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Reasonable Growth, Debt Levels, and a High ROIC Make LENNAR CORP-A (NYSE:LEN) Appealing to Quality Investors.

By Mill Chart

Last update: Apr 10, 2024

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if LENNAR CORP-A (NYSE:LEN) is suited for quality investing. Investors should of course do their own research, but we spotted LENNAR CORP-A showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Exploring Why NYSE:LEN Holds Appeal for Quality Investors.

  • LENNAR CORP-A has shown strong performance in revenue growth over the past 5 years, with a 10.72% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
  • The ROIC excluding cash and goodwill of LENNAR CORP-A stands at 18.16%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
  • LENNAR CORP-A maintains a healthy Debt/Free Cash Flow Ratio of 1.0, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
  • With a robust Profit Quality (5-year) ratio of 100.0%, LENNAR CORP-A highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
  • With a robust 5-year EBIT growth of 18.14%, LENNAR CORP-A showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
  • LENNAR CORP-A demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

What else is there to say on the fundamentals of NYSE:LEN?

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

Taking everything into account, LEN scores 7 out of 10 in our fundamental rating. LEN was compared to 68 industry peers in the Household Durables industry. LEN gets an excellent profitability rating and is at the same time showing great financial health properties. LEN has a decent growth rate and is not valued too expensively.

Our latest full fundamental report of LEN contains the most current fundamental analsysis.

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

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