LENNAR CORP-A (LEN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LEN - US5260571048 - Common Stock
104.74 USD
-2.25 (-2.1%)
104.99 USD
+0.25 (+0.24%)
Taking everything into account, LEN scores 5 out of 10 in our fundamental rating. LEN was compared to 61 industry peers in the Household Durables industry. LEN has an average financial health and profitability rating. LEN is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year LEN was profitable.
In the past year LEN has reported a negative cash flow from operations.
Each year in the past 5 years LEN has been profitable.
LEN had a positive operating cash flow in 4 of the past 5 years.
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 has a Return On Invested Capital of 8.53%. This is in the better half of the industry: LEN outperforms 62.30% 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 9.73%.
| 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
The Profit Margin of LEN (7.64%) is better than 65.57% of its industry peers.
LEN's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 10.61%, LEN is in the better half of the industry, outperforming 68.85% of the companies in the same industry.
In the last couple of years the Operating Margin of LEN has declined.
LEN has a Gross Margin of 12.38%. This is amonst the worse of the industry: LEN underperforms 93.44% of its industry peers.
LEN's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LEN is still creating some value.
Compared to 1 year ago, LEN has less shares outstanding
The number of shares outstanding for LEN has been reduced compared to 5 years ago.
Compared to 1 year ago, LEN has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.05 indicates that LEN is not in any danger for bankruptcy at the moment.
LEN has a Altman-Z score of 4.05. This is in the better half of the industry: LEN outperforms 70.49% 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.
LEN's Debt to Equity ratio of 0.24 is fine compared to the rest of the industry. LEN outperforms 60.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.05 |
ROIC/WACC0.99
WACC8.64%
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
LEN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -44.28%.
Measured over the past 5 years, LEN shows a small growth in Earnings Per Share. The EPS has been growing by 0.33% on average per year.
LEN shows a decrease in Revenue. In the last year, the revenue decreased by -3.54%.
The Revenue has been growing by 8.74% on average over the past years. This is quite good.
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
Based on estimates for the next years, LEN will show a small growth in Revenue. The Revenue will grow by 7.26% on average per year.
EPS Next Y-3.89%
EPS Next 2Y9.36%
EPS Next 3Y16.99%
EPS Next 5Y25.99%
Revenue Next Year0.43%
Revenue Next 2Y-0.66%
Revenue Next 3Y4.69%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.11, LEN is valued correctly.
LEN's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.50, LEN is valued rather cheaply.
LEN is valuated correctly with a Price/Forward Earnings ratio of 13.64.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LEN is on the same level as its industry peers.
LEN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.93, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.11 | ||
| Fwd PE | 13.64 |
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 | 7.97 |
4.3 Compensation for Growth
A more expensive valuation may be justified as LEN's earnings are expected to grow with 16.99% in the coming years.
PEG (NY)N/A
PEG (5Y)39.89
EPS Next 2Y9.36%
EPS Next 3Y16.99%
5. Dividend
5.1 Amount
LEN has a Yearly Dividend Yield of 1.87%. 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 1.20.
Compared to an average S&P500 Dividend Yield of 1.87, LEN has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.87% |
5.2 History
The dividend of LEN is nicely growing with an annual growth rate of 65.54%!
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
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 2Y9.36%
EPS Next 3Y16.99%
104.74
-2.25 (-2.1%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners95.99%
Inst Owner Change-5.31%
Ins Owners1.2%
Ins Owner Change0.31%
Market Cap26.71B
Revenue(TTM)34.19B
Net Income(TTM)2.66B
Analysts68.7
Price TargetN/A
Short Float %16.83%
Short Ratio5.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.87% |
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)-0.36%
EPS NQ rev (3m)-19.82%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-4.56%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-12%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.11 | ||
| Fwd PE | 13.64 | ||
| P/S | 0.77 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.18 | ||
| P/tB | 1.41 | ||
| EV/EBITDA | 7.97 |
EPS(TTM)7.99
EY7.63%
EPS(NY)7.68
Fwd EY7.33%
FCF(TTM)-2.8
FCFYN/A
OCF(TTM)-2.23
OCFYN/A
SpS136.33
BVpS88.5
TBVpS74.26
PEG (NY)N/A
PEG (5Y)39.89
Graham Number126.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.62% | ||
| ROE | 11.77% | ||
| ROCE | 11.15% | ||
| ROIC | 8.53% | ||
| ROICexc | 8.99% | ||
| ROICexgc | 14.18% | ||
| OM | 10.61% | ||
| PM (TTM) | 7.64% | ||
| GM | 12.38% | ||
| FCFM | N/A |
ROA(3y)10.3%
ROA(5y)11.22%
ROE(3y)15.58%
ROE(5y)17.34%
ROIC(3y)10.18%
ROIC(5y)11.88%
ROICexc(3y)11.92%
ROICexc(5y)13.71%
ROICexgc(3y)18.83%
ROICexgc(5y)18.96%
ROCE(3y)13.3%
ROCE(5y)15.53%
ROICexgc growth 3Y-1.59%
ROICexgc growth 5Y11.09%
ROICexc growth 3Y-22.05%
ROICexc growth 5Y-3.19%
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%
F-Score4
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 | 4.05 |
F-Score4
WACC8.64%
ROIC/WACC0.99
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-44.28%
EPS 3Y-20.53%
EPS 5Y0.33%
EPS Q2Q%-52.46%
EPS Next Y-3.89%
EPS Next 2Y9.36%
EPS Next 3Y16.99%
EPS Next 5Y25.99%
Revenue 1Y (TTM)-3.54%
Revenue growth 3Y0.51%
Revenue growth 5Y8.74%
Sales Q2Q%-5.82%
Revenue Next Year0.43%
Revenue Next 2Y-0.66%
Revenue Next 3Y4.69%
Revenue Next 5Y7.26%
EBIT growth 1Y-34.32%
EBIT growth 3Y-22.28%
EBIT growth 5Y-0.86%
EBIT Next Year2.99%
EBIT Next 3Y21.96%
EBIT Next 5Y18.06%
FCF growth 1Y-118.56%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-114.14%
OCF growth 3YN/A
OCF growth 5YN/A
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 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.
Can you provide the PE and PB ratios for LEN stock?
The Price/Earnings (PE) ratio for LENNAR CORP-A (LEN) is 13.11 and the Price/Book (PB) ratio is 1.18.
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 -3.89% in the next year.