LENNAR CORP-A (LEN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LEN - US5260571048 - Common Stock
111.84 USD
-2.87 (-2.5%)
111.56 USD
-0.28 (-0.25%)
Overall LEN gets a fundamental rating of 5 out of 10. We evaluated LEN against 60 industry peers in the Household Durables industry. LEN has only an average score on both its financial health and profitability. LEN is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- LEN had positive earnings in the past year.
- In the past year LEN has reported a negative cash flow from operations.
- LEN had positive earnings in each of the past 5 years.
- Of the past 5 years LEN 4 years had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of LEN (7.62%) is better than 70.00% of its industry peers.
- LEN has a Return On Equity of 11.77%. This is comparable to the rest of the industry: LEN outperforms 56.67% of its industry peers.
- LEN has a Return On Invested Capital of 8.53%. This is in the better half of the industry: LEN outperforms 61.67% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for LEN is in line with the industry average of 9.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.62% | ||
| ROE | 11.77% | ||
| ROIC | 8.53% |
ROA(3y)10.3%
ROA(5y)11.22%
ROE(3y)15.58%
ROE(5y)17.34%
ROIC(3y)10.18%
ROIC(5y)11.88%
1.3 Margins
- With a decent Profit Margin value of 7.64%, LEN is doing good in the industry, outperforming 65.00% of the companies in the same industry.
- In the last couple of years the Profit Margin of LEN has remained more or less at the same level.
- Looking at the Operating Margin, with a value of 10.61%, LEN is in the better half of the industry, outperforming 68.33% of the companies in the same industry.
- LEN's Operating Margin has declined in the last couple of years.
- With a Gross Margin value of 12.38%, LEN is not doing good in the industry: 93.33% of the companies in the same industry are doing better.
- In the last couple of years the Gross Margin of LEN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.61% | ||
| PM (TTM) | 7.64% | ||
| GM | 12.38% |
OM growth 3Y-22.67%
OM growth 5Y-8.83%
PM growth 3Y-4.93%
PM growth 5Y1.45%
GM growth 3Y-7.29%
GM growth 5Y0.84%
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
- LEN has a worse debt/assets ratio than last year.
2.2 Solvency
- LEN has an Altman-Z score of 4.14. This indicates that LEN is financially healthy and has little risk of bankruptcy at the moment.
- LEN's Altman-Z score of 4.14 is fine compared to the rest of the industry. LEN outperforms 70.00% of its industry peers.
- A Debt/Equity ratio of 0.24 indicates that LEN is not too dependend on debt financing.
- LEN's Debt to Equity ratio of 0.24 is in line compared to the rest of the industry. LEN outperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.14 |
ROIC/WACC0.96
WACC8.88%
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 has a Current ratio of 9.39. This is amongst the best in the industry. LEN outperforms 91.67% of its industry peers.
- LEN has a Quick Ratio of 1.76. This is a normal value and indicates that LEN is financially healthy and should not expect problems in meeting its short term obligations.
- LEN has a Quick ratio of 1.76. This is in the better half of the industry: LEN outperforms 76.67% 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 -44.28% in the last year.
- LEN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.33% yearly.
- The Revenue has decreased by -3.54% in the past year.
- LEN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.74% yearly.
EPS 1Y (TTM)-44.28%
EPS 3Y-20.53%
EPS 5Y0.33%
EPS Q2Q%-52.46%
Revenue 1Y (TTM)-3.54%
Revenue growth 3Y0.51%
Revenue growth 5Y8.74%
Sales Q2Q%-5.82%
3.2 Future
- The Earnings Per Share is expected to grow by 25.99% 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 Y-12.26%
EPS Next 2Y3.77%
EPS Next 3Y12.03%
EPS Next 5Y25.99%
Revenue Next Year-1.73%
Revenue Next 2Y1.62%
Revenue Next 3Y3.9%
Revenue Next 5Y7.26%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 14.00, the valuation of LEN can be described as correct.
- LEN's Price/Earnings ratio is in line with the industry average.
- LEN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
- LEN is valuated correctly with a Price/Forward Earnings ratio of 15.95.
- 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 25.98, LEN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14 | ||
| Fwd PE | 15.95 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LEN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.44 |
4.3 Compensation for Growth
- LEN's earnings are expected to grow with 12.03% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)42.59
EPS Next 2Y3.77%
EPS Next 3Y12.03%
5. Dividend
5.1 Amount
- LEN has a Yearly Dividend Yield of 1.74%.
- LEN's Dividend Yield is a higher than the industry average which is at 1.16.
- Compared to an average S&P500 Dividend Yield of 1.81, LEN has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
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 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
- 19.91% 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.
DP19.91%
EPS Next 2Y3.77%
EPS Next 3Y12.03%
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.
What is the valuation status for LEN stock?
ChartMill assigns a valuation rating of 3 / 10 to LENNAR CORP-A (LEN). This can be considered as Overvalued.
How profitable is LENNAR CORP-A (LEN) stock?
LENNAR CORP-A (LEN) has a profitability rating of 5 / 10.
How financially healthy is LENNAR CORP-A?
The financial health rating of LENNAR CORP-A (LEN) is 6 / 10.
Is the dividend of LENNAR CORP-A sustainable?
The dividend rating of LENNAR CORP-A (LEN) is 6 / 10 and the dividend payout ratio is 19.91%.