LENNAR CORP - B SHS (LEN.B)
US5260573028 - Common Stock
LEN.B gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 66 industry peers in the Household Durables industry. LEN.B scores excellent points on both the profitability and health parts. This is a solid base for a good stock. LEN.B has a decent growth rate and is not valued too expensively.
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.
Each year in the past 5 years LEN.B has been profitable.
LEN.B had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.60%, LEN.B is in the better half of the industry, outperforming 79.69% of the companies in the same industry.
LEN.B has a Return On Equity of 15.25%. This is in the better half of the industry: LEN.B outperforms 68.75% of its industry peers.
The Return On Invested Capital of LEN.B (12.18%) is better than 73.44% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LEN.B is above the industry average of 10.76%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.6% | ||
| ROE | 15.25% | ||
| ROIC | 12.18% |
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
The Profit Margin of LEN.B (11.45%) is better than 82.81% of its industry peers.
LEN.B's Profit Margin has improved in the last couple of years.
LEN.B has a Operating Margin of 16.32%. This is amongst the best in the industry. LEN.B outperforms 85.94% of its industry peers.
LEN.B's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 17.70%, LEN.B is not doing good in the industry: 89.06% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of LEN.B has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.32% | ||
| PM (TTM) | 11.45% | ||
| GM | 17.7% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), LEN.B is creating some value.
LEN.B has less shares outstanding than it did 1 year ago.
LEN.B has less shares outstanding than it did 5 years ago.
The debt/assets ratio for LEN.B has been reduced compared to a year ago.
2.2 Solvency
LEN.B has an Altman-Z score of 5.43. This indicates that LEN.B is financially healthy and has little risk of bankruptcy at the moment.
LEN.B's Altman-Z score of 5.43 is fine compared to the rest of the industry. LEN.B outperforms 76.56% of its industry peers.
LEN.B has a debt to FCF ratio of 0.92. This is a very positive value and a sign of high solvency as it would only need 0.92 years to pay back of all of its debts.
LEN.B has a Debt to FCF ratio of 0.92. This is in the better half of the industry: LEN.B outperforms 78.13% of its industry peers.
LEN.B has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
LEN.B has a Debt to Equity ratio of 0.14. This is in the better half of the industry: LEN.B outperforms 73.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.92 | ||
| Altman-Z | 5.43 |
ROIC/WACC1.49
WACC8.2%
2.3 Liquidity
A Current Ratio of 13.68 indicates that LEN.B has no problem at all paying its short term obligations.
With an excellent Current ratio value of 13.68, LEN.B belongs to the best of the industry, outperforming 96.88% of the companies in the same industry.
A Quick Ratio of 2.82 indicates that LEN.B has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.82, LEN.B belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 13.68 | ||
| Quick Ratio | 2.82 |
3. Growth
3.1 Past
LEN.B shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.68%.
The Earnings Per Share has been growing by 19.87% on average over the past years. This is quite good.
LEN.B shows a small growth in Revenue. In the last year, the Revenue has grown by 6.34%.
LEN.B shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.72% yearly.
EPS 1Y (TTM)-0.68%
EPS 3Y20.52%
EPS 5Y19.87%
EPS Q2Q%14.62%
Revenue 1Y (TTM)6.34%
Revenue growth 3Y15.03%
Revenue growth 5Y10.72%
Sales Q2Q%8.95%
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 11.85% on average per year.
Based on estimates for the next years, LEN.B will show a small growth in Revenue. The Revenue will grow by 7.16% on average per year.
EPS Next Y5.06%
EPS Next 2Y8.85%
EPS Next 3Y10.14%
EPS Next 5Y11.85%
Revenue Next Year5.56%
Revenue Next 2Y6.8%
Revenue Next 3Y6.54%
Revenue Next 5Y7.16%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.66, the valuation of LEN.B can be described as very reasonable.
64.06% of the companies in the same industry are more expensive than LEN.B, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 30.71, LEN.B is valued rather cheaply.
LEN.B is valuated reasonably with a Price/Forward Earnings ratio of 10.52.
LEN.B's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LEN.B is cheaper than 65.63% 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 22.09.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.66 | ||
| Fwd PE | 10.52 |
4.2 Price Multiples
78.13% of the companies in the same industry are more expensive than LEN.B, based on the Enterprise Value to EBITDA ratio.
LEN.B's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. LEN.B is cheaper than 79.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.88 | ||
| EV/EBITDA | 7.9 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates LEN.B does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of LEN.B may justify a higher PE ratio.
PEG (NY)2.31
PEG (5Y)0.59
EPS Next 2Y8.85%
EPS Next 3Y10.14%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.10%, LEN.B has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.48, LEN.B pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.10, LEN.B pays less dividend than the S&P500 average, which is at 2.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)54.01%
Div Incr Years0
Div Non Decr Years14
5.3 Sustainability
LEN.B pays out 11.97% of its income as dividend. This is a sustainable payout ratio.
The dividend of LEN.B is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP11.97%
EPS Next 2Y8.85%
EPS Next 3Y10.14%
LENNAR CORP - B SHS
NYSE:LEN.B (9/17/2024, 1:07:37 PM)
171.5
-0.51 (-0.3%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap47.16B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.66 | ||
| Fwd PE | 10.52 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.31
PEG (5Y)0.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.6% | ||
| ROE | 15.25% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 16.32% | ||
| PM (TTM) | 11.45% | ||
| GM | 17.7% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 13.68 | ||
| Quick Ratio | 2.82 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-0.68%
EPS 3Y20.52%
EPS 5Y
EPS Q2Q%
EPS Next Y5.06%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.34%
Revenue growth 3Y15.03%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y