk
— 50.4/100 (15%)Lear Corporation has some risk factors including moderate leverage or solvency concerns.
Debt levels relative to earnings capacity.
Total debt relative to shareholder equity.
Short-term liquidity — ability to pay near-term obligations.
Earnings capacity relative to interest payments.
Valuation
— 97.8/100 (15%)Lear Corporation appears attractively valued relative to its earnings, cash flows, and sector peers.
Inverse of forward P/E — higher yield means cheaper stock.
How many years of FCF the market cap represents.
P/E relative to earnings growth — lower is more attractive.
Enterprise value multiple relative to sector median.
Moat
— 21/100 (25%)Lear Corporation operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for LEA.
Score Composition
Financial Data
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How is the LEA UQS Score Calculated?
The UQS (Unified Quality Score) for Lear Corporation is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.
Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.
Moat (25%) assesses Lear Corporation's competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.
Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.
Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.
Valuation (15%) measures whether Lear Corporation is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.
Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.