LearMEX:LEA 84 Gross Margin % is 7.73% as of Mar. 2026, which is 6% above its 10-year median of 7.26. GuruFocus rates MEX:LEA with a GF Score™ of 84/100 and a GF Value™ of MXN1,928.58. The stock has 7 warning signs investors should review. Among 1,313 Vehicles & Parts companies, Lear ranks worse than 92.76% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Lear's Gross Profit for the
three
months ended in Mar. 2026 was MXN8,120 Mil. Lear's Revenue for the
three
months ended in Mar. 2026 was MXN105,001 Mil. Therefore, Lear's Gross Margin % for the quarter that ended in Mar. 2026 was 7.73%.
The historical rank and industry rank for Lear's Gross Margin % or its related term are showing as below:
MEX:LEA'
s Gross Margin % Range Over the Past 10 Years
Min: 6.47 Med: 7.26 Max: 11.44
Current: 6.78
During the past 13 years, the highestGross Margin % of Lear was 11.44%. The lowest was 6.47%. And the median was 7.26%.
MEX:LEA's Gross Margin % is ranked worse than 92.76% of 1313
companies
in the Vehicles & Parts industry
Industry Median: 19.84
vs MEX:LEA: 6.78
Lear had a gross margin of 7.73% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Lear was -0.10% per year.
Lear (MEX:LEA) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Lear had a gross margin of 7.73% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Lear Gross Margin % Related Terms
Lear Gross Margin % Historical Data
* Premium members only.
The historical data trend for Lear's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:LEA vs LKQ, GTX, MBLY: Gross Margin % Comparison
For the Auto Parts subindustry, Lear's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Lear Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Lear's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Lear's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Lear (MEX:LEA) has a Gross Margin % of 7.73% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Lear and its competitors. This is near median its historical median of 7.26. Over the past decade, Lear's Gross Margin % has ranged from 6.47 to 11.44. According to the industry distribution chart, Lear ranks #1218 out of 1313 companies in the Vehicles & Parts industry, placing it in the top 92.8%.
Is Lear's Gross Margin % too high?
Lear's current Gross Margin % of 7.73% is near median its 10-year median of 7.26. Over the past 10 years, this metric has ranged from a low of 6.47 to a high of 11.44. The Vehicles & Parts industry median Gross Margin % is 19.84. Lear's value of 7.73% is 61% below this industry median. Based on the distribution chart, Lear ranks #1218 out of 1313 companies in the Vehicles & Parts industry, which is in the bottom quartile relative to peers. Overall, Lear has a GF Score™ of 84/100, reflecting its overall financial health beyond just this single metric.
How does Lear's Gross Margin % compare to LKQ and GTX?
According to the Vehicles & Parts industry distribution chart, Lear ranks #1218 out of 1313 companies for Gross Margin %. This places Lear in the lower half of its industry. The industry median Gross Margin % is 19.84. Lear's value of 7.73% is 61% below this benchmark. Historically, Lear's own Gross Margin % has ranged from 6.47 to 11.44 over the past decade. While the company's 10-year median is 7.26 vs. the industry median of 19.84, Lear has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Vehicles & Parts company?
The median Gross Margin % among Vehicles & Parts companies is 19.84, based on 1,313 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lear's current Gross Margin % of 7.73% is 61% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Lear and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 19.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lear's current Gross Margin % is 7.73%, which is near median its own 10-year median of 7.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lear stock overvalued right now?
Lear (MEX:LEA) has a current Gross Margin % of 7.73%. The stock's GF Value™ is MXN1,928.58, compared to a current price of MXN2,120.00 — trading 9.9% above its estimated fair value. The current Gross Margin % is 7.73%, which is near median its 10-year median of 7.26 and 61% below the Vehicles & Parts industry median of 19.84. Lear's overall GF Score™ is 84/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Lear (MEX:LEA), the current Gross Margin % is 7.73% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Lear (MEX:LEA) Overvalued in 2026?
Based on GuruFocus' analysis, Lear stock appears to be overvalued.
The current stock price of MXN2,120.00 is trading 9.9% above its estimated GF Value™ of MXN1,928.58.
Key valuation signals for MEX:LEA:
Gross Margin %: 7.73% (near median its 10-year median of 7.26)
GF Value™: MXN1,928.58 vs. price of MXN2,120.00 (9.9% above fair value)
Industry Position: 61% below the Vehicles & Parts median (#1218 of 1313)
No single metric tells the full story. See the MEX:LEA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lear Corp designs, develops, and manufactures automotive seating and electrical systems and components. The company has two reporting segments Seating and E-Systems. Seating components include frames and mechanisms, covers (leather and woven fabric), seat heating and cooling, foam, and headrests. Automotive electrical distribution and connection systems and electronic systems include wiring harnesses, terminals and connectors, on-board battery chargers, high-voltage battery management systems. The company earns majority of its revenue from the seating segment.
84GF Score
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