Research

LEA – Market expectations are for Uniform ROA to reach 10-year lows, but management is confident about costs, growth, and their manufacturing capabilities

  • Lear Corporation (LEA:USA) currently trades below corporate averages relative to Uniform Earnings, with a 10.1x Uniform P/E, implying bearish expectations for the firm, but management is confident about their growth potential, internal manufacturing capabilities, and costs
  • Specifically, management is confident they are committed to making investments that drive profitable growth, and they are confident that manufacturing certain components internally adds value and margin. Furthermore, they are confident their recent growth investments will not increase costs.