LENNAR CORP-A (LEN)
US5260571048 - Common Stock
Taking everything into account, LEN scores 7 out of 10 in our fundamental rating. LEN was compared to 64 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 has a correct valuation and a medium growth rate. With these ratings, LEN could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
LEN had positive earnings in the past year.
LEN had a positive operating cash flow in the past year.
Each year in the past 5 years LEN has been profitable.
Each year in the past 5 years LEN had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.45%, LEN is in the better half of the industry, outperforming 74.19% of the companies in the same industry.
With a decent Return On Equity value of 15.15%, LEN is doing good in the industry, outperforming 64.52% of the companies in the same industry.
The Return On Invested Capital of LEN (11.42%) is better than 66.13% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LEN is above the industry average of 10.86%.
| 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
Looking at the Profit Margin, with a value of 11.39%, LEN belongs to the top of the industry, outperforming 80.65% of the companies in the same industry.
In the last couple of years the Profit Margin of LEN has grown nicely.
LEN's Operating Margin of 15.41% is amongst the best of the industry. LEN outperforms 82.26% of its industry peers.
In the last couple of years the Operating Margin of LEN has grown nicely.
LEN's Gross Margin of 16.96% is on the low side compared to the rest of the industry. LEN is outperformed by 91.94% of its industry peers.
LEN'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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LEN is still creating some value.
The number of shares outstanding for LEN has been reduced compared to 1 year ago.
Compared to 5 years ago, LEN has less shares outstanding
Compared to 1 year ago, LEN has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.24 indicates that LEN is not in any danger for bankruptcy at the moment.
LEN's Altman-Z score of 5.24 is fine compared to the rest of the industry. LEN outperforms 75.81% of its industry peers.
The Debt to FCF ratio of LEN is 0.99, which is an excellent value as it means it would take LEN, only 0.99 years of fcf income to pay off all of its debts.
LEN has a better Debt to FCF ratio (0.99) than 77.42% of its industry peers.
LEN has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
LEN has a better Debt to Equity ratio (0.14) than 70.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.99 | ||
| Altman-Z | 5.24 |
ROIC/WACC1.32
WACC8.66%
2.3 Liquidity
LEN has a Current Ratio of 13.08. This indicates that LEN is financially healthy and has no problem in meeting its short term obligations.
LEN has a Current ratio of 13.08. This is amongst the best in the industry. LEN outperforms 95.16% of its industry peers.
A Quick Ratio of 2.87 indicates that LEN has no problem at all paying its short term obligations.
The Quick ratio of LEN (2.87) is better than 93.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 13.08 | ||
| Quick Ratio | 2.87 |
3. Growth
3.1 Past
LEN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.93%, which is quite good.
The Earnings Per Share has been growing by 19.87% on average over the past years. This is quite good.
The Revenue has grown by 9.04% in the past year. This is quite good.
Measured over the past years, LEN shows a quite strong growth in Revenue. The Revenue has been growing by 10.72% on average per year.
EPS 1Y (TTM)11.93%
EPS 3Y20.52%
EPS 5Y19.87%
EPS Q2Q%10.08%
Revenue 1Y (TTM)9.04%
Revenue growth 3Y15.03%
Revenue growth 5Y10.72%
Sales Q2Q%7.86%
3.2 Future
The Earnings Per Share is expected to grow by 11.85% on average over the next years. This is quite good.
Based on estimates for the next years, LEN will show a small growth in Revenue. The Revenue will grow by 7.16% on average per year.
EPS Next Y5.68%
EPS Next 2Y8.84%
EPS Next 3Y9.81%
EPS Next 5Y11.85%
Revenue Next Year6.14%
Revenue Next 2Y7.15%
Revenue Next 3Y6.93%
Revenue Next 5Y7.16%
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
The Price/Earnings ratio is 11.18, which indicates a very decent valuation of LEN.
66.13% of the companies in the same industry are more expensive than LEN, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of LEN to the average of the S&P500 Index (28.53), we can say LEN is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.36, the valuation of LEN can be described as reasonable.
Based on the Price/Forward Earnings ratio, LEN is valued a bit cheaper than the industry average as 66.13% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.40. LEN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.18 | ||
| Fwd PE | 10.36 |
4.2 Price Multiples
69.35% of the companies in the same industry are more expensive than LEN, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, LEN is valued a bit cheaper than 79.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.92 | ||
| EV/EBITDA | 7.96 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
LEN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.97
PEG (5Y)0.56
EPS Next 2Y8.84%
EPS Next 3Y9.81%
5. Dividend
5.1 Amount
LEN has a Yearly Dividend Yield of 1.18%.
LEN's Dividend Yield is a higher than the industry average which is at 2.45.
With a Dividend Yield of 1.18, LEN pays less dividend than the S&P500 average, which is at 2.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
5.2 History
On average, the dividend of LEN grows each year by 54.01%, which is quite nice.
LEN has paid a dividend for at least 10 years, which is a reliable track record.
LEN 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 Years0
Div Non Decr Years15
5.3 Sustainability
LEN pays out 12.50% of its income as dividend. This is a sustainable payout ratio.
LEN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP12.5%
EPS Next 2Y8.84%
EPS Next 3Y9.81%
LENNAR CORP-A
NYSE:LEN (11/15/2024, 8:22:49 PM)
After market: 168.85 0 (0%)168.85
-0.95 (-0.56%)
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 Cap45.80B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.18 | ||
| Fwd PE | 10.36 | ||
| 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)1.97
PEG (5Y)0.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.45% | ||
| ROE | 15.15% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 15.41% | ||
| PM (TTM) | 11.39% | ||
| GM | 16.96% | ||
| 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 Turnover0.92
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 | 13.08 | ||
| Quick Ratio | 2.87 | ||
| 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)11.93%
EPS 3Y20.52%
EPS 5Y
EPS Q2Q%
EPS Next Y5.68%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)9.04%
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