Should you consider NYSE:LEN for quality investing?

In this article we will dive into LENNAR CORP-A (NYSE:LEN) as a possible candidate for quality investing. Investors should always do their own research, but we noticed LENNAR CORP-A showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

A Deep Dive into LENNAR CORP-A's Quality Metrics.

• The 5-year revenue growth of LENNAR CORP-A has been remarkable, with 10.72% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
• The ROIC excluding cash and goodwill of LENNAR CORP-A stands at 18.06%, 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.
• The Debt/Free Cash Flow Ratio of LENNAR CORP-A stands at 0.92, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
• LENNAR CORP-A exhibits impressive Profit Quality (5-year) with a 100.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
• 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 has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

Zooming in on the fundamentals.

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.

We assign a fundamental rating of 7 out of 10 to LEN. LEN was compared to 67 industry peers in the Household Durables industry. LEN scores excellent points on both the profitability and health parts. This is a solid base for a good stock. LEN has a correct valuation and a medium growth rate.

Check the latest full fundamental report of LEN for a complete fundamental analysis.

More quality stocks can be found in our Caviar Cruise screen.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.