Lear Corporation (LEA): a potential bargain?

Buy — this crash is a "sell the news" overreaction to an earnings beat and raised guidance, not a business breaking down.

🔥 HOT Fundamentals58/100

Fell 11% in 1 trading day(s) — now $130.64

Why LEA dropped

Lear actually beat Q2 estimates (EPS $4.28 vs ~$3.92-3.98 expected) and raised full-year guidance, but the stock fell 10.7% anyway because management flagged cautious commentary on China weakness (domestic sales down 20% in first half) and said 2027 growth would be muted before reaccelerating in 2028-2029.

Fwd P/E 7.5Op margin 4.2%Rev growth 3.0%Debt/equity 66.0%Analyst upside 15.8%

How this scored 58/100

✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.

✅ Makes money Net profit margin 2.3%

✅ Generates cash Free cash flow $859M

✅ Not drowning in debt Debt/equity 66.0% (limit 200%)

✅ Can pay its bills Current ratio 1.3 (needs 1+)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 5/25

Operating margin 4.2% 1/9

Net profit margin 2.3% 1/8

Return on equity 12.1% 3/8

Growth Is it getting bigger, or dying? 17/25

Revenue growth 3.0% 2/9

Earnings growth 23.9% 7/8

Expected profit change 61.6% 8/8

Value Is it cheap right now? 20/25

Forward P/E 7.5 10/10

PEG ratio 0.4 8/8

Analyst target upside 15.8% 2/7

Balance sheet Will it survive? 16/25

Debt / equity 66.0% 7/10

Current ratio 1.3 2/8

Free cash flow $859M 7/7

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Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-08-03. Research only — not financial advice.