LENNAR CORP - B SHS (LEN.B) Stock Fundamental Analysis
NYSE:LEN.B - New York Stock Exchange, Inc. - US5260573028 - Common Stock - Currency: USD
LEN.B gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 64 industry peers in the Household Durables industry. Both the health and profitability get an excellent rating, making LEN.B a very profitable company, without any liquidiy or solvency issues. A decent growth rate in combination with a cheap valuation! Better keep an eye on LEN.B. This makes LEN.B very considerable for value and quality investing!
1. Profitability
1.1 Basic Checks
LEN.B had positive earnings in the past year.
In the past year LEN.B had a positive cash flow from operations.
Each year in the past 5 years LEN.B has been profitable.
In the past 5 years LEN.B always reported a positive cash flow from operatings.
1.2 Ratios
LEN.B has a Return On Assets of 9.42%. This is in the better half of the industry: LEN.B outperforms 71.88% of its industry peers.
The Return On Equity of LEN.B (13.97%) is better than 64.06% of its industry peers.
LEN.B's Return On Invested Capital of 10.04% is fine compared to the rest of the industry. LEN.B outperforms 64.06% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LEN.B is in line with the industry average of 12.30%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.42% | ||
| ROE | 13.97% | ||
| ROIC | 10.04% |
ROA(3y)10.45%
ROA(5y)10.53%
ROE(3y)15.85%
ROE(5y)16.42%
ROIC(3y)12.52%
ROIC(5y)11.96%
1.3 Margins
LEN.B has a better Profit Margin (10.99%) than 82.81% of its industry peers.
In the last couple of years the Profit Margin of LEN.B has grown nicely.
With an excellent Operating Margin value of 14.55%, LEN.B belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
In the last couple of years the Operating Margin of LEN.B has grown nicely.
The Gross Margin of LEN.B (15.97%) is worse than 89.06% of its industry peers.
LEN.B's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.55% | ||
| PM (TTM) | 10.99% | ||
| GM | 15.97% |
OM growth 3Y-10.07%
OM growth 5Y2.56%
PM growth 3Y-12.02%
PM growth 5Y5.94%
GM growth 3Y-8.58%
GM growth 5Y3%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), LEN.B is creating some value.
Compared to 1 year ago, LEN.B has less shares outstanding
Compared to 5 years ago, LEN.B has less shares outstanding
Compared to 1 year ago, LEN.B has an improved debt to assets ratio.
2.2 Solvency
LEN.B has an Altman-Z score of 4.03. This indicates that LEN.B is financially healthy and has little risk of bankruptcy at the moment.
LEN.B's Altman-Z score of 4.03 is fine compared to the rest of the industry. LEN.B outperforms 65.63% of its industry peers.
LEN.B has a debt to FCF ratio of 1.88. This is a very positive value and a sign of high solvency as it would only need 1.88 years to pay back of all of its debts.
LEN.B's Debt to FCF ratio of 1.88 is fine compared to the rest of the industry. LEN.B outperforms 71.88% of its industry peers.
LEN.B has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.
LEN.B has a Debt to Equity ratio of 0.15. This is in the better half of the industry: LEN.B outperforms 71.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.88 | ||
| Altman-Z | 4.03 |
ROIC/WACC1.25
WACC8.04%
2.3 Liquidity
A Current Ratio of 12.76 indicates that LEN.B has no problem at all paying its short term obligations.
LEN.B has a better Current ratio (12.76) than 98.44% of its industry peers.
A Quick Ratio of 3.10 indicates that LEN.B has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.10, LEN.B belongs to the top of the industry, outperforming 96.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 12.76 | ||
| Quick Ratio | 3.1 |
3. Growth
3.1 Past
The earnings per share for LEN.B have decreased by -3.78% in the last year.
The Earnings Per Share has been growing by 20.01% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 3.53% in the past year.
Measured over the past years, LEN.B shows a quite strong growth in Revenue. The Revenue has been growing by 9.75% on average per year.
EPS 1Y (TTM)-3.78%
EPS 3Y3.67%
EPS 5Y20.01%
EPS Q2Q%-23.74%
Revenue 1Y (TTM)3.53%
Revenue growth 3Y9.32%
Revenue growth 5Y9.75%
Sales Q2Q%4.36%
3.2 Future
Based on estimates for the next years, LEN.B will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.67% on average per year.
LEN.B is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.72% yearly.
EPS Next Y-24.04%
EPS Next 2Y-6.29%
EPS Next 3Y3.76%
EPS Next 5Y10.67%
Revenue Next Year0.93%
Revenue Next 2Y2.79%
Revenue Next 3Y4.52%
Revenue Next 5Y5.72%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
LEN.B is valuated cheaply with a Price/Earnings ratio of 7.26.
LEN.B's Price/Earnings ratio is a bit cheaper when compared to the industry. LEN.B is cheaper than 64.06% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.29, LEN.B is valued rather cheaply.
The Price/Forward Earnings ratio is 7.91, which indicates a rather cheap valuation of LEN.B.
Based on the Price/Forward Earnings ratio, LEN.B is valued a bit cheaper than the industry average as 67.19% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.08. LEN.B is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.26 | ||
| Fwd PE | 7.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LEN.B is valued cheaply inside the industry as 85.94% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, LEN.B is valued a bit cheaper than 70.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.78 | ||
| EV/EBITDA | 4.85 |
4.3 Compensation for Growth
LEN.B has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.36
EPS Next 2Y-6.29%
EPS Next 3Y3.76%
5. Dividend
5.1 Amount
LEN.B has a Yearly Dividend Yield of 1.91%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of LEN.B has falen by -26.48%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
LEN.B's Dividend Yield is a higher than the industry average which is at 3.80.
Compared to the average S&P500 Dividend Yield of 2.57, LEN.B is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
5.2 History
On average, the dividend of LEN.B grows each year by 65.54%, which is quite nice.
LEN.B has been paying a dividend for at least 10 years, so it has a reliable track record.
LEN.B has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)65.54%
Div Incr Years1
Div Non Decr Years15
5.3 Sustainability
14.10% of the earnings are spent on dividend by LEN.B. This is a low number and sustainable payout ratio.
LEN.B's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP14.1%
EPS Next 2Y-6.29%
EPS Next 3Y3.76%
99.63
+1.3 (+1.32%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners96.41%
Inst Owner Change0.01%
Ins Owners1.77%
Ins Owner ChangeN/A
Market Cap26.28B
Analysts68.8
Price Target138.19 (38.7%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
Yearly Dividend2
Dividend Growth(5Y)65.54%
DP14.1%
Div Incr Years1
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.4%
Min EPS beat(2)-3.31%
Max EPS beat(2)16.11%
EPS beat(4)3
Avg EPS beat(4)8.44%
Min EPS beat(4)-3.31%
Max EPS beat(4)16.11%
EPS beat(8)7
Avg EPS beat(8)13.33%
EPS beat(12)9
Avg EPS beat(12)6.74%
EPS beat(16)12
Avg EPS beat(16)8.14%
Revenue beat(2)1
Avg Revenue beat(2)-0.34%
Min Revenue beat(2)-2.32%
Max Revenue beat(2)1.63%
Revenue beat(4)2
Avg Revenue beat(4)-0.2%
Min Revenue beat(4)-2.32%
Max Revenue beat(4)1.88%
Revenue beat(8)6
Avg Revenue beat(8)3.37%
Revenue beat(12)8
Avg Revenue beat(12)2.33%
Revenue beat(16)12
Avg Revenue beat(16)2.44%
PT rev (1m)-9%
PT rev (3m)-18.91%
EPS NQ rev (1m)-0.51%
EPS NQ rev (3m)-31.42%
EPS NY rev (1m)-12.57%
EPS NY rev (3m)-31.48%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)1.43%
Revenue NY rev (1m)-3.66%
Revenue NY rev (3m)-3.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.26 | ||
| Fwd PE | 7.91 | ||
| P/S | 0.74 | ||
| P/FCF | 11.78 | ||
| P/OCF | 10.94 | ||
| P/B | 0.94 | ||
| P/tB | 1.08 | ||
| EV/EBITDA | 4.85 |
EPS(TTM)13.73
EY13.78%
EPS(NY)12.59
Fwd EY12.64%
FCF(TTM)8.46
FCFY8.49%
OCF(TTM)9.11
OCFY9.14%
SpS134.35
BVpS105.65
TBVpS91.88
PEG (NY)N/A
PEG (5Y)0.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.42% | ||
| ROE | 13.97% | ||
| ROCE | 13.15% | ||
| ROIC | 10.04% | ||
| ROICexc | 11.48% | ||
| ROICexgc | 15.57% | ||
| OM | 14.55% | ||
| PM (TTM) | 10.99% | ||
| GM | 15.97% | ||
| FCFM | 6.3% |
ROA(3y)10.45%
ROA(5y)10.53%
ROE(3y)15.85%
ROE(5y)16.42%
ROIC(3y)12.52%
ROIC(5y)11.96%
ROICexc(3y)14.71%
ROICexc(5y)13.75%
ROICexgc(3y)18.6%
ROICexgc(5y)16.93%
ROCE(3y)16.4%
ROCE(5y)15.67%
ROICexcg growth 3Y-0.73%
ROICexcg growth 5Y10.92%
ROICexc growth 3Y-5.57%
ROICexc growth 5Y8.18%
OM growth 3Y-10.07%
OM growth 5Y2.56%
PM growth 3Y-12.02%
PM growth 5Y5.94%
GM growth 3Y-8.58%
GM growth 5Y3%
F-Score4
Asset Turnover0.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.88 | ||
| Debt/EBITDA | 0.79 | ||
| Cap/Depr | 148.45% | ||
| Cap/Sales | 0.48% | ||
| Interest Coverage | 93.89 | ||
| Cash Conversion | 45.59% | ||
| Profit Quality | 57.32% | ||
| Current Ratio | 12.76 | ||
| Quick Ratio | 3.1 | ||
| Altman-Z | 4.03 |
F-Score4
WACC8.04%
ROIC/WACC1.25
Cap/Depr(3y)101.58%
Cap/Depr(5y)91.5%
Cap/Sales(3y)0.32%
Cap/Sales(5y)0.3%
Profit Quality(3y)86.08%
Profit Quality(5y)96.72%
High Growth Momentum
Growth
EPS 1Y (TTM)-3.78%
EPS 3Y3.67%
EPS 5Y20.01%
EPS Q2Q%-23.74%
EPS Next Y-24.04%
EPS Next 2Y-6.29%
EPS Next 3Y3.76%
EPS Next 5Y10.67%
Revenue 1Y (TTM)3.53%
Revenue growth 3Y9.32%
Revenue growth 5Y9.75%
Sales Q2Q%4.36%
Revenue Next Year0.93%
Revenue Next 2Y2.79%
Revenue Next 3Y4.52%
Revenue Next 5Y5.72%
EBIT growth 1Y-8.54%
EBIT growth 3Y-1.69%
EBIT growth 5Y12.56%
EBIT Next Year-24.81%
EBIT Next 3Y0.46%
EBIT Next 5Y5.82%
FCF growth 1Y-56.06%
FCF growth 3Y-3.29%
FCF growth 5Y9.84%
OCF growth 1Y-53.6%
OCF growth 3Y-1.73%
OCF growth 5Y10.15%