LENNAR CORP-A (LEN) Stock Fundamental Analysis
NYSE:LEN - New York Stock Exchange, Inc. - US5260571048 - Common Stock
LEN gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 67 industry peers in the Household Durables industry. LEN has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. LEN is valued quite cheap, but it does not seem to be growing. This makes LEN very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year LEN was profitable.
In the past year LEN had a positive cash flow from operations.
LEN had positive earnings in 4 of the past 5 years.
LEN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 10.45%, LEN is doing good in the industry, outperforming 78.46% of the companies in the same industry.
The Return On Equity of LEN (15.15%) is better than 66.15% of its industry peers.
LEN has a Return On Invested Capital of 11.42%. This is in the better half of the industry: LEN outperforms 66.15% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LEN 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
The Profit Margin of LEN (11.39%) is better than 81.54% of its industry peers.
In the last couple of years the Profit Margin of LEN has grown nicely.
LEN has a Operating Margin of 15.41%. This is amongst the best in the industry. LEN outperforms 81.54% of its industry peers.
LEN's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 16.96%, LEN is doing worse than 92.31% of the companies in the same industry.
In the last couple of years the Gross Margin of LEN has grown nicely.
| 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.
There is no outstanding debt for LEN. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 4.75 indicates that LEN is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.75, LEN is doing good in the industry, outperforming 76.92% of the companies in the same industry.
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 Debt to FCF ratio of 0.99. This is in the better half of the industry: LEN outperforms 75.38% 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.
With a decent Debt to Equity ratio value of 0.14, LEN is doing good in the industry, outperforming 72.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.99 | ||
| Altman-Z | 4.75 |
ROIC/WACC1.36
WACC8.39%
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.
With an excellent Current ratio value of 13.08, LEN belongs to the best of the industry, outperforming 95.38% of the companies in the same industry.
LEN has a Quick Ratio of 2.87. This indicates that LEN is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.87, LEN belongs to the best of the industry, outperforming 95.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 13.08 | ||
| Quick Ratio | 2.87 |
3. Growth
3.1 Past
LEN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.00%.
Measured over the past years, LEN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.96% on average per year.
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
LEN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.01% yearly.
Based on estimates for the next years, LEN will show a small growth in Revenue. The Revenue will grow by 6.56% on average per year.
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
LEN is valuated reasonably with a Price/Earnings ratio of 9.30.
LEN's Price/Earnings ratio is a bit cheaper when compared to the industry. LEN is cheaper than 72.31% of the companies in the same industry.
LEN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.29.
The Price/Forward Earnings ratio is 8.38, which indicates a very decent valuation of LEN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LEN indicates a somewhat cheap valuation: LEN is cheaper than 73.85% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.44. LEN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.3 | ||
| Fwd PE | 8.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LEN is valued cheaply inside the industry as 84.62% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, LEN is valued cheaper than 87.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.4 | ||
| EV/EBITDA | 6.22 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
LEN has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as LEN's earnings are expected to grow with 15.71% in the coming years.
PEG (NY)0.84
PEG (5Y)0.47
EPS Next 2Y12.26%
EPS Next 3Y15.71%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.42%, LEN has a reasonable but not impressive dividend return.
In the last 3 months the price of LEN has falen by -23.16%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 2.90, LEN pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.28, LEN is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
5.2 History
On average, the dividend of LEN grows each year by 54.01%, which is quite nice.
LEN has been paying a dividend for at least 10 years, so it has 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 Years1
Div Non Decr Years15
5.3 Sustainability
12.50% 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.
DP12.5%
EPS Next 2Y12.26%
EPS Next 3Y15.71%
LENNAR CORP-A
NYSE:LEN (1/21/2025, 8:11:33 PM)
After market: 133.55 +0.41 (+0.31%)133.14
-8.4 (-5.93%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners95.98%
Inst Owner Change0.16%
Ins Owners1.64%
Ins Owner Change6.68%
Market Cap36.11B
Analysts69.6
Price Target176.19 (32.33%)
Short Float %3.09%
Short Ratio2.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
Yearly Dividend1.51
Dividend Growth(5Y)54.01%
DP12.5%
Div Incr Years1
Div Non Decr Years15
Ex-Date
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)-13.4%
PT rev (3m)-12.97%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.25%
EPS NY rev (1m)0%
EPS NY rev (3m)0.7%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.3 | ||
| Fwd PE | 8.38 | ||
| P/S | 0.99 | ||
| P/FCF | 9.4 | ||
| P/OCF | 8.99 | ||
| P/B | 1.32 | ||
| P/tB | 1.52 | ||
| EV/EBITDA | 6.22 |
EPS(TTM)14.31
EY10.75%
EPS(NY)15.9
Fwd EY11.94%
FCF(TTM)14.16
FCFY10.64%
OCF(TTM)14.81
OCFY11.13%
SpS134.43
BVpS101.06
TBVpS87.67
PEG (NY)0.84
PEG (5Y)0.47
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 | 4.75 |
F-Score6
WACC8.39%
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 3Y0.39%
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%