LENNAR CORP-A (LEN) Stock Fundamental Analysis
USA - NYSE:LEN - US5260571048 - Common Stock
137.27 USD
-2.82 (-2.01%)
137.898 USD
+0.63 (+0.46%)
LEN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 63 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 has a correct valuation and a medium growth rate.
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.
In the past 5 years LEN has always been profitable.
In the past 5 years LEN always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of LEN (9.38%) is better than 74.60% of its industry peers.
LEN has a Return On Equity of 14.28%. This is in the better half of the industry: LEN outperforms 66.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.16%, LEN is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for LEN is above the industry average of 10.51%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.38% | ||
| ROE | 14.28% | ||
| ROIC | 10.16% |
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
LEN's Profit Margin of 9.11% is fine compared to the rest of the industry. LEN outperforms 76.19% of its industry peers.
In the last couple of years the Profit Margin of LEN has grown nicely.
LEN has a better Operating Margin (12.14%) than 77.78% of its industry peers.
LEN's Operating Margin has improved in the last couple of years.
LEN has a worse Gross Margin (13.73%) than 93.65% of its industry peers.
LEN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.14% | ||
| PM (TTM) | 9.11% | ||
| GM | 13.73% |
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.
The number of shares outstanding for LEN has been reduced compared to 1 year ago.
The number of shares outstanding for LEN has been reduced compared to 5 years ago.
The debt/assets ratio for LEN has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.66 indicates that LEN is not in any danger for bankruptcy at the moment.
LEN has a better Altman-Z score (4.66) than 77.78% of its industry peers.
LEN has a debt to FCF ratio of 15.73. This is a negative value and a sign of low solvency as LEN would need 15.73 years to pay back of all of its debts.
LEN's Debt to FCF ratio of 15.73 is in line compared to the rest of the industry. LEN outperforms 49.21% of its industry peers.
LEN has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
LEN has a better Debt to Equity ratio (0.19) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 15.73 | ||
| Altman-Z | 4.66 |
ROIC/WACC1.22
WACC8.34%
2.3 Liquidity
LEN has a Current Ratio of 7.62. This indicates that LEN is financially healthy and has no problem in meeting its short term obligations.
LEN's Current ratio of 7.62 is amongst the best of the industry. LEN outperforms 82.54% of its industry peers.
A Quick Ratio of 1.02 indicates that LEN should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.02, LEN is in line with its industry, outperforming 49.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.62 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
LEN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -17.81%.
The Earnings Per Share has been growing by 20.01% on average over the past years. This is a very strong growth
Looking at the last year, LEN shows a decrease in Revenue. The Revenue has decreased by -1.13% in the last year.
Measured over the past years, LEN shows a quite strong growth in Revenue. The Revenue has been growing by 9.75% on average per year.
EPS 1Y (TTM)-17.81%
EPS 3Y3.67%
EPS 5Y20.01%
EPS Q2Q%-47.54%
Revenue 1Y (TTM)-1.13%
Revenue growth 3Y9.32%
Revenue growth 5Y9.75%
Sales Q2Q%-4.43%
3.2 Future
The Earnings Per Share is expected to grow by 9.89% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.30% on average over the next years.
EPS Next Y-38.74%
EPS Next 2Y-16.63%
EPS Next 3Y-3.13%
EPS Next 5Y9.89%
Revenue Next Year-1.15%
Revenue Next 2Y0.34%
Revenue Next 3Y2.18%
Revenue Next 5Y5.3%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.35, which indicates a very decent valuation of LEN.
Based on the Price/Earnings ratio, LEN is valued a bit cheaper than the industry average as 61.90% of the companies are valued more expensively.
LEN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
LEN is valuated correctly with a Price/Forward Earnings ratio of 13.77.
LEN's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of LEN to the average of the S&P500 Index (22.73), we can say LEN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.35 | ||
| Fwd PE | 13.77 |
4.2 Price Multiples
LEN's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as LEN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 127.59 | ||
| EV/EBITDA | 8.94 |
4.3 Compensation for Growth
LEN has a very decent profitability rating, which may justify a higher PE ratio.
LEN's earnings are expected to decrease with -3.13% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.57
EPS Next 2Y-16.63%
EPS Next 3Y-3.13%
5. Dividend
5.1 Amount
LEN has a Yearly Dividend Yield of 1.43%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.72, LEN pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, LEN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
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
16.62% of the earnings are spent on dividend by LEN. This is a low number and sustainable payout ratio.
The dividend of LEN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP16.62%
EPS Next 2Y-16.63%
EPS Next 3Y-3.13%
137.27
-2.82 (-2.01%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners98.63%
Inst Owner Change3.08%
Ins Owners1.79%
Ins Owner Change1.05%
Market Cap35.55B
Analysts69.17
Price Target128.77 (-6.19%)
Short Float %5.89%
Short Ratio3.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
Yearly Dividend2
Dividend Growth(5Y)65.54%
DP16.62%
Div Incr Years1
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.08%
Min EPS beat(2)-7.71%
Max EPS beat(2)11.86%
EPS beat(4)2
Avg EPS beat(4)4.24%
Min EPS beat(4)-7.71%
Max EPS beat(4)16.11%
EPS beat(8)6
Avg EPS beat(8)6.35%
EPS beat(12)9
Avg EPS beat(12)9.02%
EPS beat(16)11
Avg EPS beat(16)7.19%
Revenue beat(2)2
Avg Revenue beat(2)1.66%
Min Revenue beat(2)1.66%
Max Revenue beat(2)1.66%
Revenue beat(4)3
Avg Revenue beat(4)0.66%
Min Revenue beat(4)-2.32%
Max Revenue beat(4)1.66%
Revenue beat(8)6
Avg Revenue beat(8)1.37%
Revenue beat(12)8
Avg Revenue beat(12)2.36%
Revenue beat(16)12
Avg Revenue beat(16)2.02%
PT rev (1m)-3.9%
PT rev (3m)-12.5%
EPS NQ rev (1m)-0.06%
EPS NQ rev (3m)-24.9%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)-14.94%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.82%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.35 | ||
| Fwd PE | 13.77 | ||
| P/S | 1.01 | ||
| P/FCF | 127.59 | ||
| P/OCF | 86.78 | ||
| P/B | 1.57 | ||
| P/tB | 1.86 | ||
| EV/EBITDA | 8.94 |
EPS(TTM)12.09
EY8.81%
EPS(NY)9.97
Fwd EY7.26%
FCF(TTM)1.08
FCFY0.78%
OCF(TTM)1.58
OCFY1.15%
SpS136.57
BVpS87.17
TBVpS73.88
PEG (NY)N/A
PEG (5Y)0.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.38% | ||
| ROE | 14.28% | ||
| ROCE | 13.31% | ||
| ROIC | 10.16% | ||
| ROICexc | 10.54% | ||
| ROICexgc | 20.97% | ||
| OM | 12.14% | ||
| PM (TTM) | 9.11% | ||
| GM | 13.73% | ||
| FCFM | 0.79% |
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%
ROICexcg growth 3Y-0.73%
ROICexcg 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-Score4
Asset Turnover1.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 15.73 | ||
| Debt/EBITDA | 0.99 | ||
| Cap/Depr | 104.87% | ||
| Cap/Sales | 0.37% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 9.27% | ||
| Profit Quality | 8.64% | ||
| Current Ratio | 7.62 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z | 4.66 |
F-Score4
WACC8.34%
ROIC/WACC1.22
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)-17.81%
EPS 3Y3.67%
EPS 5Y20.01%
EPS Q2Q%-47.54%
EPS Next Y-38.74%
EPS Next 2Y-16.63%
EPS Next 3Y-3.13%
EPS Next 5Y9.89%
Revenue 1Y (TTM)-1.13%
Revenue growth 3Y9.32%
Revenue growth 5Y9.75%
Sales Q2Q%-4.43%
Revenue Next Year-1.15%
Revenue Next 2Y0.34%
Revenue Next 3Y2.18%
Revenue Next 5Y5.3%
EBIT growth 1Y-26.49%
EBIT growth 3Y-1.69%
EBIT growth 5Y12.56%
EBIT Next Year-36.3%
EBIT Next 3Y-7.33%
EBIT Next 5Y4.38%
FCF growth 1Y-94.16%
FCF growth 3Y-3.29%
FCF growth 5Y9.84%
OCF growth 1Y-91.56%
OCF growth 3Y-1.73%
OCF growth 5Y10.15%