LENNAR CORP-A (LEN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LEN - US5260571048 - Common Stock
119.37 USD
+0.22 (+0.18%)
119.37 USD
0 (0%)
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. While LEN belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. 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 negative operating cash flow in the past year.
LEN had positive earnings in each of the past 5 years.
Each year in the past 5 years LEN had a positive operating cash flow.
1.2 Ratios
LEN's Return On Assets of 7.62% is fine compared to the rest of the industry. LEN outperforms 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's Return On Invested Capital of 8.51% is fine compared to the rest of the industry. LEN outperforms 62.30% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LEN is above the industry average of 9.73%.
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
Looking at the Profit Margin, with a value of 7.64%, LEN is in the better half of the industry, outperforming 65.57% of the companies in the same industry.
LEN's Profit Margin has improved in the last couple of years.
LEN has a better Operating Margin (10.61%) than 68.85% of its industry peers.
In the last couple of years the Operating Margin of LEN has grown nicely.
LEN's Gross Margin of 12.38% is on the low side compared to the rest of the industry. LEN is outperformed by 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
LEN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
LEN has less shares outstanding than it did 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
LEN has an Altman-Z score of 4.23. This indicates that LEN is financially healthy and has little risk of bankruptcy at the moment.
LEN's Altman-Z score of 4.23 is fine compared to the rest of the industry. LEN outperforms 68.85% of its industry peers.
A Debt/Equity ratio of 0.24 indicates that LEN is not too dependend on debt financing.
The Debt to Equity ratio of LEN (0.24) is better than 60.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.23 |
ROIC/WACC1
WACC8.51%
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.
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.
With a decent Quick ratio value of 1.76, LEN is doing good in 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
LEN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -32.98%.
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.
The Revenue has decreased by -4.65% in the past 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)-4.65%
Revenue growth 3Y9.32%
Revenue growth 5Y9.75%
Sales Q2Q%-6.43%
3.2 Future
Based on estimates for the next years, LEN will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.06% on average per year.
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-41.54%
EPS Next 2Y-20.83%
EPS Next 3Y-8.6%
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
A Price/Earnings ratio of 11.80 indicates a reasonable valuation of LEN.
60.66% of the companies in the same industry are more expensive than LEN, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.54. LEN is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 13.28, which indicates a correct valuation of LEN.
60.66% of the companies in the same industry are more expensive than LEN, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of LEN to the average of the S&P500 Index (23.78), we can say LEN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.8 | ||
| Fwd PE | 13.28 |
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 | 8.93 |
4.3 Compensation for Growth
LEN has a very decent profitability rating, which may justify a higher PE ratio.
LEN's earnings are expected to decrease with -8.60% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.59
EPS Next 2Y-20.83%
EPS Next 3Y-8.6%
5. Dividend
5.1 Amount
LEN has a Yearly Dividend Yield of 1.58%. Purely for dividend investing, there may be better candidates out there.
LEN's Dividend Yield is a higher than the industry average which is at 2.72.
LEN's Dividend Yield is slightly below the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
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
LEN pays out 19.91% 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.
DP19.91%
EPS Next 2Y-20.83%
EPS Next 3Y-8.6%
119.37
+0.22 (+0.18%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners95.99%
Inst Owner Change-5.32%
Ins Owners1.2%
Ins Owner Change0.31%
Market Cap30.44B
Revenue(TTM)34.77B
Net Income(TTM)2.66B
Analysts68.7
Price Target129.59 (8.56%)
Short Float %9.6%
Short Ratio3.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
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)-2.54%
PT rev (3m)2.19%
EPS NQ rev (1m)-0.04%
EPS NQ rev (3m)-19.52%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-4.56%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-11.77%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.8 | ||
| Fwd PE | 13.28 | ||
| P/S | 0.88 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.35 | ||
| P/tB | 1.61 | ||
| EV/EBITDA | 8.93 |
EPS(TTM)10.12
EY8.48%
EPS(NY)8.99
Fwd EY7.53%
FCF(TTM)-2.8
FCFYN/A
OCF(TTM)-2.23
OCFYN/A
SpS136.33
BVpS88.5
TBVpS74.26
PEG (NY)N/A
PEG (5Y)0.59
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 | 4.23 |
F-Score3
WACC8.51%
ROIC/WACC1
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-41.54%
EPS Next 2Y-20.83%
EPS Next 3Y-8.6%
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-40.27%
EBIT Next 3Y-11.87%
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 11.8 and the Price/Book (PB) ratio is 1.35.
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 -41.54% in the next year.