Lear Corporation LEA

Competitive advantage analysis · consumer-cyclical

Corporate Default
Overall moat score
62/100
Moderate

Ranked against 59 peers in Auto Parts

About Lear Corporation

Lear Corporation designs, develops, engineers, manufactures, assembles, and supplies automotive seating, and electrical distribution systems and related components for automotive original equipment manufacturers in North America, Europe, Africa, Asia, and South America. Its Seating segment offers seat systems, keyseat components, seat trim covers, seat mechanisms, thermal comfort systems such as seat heating, ventilation, active cooling, pneumatic lumbar and massage products, … Full LEA analysis →

Key strengths

  • ROIC Sustainably Above Peers ROIC at 72.7th percentile exceeds peers and WACC, demonstrating superior capital allocation.
  • Margins Stable Across Cycles Operating margin volatility is low (stability score 0.98), demonstrating pricing resilience across cycles.

Key risks

  • Scale Without Profitability Despite scale, profitability lags peers (score 0.37), suggesting limited competitive advantage.
  • Liquidity Concerns Liquidity is concerning (score 0.30), raising questions about short-term obligations.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Moderate
58
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Signals, strengths and risks for Pricing Power

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Signals, strengths and risks for Cost Advantage

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Signals, strengths and risks for Customer Stickiness

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Signals, strengths and risks for Capital Efficiency

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Signals, strengths and risks for Resilience

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Signals, strengths and risks for Scale & Market Position

Where LEA ranks in Auto Parts

Lear Corporation ranks #16 of 60 scored companies in Auto Parts by moat score — the top 27%. The widest moat in the group is Allison Transmission Holdings, (ALSN) at 83/100.

# Company Moat score Rating
12 Magna International, Inc. MGA 68/100 Moderate
13 Greenland Technologies Holding GTEC 66/100 Moderate
14 LKQ Corporation LKQ 65/100 Moderate
15 Motorcar Parts of America, Inc. MPAA 62/100 Moderate
16 Lear Corporation LEA 62/100 Moderate
17 PHINIA Inc. PHIN 62/100 Moderate
18 Miller Industries, Inc. MLR 62/100 Moderate
19 Standard Motor Products, Inc. SMP 62/100 Moderate
20 Aptiv PLC APTV 61/100 Moderate

See every General Corporate company ranked by moat score →

How LEA scores on the Corporate Default defenses

Pricing Power

Score 58 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 78 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 66 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 78 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 51 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 42 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding LEA's moat

What is Lear Corporation's moat score?

Lear Corporation (LEA) scores 62 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as moderate. It ranks #16 of 60 scored companies in Auto Parts, the top 27%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 59 companies in Auto Parts. Its strongest defense is Capital Efficiency (78/100) and its weakest is Scale & Market Position (42/100).

How does Lear Corporation compare with other Auto Parts companies?

Lear Corporation ranks #16 of 60 scored companies in Auto Parts by moat score. The widest moat in Auto Parts is Allison Transmission Holdings, (ALSN) at 83/100. The companies ranked closest are Motorcar Parts of America, Inc. (MPAA) at 62 just above it and PHINIA Inc. (PHIN) at 62 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 59 companies in Auto Parts. The defenses are then weighted to produce the overall score out of 100.

Why is Lear Corporation scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for Lear Corporation?

The Corporate Default template measures 6 defenses, and LEA scores: Pricing Power (58), Cost Advantage (78), Customer Stickiness (66), Capital Efficiency (78), Resilience (51), Scale & Market Position (42). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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