Recent News
On March 4, 2026 Lear announced participation in the Bank of America 2026 Global Automotive Summit with a scheduled March 17th fireside chat; the Board declared a quarterly cash dividend payable March 25, 2026; and several analysts issued updated coverage with maintained or raised price targets and neutral/equal-weight stances in early February and January 2026.
Technical Analysis
Directional indicators show DI+ decreasing and DI- increasing, which reads as a bearish directional setup; ADX at 31.77 denotes a strong prevailing trend, reinforcing a near-term bias toward downside momentum.
MACD registers -1.20 with the MACD trend decreasing and sits below its signal line of 0.85, indicating active bearish momentum rather than a recovering crossover.
MRO stands at 11.39 and is decreasing; the positive MRO indicates price sits above WMDST’s short-term target and therefore presents pressure toward a price retreat back toward target levels.
RSI sits near neutral at 51.68 but trends downward, signaling room for further weakness before reaching oversold levels and suggesting consolidation rather than immediate reversal.
Price sits below the 20-day and 50-day averages (20-day = $127.80, 50-day = $126.03) while remaining above the 200-day average ($108.20), a configuration that favors short-term bearishness inside a longer-term base. The close at $119.27 lies below the 1x lower Bollinger band ($120.93) but above the 2x lower band ($114.06), indicating heightened short-term downside without extreme exhaustion.
Fundamental Analysis
Revenue totaled $5,988,600,000 with revenue growth of 5.44%; forward revenue projects $3,868,556,430. Gross margin at 5.72% and operating margin at 2.59% remain well below the industry peer mean (gross margin mean 22.10%, operating margin mean 9.21%), reflecting compressed profitability relative to peers.
EBIT equals $137,800,000 and EBIT margin 2.30% compares unfavorably with the industry peer mean of 7.52% and industry peer median of 8.44%; EBIT margin contracted QoQ by -28.98% and YoY by -29.16%, underscoring meaningful near-term margin pressure.
Earnings per share came in at $3.41 versus an estimate of $2.80, an EPS surprise of +21.79% (difference $0.61); forward EPS stands at $4.22 and forward P/E at 25.86, below the industry peer mean forward P/E of 37.78 and median of 32.88, suggesting some valuation compression already priced in.
Balance-sheet metrics show cash and short-term investments of $1,033,000,000, net debt $1,710,100,000, debt to equity 0.578, and debt to EBITDA roughly 9.92x; interest coverage near 5.51x provides some cushion, though leverage measures sit toward the higher end of customary auto-component ranges.
Free cash flow reached $281,100,000 with a free cash flow yield of 4.67% (close to the industry peer mean of 4.64%); cash conversion cycle about 31 days and operating cash flow $475,900,000 suggest operating cash generation remains positive despite margin compression.
Valuation summary: price multiples show a trailing P/E of 33.75, P/B ~1.19 versus industry peer mean P/B of 2.01, and enterprise multiple ~26.88. Given those inputs, WMDST values the stock as under-valued while acknowledging that profitability and leverage trends reduce near-term valuation support.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-12-31 |
| REPORT DATE: | 2026-02-04 |
| NEXT REPORT DATE: | 2026-05-06 |
| CASH FLOW | Begin Period Cash Flow | $ 1.0 B |
| Operating Cash Flow | $ 475.9 M | |
| Capital Expenditures | $ -194.80 M | |
| Change In Working Capital | $ 278.5 M | |
| Dividends Paid | $ -39.40 M | |
| Cash Flow Delta | $ 20.9 M | |
| End Period Cash Flow | $ 1.0 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 6.0 B | |
| Forward Revenue | $ 3.9 B | |
| COSTS | ||
| Cost Of Revenue | $ 5.6 B | |
| Depreciation | $ 151.1 M | |
| Depreciation and Amortization | $ 155.9 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 5.8 B | |
| PROFITABILITY | ||
| Gross Profit | $ 342.4 M | |
| EBITDA | $ 293.7 M | |
| EBIT | $ 137.8 M | |
| Operating Income | $ 155.1 M | |
| Interest Income | — | |
| Interest Expense | $ 25.0 M | |
| Net Interest Income | $ -25.00 M | |
| Income Before Tax | $ 112.8 M | |
| Tax Provision | $ 18.1 M | |
| Tax Rate | 16.046 % | |
| Net Income | $ 82.7 M | |
| Net Income From Continuing Operations | $ 106.3 M | |
| EARNINGS | ||
| EPS Estimate | $ 2.80 | |
| EPS Actual | $ 3.41 | |
| EPS Difference | $ 0.61 | |
| EPS Surprise | 21.786 % | |
| Forward EPS | $ 4.22 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 14.8 B | |
| Intangible Assets | $ 1.8 B | |
| Net Tangible Assets | $ 3.3 B | |
| Total Current Assets | $ 7.7 B | |
| Cash and Short-Term Investments | $ 1.0 B | |
| Cash | $ 1.0 B | |
| Net Receivables | $ 3.9 B | |
| Inventory | $ 1.7 B | |
| Long-Term Investments | $ 2.5 B | |
| LIABILITIES | ||
| Accounts Payable | $ 3.4 B | |
| Short-Term Debt | $ 31.6 M | |
| Total Current Liabilities | $ 5.7 B | |
| Net Debt | $ 1.7 B | |
| Total Debt | $ 2.9 B | |
| Total Liabilities | $ 9.6 B | |
| EQUITY | ||
| Total Equity | $ 5.0 B | |
| Retained Earnings | $ 6.2 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 96.33 | |
| Shares Outstanding | 50.647 M | |
| Revenue Per-Share | $ 114.57 | |
| VALUATION | Market Capitalization | $ 6.0 B |
| Enterprise Value | $ 7.9 B | |
| Enterprise Multiple | 26.883 | |
| Enterprise Multiple QoQ | 27.52 % | |
| Enterprise Multiple YoY | 125.04 % | |
| Enterprise Multiple IPRWA | high: 97.359 mean: 35.356 median: 33.466 LEA: 26.883 low: -32.352 |
|
| EV/R | 1.318 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.948 | |
| Asset To Liability | 1.539 | |
| Debt To Capital | 0.366 | |
| Debt To Assets | 0.196 | |
| Debt To Assets QoQ | 6.578 % | |
| Debt To Assets YoY | 9425.243 % | |
| Debt To Assets IPRWA | high: 0.626 median: 0.268 mean: 0.256 LEA: 0.196 low: 0.001 |
|
| Debt To Equity | 0.578 | |
| Debt To Equity QoQ | 5.831 % | |
| Debt To Equity YoY | 8812.789 % | |
| Debt To Equity IPRWA | high: 2.244 median: 0.879 mean: 0.692 LEA: 0.578 low: 0.002 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 1.195 | |
| Price To Book QoQ | 14.918 % | |
| Price To Book YoY | 3.448 % | |
| Price To Book IPRWA | high: 4.922 mean: 2.013 median: 1.834 LEA: 1.195 low: 0.796 |
|
| Price To Earnings (P/E) | 33.752 | |
| Price To Earnings QoQ | -7.278 % | |
| Price To Earnings YoY | 3.399 % | |
| Price To Earnings IPRWA | high: 149.607 mean: 52.235 median: 42.663 LEA: 33.752 low: 16.759 |
|
| PE/G Ratio | 1.519 | |
| Price To Sales (P/S) | 1.005 | |
| Price To Sales QoQ | 7.483 % | |
| Price To Sales YoY | 11.651 % | |
| Price To Sales IPRWA | high: 11.284 mean: 3.509 median: 3.276 LEA: 1.005 low: 0.523 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 25.859 | |
| Forward PE/G | 1.164 | |
| Forward P/S | 1.499 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -4.618 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.399 | |
| Asset Turnover Ratio QoQ | 7.121 % | |
| Asset Turnover Ratio YoY | 0.76 % | |
| Asset Turnover Ratio IPRWA | LEA: 0.399 high: 0.364 mean: 0.266 median: 0.256 low: 0.079 |
|
| Receivables Turnover | 1.474 | |
| Receivables Turnover Ratio QoQ | 13.612 % | |
| Receivables Turnover Ratio YoY | 1.615 % | |
| Receivables Turnover Ratio IPRWA | high: 2.82 LEA: 1.474 mean: 1.392 median: 1.374 low: 0.307 |
|
| Inventory Turnover | 3.267 | |
| Inventory Turnover Ratio QoQ | 5.927 % | |
| Inventory Turnover Ratio YoY | 3.321 % | |
| Inventory Turnover Ratio IPRWA | LEA: 3.267 high: 2.838 median: 1.625 mean: 1.602 low: 0.332 |
|
| Days Sales Outstanding (DSO) | 61.903 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 31.181 | |
| Cash Conversion Cycle Days QoQ | -18.655 % | |
| Cash Conversion Cycle Days YoY | -5.999 % | |
| Cash Conversion Cycle Days IPRWA | high: 304.954 mean: 72.254 median: 51.379 LEA: 31.181 low: -51.568 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 3.0 | |
| CapEx To Revenue | -0.033 | |
| CapEx To Depreciation | -1.289 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 7.7 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 | 0.182 | |
| Current Ratio | 1.352 | |
| Current Ratio QoQ | 0.148 % | |
| Current Ratio YoY | 2.523 % | |
| Current Ratio IPRWA | high: 4.914 mean: 1.918 median: 1.736 LEA: 1.352 low: 0.584 |
|
| Quick Ratio | 1.053 | |
| Quick Ratio QoQ | -0.046 % | |
| Quick Ratio YoY | 2.775 % | |
| Quick Ratio IPRWA | high: 2.568 median: 1.141 mean: 1.098 LEA: 1.053 low: 0.284 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 9.917 | |
| Cost Of Debt | 0.632 % | |
| Interest Coverage Ratio | 5.512 | |
| Interest Coverage Ratio QoQ | -26.307 % | |
| Interest Coverage Ratio YoY | -20.706 % | |
| Interest Coverage Ratio IPRWA | high: 77.479 mean: 10.43 LEA: 5.512 median: 5.069 low: -24.742 |
|
| Operating Cash Flow Ratio | 0.075 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 60.382 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 2.099 | |
| Dividend Payout Ratio | 0.476 | |
| Dividend Rate | $ 0.75 | |
| Dividend Yield | 0.007 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -2.076 % | |
| Revenue Growth | 5.437 % | |
| Revenue Growth QoQ | -193.516 % | |
| Revenue Growth YoY | 133.248 % | |
| Revenue Growth IPRWA | high: 22.016 % LEA: 5.437 % mean: -0.128 % median: -1.132 % low: -24.28 % |
|
| Earnings Growth | 22.222 % | |
| Earnings Growth QoQ | -213.395 % | |
| Earnings Growth YoY | 1184.509 % | |
| Earnings Growth IPRWA | high: 63.91 % LEA: 22.222 % mean: 11.071 % median: -4.348 % low: -65.098 % |
|
| MARGINS | ||
| Gross Margin | 5.718 % | |
| Gross Margin QoQ | -10.698 % | |
| Gross Margin YoY | -15.589 % | |
| Gross Margin IPRWA | high: 42.587 % mean: 22.102 % median: 20.305 % low: 10.181 % LEA: 5.718 % |
|
| EBIT Margin | 2.301 % | |
| EBIT Margin QoQ | -28.981 % | |
| EBIT Margin YoY | -29.156 % | |
| EBIT Margin IPRWA | high: 18.863 % median: 8.436 % mean: 7.522 % LEA: 2.301 % low: -0.932 % |
|
| Return On Sales (ROS) | 2.59 % | |
| Return On Sales QoQ | -23.576 % | |
| Return On Sales YoY | -20.259 % | |
| Return On Sales IPRWA | high: 18.863 % mean: 9.207 % median: 8.946 % LEA: 2.59 % low: 0.753 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 281.1 M | |
| Free Cash Flow Yield | 4.672 % | |
| Free Cash Flow Yield QoQ | -19.211 % | |
| Free Cash Flow Yield YoY | -50.842 % | |
| Free Cash Flow Yield IPRWA | high: 10.715 % LEA: 4.672 % mean: 4.642 % median: 3.856 % low: -4.172 % |
|
| Free Cash Growth | -8.436 % | |
| Free Cash Growth QoQ | -110.579 % | |
| Free Cash Growth YoY | -100.972 % | |
| Free Cash Growth IPRWA | high: 180.263 % mean: 50.189 % median: 47.619 % LEA: -8.436 % low: -561.732 % |
|
| Free Cash To Net Income | 3.399 | |
| Cash Flow Margin | 7.1 % | |
| Cash Flow To Earnings | 5.141 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 0.551 % | |
| Return On Assets QoQ | -22.394 % | |
| Return On Assets YoY | -9.82 % | |
| Return On Assets IPRWA | high: 3.482 % mean: 1.269 % median: 0.588 % LEA: 0.551 % low: -1.254 % |
|
| Return On Capital Employed (ROCE) | 1.502 % | |
| Return On Equity (ROE) | 0.016 | |
| Return On Equity QoQ | -22.511 % | |
| Return On Equity YoY | -17.029 % | |
| Return On Equity IPRWA | high: 0.088 mean: 0.032 LEA: 0.016 median: 0.015 low: 0.004 |
|
| DuPont ROE | 1.631 % | |
| Return On Invested Capital (ROIC) | 1.487 % | |
| Return On Invested Capital QoQ | -11.011 % | |
| Return On Invested Capital YoY | -112.831 % | |
| Return On Invested Capital IPRWA | high: 5.208 % mean: 2.455 % median: 2.079 % LEA: 1.487 % low: -0.243 % |
|