Latest Ratios: P/E Ratio 14.9x · EV/EBITDA 5.7x · ROE 8.9%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $6.2B | $6.1B | $5.3B | $8.3B | $7.4B | $11.1B | $9.6B | $8.5B | $8.1B | $12.2B | $9.7B |
| Enterprise Value | $9.2B | $9.2B | $8.4B | $10.7B | $9.7B | $13.0B | $11.2B | $9.9B | $8.6B | $12.7B | $10.4B |
| P/E Ratio → | 14.93 | 14.06 | 10.56 | 14.59 | 22.67 | 29.56 | 60.70 | 10.76 | 7.13 | 9.50 | 9.93 |
| P/S Ratio | 0.26 | 0.26 | 0.23 | 0.36 | 0.36 | 0.57 | 0.56 | 0.43 | 0.38 | 0.60 | 0.52 |
| P/B Ratio | 1.25 | 1.18 | 1.16 | 1.65 | 1.54 | 2.30 | 2.08 | 1.84 | 1.80 | 2.75 | 3.03 |
| P/FCF | 11.69 | 11.65 | 9.53 | 13.40 | 19.39 | 130.05 | 45.59 | 12.49 | 7.37 | 10.30 | 8.87 |
| P/OCF | 5.66 | 5.64 | 4.77 | 6.68 | 7.28 | 16.50 | 14.49 | 6.62 | 4.57 | 6.86 | 5.98 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.40 | 0.36 | 0.46 | 0.46 | 0.67 | 0.66 | 0.50 | 0.41 | 0.62 | 0.56 |
| EV / EBITDA | 5.67 | 5.66 | 5.35 | 7.06 | 7.18 | 9.85 | 9.76 | 5.72 | 3.89 | 5.94 | 5.29 |
| EV / EBIT | 9.02 | 11.88 | 10.01 | 12.21 | 15.95 | 19.29 | 28.17 | 9.44 | 5.29 | 7.89 | 7.28 |
| EV / FCF | — | 17.47 | 14.92 | 17.17 | 25.21 | 152.70 | 52.98 | 14.49 | 7.79 | 10.68 | 9.49 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 8.2% | 8.2% | 7.9% | 7.4% | 7.5% | 7.8% | 7.7% | 9.8% | 11.6% | 11.4% | 11.8% |
| Operating Margin | 4.4% | 4.4% | 4.1% | 3.9% | 3.7% | 3.9% | 3.5% | 6.1% | 8.1% | 8.4% | 8.5% |
| Net Profit Margin | 1.9% | 1.9% | 2.2% | 2.4% | 1.6% | 1.9% | 0.9% | 4.0% | 5.4% | 6.3% | 5.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 8.9% | 8.9% | 10.5% | 11.6% | 6.8% | 7.9% | 3.4% | 17.3% | 25.4% | 33.7% | 31.4% |
| ROA | 3.0% | 3.0% | 3.5% | 4.0% | 2.4% | 2.8% | 1.2% | 6.5% | 9.7% | 11.8% | 10.1% |
| ROIC | 9.7% | 9.7% | 9.4% | 9.5% | 8.4% | 8.6% | 7.5% | 16.6% | 26.1% | 29.2% | 31.0% |
| ROCE | 11.5% | 11.5% | 10.7% | 10.4% | 8.9% | 8.9% | 7.5% | 16.1% | 24.3% | 26.7% | 28.0% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.79 | 0.79 | 0.89 | 0.70 | 0.69 | 0.67 | 0.62 | 0.62 | 0.43 | 0.44 | 0.61 |
| Debt / EBITDA | 2.52 | 2.52 | 2.61 | 2.34 | 2.49 | 2.46 | 2.51 | 1.66 | 0.89 | 0.92 | 0.99 |
| Net Debt / Equity | — | 0.59 | 0.66 | 0.46 | 0.46 | 0.40 | 0.34 | 0.29 | 0.10 | 0.10 | 0.21 |
| Net Debt / EBITDA | 1.89 | 1.89 | 1.93 | 1.55 | 1.66 | 1.46 | 1.36 | 0.79 | 0.21 | 0.22 | 0.34 |
| Debt / FCF | — | 5.82 | 5.39 | 3.77 | 5.82 | 22.65 | 7.39 | 2.00 | 0.42 | 0.39 | 0.61 |
| Interest Coverage | 7.88 | 7.88 | 8.06 | 8.87 | 6.29 | 7.53 | 4.08 | 11.49 | 19.29 | 19.24 | 17.22 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.35 | 1.35 | 1.32 | 1.35 | 1.35 | 1.42 | 1.33 | 1.37 | 1.40 | 1.36 | 1.35 |
| Quick Ratio | 1.05 | 1.05 | 1.02 | 1.04 | 1.04 | 1.09 | 1.06 | 1.10 | 1.13 | 1.11 | 1.11 |
| Cash Ratio | 0.18 | 0.18 | 0.19 | 0.21 | 0.22 | 0.28 | 0.26 | 0.33 | 0.33 | 0.32 | 0.31 |
| Asset Turnover | — | 1.57 | 1.66 | 1.60 | 1.52 | 1.44 | 1.29 | 1.56 | 1.82 | 1.71 | 1.87 |
| Inventory Turnover | 12.61 | 12.61 | 13.40 | 12.35 | 12.27 | 11.30 | 11.23 | 14.21 | 15.62 | 15.05 | 16.04 |
| Days Sales Outstanding | — | 61.25 | 56.22 | 57.26 | 60.34 | 57.64 | 70.01 | 54.94 | 49.71 | 57.61 | 54.01 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.5% | 2.7% | 3.2% | 2.2% | 2.5% | 1.0% | 0.7% | 2.2% | 2.3% | 1.1% | 0.9% |
| Payout Ratio | 37.7% | 37.7% | 34.3% | 31.8% | 56.6% | 28.5% | 42.5% | 23.6% | 16.4% | 10.7% | 9.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 6.7% | 7.1% | 9.5% | 6.9% | 4.4% | 3.4% | 1.6% | 9.3% | 14.0% | 10.5% | 10.1% |
| FCF Yield | 8.6% | 8.6% | 10.5% | 7.5% | 5.2% | 0.8% | 2.2% | 8.0% | 13.6% | 9.7% | 11.3% |
| Buyback Yield | 5.3% | 5.3% | 7.8% | 3.6% | 1.3% | 0.9% | 0.7% | 4.5% | 8.7% | 3.7% | 6.8% |
| Total Shareholder Yield | 7.8% | 8.0% | 11.0% | 5.7% | 3.8% | 1.9% | 1.4% | 6.7% | 11.0% | 4.8% | 7.7% |
| Shares Outstanding | — | $54M | $56M | $59M | $60M | $60M | $60M | $62M | $66M | $69M | $73M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying LEA stock.
Lear Corporation's current P/E ratio is 14.9x. The historical average is 15.1x. This places it at the 76th percentile of its historical range.
Lear Corporation's current EV/EBITDA is 5.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 6.1x.
Lear Corporation's return on equity (ROE) is 8.9%. The historical average is 8.4%.
Based on historical data, Lear Corporation is trading at a P/E of 14.9x. This is at the 76th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Lear Corporation's current dividend yield is 2.53% with a payout ratio of 37.7%.
Lear Corporation has 8.2% gross margin and 4.4% operating margin.
Lear Corporation's Debt/EBITDA ratio is 2.5x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
EV adoption slowdown
Metrics are mathematically derived from official filings.
Thin Margins Reflect OEM Pricing Power
Gross margin averaged 7.2% over the last four quarters, as reported in financial statements, significantly below peers like Aptiv (19.1%) and Autoliv (19.2%), underscoring intense OEM pricing pressure.
The gross margin trend shows a slight improvement from 6.5% in Q1 2024 to 7.1% in Q2 2026, but it remains structurally thin, reflecting the pass-through nature of commodity costs and annual price give-backs to OEMs. Operating margin has been more stable, hovering around 4%, with Q2 2026 at 4.0%, indicating that SG&A leverage is partially offsetting gross margin pressure. Net margin volatility, swinging from 1.4% to 3.1% in recent quarters, suggests that non-operating items and tax effects are significant, so investors should focus on operating margin as the cleaner measure of underlying earning power.
ROIC Stagnant Despite Deleveraging
ROIC has remained range-bound between 2.0% and 2.8% over the past ten quarters, as per reported figures, indicating that capital efficiency is not improving despite a reduction in debt levels.
The stability in ROIC, despite a declining D/E ratio from 0.89 to 0.66, suggests that the incremental capital deployed is not generating higher returns, possibly due to heavy investment in low-margin seating assets. ROE has been more volatile, ranging from 1.6% to 3.6%, but the recent uptick to 3.6% in Q2 2026 aligns with the earnings beat, yet it remains below the cost of equity, implying value creation is still elusive. The lack of ROIC expansion, even as leverage falls, may indicate that the company is not compounding returns on invested capital, which warrants monitoring for any structural improvement from E-Systems.
Working Capital Efficiency Shows Modest Gains
Cash conversion cycle improved to 28 days in Q2 2026 from 37 days in Q4 2024, based on reported figures, driven by tighter DSO and DIO management, though DPO remains stable.
The reduction in CCC is primarily due to a decline in DSO from 70 days in Q3 2025 to 61 days in Q2 2026, suggesting improved collections, while DIO has remained flat around 28-30 days. DPO has been stable near 60 days, indicating that Lear is not stretching supplier payments further, which could be a sign of maintaining good supplier relationships. Asset turnover has been remarkably stable at 0.38-0.41, reflecting the capital-intensive nature of the business, but the working capital improvements are a positive sign of operational discipline.
Deleveraging Improves Interest Coverage
Interest coverage improved to 10.45x in Q2 2026 from 6.10x in Q4 2025, as per financial statements, as total debt declined to $3.5B, indicating a more comfortable debt service position.
The D/E ratio has fallen from 0.89 in Q4 2024 to 0.66 in Q2 2026, reflecting a deliberate deleveraging effort, which is consistent with the balance sheet analysis. D/EBITDA has also improved from 10.26x to 8.85x over the same period, though it remains elevated relative to peers like Magna (6.57x) and Autoliv (7.42x), suggesting Lear still carries a higher debt load. The improved interest coverage reduces near-term refinancing risk, but the absolute debt level warrants monitoring, especially if EBITDA contracts in a downturn.
Liquidity Buffer Strengthens in Q2
Current ratio jumped to 1.75 in Q2 2026 from 1.33 in Q1 2026, as reported in the balance sheet, indicating a strengthened short-term liquidity position, though quick ratio remains modest at 1.32.
The sharp increase in the current ratio appears driven by a build-up in cash or receivables, but the quick ratio of 1.32 suggests that inventory still plays a role in liquidity. The improvement provides a cushion against seasonal working capital swings, which have historically caused negative FCF in Q1. However, the reliance on inventory to meet short-term obligations could be a vulnerability if demand weakens and inventory becomes harder to liquidate.
P/E Misleads on Cyclical Earnings
The trailing P/E of 15.35 appears low, but forward P/E of 8.36 and PEG of 0.60, based on current multiples, suggest the market is pricing in a sharp earnings rebound, which may be cyclical rather than structural.
The most commonly misapplied ratio for Lear is the P/E, because it fails to account for the cyclicality of automotive earnings. The low forward P/E and PEG imply that the market expects significant earnings growth, but this growth is likely tied to the LVP cycle and may reverse. A more appropriate metric is EV/EBITDA, which at 5.78x is below the peer average, but even this should be adjusted for the high fixed-cost base and the potential for margin compression in a downturn. Investors should use a mid-cycle earnings estimate rather than trailing or forward earnings to value Lear.