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LENNAR CORP-A (LEN) Stock Fundamental Analysis

NYSE:LEN - New York Stock Exchange, Inc. - US5260571048 - Common Stock - Currency: USD

120.57  -2.12 (-1.73%)

After market: 120.31 -0.26 (-0.22%)

Fundamental Rating

6

LEN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 67 industry peers in the Household Durables industry. LEN gets an excellent profitability rating and is at the same time showing great financial health properties. LEN is cheap, but on the other hand it scores bad on growth. These ratings would make LEN suitable for value investing!


Dividend Valuation Growth Profitability Health

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7

1. Profitability

1.1 Basic Checks

LEN had positive earnings in the past year.
In the past year LEN had a positive cash flow from operations.
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.
LEN Yearly Net Income VS EBIT VS OCF VS FCFLEN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 2B 4B 6B

1.2 Ratios

LEN has a better Return On Assets (10.45%) than 78.46% of its industry peers.
With a decent Return On Equity value of 15.15%, LEN is doing good in the industry, outperforming 66.15% of the companies in the same industry.
LEN has a better Return On Invested Capital (11.42%) than 66.15% 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 12.03%.
Industry RankSector Rank
ROA 10.45%
ROE 15.15%
ROIC 11.42%
ROA(3y)11.7%
ROA(5y)9.9%
ROE(3y)18.2%
ROE(5y)15.92%
ROIC(3y)13.43%
ROIC(5y)11.46%
LEN Yearly ROA, ROE, ROICLEN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15 20

1.3 Margins

With an excellent Profit Margin value of 11.39%, LEN belongs to the best of the industry, outperforming 81.54% of the companies in the same industry.
In the last couple of years the Profit Margin of LEN has grown nicely.
With an excellent Operating Margin value of 15.41%, LEN belongs to the best of the industry, outperforming 81.54% of the companies in the same industry.
LEN's Operating Margin has improved in the last couple of years.
LEN has a worse Gross Margin (16.96%) than 92.31% of its industry peers.
In the last couple of years the Gross Margin of LEN has grown nicely.
Industry RankSector Rank
OM 15.41%
PM (TTM) 11.39%
GM 16.96%
OM growth 3Y2.4%
OM growth 5Y6.7%
PM growth 3Y1.6%
PM growth 5Y6.82%
GM growth 3Y2.02%
GM growth 5Y7.08%
LEN Yearly Profit, Operating, Gross MarginsLEN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15 20

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8

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.
LEN Yearly Shares OutstandingLEN Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M
LEN Yearly Total Debt VS Total AssetsLEN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 10B 20B 30B

2.2 Solvency

An Altman-Z score of 4.58 indicates that LEN is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.58, LEN is doing good in the industry, outperforming 70.77% of the companies in the same industry.
LEN has a debt to FCF ratio of 0.99. This is a very positive value and a sign of high solvency as it would only need 0.99 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.99, LEN is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
A Debt/Equity ratio of 0.14 indicates that LEN is not too dependend on debt financing.
LEN has a better Debt to Equity ratio (0.14) than 70.77% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.14
Debt/FCF 0.99
Altman-Z 4.58
ROIC/WACC1.33
WACC8.6%
LEN Yearly LT Debt VS Equity VS FCFLEN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5B 10B 15B 20B 25B

2.3 Liquidity

LEN has a Current Ratio of 13.08. This indicates that LEN is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 13.08, LEN belongs to the best of the industry, outperforming 95.38% of the companies in the same industry.
LEN has a Quick Ratio of 2.87. This indicates that LEN is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of LEN (2.87) is better than 95.38% of its industry peers.
Industry RankSector Rank
Current Ratio 13.08
Quick Ratio 2.87
LEN Yearly Current Assets VS Current LiabilitesLEN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B 15B 20B 25B

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3

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 4.22% over the past year.
LEN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.01% yearly.
EPS 1Y (TTM)4.22%
EPS 3Y3.67%
EPS 5Y20.01%
EPS Q2Q%-15.77%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-9.31%

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 11.96% yearly.
LEN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.56% yearly.
EPS Next Y-13.05%
EPS Next 2Y2.62%
EPS Next 3Y5.14%
EPS Next 5Y11.96%
Revenue Next Year5.02%
Revenue Next 2Y5.4%
Revenue Next 3Y4.99%
Revenue Next 5Y6.56%

3.3 Evolution

The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
LEN Yearly Revenue VS EstimatesLEN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 10B 20B 30B 40B 50B
LEN Yearly EPS VS EstimatesLEN Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 5 10 15 20 25

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7

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 8.41, the valuation of LEN can be described as very reasonable.
Based on the Price/Earnings ratio, LEN is valued a bit cheaper than 73.85% of the companies in the same industry.
When comparing the Price/Earnings ratio of LEN to the average of the S&P500 Index (29.63), we can say LEN is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.67, the valuation of LEN can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LEN indicates a somewhat cheap valuation: LEN is cheaper than 61.54% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of LEN to the average of the S&P500 Index (22.68), we can say LEN is valued rather cheaply.
Industry RankSector Rank
PE 8.41
Fwd PE 9.67
LEN Price Earnings VS Forward Price EarningsLEN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

LEN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. LEN is cheaper than 87.69% of the companies in the same industry.
89.23% of the companies in the same industry are more expensive than LEN, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 8.33
EV/EBITDA 5.61
LEN Per share dataLEN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80 100

4.3 Compensation for Growth

LEN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.42
EPS Next 2Y2.62%
EPS Next 3Y5.14%

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6

5. Dividend

5.1 Amount

LEN has a Yearly Dividend Yield of 1.62%.
In the last 3 months the price of LEN has falen by -28.73%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
LEN's Dividend Yield is a higher than the industry average which is at 3.05.
LEN's Dividend Yield is slightly below the S&P500 average, which is at 2.29.
Industry RankSector Rank
Dividend Yield 1.62%

5.2 History

On average, the dividend of LEN grows each year by 54.01%, 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)54.01%
Div Incr Years1
Div Non Decr Years15
LEN Yearly Dividends per shareLEN Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5

5.3 Sustainability

LEN pays out 12.50% 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.
DP12.5%
EPS Next 2Y2.62%
EPS Next 3Y5.14%
LEN Yearly Income VS Free CF VS DividendLEN Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B 2B 3B 4B 5B
LEN Dividend Payout.LEN Dividend Payout, showing the Payout Ratio.LEN Dividend Payout.PayoutRetained Earnings

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LENNAR CORP-A

NYSE:LEN (2/21/2025, 6:40:00 PM)

After market: 120.31 -0.26 (-0.22%)

120.57

-2.12 (-1.73%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)12-18 2024-12-18/amc
Earnings (Next)03-12 2025-03-12/amc
Inst Owners95.98%
Inst Owner Change1.74%
Ins Owners1.64%
Ins Owner Change8.92%
Market Cap32.01B
Analysts68.8
Price Target164.81 (36.69%)
Short Float %3.46%
Short Ratio2.3
Dividend
Industry RankSector Rank
Dividend Yield 1.62%
Yearly Dividend1.51
Dividend Growth(5Y)54.01%
DP12.5%
Div Incr Years1
Div Non Decr Years15
Ex-Date01-29 2025-01-29 (0.5)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.76%
Min EPS beat(2)5.41%
Max EPS beat(2)16.11%
EPS beat(4)4
Avg EPS beat(4)10.24%
Min EPS beat(4)3.9%
Max EPS beat(4)16.11%
EPS beat(8)7
Avg EPS beat(8)12.75%
EPS beat(12)9
Avg EPS beat(12)6.46%
EPS beat(16)13
Avg EPS beat(16)9.45%
Revenue beat(2)2
Avg Revenue beat(2)1.75%
Min Revenue beat(2)1.63%
Max Revenue beat(2)1.88%
Revenue beat(4)3
Avg Revenue beat(4)1.92%
Min Revenue beat(4)-2%
Max Revenue beat(4)6.19%
Revenue beat(8)6
Avg Revenue beat(8)3.62%
Revenue beat(12)9
Avg Revenue beat(12)2.6%
Revenue beat(16)13
Avg Revenue beat(16)2.69%
PT rev (1m)-6.46%
PT rev (3m)-19.27%
EPS NQ rev (1m)-1.18%
EPS NQ rev (3m)-1.15%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)0.03%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.04%
Valuation
Industry RankSector Rank
PE 8.41
Fwd PE 9.67
P/S 0.88
P/FCF 8.33
P/OCF 7.97
P/B 1.17
P/tB 1.35
EV/EBITDA 5.61
EPS(TTM)14.34
EY11.89%
EPS(NY)12.47
Fwd EY10.34%
FCF(TTM)14.47
FCFY12%
OCF(TTM)15.13
OCFY12.55%
SpS137.33
BVpS103.24
TBVpS89.56
PEG (NY)N/A
PEG (5Y)0.42
Profitability
Industry RankSector Rank
ROA 10.45%
ROE 15.15%
ROCE 14.89%
ROIC 11.42%
ROICexc 12.88%
ROICexgc 17.14%
OM 15.41%
PM (TTM) 11.39%
GM 16.96%
FCFM 10.54%
ROA(3y)11.7%
ROA(5y)9.9%
ROE(3y)18.2%
ROE(5y)15.92%
ROIC(3y)13.43%
ROIC(5y)11.46%
ROICexc(3y)15.55%
ROICexc(5y)13.02%
ROICexgc(3y)18.69%
ROICexgc(5y)15.61%
ROCE(3y)17.51%
ROCE(5y)14.95%
ROICexcg growth 3Y16.76%
ROICexcg growth 5Y16.27%
ROICexc growth 3Y13.54%
ROICexc growth 5Y15.36%
OM growth 3Y2.4%
OM growth 5Y6.7%
PM growth 3Y1.6%
PM growth 5Y6.82%
GM growth 3Y2.02%
GM growth 5Y7.08%
F-Score6
Asset Turnover0.92
Health
Industry RankSector Rank
Debt/Equity 0.14
Debt/FCF 0.99
Debt/EBITDA 0.66
Cap/Depr 154.49%
Cap/Sales 0.48%
Interest Coverage 250
Cash Conversion 70.11%
Profit Quality 92.49%
Current Ratio 13.08
Quick Ratio 2.87
Altman-Z 4.58
F-Score6
WACC8.6%
ROIC/WACC1.33
Cap/Depr(3y)77.37%
Cap/Depr(5y)80.58%
Cap/Sales(3y)0.23%
Cap/Sales(5y)0.28%
Profit Quality(3y)85.76%
Profit Quality(5y)100.49%
High Growth Momentum
Growth
EPS 1Y (TTM)4.22%
EPS 3Y3.67%
EPS 5Y20.01%
EPS Q2Q%-15.77%
EPS Next Y-13.05%
EPS Next 2Y2.62%
EPS Next 3Y5.14%
EPS Next 5Y11.96%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-9.31%
Revenue Next Year5.02%
Revenue Next 2Y5.4%
Revenue Next 3Y4.99%
Revenue Next 5Y6.56%
EBIT growth 1Y-0.59%
EBIT growth 3Y17.79%
EBIT growth 5Y18.14%
EBIT Next Year2.92%
EBIT Next 3Y0.39%
EBIT Next 5Y6.47%
FCF growth 1Y123.47%
FCF growth 3Y7.25%
FCF growth 5Y26.61%
OCF growth 1Y126.77%
OCF growth 3Y7.32%
OCF growth 5Y25.08%