LENNAR CORP - B SHS (LEN.B)
US5260573028 - Common Stock
We assign a fundamental rating of 7 out of 10 to LEN.B. LEN.B was compared to 67 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. LEN.B is valued quite cheap, but it does not seem to be growing. This makes LEN.B very considerable for value investing!
1. Profitability
1.1 Basic Checks
LEN.B had positive earnings in the past year.
LEN.B had a positive operating cash flow in the past year.
LEN.B had positive earnings in 4 of the past 5 years.
LEN.B had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
LEN.B has a Return On Assets of 10.45%. This is in the better half of the industry: LEN.B outperforms 80.00% of its industry peers.
With a decent Return On Equity value of 15.15%, LEN.B is doing good in the industry, outperforming 67.69% of the companies in the same industry.
LEN.B has a better Return On Invested Capital (11.42%) than 67.69% 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 11.99%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.45% | ||
| ROE | 15.15% | ||
| ROIC | 11.42% |
ROA(3y)11.7%
ROA(5y)9.9%
ROE(3y)18.2%
ROE(5y)15.92%
ROIC(3y)13.43%
ROIC(5y)11.46%
1.3 Margins
LEN.B's Profit Margin of 11.39% is amongst the best of the industry. LEN.B outperforms 83.08% of its industry peers.
LEN.B's Profit Margin has improved in the last couple of years.
The Operating Margin of LEN.B (15.41%) is better than 83.08% of its industry peers.
LEN.B's Operating Margin has improved in the last couple of years.
LEN.B has a worse Gross Margin (16.96%) than 90.77% of its industry peers.
LEN.B's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.41% | ||
| PM (TTM) | 11.39% | ||
| GM | 16.96% |
OM growth 3Y2.4%
OM growth 5Y6.7%
PM growth 3Y1.6%
PM growth 5Y6.82%
GM growth 3Y2.02%
GM growth 5Y7.08%
2. Health
2.1 Basic Checks
LEN.B has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
LEN.B has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
LEN.B has an Altman-Z score of 4.70. This indicates that LEN.B is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.70, LEN.B is doing good in the industry, outperforming 75.38% of the companies in the same industry.
LEN.B has a debt to FCF ratio of 0.99. This is a very positive value and a sign of high solvency as it would only need 0.99 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.99, LEN.B is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
A Debt/Equity ratio of 0.14 indicates that LEN.B is not too dependend on debt financing.
The Debt to Equity ratio of LEN.B (0.14) is better than 72.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.99 | ||
| Altman-Z | 4.7 |
ROIC/WACC1.36
WACC8.4%
2.3 Liquidity
LEN.B has a Current Ratio of 13.08. This indicates that LEN.B is financially healthy and has no problem in meeting its short term obligations.
LEN.B's Current ratio of 13.08 is amongst the best of the industry. LEN.B outperforms 96.92% of its industry peers.
A Quick Ratio of 2.87 indicates that LEN.B has no problem at all paying its short term obligations.
LEN.B has a better Quick ratio (2.87) than 96.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 13.08 | ||
| Quick Ratio | 2.87 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.00% over the past year.
The Earnings Per Share has been growing by 19.96% on average over the past years. This is quite good.
EPS 1Y (TTM)4%
EPS 3Y3.6%
EPS 5Y19.96%
EPS Q2Q%-16.39%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-9.31%
3.2 Future
The Earnings Per Share is expected to grow by 12.01% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.56% on average over the next years.
EPS Next Y11.09%
EPS Next 2Y12.26%
EPS Next 3Y15.71%
EPS Next 5Y12.01%
Revenue Next Year5.06%
Revenue Next 2Y5.74%
Revenue Next 3Y5.58%
Revenue Next 5Y6.56%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 9.00, the valuation of LEN.B can be described as very reasonable.
Based on the Price/Earnings ratio, LEN.B is valued a bit cheaper than 72.31% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.28, LEN.B is valued rather cheaply.
A Price/Forward Earnings ratio of 8.11 indicates a reasonable valuation of LEN.B.
LEN.B's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LEN.B is cheaper than 72.31% of the companies in the same industry.
LEN.B's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.53.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9 | ||
| Fwd PE | 8.11 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LEN.B indicates a rather cheap valuation: LEN.B is cheaper than 87.69% of the companies listed in the same industry.
89.23% of the companies in the same industry are more expensive than LEN.B, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.1 | ||
| EV/EBITDA | 6.02 |
4.3 Compensation for Growth
LEN.B's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
LEN.B has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as LEN.B's earnings are expected to grow with 15.71% in the coming years.
PEG (NY)0.81
PEG (5Y)0.45
EPS Next 2Y12.26%
EPS Next 3Y15.71%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.50%, LEN.B has a reasonable but not impressive dividend return.
In the last 3 months the price of LEN.B has falen by -26.77%. 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 2.98.
Compared to the average S&P500 Dividend Yield of 2.33, LEN.B is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.5% |
5.2 History
On average, the dividend of LEN.B grows each year by 54.01%, 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)54.01%
Div Incr Years1
Div Non Decr Years15
5.3 Sustainability
12.50% of the earnings are spent on dividend by LEN.B. This is a low number and sustainable payout ratio.
The dividend of LEN.B is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP12.5%
EPS Next 2Y12.26%
EPS Next 3Y15.71%
LENNAR CORP - B SHS
NYSE:LEN.B (1/14/2025, 8:04:00 PM)
After market: 128.85 0 (0%)128.85
+3.28 (+2.61%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners95.98%
Inst Owner Change0.05%
Ins Owners1.64%
Ins Owner ChangeN/A
Market Cap34.95B
Analysts69.6
Price Target170.41 (32.25%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.5% |
Dividend Growth(5Y)54.01%
DP12.5%
Div Incr Years1
Div Non Decr Years15
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.76%
Min EPS beat(2)5.41%
Max EPS beat(2)16.11%
EPS beat(4)4
Avg EPS beat(4)10.24%
Min EPS beat(4)3.9%
Max EPS beat(4)16.11%
EPS beat(8)7
Avg EPS beat(8)12.75%
EPS beat(12)9
Avg EPS beat(12)6.46%
EPS beat(16)13
Avg EPS beat(16)9.45%
Revenue beat(2)2
Avg Revenue beat(2)1.75%
Min Revenue beat(2)1.63%
Max Revenue beat(2)1.88%
Revenue beat(4)3
Avg Revenue beat(4)1.92%
Min Revenue beat(4)-2%
Max Revenue beat(4)6.19%
Revenue beat(8)6
Avg Revenue beat(8)3.62%
Revenue beat(12)9
Avg Revenue beat(12)2.6%
Revenue beat(16)13
Avg Revenue beat(16)2.69%
PT rev (1m)-11.39%
PT rev (3m)-8.23%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.25%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)0.7%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.02%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9 | ||
| Fwd PE | 8.11 | ||
| P/S | 0.96 | ||
| P/FCF | 9.1 | ||
| P/OCF | 8.7 | ||
| P/B | 1.27 | ||
| P/tB | 1.47 | ||
| EV/EBITDA | 6.02 |
EPS(TTM)14.31
EY11.11%
EPS(NY)15.9
Fwd EY12.34%
FCF(TTM)14.16
FCFY10.99%
OCF(TTM)14.81
OCFY11.5%
SpS134.43
BVpS101.06
TBVpS87.67
PEG (NY)0.81
PEG (5Y)0.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.45% | ||
| ROE | 15.15% | ||
| ROCE | 14.89% | ||
| ROIC | 11.42% | ||
| ROICexc | 12.88% | ||
| ROICexgc | 17.14% | ||
| OM | 15.41% | ||
| PM (TTM) | 11.39% | ||
| GM | 16.96% | ||
| FCFM | 10.54% |
ROA(3y)11.7%
ROA(5y)9.9%
ROE(3y)18.2%
ROE(5y)15.92%
ROIC(3y)13.43%
ROIC(5y)11.46%
ROICexc(3y)15.55%
ROICexc(5y)13.02%
ROICexgc(3y)18.69%
ROICexgc(5y)15.61%
ROCE(3y)17.51%
ROCE(5y)14.95%
ROICexcg growth 3Y16.76%
ROICexcg growth 5Y16.27%
ROICexc growth 3Y13.54%
ROICexc growth 5Y15.36%
OM growth 3Y2.4%
OM growth 5Y6.7%
PM growth 3Y1.6%
PM growth 5Y6.82%
GM growth 3Y2.02%
GM growth 5Y7.08%
F-Score6
Asset Turnover0.92
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.99 | ||
| Debt/EBITDA | 0.66 | ||
| Cap/Depr | 154.49% | ||
| Cap/Sales | 0.48% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 70.11% | ||
| Profit Quality | 92.49% | ||
| Current Ratio | 13.08 | ||
| Quick Ratio | 2.87 | ||
| Altman-Z | 4.7 |
F-Score6
WACC8.4%
ROIC/WACC1.36
Cap/Depr(3y)77.37%
Cap/Depr(5y)80.58%
Cap/Sales(3y)0.23%
Cap/Sales(5y)0.28%
Profit Quality(3y)85.76%
Profit Quality(5y)100.49%
High Growth Momentum
Growth
EPS 1Y (TTM)4%
EPS 3Y3.6%
EPS 5Y19.96%
EPS Q2Q%-16.39%
EPS Next Y11.09%
EPS Next 2Y12.26%
EPS Next 3Y15.71%
EPS Next 5Y12.01%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-9.31%
Revenue Next Year5.06%
Revenue Next 2Y5.74%
Revenue Next 3Y5.58%
Revenue Next 5Y6.56%
EBIT growth 1Y-0.59%
EBIT growth 3Y17.79%
EBIT growth 5Y18.14%
EBIT Next Year2.92%
EBIT Next 3Y1.05%
EBIT Next 5Y6.47%
FCF growth 1Y123.47%
FCF growth 3Y7.25%
FCF growth 5Y26.61%
OCF growth 1Y126.77%
OCF growth 3Y7.32%
OCF growth 5Y25.08%