LENNAR CORP-A (LEN) Stock Fundamental Analysis
NYSE:LEN - New York Stock Exchange, Inc. - US5260571048 - Common Stock - Currency: USD
LEN gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 64 industry peers in the Household Durables industry. Both the health and profitability get an excellent rating, making LEN a very profitable company, without any liquidiy or solvency issues. LEN has a decent growth rate and is not valued too expensively. These ratings would make LEN suitable for quality 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 each of the past 5 years.
In the past 5 years LEN always reported a positive cash flow from operatings.
1.2 Ratios
LEN has a better Return On Assets (10.56%) than 76.56% of its industry peers.
LEN has a Return On Equity of 16.26%. This is in the better half of the industry: LEN outperforms 68.75% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.43%, LEN is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for LEN is in line with the industry average of 12.31%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.56% | ||
| ROE | 16.26% | ||
| ROIC | 11.43% |
ROA(3y)10.45%
ROA(5y)10.53%
ROE(3y)15.85%
ROE(5y)16.42%
ROIC(3y)12.52%
ROIC(5y)11.96%
1.3 Margins
With a decent Profit Margin value of 10.34%, LEN is doing good in the industry, outperforming 79.69% of the companies in the same industry.
LEN's Profit Margin has improved in the last couple of years.
LEN's Operating Margin of 13.74% is fine compared to the rest of the industry. LEN outperforms 78.13% of its industry peers.
In the last couple of years the Operating Margin of LEN has grown nicely.
The Gross Margin of LEN (15.21%) is worse than 93.75% of its industry peers.
LEN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.74% | ||
| PM (TTM) | 10.34% | ||
| GM | 15.21% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LEN is still creating some value.
LEN has less shares outstanding than it did 1 year ago.
LEN has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, LEN has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.24 indicates that LEN is not in any danger for bankruptcy at the moment.
LEN's Altman-Z score of 4.24 is fine compared to the rest of the industry. LEN outperforms 70.31% of its industry peers.
LEN has a debt to FCF ratio of 2.27. This is a good value and a sign of high solvency as LEN would need 2.27 years to pay back of all of its debts.
LEN has a Debt to FCF ratio of 2.27. This is in the better half of the industry: LEN outperforms 70.31% of its industry peers.
LEN has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.16, LEN is doing good in the industry, outperforming 70.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 2.27 | ||
| Altman-Z | 4.24 |
ROIC/WACC1.42
WACC8.03%
2.3 Liquidity
A Current Ratio of 8.37 indicates that LEN has no problem at all paying its short term obligations.
The Current ratio of LEN (8.37) is better than 85.94% of its industry peers.
A Quick Ratio of 1.84 indicates that LEN should not have too much problems paying its short term obligations.
LEN has a better Quick ratio (1.84) than 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.37 | ||
| Quick Ratio | 1.84 |
3. Growth
3.1 Past
LEN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.78%.
Measured over the past years, LEN shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.01% on average per year.
Looking at the last year, LEN shows a small growth in Revenue. The Revenue has grown by 2.01% in the last year.
The Revenue has been growing by 9.75% on average over the past years. This is quite good.
EPS 1Y (TTM)-3.78%
EPS 3Y3.67%
EPS 5Y20.01%
EPS Q2Q%-23.74%
Revenue 1Y (TTM)2.01%
Revenue growth 3Y9.32%
Revenue growth 5Y9.75%
Sales Q2Q%4.36%
3.2 Future
The Earnings Per Share is expected to grow by 10.67% on average over the next years. This is quite good.
Based on estimates for the next years, LEN will show a small growth in Revenue. The Revenue will grow by 5.72% on average per year.
EPS Next Y-27.49%
EPS Next 2Y-7.5%
EPS Next 3Y3.23%
EPS Next 5Y10.67%
Revenue Next Year0.93%
Revenue Next 2Y2.79%
Revenue Next 3Y4.52%
Revenue Next 5Y5.72%
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.
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
With a Price/Earnings ratio of 7.55, the valuation of LEN can be described as very cheap.
62.50% of the companies in the same industry are more expensive than LEN, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of LEN to the average of the S&P500 Index (28.29), we can say LEN is valued rather cheaply.
The Price/Forward Earnings ratio is 8.45, which indicates a very decent valuation of LEN.
Based on the Price/Forward Earnings ratio, LEN is valued a bit cheaper than 65.63% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.32, LEN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.55 | ||
| Fwd PE | 8.45 |
4.2 Price Multiples
71.88% of the companies in the same industry are more expensive than LEN, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as LEN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.19 | ||
| EV/EBITDA | 5.71 |
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)0.38
EPS Next 2Y-7.5%
EPS Next 3Y3.23%
5. Dividend
5.1 Amount
LEN has a Yearly Dividend Yield of 1.91%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of LEN has falen by -21.65%. 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 3.73, LEN pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.51, LEN is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
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 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
LEN pays out 14.64% 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.
DP14.64%
EPS Next 2Y-7.5%
EPS Next 3Y3.23%
103.71
-1.02 (-0.97%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners96.41%
Inst Owner Change0.29%
Ins Owners1.77%
Ins Owner Change3.62%
Market Cap27.36B
Analysts68.8
Price Target145.42 (40.22%)
Short Float %3.94%
Short Ratio2.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
Yearly Dividend2
Dividend Growth(5Y)65.54%
DP14.64%
Div Incr Years1
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.28%
Min EPS beat(2)-3.31%
Max EPS beat(2)11.86%
EPS beat(4)3
Avg EPS beat(4)7.52%
Min EPS beat(4)-3.31%
Max EPS beat(4)16.11%
EPS beat(8)7
Avg EPS beat(8)10.85%
EPS beat(12)10
Avg EPS beat(12)10.69%
EPS beat(16)12
Avg EPS beat(16)7.75%
Revenue beat(2)1
Avg Revenue beat(2)-0.33%
Min Revenue beat(2)-2.32%
Max Revenue beat(2)1.66%
Revenue beat(4)3
Avg Revenue beat(4)0.71%
Min Revenue beat(4)-2.32%
Max Revenue beat(4)1.88%
Revenue beat(8)6
Avg Revenue beat(8)2.52%
Revenue beat(12)8
Avg Revenue beat(12)2.42%
Revenue beat(16)12
Avg Revenue beat(16)2.39%
PT rev (1m)-7.38%
PT rev (3m)-17.46%
EPS NQ rev (1m)-26.84%
EPS NQ rev (3m)-47.8%
EPS NY rev (1m)-16.54%
EPS NY rev (3m)-34.59%
Revenue NQ rev (1m)-5.81%
Revenue NQ rev (3m)-12.51%
Revenue NY rev (1m)-3.66%
Revenue NY rev (3m)-3.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.55 | ||
| Fwd PE | 8.45 | ||
| P/S | 0.77 | ||
| P/FCF | 17.19 | ||
| P/OCF | 15.66 | ||
| P/B | 1.2 | ||
| P/tB | 1.43 | ||
| EV/EBITDA | 5.71 |
EPS(TTM)13.73
EY13.24%
EPS(NY)12.27
Fwd EY11.83%
FCF(TTM)6.03
FCFY5.82%
OCF(TTM)6.62
OCFY6.38%
SpS135.56
BVpS86.16
TBVpS72.39
PEG (NY)N/A
PEG (5Y)0.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.56% | ||
| ROE | 16.26% | ||
| ROCE | 14.98% | ||
| ROIC | 11.43% | ||
| ROICexc | 12.38% | ||
| ROICexgc | 18.99% | ||
| OM | 13.74% | ||
| PM (TTM) | 10.34% | ||
| GM | 15.21% | ||
| FCFM | 4.45% |
ROA(3y)10.45%
ROA(5y)10.53%
ROE(3y)15.85%
ROE(5y)16.42%
ROIC(3y)12.52%
ROIC(5y)11.96%
ROICexc(3y)14.71%
ROICexc(5y)13.75%
ROICexgc(3y)18.6%
ROICexgc(5y)16.93%
ROCE(3y)16.4%
ROCE(5y)15.67%
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-Score6
Asset Turnover1.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 2.27 | ||
| Debt/EBITDA | 0.72 | ||
| Cap/Depr | 129.15% | ||
| Cap/Sales | 0.43% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 34.71% | ||
| Profit Quality | 43.07% | ||
| Current Ratio | 8.37 | ||
| Quick Ratio | 1.84 | ||
| Altman-Z | 4.24 |
F-Score6
WACC8.03%
ROIC/WACC1.42
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)-3.78%
EPS 3Y3.67%
EPS 5Y20.01%
EPS Q2Q%-23.74%
EPS Next Y-27.49%
EPS Next 2Y-7.5%
EPS Next 3Y3.23%
EPS Next 5Y10.67%
Revenue 1Y (TTM)2.01%
Revenue growth 3Y9.32%
Revenue growth 5Y9.75%
Sales Q2Q%4.36%
Revenue Next Year0.93%
Revenue Next 2Y2.79%
Revenue Next 3Y4.52%
Revenue Next 5Y5.72%
EBIT growth 1Y-14.59%
EBIT growth 3Y-1.69%
EBIT growth 5Y12.56%
EBIT Next Year-24.81%
EBIT Next 3Y0.46%
EBIT Next 5Y5.82%
FCF growth 1Y-62.63%
FCF growth 3Y-3.29%
FCF growth 5Y9.84%
OCF growth 1Y-59.54%
OCF growth 3Y-1.73%
OCF growth 5Y10.15%