Lear Corporation cash flow to debt ratio of 26.54% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.

Lear Corporation's free cash flow has decreased 6.09% from $561.40M last year to $527.20M, signaling decreasing performance

Lear Corporation's debt to equity ratio is 0.68, which means that the company's assets are unhealthy financed, signaling financial risk.

Lear Corporation's debt has decreased relative to shareholder equity from 0.92 last year to 0.68 today, signaling strengthened financials

Lear Corporation has a net debt to EBITDA ratio of 2.22x, which is below the 3.00x threshold, indicating healthy leverage and financial stability

Lear Corporation's interest coverage ratio of 9.93 indicates that earnings with good margin can cover interest payments on company debt

Lear Corporation's profit margin has increased (7.91%) in the last year from 2.17% to 2.35%, signaling increasing performance

Lear Corporation's short-term assets of $7.66B exceed its short-term liabilities of $5.67B

Lear Corporation's return on assets of 3.55% is lower than the 5.00% threshold, indicating inefficient asset utilization

Lear Corporation's return on equity of 10.90%, is lower than 15.00%, indicating bad performance

Lear Corporation's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Lear Corporation had positive net income in 5 out of 5 years, indicating stable and consistent earnings

Lear Corporation has positive free cash flow, indicating the company generates cash after capital expenditures

Lear Corporation has a free cash flow yield of 8.71%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Lear Corporation's yearly earnings has decreased 13.78% since last year from $506.60M to $436.80M, signaling decreasing performance

Lear Corporation's yearly revenue has decreased 0.20% since last year from $23.31B to $23.26B, signaling decreasing performance

ROIC 8.23% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.

Lear Corporation's 3-year revenue CAGR of 3.66% is positive, indicating growing revenue over the past 3 years

Lear Corporation had revenue growth in 3 out of 5 years, indicating consistent revenue performance

Lear Corporation had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

Lear Corporation is undervalued relative to its fair value price of 123.99 based on Discounted Cash Flow model

Lear Corporation has an earnings yield of 8.98%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

Lear Corporation is overvalued relative to its fair value price of 39.69 based on EBITDA multiple model

Lear Corporation has an EV/EBITDA ratio of 6.61x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Lear Corporation is undervalued relative to its fair value price of 293.64 based on Earnings Fair Value model

Lear Corporation has a PEG-ratio under 1 which is considered undervalued

Lear Corporation has a price-to-book ratio of 1.16x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Lear Corporation has a price-to-sales ratio of 0.26x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue