Should Quality Investors Include NYSE:LEN in Their Portfolio?

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.

Looking into the quality metrics of LENNAR CORP-A

• LENNAR CORP-A has demonstrated significant revenue growth over the past 5 years, with a 10.72% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
• With a robust ROIC excluding cash and goodwill at 18.06%, LENNAR CORP-A showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
• With a Debt/Free Cash Flow Ratio of 0.92, LENNAR CORP-A exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
• LENNAR CORP-A demonstrates consistent Profit Quality over the past 5 years, with a strong 100.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
• LENNAR CORP-A has experienced impressive EBIT growth over the past 5 years, with 18.14% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
• LENNAR CORP-A has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

Fundamental analysis of NYSE:LEN

ChartMill employs a sophisticated system to assign a Fundamental Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple fundamental indicators and properties.

Taking everything into account, LEN scores 7 out of 10 in our fundamental rating. LEN was compared to 67 industry peers in the Household Durables industry. Both the health and profitability get an excellent rating, making LEN a very profitable company, without any liquidiy or solvency issues. LEN is not valued too expensively and it also shows a decent growth rate.

For an up to date full fundamental analysis you can check the fundamental report of LEN

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

Keep in mind

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.