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LEA vs TM

LEA
Lear Corporation
NEUTRAL
Price
$124.16
Market Cap
$6.29B
Sector
Consumer Cyclical
AI Confidence
80%
TM
Toyota Motor Corporation
NEUTRAL
Price
$209.75
Market Cap
$273.37B
Sector
Consumer Cyclical
AI Confidence
85%

Valuation

P/E Ratio
LEA
15.25
TM
11.84
Forward P/E
LEA
7.36
TM
13.29
P/B Ratio
LEA
1.25
TM
11.21
P/S Ratio
LEA
0.27
TM
0.01
EV/EBITDA
LEA
5.44
TM
4.71

Profitability

Gross Margin
LEA
7.5%
TM
17.6%
Operating Margin
LEA
4.4%
TM
8.85%
Profit Margin
LEA
1.88%
TM
7.32%
ROE
LEA
10.76%
TM
10.03%
ROA
LEA
4.49%
TM
2.73%

Growth

Revenue Growth
LEA
4.8%
TM
8.6%
Earnings Growth
LEA
-2.0%
TM
-42.3%

Financial Health

Debt/Equity
LEA
0.67
TM
1.05
Current Ratio
LEA
1.35
TM
1.26
Quick Ratio
LEA
0.91
TM
1.03

Dividends

Dividend Yield
LEA
2.48%
TM
2.78%
Payout Ratio
LEA
37.79%
TM
33.2%

AI Verdict

LEA NEUTRAL

Lear Corporation presents a complex profile characterized by a stable Piotroski F-Score of 6/9 and a valuation that is defensively attractive, trading below its Graham Number of $134.94. While the forward P/E of 7.36 and PEG of 0.36 suggest significant undervaluation, this is offset by razor-thin profit margins (1.88%) and a bearish technical trend. The stark contrast between the Graham Number and the growth-based intrinsic value ($56.98) indicates a stock that is valued more for its assets and current earnings than for future growth. Overall, the strong analyst 'buy' consensus is countered by bearish insider selling and weak technical momentum.

Strengths
Highly attractive valuation metrics (Forward P/E 7.36, PEG 0.36)
Trading below the Graham Number ($134.94), providing a defensive margin of safety
Consistent history of earnings beats over the last 25 quarters
Risks
Extremely low profit margins (1.88%) leave little room for error in a cyclical industry
Bearish insider sentiment with 7 sell transactions and 0 buys in the last 6 months
Technical trend is currently 0/100 (Bearish)
TM NEUTRAL

TM shows neutral fundamentals based on deterministic rules. Financial strength is stable (F-Score 4/9). Mixed signals with both opportunities and risks present.

Strengths
Attractive valuation with P/E of 11.8
Risks
Premium vs Graham Number ($86.36)

Compare Another Pair

LEA vs TM: Head-to-Head Comparison

This page compares Lear Corporation (LEA) and Toyota Motor Corporation (TM) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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