LENNAR CORP-A (LEN)
US5260571048 - Common Stock
Taking everything into account, LEN scores 7 out of 10 in our fundamental rating. LEN was compared to 66 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. With these ratings, LEN could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year LEN was profitable.
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.
1.2 Ratios
The Return On Assets of LEN (10.45%) is better than 78.13% of its industry peers.
LEN has a better Return On Equity (15.15%) than 65.63% of its industry peers.
LEN has a better Return On Invested Capital (11.42%) than 65.63% 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 11.80%.
| Industry Rank | Sector 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%
1.3 Margins
LEN has a Profit Margin of 11.39%. This is amongst the best in the industry. LEN outperforms 81.25% of its industry peers.
In the last couple of years the Profit Margin of LEN has grown nicely.
The Operating Margin of LEN (15.41%) is better than 81.25% of its industry peers.
In the last couple of years the Operating Margin of LEN has grown nicely.
LEN has a worse Gross Margin (16.96%) than 92.19% of its industry peers.
LEN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector 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%
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 no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 4.82 indicates that LEN is not in any danger for bankruptcy at the moment.
LEN has a Altman-Z score of 4.82. This is in the better half of the industry: LEN outperforms 75.00% of its industry peers.
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.
The Debt to FCF ratio of LEN (0.99) is better than 76.56% of its industry peers.
LEN has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
LEN's Debt to Equity ratio of 0.14 is fine compared to the rest of the industry. LEN outperforms 73.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.99 | ||
| Altman-Z | 4.82 |
ROIC/WACC1.36
WACC8.41%
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 95.31% 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.
With an excellent Quick ratio value of 2.87, LEN belongs to the best of the industry, outperforming 95.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 13.08 | ||
| Quick Ratio | 2.87 |
3. Growth
3.1 Past
LEN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.00%.
LEN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.96% yearly.
EPS 1Y (TTM)4%
EPS 3Y3.6%
EPS 5Y19.96%
EPS Q2Q%-16.39%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-9.31%
3.2 Future
The Earnings Per Share is expected to grow by 13.07% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.51% on average over the next years.
EPS Next Y11.09%
EPS Next 2Y12.26%
EPS Next 3Y15.71%
EPS Next 5Y13.07%
Revenue Next Year7.97%
Revenue Next 2Y7.24%
Revenue Next 3Y7.98%
Revenue Next 5Y6.51%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 9.65, the valuation of LEN can be described as reasonable.
LEN's Price/Earnings ratio is a bit cheaper when compared to the industry. LEN is cheaper than 65.63% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.73, LEN is valued rather cheaply.
LEN is valuated reasonably with a Price/Forward Earnings ratio of 8.69.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LEN indicates a somewhat cheap valuation: LEN is cheaper than 70.31% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.83. LEN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.65 | ||
| Fwd PE | 8.69 |
4.2 Price Multiples
81.25% of the companies in the same industry are more expensive than LEN, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, LEN is valued cheaper than 85.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.75 | ||
| EV/EBITDA | 6.47 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
LEN has a very decent profitability rating, which may justify a higher PE ratio.
LEN's earnings are expected to grow with 15.71% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.87
PEG (5Y)0.48
EPS Next 2Y12.26%
EPS Next 3Y15.71%
5. Dividend
5.1 Amount
LEN has a Yearly Dividend Yield of 1.45%.
In the last 3 months the price of LEN has falen by -24.21%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 2.76, LEN pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.24, LEN is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
5.2 History
The dividend of LEN is nicely growing with an annual growth rate of 54.01%!
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)54.01%
Div Incr Years1
Div Non Decr Years15
5.3 Sustainability
LEN pays out 12.50% 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.
DP12.5%
EPS Next 2Y12.26%
EPS Next 3Y15.71%
LENNAR CORP-A
NYSE:LEN (12/20/2024, 8:22:03 PM)
After market: 138.15 +0.07 (+0.05%)138.08
-0.32 (-0.23%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners95.98%
Inst Owner Change-2.33%
Ins Owners1.64%
Ins Owner Change-0.6%
Market Cap37.45B
Analysts72
Price Target203.46 (47.35%)
Short Float %2.51%
Short Ratio2.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
Dividend Growth(5Y)54.01%
DP12.5%
Div Incr Years1
Div Non Decr Years15
Ex-Date
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)-0.33%
PT rev (3m)10.08%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)-10.84%
EPS NY rev (1m)0.15%
EPS NY rev (3m)0.75%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)-1.76%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.65 | ||
| Fwd PE | 8.69 | ||
| P/S | 1.03 | ||
| P/FCF | 9.75 | ||
| P/OCF | 9.32 | ||
| P/B | 1.37 | ||
| P/tB | 1.57 | ||
| EV/EBITDA | 6.47 |
EPS(TTM)14.31
EY10.36%
EPS(NY)15.9
Fwd EY11.51%
FCF(TTM)14.16
FCFY10.26%
OCF(TTM)14.81
OCFY10.73%
SpS134.43
BVpS101.06
TBVpS87.67
PEG (NY)0.87
PEG (5Y)0.48
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 4.82 |
F-Score6
WACC8.41%
ROIC/WACC1.36
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%
EPS 3Y3.6%
EPS 5Y19.96%
EPS Q2Q%-16.39%
EPS Next Y11.09%
EPS Next 2Y12.26%
EPS Next 3Y15.71%
EPS Next 5Y13.07%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-9.31%
Revenue Next Year7.97%
Revenue Next 2Y7.24%
Revenue Next 3Y7.98%
Revenue Next 5Y6.51%
EBIT growth 1Y-0.59%
EBIT growth 3Y17.79%
EBIT growth 5Y18.14%
EBIT Next Year3.59%
EBIT Next 3Y6.67%
EBIT Next 5Y7.87%
FCF growth 1Y123.47%
FCF growth 3Y7.25%
FCF growth 5Y26.61%
OCF growth 1Y126.77%
OCF growth 3Y7.32%
OCF growth 5Y25.08%