Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Lear Corporation (LEA)

Company Dividend Discount ModelIndustry: Auto - PartsSector: Consumer Cyclical

Valuation Snapshot

Stable Growth$74.64 - $113.85$93.00
Multi-Stage$99.14 - $108.54$103.75
Blended Fair Value$98.38
Current Price$101.44
Upside-3.02%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-1.39%10.28%3.213.363.421.971.243.443.442.541.641.45
YoY Growth---4.51%-1.94%73.85%58.54%-63.88%0.00%35.29%55.07%13.12%20.21%
Dividend Yield--3.64%2.32%2.45%1.38%0.69%4.74%2.53%1.37%1.16%1.37%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)442.20
(-) Cash Dividends Paid (M)167.20
(=) Cash Retained (M)275.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)88.4455.2833.17
Cash Retained (M)275.00275.00275.00
(-) Cash Required (M)-88.44-55.28-33.17
(=) Excess Retained (M)186.56219.73241.84
(/) Shares Outstanding (M)54.1854.1854.18
(=) Excess Retained per Share3.444.064.46
LTM Dividend per Share3.093.093.09
(+) Excess Retained per Share3.444.064.46
(=) Adjusted Dividend6.537.147.55
WACC / Discount Rate9.59%9.59%9.59%
Growth Rate0.77%1.77%2.77%
Fair Value$74.64$93.00$113.85
Upside / Downside-26.42%-8.32%12.23%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)442.20450.04458.02466.14474.40482.81497.29
Payout Ratio37.81%48.25%58.69%69.12%79.56%90.00%92.50%
Projected Dividends (M)167.20217.14268.79322.21377.44434.53460.00

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.59%9.59%9.59%
Growth Rate0.77%1.77%2.77%
Year 1 PV (M)196.19198.14200.09
Year 2 PV (M)219.44223.82228.24
Year 3 PV (M)237.68244.83252.12
Year 4 PV (M)251.57261.70272.14
Year 5 PV (M)261.68274.93288.70
PV of Terminal Value (M)4,205.414,418.264,639.63
Equity Value (M)5,371.995,621.685,880.92
Shares Outstanding (M)54.1854.1854.18
Fair Value$99.14$103.75$108.54
Upside / Downside-2.26%2.28%7.00%

High-Yield Dividend Screener

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