LENNAR CORP-A (LEN) Stock Fundamental Analysis
USA - NYSE:LEN - US5260571048 - Common Stock
118.02 USD
-0.75 (-0.63%)
117.701 USD
-0.32 (-0.27%)
Taking everything into account, LEN scores 6 out of 10 in our fundamental rating. LEN was compared to 63 industry peers in the Household Durables industry. LEN scores excellent points on both the profitability and health parts. This is a solid base for a good stock. LEN has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year LEN was profitable.
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
With a decent Return On Assets value of 9.38%, LEN is doing good in the industry, outperforming 74.60% of the companies in the same industry.
With a decent Return On Equity value of 14.28%, LEN is doing good in the industry, outperforming 66.67% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 10.16%, LEN is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for LEN is above the industry average of 10.32%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.38% | ||
| ROE | 14.28% | ||
| ROIC | 10.16% |
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
With a decent Profit Margin value of 9.11%, LEN is doing good in the industry, outperforming 77.78% of the companies in the same industry.
In the last couple of years the Profit Margin of LEN has grown nicely.
The Operating Margin of LEN (12.14%) is better than 77.78% of its industry peers.
In the last couple of years the Operating Margin of LEN has grown nicely.
With a Gross Margin value of 13.73%, LEN is not doing good in the industry: 93.65% of the companies in the same industry are doing better.
LEN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.14% | ||
| PM (TTM) | 9.11% | ||
| GM | 13.73% |
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 is creating some value.
Compared to 1 year ago, LEN has less shares outstanding
LEN has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, LEN has an improved debt to assets ratio.
2.2 Solvency
LEN has an Altman-Z score of 4.38. This indicates that LEN is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.38, LEN is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
The Debt to FCF ratio of LEN is 15.73, which is on the high side as it means it would take LEN, 15.73 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 15.73, LEN is in line with its industry, outperforming 42.86% of the companies in the same industry.
LEN has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.19, LEN is doing good in the industry, outperforming 63.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 15.73 | ||
| Altman-Z | 4.38 |
ROIC/WACC1.19
WACC8.52%
2.3 Liquidity
A Current Ratio of 7.62 indicates that LEN has no problem at all paying its short term obligations.
The Current ratio of LEN (7.62) is better than 82.54% of its industry peers.
LEN has a Quick Ratio of 1.02. This is a normal value and indicates that LEN is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.02, LEN perfoms like the industry average, outperforming 49.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.62 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
The earnings per share for LEN have decreased strongly by -32.98% in the last year.
Measured over the past years, LEN shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.01% on average per year.
Looking at the last year, LEN shows a small growth in Revenue. The Revenue has grown by 3.53% in the last year.
LEN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.75% yearly.
EPS 1Y (TTM)-32.98%
EPS 3Y3.67%
EPS 5Y20.01%
EPS Q2Q%-46.24%
Revenue 1Y (TTM)3.53%
Revenue growth 3Y9.32%
Revenue growth 5Y9.75%
Sales Q2Q%-6.43%
3.2 Future
LEN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.97% yearly.
Based on estimates for the next years, LEN will show a small growth in Revenue. The Revenue will grow by 5.09% on average per year.
EPS Next Y-39.42%
EPS Next 2Y-18.3%
EPS Next 3Y-5.04%
EPS Next 5Y8.97%
Revenue Next Year-4.47%
Revenue Next 2Y-0.76%
Revenue Next 3Y1.88%
Revenue Next 5Y5.09%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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 11.66 indicates a reasonable 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.
Compared to an average S&P500 Price/Earnings ratio of 27.35, LEN is valued rather cheaply.
With a Price/Forward Earnings ratio of 12.33, LEN is valued correctly.
LEN's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.86, LEN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.66 | ||
| Fwd PE | 12.33 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as LEN.
LEN's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. LEN is more expensive than 61.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 109.7 | ||
| EV/EBITDA | 7.69 |
4.3 Compensation for Growth
The decent profitability rating of LEN may justify a higher PE ratio.
LEN's earnings are expected to decrease with -5.04% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.58
EPS Next 2Y-18.3%
EPS Next 3Y-5.04%
5. Dividend
5.1 Amount
LEN has a Yearly Dividend Yield of 1.70%.
Compared to an average industry Dividend Yield of 2.93, LEN pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.44, LEN is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
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 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
16.62% of the earnings are spent on dividend by LEN. This is a low number and sustainable payout ratio.
LEN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP16.62%
EPS Next 2Y-18.3%
EPS Next 3Y-5.04%
118.02
-0.75 (-0.63%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners97.43%
Inst Owner Change0.01%
Ins Owners1.8%
Ins Owner Change0.81%
Market Cap30.57B
Analysts68.33
Price Target134.74 (14.17%)
Short Float %5.55%
Short Ratio3.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
Yearly Dividend2
Dividend Growth(5Y)65.54%
DP16.62%
Div Incr Years1
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.08%
Min EPS beat(2)-7.71%
Max EPS beat(2)11.86%
EPS beat(4)2
Avg EPS beat(4)4.24%
Min EPS beat(4)-7.71%
Max EPS beat(4)16.11%
EPS beat(8)6
Avg EPS beat(8)6.35%
EPS beat(12)9
Avg EPS beat(12)9.02%
EPS beat(16)11
Avg EPS beat(16)7.19%
Revenue beat(2)2
Avg Revenue beat(2)1.66%
Min Revenue beat(2)1.66%
Max Revenue beat(2)1.66%
Revenue beat(4)3
Avg Revenue beat(4)0.66%
Min Revenue beat(4)-2.32%
Max Revenue beat(4)1.66%
Revenue beat(8)6
Avg Revenue beat(8)1.37%
Revenue beat(12)8
Avg Revenue beat(12)2.36%
Revenue beat(16)12
Avg Revenue beat(16)2.02%
PT rev (1m)6.25%
PT rev (3m)-2.6%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.03%
EPS NY rev (1m)-1.1%
EPS NY rev (3m)-1.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.04%
Revenue NY rev (1m)-3.34%
Revenue NY rev (3m)-3.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.66 | ||
| Fwd PE | 12.33 | ||
| P/S | 0.86 | ||
| P/FCF | 109.7 | ||
| P/OCF | 74.61 | ||
| P/B | 1.35 | ||
| P/tB | 1.6 | ||
| EV/EBITDA | 7.69 |
EPS(TTM)10.12
EY8.57%
EPS(NY)9.57
Fwd EY8.11%
FCF(TTM)1.08
FCFY0.91%
OCF(TTM)1.58
OCFY1.34%
SpS136.57
BVpS87.17
TBVpS73.88
PEG (NY)N/A
PEG (5Y)0.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.38% | ||
| ROE | 14.28% | ||
| ROCE | 13.31% | ||
| ROIC | 10.16% | ||
| ROICexc | 10.54% | ||
| ROICexgc | 20.97% | ||
| OM | 12.14% | ||
| PM (TTM) | 9.11% | ||
| GM | 13.73% | ||
| FCFM | 0.79% |
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%
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 Turnover1.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 15.73 | ||
| Debt/EBITDA | 0.99 | ||
| Cap/Depr | 104.87% | ||
| Cap/Sales | 0.37% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 9.27% | ||
| Profit Quality | 8.64% | ||
| Current Ratio | 7.62 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z | 4.38 |
F-Score4
WACC8.52%
ROIC/WACC1.19
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-39.42%
EPS Next 2Y-18.3%
EPS Next 3Y-5.04%
EPS Next 5Y8.97%
Revenue 1Y (TTM)3.53%
Revenue growth 3Y9.32%
Revenue growth 5Y9.75%
Sales Q2Q%-6.43%
Revenue Next Year-4.47%
Revenue Next 2Y-0.76%
Revenue Next 3Y1.88%
Revenue Next 5Y5.09%
EBIT growth 1Y-26.49%
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-94.16%
FCF growth 3Y-3.29%
FCF growth 5Y9.84%
OCF growth 1Y-91.56%
OCF growth 3Y-1.73%
OCF growth 5Y10.15%