Lear Z Score

LEA
 Stock
  

USD 138.55  2.24  1.59%   

Altman Z Score is one of the simplest fundamental models to determine how likely your company is to fail. The module uses available fundamental data of a given equity to approximate the Altman Z score. Altman Z Score is determined by evaluating five fundamental price points available from the company's current public disclosure documents. Additionally, see Lear Piotroski F Score and Lear Valuation analysis.
  
The current year Return on Invested Capital is expected to grow to 0.12, whereas Capital Expenditure is forecasted to decline to (631.3 M). Lear Consolidated Income is projected to decrease significantly based on the last few years of reporting. The past year's Consolidated Income was at 461.6 Million. The current year Cost of Revenue is expected to grow to about 18.8 B, whereas Direct Expenses is forecasted to decline to about 16.1 B.

Lear Z Score Analysis

Lear's Z-Score is a simple linear, multi-factor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..
 2019 2020 2021 2022 (projected)
Consolidated Income830.7 M233.9 M461.6 M588.82 M
Direct Expenses18.07 B15.94 B17.87 B16.08 B
Z Score 
 = 
Sum Of  
 
5 Factors 
More About Z Score | All Equity Analysis

Current Lear Z Score

    
  2.2  
Most of Lear's fundamental indicators, such as Z Score, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Lear Corporation is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
First Factor
 = 
1.2 * (
Working Capital
/
Total Assets )
Second Factor
 = 
1.4 * (
Retained Earnings
/
Total Assets )
Thrid Factor
 = 
3.3 * (
EBITAD
/
Total Assets )
Fouth Factor
 = 
0.6 * (
Market Value of Equity
/
Total Liabilities )
Fifth Factor
 = 
0.99 * (
Revenue
/
Total Assets )

Lear Z Score Driver Correlations

Understanding the fundamental principles of building solid financial models for Lear is extremely important. It helps to project a fair market value of Ford stock properly, considering its historical fundamentals such as Z Score. Since Lear's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Lear's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Lear's interrelated accounts and indicators.
To calculate Z-Score one would need to know current working capital of the company, its total assets, and liabilities, amount of latest retained earnings as well as earnings before interest and tax. Z-Score can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with Z-Scores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a so-called 'grey area' with scores of less than 1, indicating the high probability of distress. Z Score is used widely by financial auditors, accountants, money managers, loan processers, wealth advisers, as well as day traders. In the last 25 years, many financial models that utilize z score has been proved to be successful as a predictor of corporate bankruptcy.
Compare to competition

Based on the company's disclosures, Lear Corporation has a Z Score of 2.2. This is 31.89% lower than that of the Auto Components sector and 13.04% lower than that of the Consumer Discretionary industry. The z score for all United States stocks is 74.77% higher than that of the company.

Lear Z Score Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Lear's direct or indirect competition against its Z Score to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Lear could also be used in its relative valuation, which is a method of valuing Lear by comparing valuation metrics of similar companies.
Lear is currently under evaluation in z score category among related companies.

Lear Current Valuation Drivers

We derive many important indicators used in calculating different scores of Lear from analyzing Lear's financial statements. These drivers represent accounts that assess Lear's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Lear's important valuation drivers and their relationship over time.
201720182019202020212022 (projected)
Net Income Per Employee7.96 K6.8 K4.59 K9052.33 K2.4 K
Revenue Per Employee124.04 K125.14 K120.72 K97.36 K120.32 K137.19 K
Average Assets11.37 B12.14 B12.66 B12.85 B13.27 B13 B
Earnings Before Interest Taxes and Depreciation Amortization EBITDA2.04 B2.11 B1.56 B938.8 M1.25 B1.21 B
Earnings Before Interest Taxes and Depreciation Amortization USD2.02 B2.03 B1.5 B891.9 M1.18 B1.4 B
Earnings before Tax1.51 B1.46 B899.7 M252.4 M511.6 M778.99 M
Average Equity3.74 B4.3 B4.26 B4.12 B4.66 B4.48 B
Enterprise Value12.65 B8.65 B9.33 B10.62 B12.11 B11.39 B
Free Cash Flow1.19 B1.1 B680.4 M210.8 M85 M87.24 M
Invested Capital6.15 B6.17 B7.24 B7.47 B8.21 B7.5 B
Invested Capital Average5.91 B6.45 B7.15 B7.29 B7.75 B7.19 B
Market Capitalization11.94 B7.88 B8.3 B9.55 B10.91 B10.48 B
Tangible Asset Value10.54 B10.2 B11.07 B11.54 B11.69 B11.52 B
Working Capital1.76 B1.78 B1.74 B1.7 B2.01 B1.99 B

Lear Institutional Holders

Institutional Holdings refers to the ownership stake in Lear that is held by large financial organizations, pension funds or endowments. Institutions may purchase large blocks of Lear's outstanding shares and can exert considerable influence upon its management. Institutional holders may also work to push the share price higher once they own the stock. Extensive social media coverage, TV shows, articles in high-profile magazines, and presentations at investor conferences help move the stock higher, increasing Lear's value.
Security TypeSharesValue
Zweigdimenna Associates LlcCommon Shares1.4 K261 K
Zweigdimenna Associates LlcCommon Shares2.7 K265 K
Zweigdimenna Associates LlcCommon SharesK243 K
Zweig Advisers LlcCommon Shares88 K10.8 M
Zweig Advisers LlcCommon Shares131 K12.8 M
Zweig Advisers LlcCommon Shares139 K11.3 M
Zweig Advisers LlcCommon Shares160 K9.7 M

Lear Fundamentals

About Lear Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Lear Corporation's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Lear using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Lear Corporation based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
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. Lear Corporation was founded in 1917 and is headquartered in Southfield, Michigan. Lear Corp operates under Auto Parts classification in the United States and is traded on New York Stock Exchange. It employs 160100 people.

Be your own money manager

Our tools can tell you how much better you can do entering a position in Lear without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Additionally, see Lear Piotroski F Score and Lear Valuation analysis. Note that the Lear information on this page should be used as a complementary analysis to other Lear's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Stock Screener module to find equities using custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..

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When running Lear price analysis, check to measure Lear's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Lear is operating at the current time. Most of Lear's value examination focuses on studying past and present price action to predict the probability of Lear's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Lear's price. Additionally, you may evaluate how the addition of Lear to your portfolios can decrease your overall portfolio volatility.
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Is Lear's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Lear. If investors know Lear will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Lear listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Lear is measured differently than its book value, which is the value of Lear that is recorded on the company's balance sheet. Investors also form their own opinion of Lear's value that differs from its market value or its book value, called intrinsic value, which is Lear's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Lear's market value can be influenced by many factors that don't directly affect Lear's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Lear's value and its price as these two are different measures arrived at by different means. Investors typically determine Lear value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Lear's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.