CluenexLear Corporation LEA
Lear Corporation scores weak on business quality (4.2 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Lear Corporation does
Lear manufactures automotive seating and electrical distribution systems, supplying major global automakers with complete interior architectures. Revenue depends heavily on vehicle production volumes across traditional and electric platforms.
- What it does best
Lear dominates global automotive seating with scale that outpaces many rivals, though its gross margin sits at 7.7%, trailing peer GNTX at 35%. This high-volume manufacturing footprint creates deep customer integration that protects its core supply slots.
- The main risk
Thin margins leave Lear highly vulnerable to component cost inflation and volume drops in vehicle manufacturing. With a gross margin of 7.7%, any unexpected supply chain disruption or wage pressure quickly strips away operating income.
Quality, check by check
Scored against its own industry, from company filings.
Operating margin sits at 4.6% with a net margin of 2.4%, yielding a low profitability score of 1.5. Thin spreads mean the business struggles to capture meaningful earnings growth even as revenue scales past $23 billion.
Lear holds a niche in seating and electrical architectures, but its bottom quartile gross margin rank of 3 in its sector highlights intense pricing pressure from automaker clients that prevents durable economic outperformance.
Revenue sits at $23.7B, showing a slight decline of -0.2% over the latest period and flat performance relative to historical annual summaries. Growth remains stagnant as core auto markets plateau.
Total debt of $2.7B against $1.0B in cash leaves net debt at $1.7B, supported by an interest coverage ratio of 11x. Free cash flow reached $849M, showing stable generation while the balance sheet softens slightly.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
1 sold $200K outside pre-planned sales.
Our sealed record on LEA
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Lear Corporation scores weak on the Cluenex quality check (4.2 of 10), measured against its own industry. Profitability is weak, moat fair, growth slow and financial health fair.
In the last 90 days of SEC Form 4 filings: 1 sold $200K outside pre-planned sales.
Oct 30, 2026, before the open.
See LEA today
- Today's verdict on LEA, and why
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Cite this page: Cluenex, “Lear Corporation (LEA)”, https://cluenex.com/stocks/lea/, data as of Oct 10, 2026.