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On February 12, 2026 Lear’s board declared a quarterly cash dividend of $0.77 per share, payable March 25 to shareholders of record March 5. On March 4, 2026 Lear announced participation in a March 17 Bank of America Global Automotive Summit fireside chat to discuss strategy and market dynamics.
Technical Analysis
ADX at 18.0 indicates no established trend strength; momentum remains in a regime where directional moves can reverse quickly, implying price action will react to short-term catalysts rather than a dominant trend.
Directional indicators show bullish setup: DI+ at 29.79 recovered via a dip-and-reverse, while DI– at 21.07 completed a peak-and-reverse, signaling bullish directional pressure for the near term and aligning with the margin-driven positive outlook.
MACD reads 1.85 with the MACD line above the signal line at 1.24; the MACD dip-and-reverse produced a bullish momentum signal as the MACD crossed above its signal line, supporting continued upside momentum over the coming weeks.
MRO sits at 31.09 and rising, which indicates the current price trades above the model target and therefore carries mean-reversion risk; that tension suggests upside biased moves may meet corrective pullbacks into equilibrium before any sustained leg higher.
RSI at 53.63 completed a dip-and-reverse and occupies a neutral-to-firm band, consistent with renewed buying without extended overbought extremes.
Price structure favors buyers: the close at $131.65 trades above the 20-day average ($127.33) and well above the 200-day average ($113.50), while the 12-day EMA recently reversed higher. The close sits marginally above the 1x Bollinger upper band ($131.23), signaling short-term stretch that could invite consolidation down toward near support around the super trend lower at $121.25.
Fundamental Analysis
Lear reported first-quarter 2026 results and reaffirmed full-year guidance; earnings per share came in at $3.87 versus an estimate of $3.51, producing a positive EPS surprise of 10.26%. The company described the quarter as its highest EPS since 2021 and the highest adjusted EPS since 2019.
Profitability improved: operating margin measures 4.38% and EBIT margin registers 4.16%. EBIT margin rose 80.83% quarter-over-quarter and 43.53% year-over-year, reflecting stronger cost absorption and pricing leverage. Despite that improvement, the EBIT margin sits below the industry peer mean of 7.232% and below the industry peer median of 8.282%.
Top-line dynamics show mixed timing: revenue reads $5.8228B with year-over-year revenue growth of 2.56% but a reported quarter-over-quarter change of -150.93%, indicating lumpy quarterly patterns; interpret quarterly swings with caution when projecting short-term cash flow. Gross margin at 7.733% improved materially year-over-year and quarter-over-quarter, but remains below the industry peer mean gross margin of 18.002% and the industry peer median of 19.106%.
Cash flow and leverage present contrasting signals. Operating cash flow reached $98.1M while free cash flow finished negative at -$26.5M; free cash flow yield stands at -0.43% and free cash growth shows decline on a year basis. The company holds $881.9M in cash and short-term investments and net debt of $1.8618B, with debt-to-EBITDA around 6.99 and interest coverage near 9.46x, indicating sufficient coverage but elevated leverage relative to historical norms.
Market multiples and capital ratios: trailing P/E equals 31.74 while forward P/E estimates near 28.09; price-to-book registers 1.22, below the industry peer mean price-to-book of 2.7145 and below the peer median of 3.1979. WMDST values the stock as under-valued given current fundamentals, margin momentum, and the risk/reward implied by present multiples.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2026-03-31 |
| REPORT DATE: | 2026-05-01 |
| NEXT REPORT DATE: | 2026-07-31 |
| CASH FLOW | Begin Period Cash Flow | $ 1.0 B |
| Operating Cash Flow | $ 98.1 M | |
| Capital Expenditures | $ -124.60 M | |
| Change In Working Capital | $ -228.50 M | |
| Dividends Paid | $ -42.50 M | |
| Cash Flow Delta | $ -150.80 M | |
| End Period Cash Flow | $ 884.5 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 5.8 B | |
| Forward Revenue | $ 1.8 B | |
| COSTS | ||
| Cost Of Revenue | $ 5.4 B | |
| Depreciation | $ 144.9 M | |
| Depreciation and Amortization | $ 149.9 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 5.6 B | |
| PROFITABILITY | ||
| Gross Profit | $ 450.3 M | |
| EBITDA | $ 392.2 M | |
| EBIT | $ 242.3 M | |
| Operating Income | $ 255.0 M | |
| Interest Income | — | |
| Interest Expense | $ 25.6 M | |
| Net Interest Income | $ -25.60 M | |
| Income Before Tax | $ 216.7 M | |
| Tax Provision | $ 38.4 M | |
| Tax Rate | 17.72 % | |
| Net Income | $ 172.3 M | |
| Net Income From Continuing Operations | $ 192.7 M | |
| EARNINGS | ||
| EPS Estimate | $ 3.51 | |
| EPS Actual | $ 3.87 | |
| EPS Difference | $ 0.36 | |
| EPS Surprise | 10.256 % | |
| Forward EPS | $ 4.32 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 15.5 B | |
| Intangible Assets | $ 1.8 B | |
| Net Tangible Assets | $ 3.3 B | |
| Total Current Assets | $ 8.3 B | |
| Cash and Short-Term Investments | $ 881.9 M | |
| Cash | $ 881.9 M | |
| Net Receivables | $ 4.2 B | |
| Inventory | $ 1.8 B | |
| Long-Term Investments | $ 2.6 B | |
| LIABILITIES | ||
| Accounts Payable | $ 3.8 B | |
| Short-Term Debt | $ 32.1 M | |
| Total Current Liabilities | $ 6.2 B | |
| Net Debt | $ 1.9 B | |
| Total Debt | $ 2.7 B | |
| Total Liabilities | $ 10.2 B | |
| EQUITY | ||
| Total Equity | $ 5.1 B | |
| Retained Earnings | $ 6.3 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 100.47 | |
| Shares Outstanding | 50.627 M | |
| Revenue Per-Share | $ 115.01 | |
| VALUATION | Market Capitalization | $ 6.2 B |
| Enterprise Value | $ 8.1 B | |
| Enterprise Multiple | 20.602 | |
| Enterprise Multiple QoQ | -23.366 % | |
| Enterprise Multiple YoY | -5.138 % | |
| Enterprise Multiple IPRWA | high: 42.248 mean: 31.187 median: 30.846 low: 28.221 LEA: 20.602 |
|
| EV/R | 1.388 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 3.038 | |
| Asset To Liability | 1.518 | |
| Debt To Capital | 0.35 | |
| Debt To Assets | 0.178 | |
| Debt To Assets QoQ | -9.52 % | |
| Debt To Assets YoY | -6.004 % | |
| Debt To Assets IPRWA | high: 0.266 median: 0.266 mean: 0.231 LEA: 0.178 low: 0.127 |
|
| Debt To Equity | 0.539 | |
| Debt To Equity QoQ | -6.749 % | |
| Debt To Equity YoY | -9.025 % | |
| Debt To Equity IPRWA | high: 0.855 median: 0.855 mean: 0.695 LEA: 0.539 low: 0.28 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 1.222 | |
| Price To Book QoQ | 2.313 % | |
| Price To Book YoY | 20.486 % | |
| Price To Book IPRWA | high: 3.198 median: 3.198 mean: 2.715 low: 1.309 LEA: 1.222 |
|
| Price To Earnings (P/E) | 31.738 | |
| Price To Earnings QoQ | -5.968 % | |
| Price To Earnings YoY | 12.006 % | |
| Price To Earnings IPRWA | high: 101.986 mean: 53.97 median: 36.4 LEA: 31.738 low: 18.383 |
|
| PE/G Ratio | 2.353 | |
| Price To Sales (P/S) | 1.068 | |
| Price To Sales QoQ | 6.303 % | |
| Price To Sales YoY | 25.632 % | |
| Price To Sales IPRWA | high: 3.06 median: 3.06 mean: 2.919 low: 2.382 LEA: 1.068 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 28.094 | |
| Forward PE/G | 2.083 | |
| Forward P/S | 3.367 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -27.391 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.384 | |
| Asset Turnover Ratio QoQ | -3.717 % | |
| Asset Turnover Ratio YoY | -0.966 % | |
| Asset Turnover Ratio IPRWA | LEA: 0.384 high: 0.322 median: 0.322 mean: 0.31 low: 0.279 |
|
| Receivables Turnover | 1.442 | |
| Receivables Turnover Ratio QoQ | -2.191 % | |
| Receivables Turnover Ratio YoY | 1.303 % | |
| Receivables Turnover Ratio IPRWA | high: 1.481 LEA: 1.442 mean: 1.258 low: 1.182 median: 1.182 |
|
| Inventory Turnover | 3.12 | |
| Inventory Turnover Ratio QoQ | -4.513 % | |
| Inventory Turnover Ratio YoY | -1.542 % | |
| Inventory Turnover Ratio IPRWA | LEA: 3.12 high: 2.875 mean: 2.331 median: 2.297 low: 1.163 |
|
| Days Sales Outstanding (DSO) | 63.29 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 32.964 | |
| Cash Conversion Cycle Days QoQ | 5.718 % | |
| Cash Conversion Cycle Days YoY | -0.97 % | |
| Cash Conversion Cycle Days IPRWA | high: 63.807 mean: 38.362 median: 37.973 LEA: 32.964 low: 30.224 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 2.857 | |
| CapEx To Revenue | -0.021 | |
| CapEx To Depreciation | -0.86 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 7.8 B | |
| Net Invested Capital | $ 7.8 B | |
| Invested Capital | $ 7.8 B | |
| Net Tangible Assets | $ 3.3 B | |
| Net Working Capital | $ 2.0 B | |
| LIQUIDITY | ||
| Cash Ratio | 0.142 | |
| Current Ratio | 1.328 | |
| Current Ratio QoQ | -1.796 % | |
| Current Ratio YoY | 0.634 % | |
| Current Ratio IPRWA | high: 1.975 LEA: 1.328 mean: 1.285 low: 1.075 median: 1.075 |
|
| Quick Ratio | 1.046 | |
| Quick Ratio QoQ | -0.68 % | |
| Quick Ratio YoY | 1.383 % | |
| Quick Ratio IPRWA | high: 1.429 LEA: 1.046 mean: 0.992 low: 0.82 median: 0.82 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 6.996 | |
| Cost Of Debt | 0.745 % | |
| Interest Coverage Ratio | 9.465 | |
| Interest Coverage Ratio QoQ | 71.713 % | |
| Interest Coverage Ratio YoY | 51.484 % | |
| Interest Coverage Ratio IPRWA | high: 17.333 mean: 10.207 LEA: 9.465 median: 8.769 low: 3.892 |
|
| Operating Cash Flow Ratio | 0.057 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 58.154 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 4.054 | |
| Dividend Payout Ratio | 0.247 | |
| Dividend Rate | $ 0.84 | |
| Dividend Yield | 0.007 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 4.113 % | |
| Revenue Growth | -2.769 % | |
| Revenue Growth QoQ | -150.929 % | |
| Revenue Growth YoY | 2.556 % | |
| Revenue Growth IPRWA | high: 2.852 % mean: -1.25 % low: -2.272 % median: -2.272 % LEA: -2.769 % |
|
| Earnings Growth | 13.49 % | |
| Earnings Growth QoQ | -39.294 % | |
| Earnings Growth YoY | 120.353 % | |
| Earnings Growth IPRWA | high: 71.429 % LEA: 13.49 % mean: -29.099 % median: -35.737 % low: -44.257 % |
|
| MARGINS | ||
| Gross Margin | 7.733 % | |
| Gross Margin QoQ | 35.24 % | |
| Gross Margin YoY | 19.706 % | |
| Gross Margin IPRWA | high: 24.695 % median: 19.106 % mean: 18.002 % low: 11.845 % LEA: 7.733 % |
|
| EBIT Margin | 4.161 % | |
| EBIT Margin QoQ | 80.834 % | |
| EBIT Margin YoY | 43.532 % | |
| EBIT Margin IPRWA | high: 8.282 % median: 8.282 % mean: 7.232 % LEA: 4.161 % low: 2.603 % |
|
| Return On Sales (ROS) | 4.379 % | |
| Return On Sales QoQ | 69.073 % | |
| Return On Sales YoY | 51.052 % | |
| Return On Sales IPRWA | high: 8.572 % median: 8.572 % mean: 7.748 % low: 4.566 % LEA: 4.379 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -26.50 M | |
| Free Cash Flow Yield | -0.426 % | |
| Free Cash Flow Yield QoQ | -109.118 % | |
| Free Cash Flow Yield YoY | -91.31 % | |
| Free Cash Flow Yield IPRWA | LEA: -0.426 % high: -1.14 % mean: -1.696 % low: -1.911 % median: -1.911 % |
|
| Free Cash Growth | -109.427 % | |
| Free Cash Growth QoQ | 1197.143 % | |
| Free Cash Growth YoY | -25.767 % | |
| Free Cash Growth IPRWA | LEA: -109.427 % high: -137.793 % median: -137.793 % mean: -148.794 % low: -268.383 % |
|
| Free Cash To Net Income | -0.154 | |
| Cash Flow Margin | 6.128 % | |
| Cash Flow To Earnings | 2.071 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 1.137 % | |
| Return On Assets QoQ | 106.352 % | |
| Return On Assets YoY | 101.954 % | |
| Return On Assets IPRWA | high: 1.648 % median: 1.648 % mean: 1.385 % LEA: 1.137 % low: 0.298 % |
|
| Return On Capital Employed (ROCE) | 2.623 % | |
| Return On Equity (ROE) | 0.034 | |
| Return On Equity QoQ | 106.273 % | |
| Return On Equity YoY | 95.554 % | |
| Return On Equity IPRWA | high: 0.054 median: 0.054 mean: 0.043 LEA: 0.034 low: 0.006 |
|
| DuPont ROE | 3.405 % | |
| Return On Invested Capital (ROIC) | 2.546 % | |
| Return On Invested Capital QoQ | 71.217 % | |
| Return On Invested Capital YoY | 75.95 % | |
| Return On Invested Capital IPRWA | high: 3.382 % median: 3.382 % mean: 2.85 % LEA: 2.546 % low: 0.657 % |
|