LENNAR CORP-A (LEN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LEN - US5260571048 - Common Stock
107.99 USD
-0.34 (-0.31%)
107.807 USD
-0.18 (-0.17%)
We assign a fundamental rating of 5 out of 10 to LEN. LEN was compared to 61 industry peers in the Household Durables industry. LEN has only an average score on both its financial health and profitability. LEN has a valuation in line with the averages, but on the other hand it scores bad on growth.
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 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 7.62%, LEN is doing good in the industry, outperforming 70.49% of the companies in the same industry.
LEN has a Return On Equity (11.77%) which is in line with 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.
In the last couple of years the Profit Margin of LEN has grown nicely.
The Operating Margin of LEN (10.61%) is better than 68.85% of its industry peers.
In the last couple of years the Operating Margin of LEN has grown nicely.
LEN has a worse Gross Margin (12.38%) 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), LEN is 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
LEN has an Altman-Z score of 4.10. This indicates that LEN is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of LEN (4.10) is better than 68.85% 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.
Looking at the Debt to Equity ratio, with a value of 0.24, LEN is in the better half of the industry, outperforming 60.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.1 |
ROIC/WACC0.99
WACC8.59%
2.3 Liquidity
A Current Ratio of 9.39 indicates that LEN has no problem at all paying its short term obligations.
LEN has a Current ratio of 9.39. This is amongst the best in 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
LEN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -43.58%.
The Earnings Per Share has been growing slightly by 0.58% on average over the past years.
EPS 1Y (TTM)-43.58%
EPS 3Y-20.2%
EPS 5Y0.58%
EPS Q2Q%-50%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-5.82%
3.2 Future
The Earnings Per Share is expected to grow by 25.67% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 7.26% on average over the next years.
EPS Next Y11.1%
EPS Next 2Y16.34%
EPS Next 3Y31.47%
EPS Next 5Y25.67%
Revenue Next Year3.19%
Revenue Next 2Y5.41%
Revenue Next 3Y5.72%
Revenue Next 5Y7.26%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
LEN is valuated correctly with a Price/Earnings ratio of 13.35.
LEN's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.38. LEN is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 12.02, the valuation of LEN can be described as correct.
Based on the Price/Forward Earnings ratio, LEN is valued a bit cheaper than the industry average as 63.93% of the companies are valued more expensively.
LEN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.35 | ||
| Fwd PE | 12.02 |
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 | 8.21 |
4.3 Compensation for Growth
LEN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 31.47% in the coming years.
PEG (NY)1.2
PEG (5Y)23.07
EPS Next 2Y16.34%
EPS Next 3Y31.47%
5. Dividend
5.1 Amount
LEN has a Yearly Dividend Yield of 1.85%.
LEN's Dividend Yield is a higher than the industry average which is at 1.17.
LEN's Dividend Yield is comparable with the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.85% |
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
LEN pays out 19.91% of its income as dividend. This is a 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 2Y16.34%
EPS Next 3Y31.47%
107.99
-0.34 (-0.31%)
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 Cap27.54B
Revenue(TTM)N/A
Net Income(TTM)2.66B
Analysts68.7
Price Target129.59 (20%)
Short Float %16.83%
Short Ratio5.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.85% |
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)0.64%
EPS NQ rev (1m)-0.04%
EPS NQ rev (3m)-19.56%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-4.56%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-11.88%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.35 | ||
| Fwd PE | 12.02 | ||
| P/S | 0.79 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.22 | ||
| P/tB | 1.45 | ||
| EV/EBITDA | 8.21 |
EPS(TTM)8.09
EY7.49%
EPS(NY)8.99
Fwd EY8.32%
FCF(TTM)-2.8
FCFYN/A
OCF(TTM)-2.23
OCFYN/A
SpS136.33
BVpS88.5
TBVpS74.26
PEG (NY)1.2
PEG (5Y)23.07
Graham Number126.93
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 | 4.1 |
F-Score3
WACC8.59%
ROIC/WACC0.99
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)-43.58%
EPS 3Y-20.2%
EPS 5Y0.58%
EPS Q2Q%-50%
EPS Next Y11.1%
EPS Next 2Y16.34%
EPS Next 3Y31.47%
EPS Next 5Y25.67%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-5.82%
Revenue Next Year3.19%
Revenue Next 2Y5.41%
Revenue Next 3Y5.72%
Revenue Next 5Y7.26%
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 5 / 10 to LEN.
Can you provide the valuation status for LENNAR CORP-A?
ChartMill assigns a valuation rating of 5 / 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 6 / 10.
Can you provide the PE and PB ratios for LEN stock?
The Price/Earnings (PE) ratio for LENNAR CORP-A (LEN) is 13.35 and the Price/Book (PB) ratio is 1.22.
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 grow by 11.1% in the next year.