Lear (LEA)
NYSEConsumer DiscretionaryAuto - PartsSnapshot 2026-11-04
$118.70+1.65%
Close 2026-11-04 · 1-day change
NYSEConsumer DiscretionaryAuto - PartsSnapshot 2026-11-04
QuarterlyIQ Insights · LEA
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How this business ranks within consumer discretionary on a research-validated quality screen. As of 2026-11-04.
The screen ranks LEA against its sector on four durable signals: share dilution, return on capital, free-cash-flow yield, and FCF margin. Historically the highest-quality names tended toward better typical outcomes and fewer bad years over multi-year holds (strongest at three years, modest at one), and that pattern showed up even before the price moved. It characterizes business quality, not price direction.
Each leg is a sector-relative percentile (higher is better); 4 of 4 legs were available for this name. The composite is built from these four; the raw value follows each percentile for context.
A forward quality tilt, not a price prediction, and context for your own research rather than a recommendation. Not investment advice.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 2 of the last 3 quarter-over-quarter moves. Historically, Consumer Discretionary names rated strong grew net income 62% of the time over the next year (vs 50% for the rest of the cohort, n=5250).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
A guidance track record builds as the company issues and delivers on guidance.
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
We continue to win significant new business awards, including complete seats for two important programs with a North American automaker, our largest complete seat award in India with Mahindra & Mahin…
Stated in 3 of 4 supplied quarters. Management reported: “Sales in the third quarter were $5.8 billion, up 2% year-over-year.” “Earnings were impacted by the addition of new business and changes in foreign exchange rates, offset by lower production on key Lear platforms.” Revenue was $5.773 billion in 2026-Q3.
“We continue to win significant new business awards, including complete seats for two important programs with a North American automaker, our largest complete seat award in India with Mahindra & Mahin…”
“We continue to win significant new business awards, including key new and conquest program awards with Audi, while accelerating our growth with Chinese automakers, including our award with Leapmotor…”
“Our differentiated capabilities continue to drive significant new business awards and accelerated growth with Chinese automakers increasing our backlog in both segments, building on the momentum from…”
We are maintaining our full year outlook for core operating earnings as we anticipate our strong operational execution and the additional savings from our restructuring actions will offset the impact…
Stated in 3 of 4 supplied quarters. Management reported: “We are maintaining our full year outlook for core operating earnings as we anticipate our strong operational execution and the additional savings from our restructuring actions will offset the impacts from lower revenue and higher commodity and other input costs.” ““In 2026, our expanded automation and AI leadership, combined with cost savings from restructuring actions, will be catalysts for margin expansion in both segments.” Operating income was $197.000 million in 2026-Q3.
Our strong cash generation enabled us to achieve our full-year share repurchase target of $350 million, driving continued earnings per share growth while sustaining our dividend.
Stated in 3 of 4 supplied quarters. Management reported: “Our strong cash generation enabled us to achieve our full-year share repurchase target of $350 million, driving continued earnings per share growth while sustaining our dividend.” ““The Board fully supports the Company's capital allocation priorities, which are designed to maximize long-term shareholder value by making organic and inorganic investments to drive profitable growth and improve competitiveness, maintaining a strong and flexible balance sheet, and consistently returning excess cash to shareholders.””
Maintain execution against the full-year outlook, which management updated in the third quarter to reflect changing production schedules and costs.
Maintain financial performance against the full-year outlook, with the company reaffirming it in the first quarter and raising outlook midpoints in the second quarter.
Over the trailing year it converted 1.03x of net income into operating cash flow. Historically, Consumer Discretionary names rated neutral grew net income 49% of the time over the next year (vs 49% for the rest of the cohort, n=4822).
Most sensitive to the broad stock market and long-term interest rates.
Not enough signal to read sensitivity to the US dollar, real (inflation-adjusted) rates, Fed net liquidity (low R² over the window).
4 material management or governance events in the past 24 months, led by executive changes. Historically, Consumer Discretionary names rated stable grew net income 53% of the time over the next year (vs 54% for the rest of the cohort, n=4907).
Not investment advice. As of 2026-11-04.
“We are maintaining our full year outlook for core operating earnings as we anticipate our strong operational execution and the additional savings from our restructuring actions will offset the impact…”
“2026 Financial Outlook We have increased the midpoints and narrowed the ranges of our 2026 financial outlook across most metrics.”
““In 2026, our expanded automation and AI leadership, combined with cost savings from restructuring actions, will be catalysts for margin expansion in both segments.”
“Our strong cash generation enabled us to achieve our full-year share repurchase target of $350 million, driving continued earnings per share growth while sustaining our dividend.”
“Our strong cash generation enabled us to further increase the pace of share repurchases, driving strong earnings per share growth while sustaining our dividend.””
“Our strong cash generation outlook enabled us to continue returning excess cash to shareholders by increasing the pace of share repurchases in the quarter, resulting in strong earnings per share grow…”