LENNAR CORP-A (LEN) Stock Fundamental Analysis
USA - NYSE:LEN - US5260571048 - Common Stock
123.16 USD
+6.91 (+5.94%)
123.16 USD
0 (0%)
Overall LEN gets a fundamental rating of 6 out of 10. We evaluated LEN against 61 industry peers in the Household Durables industry. LEN has an excellent profitability rating, but there are some minor concerns on its financial health. LEN has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year LEN was profitable.
LEN had a negative operating cash flow in the past year.
Each year in the past 5 years LEN has been profitable.
In the past 5 years LEN always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of LEN (7.62%) is better than 70.49% of its industry peers.
LEN has a Return On Equity of 11.77%. This is comparable to the rest of the industry: LEN outperforms 59.02% of its industry peers.
LEN has a Return On Invested Capital of 8.51%. This is in the better half of the industry: LEN outperforms 60.66% of its industry peers.
LEN had an Average Return On Invested Capital over the past 3 years of 12.81%. This is above the industry average of 9.78%.
The 3 year average ROIC (12.81%) for LEN is well above the current ROIC(8.51%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.62% | ||
| ROE | 11.77% | ||
| ROIC | 8.51% |
ROA(3y)10.45%
ROA(5y)10.53%
ROE(3y)15.85%
ROE(5y)16.42%
ROIC(3y)12.81%
ROIC(5y)12.14%
1.3 Margins
LEN has a Profit Margin of 7.64%. This is in the better half of the industry: LEN outperforms 65.57% of its industry peers.
LEN's Profit Margin has improved in the last couple of years.
LEN has a Operating Margin of 10.61%. This is in the better half of the industry: LEN outperforms 68.85% of its industry peers.
LEN's Operating Margin has improved in the last couple of years.
The Gross Margin of LEN (12.38%) is worse than 93.44% of its industry peers.
LEN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.61% | ||
| PM (TTM) | 7.64% | ||
| GM | 12.38% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LEN is still creating some value.
LEN has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, LEN has less shares outstanding
The debt/assets ratio for LEN has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.20 indicates that LEN is not in any danger for bankruptcy at the moment.
The Altman-Z score of LEN (4.20) is better than 75.41% of its industry peers.
LEN has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of LEN (0.24) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.2 |
ROIC/WACC1.07
WACC7.99%
2.3 Liquidity
LEN has a Current Ratio of 9.39. This indicates that LEN is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 9.39, LEN belongs to the best of the industry, outperforming 91.80% of the companies in the same industry.
A Quick Ratio of 1.76 indicates that LEN should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.76, LEN is in the better half of the industry, outperforming 77.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 9.39 | ||
| Quick Ratio | 1.76 |
3. Growth
3.1 Past
The earnings per share for LEN have decreased strongly by -32.98% 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
LEN shows a decrease in Revenue. In the last year, the revenue decreased by -4.65%.
The Revenue has been growing by 9.75% on average over the past years. This is quite good.
EPS 1Y (TTM)-32.98%
EPS 3Y3.67%
EPS 5Y20.01%
EPS Q2Q%-46.24%
Revenue 1Y (TTM)-4.65%
Revenue growth 3Y9.32%
Revenue growth 5Y9.75%
Sales Q2Q%-6.43%
3.2 Future
The Earnings Per Share is expected to grow by 9.06% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.09% on average over the next years.
EPS Next Y-41.52%
EPS Next 2Y-20.76%
EPS Next 3Y-8.49%
EPS Next 5Y9.06%
Revenue Next Year-4.83%
Revenue Next 2Y-0.9%
Revenue Next 3Y1.88%
Revenue Next 5Y5.09%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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
A Price/Earnings ratio of 12.17 indicates a correct valuation of LEN.
Compared to the rest of the industry, the Price/Earnings ratio of LEN is on the same level as its industry peers.
When comparing the Price/Earnings ratio of LEN to the average of the S&P500 Index (25.45), we can say LEN is valued rather cheaply.
LEN is valuated correctly with a Price/Forward Earnings ratio of 13.68.
LEN's Price/Forward Earnings ratio is in line with the industry average.
LEN is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.17 | ||
| Fwd PE | 13.68 |
4.2 Price Multiples
LEN's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.74 |
4.3 Compensation for Growth
The decent profitability rating of LEN may justify a higher PE ratio.
A cheap valuation may be justified as LEN's earnings are expected to decrease with -8.49% in the coming years.
PEG (NY)N/A
PEG (5Y)0.61
EPS Next 2Y-20.76%
EPS Next 3Y-8.49%
5. Dividend
5.1 Amount
LEN has a Yearly Dividend Yield of 1.65%.
LEN's Dividend Yield is a higher than the industry average which is at 3.26.
Compared to the average S&P500 Dividend Yield of 2.45, LEN is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.65% |
5.2 History
On average, the dividend of LEN grows each year by 65.54%, which is quite nice.
LEN has paid a dividend for at least 10 years, which is a reliable track record.
LEN has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)65.54%
Div Incr Years1
Div Non Decr Years15
5.3 Sustainability
19.91% of the earnings are spent on dividend by LEN. This is a low number and sustainable payout ratio.
The dividend of LEN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP19.91%
EPS Next 2Y-20.76%
EPS Next 3Y-8.49%
123.16
+6.91 (+5.94%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners97.43%
Inst Owner Change-5.16%
Ins Owners1.8%
Ins Owner Change0.82%
Market Cap31.41B
Revenue(TTM)34.77B
Net Income(TTM)2.66B
Analysts68.33
Price Target132.97 (7.97%)
Short Float %6.97%
Short Ratio3.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.65% |
Yearly Dividend2
Dividend Growth(5Y)65.54%
DP19.91%
Div Incr Years1
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.1%
Min EPS beat(2)-7.71%
Max EPS beat(2)7.91%
EPS beat(4)2
Avg EPS beat(4)2.19%
Min EPS beat(4)-7.71%
Max EPS beat(4)11.86%
EPS beat(8)6
Avg EPS beat(8)6.21%
EPS beat(12)9
Avg EPS beat(12)9.23%
EPS beat(16)11
Avg EPS beat(16)5.39%
Revenue beat(2)1
Avg Revenue beat(2)-0.69%
Min Revenue beat(2)-3.05%
Max Revenue beat(2)1.66%
Revenue beat(4)2
Avg Revenue beat(4)-0.51%
Min Revenue beat(4)-3.05%
Max Revenue beat(4)1.66%
Revenue beat(8)5
Avg Revenue beat(8)0.71%
Revenue beat(12)8
Avg Revenue beat(12)2.24%
Revenue beat(16)11
Avg Revenue beat(16)1.82%
PT rev (1m)-1.31%
PT rev (3m)5.58%
EPS NQ rev (1m)-0.33%
EPS NQ rev (3m)-19.68%
EPS NY rev (1m)-3.47%
EPS NY rev (3m)-4.54%
Revenue NQ rev (1m)-0.37%
Revenue NQ rev (3m)-11.77%
Revenue NY rev (1m)-0.38%
Revenue NY rev (3m)-3.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.17 | ||
| Fwd PE | 13.68 | ||
| P/S | 0.9 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.39 | ||
| P/tB | 1.66 | ||
| EV/EBITDA | 8.74 |
EPS(TTM)10.12
EY8.22%
EPS(NY)9
Fwd EY7.31%
FCF(TTM)-2.8
FCFYN/A
OCF(TTM)-2.23
OCFYN/A
SpS136.33
BVpS88.5
TBVpS74.26
PEG (NY)N/A
PEG (5Y)0.61
Graham Number141.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.62% | ||
| ROE | 11.77% | ||
| ROCE | 11.15% | ||
| ROIC | 8.51% | ||
| ROICexc | 8.96% | ||
| ROICexgc | 14.14% | ||
| OM | 10.61% | ||
| PM (TTM) | 7.64% | ||
| GM | 12.38% | ||
| FCFM | N/A |
ROA(3y)10.45%
ROA(5y)10.53%
ROE(3y)15.85%
ROE(5y)16.42%
ROIC(3y)12.81%
ROIC(5y)12.14%
ROICexc(3y)15.1%
ROICexc(5y)13.98%
ROICexgc(3y)19.12%
ROICexgc(5y)17.25%
ROCE(3y)16.78%
ROCE(5y)15.9%
ROICexgc growth 3Y-0.73%
ROICexgc 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-Score3
Asset Turnover1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.41 | ||
| Cap/Depr | 111.6% | ||
| Cap/Sales | 0.42% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 9.39 | ||
| Quick Ratio | 1.76 | ||
| Altman-Z | 4.2 |
F-Score3
WACC7.99%
ROIC/WACC1.07
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)-32.98%
EPS 3Y3.67%
EPS 5Y20.01%
EPS Q2Q%-46.24%
EPS Next Y-41.52%
EPS Next 2Y-20.76%
EPS Next 3Y-8.49%
EPS Next 5Y9.06%
Revenue 1Y (TTM)-4.65%
Revenue growth 3Y9.32%
Revenue growth 5Y9.75%
Sales Q2Q%-6.43%
Revenue Next Year-4.83%
Revenue Next 2Y-0.9%
Revenue Next 3Y1.88%
Revenue Next 5Y5.09%
EBIT growth 1Y-34.32%
EBIT growth 3Y-1.69%
EBIT growth 5Y12.56%
EBIT Next Year-37.95%
EBIT Next 3Y-7.95%
EBIT Next 5Y3.72%
FCF growth 1Y-113.65%
FCF growth 3Y-3.29%
FCF growth 5Y9.84%
OCF growth 1Y-110.71%
OCF growth 3Y-1.73%
OCF growth 5Y10.15%
LENNAR CORP-A / LEN FAQ
What is the ChartMill fundamental rating of LENNAR CORP-A (LEN) stock?
ChartMill assigns a fundamental rating of 6 / 10 to LEN.
Can you provide the valuation status for LENNAR CORP-A?
ChartMill assigns a valuation rating of 4 / 10 to LENNAR CORP-A (LEN). This can be considered as Fairly Valued.
How profitable is LENNAR CORP-A (LEN) stock?
LENNAR CORP-A (LEN) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for LEN stock?
The Price/Earnings (PE) ratio for LENNAR CORP-A (LEN) is 12.17 and the Price/Book (PB) ratio is 1.39.
What is the expected EPS growth for LENNAR CORP-A (LEN) stock?
The Earnings per Share (EPS) of LENNAR CORP-A (LEN) is expected to decline by -41.52% in the next year.