LEA - Embedded Expectations Analysis - 2018 02 12
ï€ Lear Corp. (LEA:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 11.0x Uniform P/E, implying bearish expectations for the firm. However, management is optimistic about their talent, performance, and industry trendsï€ Specifically, management generated an excitement marker when saying that they have no problem getting talent from anywhere in the United States to come work for Lear Corporation, despite the competitive environment. Additionally, they are confident in their track record of performance, and in their operating teams doing an outstanding job of running hundreds of facilities around the world. Furthermore, they are confident that increased global deployments of their applications help them develop their gateways and their modules through the data collected, and in expectations for a trend towards more smart devices within seat systems themselves
Lear is a supplier to the automotive industry. The company supplies seating, electrical distribution systems and electronic modules, as well as related sub-systems, components and software, to automotive manufacturers. The company has two segments: Seating, which consists of the design, development, engineering, just-in-time assembly and delivery of seat systems, and the design, development, engineering and manufacture of seat components; and E-Systems, which consists of the design, development, engineering and manufacture of electrical distribution systems, and electronic control modules, electrification products, connectivity products and software solutions for the cloud, vehicles and mobile devices.
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