LENNAR CORP-A (LEN) Stock Fundamental Analysis
USA - NYSE:LEN - US5260571048 - Common Stock
115.97 USD
+1.87 (+1.64%)
116.06 USD
+0.09 (+0.08%)
Taking everything into account, LEN scores 6 out of 10 in our fundamental rating. LEN was compared to 61 industry peers in the Household Durables industry. LEN scores excellent on profitability, but there are some minor concerns on its financial health. LEN is not valued too expensively and it also shows a decent 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.
Each year in the past 5 years LEN had a positive operating cash flow.
1.2 Ratios
LEN has a better Return On Assets (7.62%) than 70.49% of its industry peers.
LEN's Return On Equity of 11.77% is in line compared to the rest of the industry. LEN outperforms 59.02% of its industry peers.
LEN's Return On Invested Capital of 8.51% is fine compared to the rest of the industry. LEN outperforms 60.66% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LEN is above the industry average of 9.78%.
The last Return On Invested Capital (8.51%) for LEN is well below the 3 year average (12.81%), which needs to be investigated, but indicates that LEN had better years and this may not be a problem.
| 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
With a decent Profit Margin value of 7.64%, LEN is doing good in the industry, outperforming 65.57% of the companies in the same industry.
LEN's Profit Margin has improved in the last couple of years.
The Operating Margin of LEN (10.61%) is better than 68.85% of its industry peers.
LEN's Operating Margin has improved in the last couple of years.
LEN has a Gross Margin of 12.38%. This is amonst the worse of the industry: LEN underperforms 93.44% of its industry peers.
In the last couple of years the Gross Margin of LEN has grown nicely.
| 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
LEN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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.
The debt/assets ratio for LEN has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.19 indicates that LEN is not in any danger for bankruptcy at the moment.
LEN has a better Altman-Z score (4.19) than 73.77% of its industry peers.
A Debt/Equity ratio of 0.24 indicates that LEN is not too dependend on debt financing.
LEN has a Debt to Equity ratio (0.24) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.19 |
ROIC/WACC1.06
WACC8%
2.3 Liquidity
A Current Ratio of 9.39 indicates that LEN has no problem at all paying its short term obligations.
LEN's Current ratio of 9.39 is amongst the best of the industry. LEN outperforms 91.80% of its industry peers.
A Quick Ratio of 1.76 indicates that LEN should not have too much problems paying its short term obligations.
LEN's Quick ratio of 1.76 is fine compared to the rest of the industry. LEN outperforms 77.05% of its industry peers.
| 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.
LEN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.01% yearly.
LEN shows a decrease in Revenue. In the last year, the revenue decreased by -4.65%.
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)-4.65%
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 9.06% yearly.
LEN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.09% yearly.
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
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
Based on the Price/Earnings ratio of 11.46, the valuation of LEN can be described as reasonable.
LEN's Price/Earnings is on the same level as the industry average.
LEN is valuated cheaply when we compare the Price/Earnings ratio to 25.51, which is the current average of the S&P500 Index.
LEN is valuated correctly with a Price/Forward Earnings ratio of 12.88.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LEN is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.98, LEN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.46 | ||
| Fwd PE | 12.88 |
4.2 Price Multiples
LEN's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.72 |
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 -8.49% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.57
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 2.44, 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 been paying a dividend for at least 10 years, so it has 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%
115.97
+1.87 (+1.64%)
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 Cap29.57B
Revenue(TTM)34.77B
Net Income(TTM)2.66B
Analysts68.33
Price Target132.97 (14.66%)
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 | 11.46 | ||
| Fwd PE | 12.88 | ||
| P/S | 0.85 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.31 | ||
| P/tB | 1.56 | ||
| EV/EBITDA | 8.72 |
EPS(TTM)10.12
EY8.73%
EPS(NY)9
Fwd EY7.76%
FCF(TTM)-2.8
FCFYN/A
OCF(TTM)-2.23
OCFYN/A
SpS136.33
BVpS88.5
TBVpS74.26
PEG (NY)N/A
PEG (5Y)0.57
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 | 4.19 |
F-Score3
WACC8%
ROIC/WACC1.06
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 11.46 and the Price/Book (PB) ratio is 1.31.
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.