LENNAR CORP-A (LEN) Stock Fundamental Analysis
USA - NYSE:LEN - US5260571048 - Common Stock
121.11 USD
-0.13 (-0.11%)
121.42 USD
+0.31 (+0.26%)
We assign a fundamental rating of 6 out of 10 to LEN. LEN was compared to 61 industry peers in the Household Durables industry. While LEN belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. LEN has a correct valuation and a medium 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.
In the past 5 years LEN has always been profitable.
Each year in the past 5 years LEN had a positive operating cash flow.
1.2 Ratios
LEN has a better Return On Assets (7.62%) than 68.85% of its industry peers.
LEN has a Return On Equity (11.77%) which is in line with its industry peers.
The Return On Invested Capital of LEN (8.51%) is better than 60.66% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LEN is above the industry average of 9.86%.
The 3 year average ROIC (12.81%) for LEN is well above the current ROIC(8.51%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.62% | ||
| ROE | 11.77% | ||
| ROIC | 8.51% |
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
Looking at the Profit Margin, with a value of 7.64%, LEN is in the better half of the industry, outperforming 65.57% of the companies in the same industry.
LEN's Profit Margin has improved 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 70.49% 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 (12.38%) than 93.44% of its industry peers.
In the last couple of years the Gross Margin of LEN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.61% | ||
| PM (TTM) | 7.64% | ||
| GM | 12.38% |
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.
LEN has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, LEN has less shares outstanding
LEN has a better debt/assets ratio than last year.
2.2 Solvency
LEN has an Altman-Z score of 4.26. This indicates that LEN is financially healthy and has little risk of bankruptcy at the moment.
LEN's Altman-Z score of 4.26 is fine compared to the rest of the industry. LEN outperforms 75.41% of its industry peers.
A Debt/Equity ratio of 0.24 indicates that LEN is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.24, LEN is in line with its industry, outperforming 59.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.26 |
ROIC/WACC1.05
WACC8.12%
2.3 Liquidity
LEN has a Current Ratio of 9.39. This indicates that LEN is financially healthy and has no problem in meeting 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.
LEN has a Quick Ratio of 1.76. This is a normal value and indicates that LEN is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.76, LEN is doing good in the industry, outperforming 77.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 9.39 | ||
| Quick Ratio | 1.76 |
3. Growth
3.1 Past
The earnings per share for LEN have decreased strongly by -32.98% in the last year.
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.
LEN shows a decrease in Revenue. In the last year, the revenue decreased by -4.65%.
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)-32.98%
EPS 3Y3.67%
EPS 5Y20.01%
EPS Q2Q%-46.24%
Revenue 1Y (TTM)-4.65%
Revenue growth 3Y9.32%
Revenue growth 5Y9.75%
Sales Q2Q%-6.43%
3.2 Future
Based on estimates for the next years, LEN will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.06% on average per year.
LEN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.09% yearly.
EPS Next Y-41.52%
EPS Next 2Y-20.76%
EPS Next 3Y-8.49%
EPS Next 5Y9.06%
Revenue Next Year-4.83%
Revenue Next 2Y-0.9%
Revenue Next 3Y1.88%
Revenue Next 5Y5.09%
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
LEN is valuated reasonably with a Price/Earnings ratio of 11.97.
The rest of the industry has a similar Price/Earnings ratio as LEN.
When comparing the Price/Earnings ratio of LEN to the average of the S&P500 Index (25.89), we can say LEN is valued rather cheaply.
LEN is valuated correctly with a Price/Forward Earnings ratio of 13.45.
LEN's Price/Forward Earnings ratio is in line with the industry average.
LEN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.97 | ||
| Fwd PE | 13.45 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as LEN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.07 |
4.3 Compensation for Growth
The decent profitability rating of LEN may justify a higher PE ratio.
A cheap valuation may be justified as LEN's earnings are expected to decrease with -8.49% in the coming years.
PEG (NY)N/A
PEG (5Y)0.6
EPS Next 2Y-20.76%
EPS Next 3Y-8.49%
5. Dividend
5.1 Amount
LEN has a Yearly Dividend Yield of 1.66%.
Compared to an average industry Dividend Yield of 3.31, LEN pays a bit more dividend than its industry peers.
LEN's Dividend Yield is slightly below the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
5.2 History
On average, the dividend of LEN grows each year by 65.54%, which is quite nice.
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 19.91% 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.
DP19.91%
EPS Next 2Y-20.76%
EPS Next 3Y-8.49%
121.11
-0.13 (-0.11%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners97.43%
Inst Owner Change-3.89%
Ins Owners1.8%
Ins Owner Change0.81%
Market Cap30.89B
Revenue(TTM)34.77B
Net Income(TTM)2.66B
Analysts68.33
Price Target132.97 (9.79%)
Short Float %6.21%
Short Ratio3.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
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)-1.31%
PT rev (3m)5.58%
EPS NQ rev (1m)-1.77%
EPS NQ rev (3m)-19.68%
EPS NY rev (1m)-3.47%
EPS NY rev (3m)-4.54%
Revenue NQ rev (1m)-0.37%
Revenue NQ rev (3m)-11.77%
Revenue NY rev (1m)-0.38%
Revenue NY rev (3m)-3.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.97 | ||
| Fwd PE | 13.45 | ||
| P/S | 0.89 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.37 | ||
| P/tB | 1.63 | ||
| EV/EBITDA | 9.07 |
EPS(TTM)10.12
EY8.36%
EPS(NY)9
Fwd EY7.44%
FCF(TTM)-2.8
FCFYN/A
OCF(TTM)-2.23
OCFYN/A
SpS136.33
BVpS88.5
TBVpS74.26
PEG (NY)N/A
PEG (5Y)0.6
Graham Number141.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.62% | ||
| ROE | 11.77% | ||
| ROCE | 11.15% | ||
| ROIC | 8.51% | ||
| ROICexc | 8.96% | ||
| ROICexgc | 14.14% | ||
| OM | 10.61% | ||
| PM (TTM) | 7.64% | ||
| GM | 12.38% | ||
| FCFM | N/A |
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%
ROICexgc growth 3Y-0.73%
ROICexgc 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-Score3
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 | 4.26 |
F-Score3
WACC8.12%
ROIC/WACC1.05
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)-32.98%
EPS 3Y3.67%
EPS 5Y20.01%
EPS Q2Q%-46.24%
EPS Next Y-41.52%
EPS Next 2Y-20.76%
EPS Next 3Y-8.49%
EPS Next 5Y9.06%
Revenue 1Y (TTM)-4.65%
Revenue growth 3Y9.32%
Revenue growth 5Y9.75%
Sales Q2Q%-6.43%
Revenue Next Year-4.83%
Revenue Next 2Y-0.9%
Revenue Next 3Y1.88%
Revenue Next 5Y5.09%
EBIT growth 1Y-34.32%
EBIT growth 3Y-1.69%
EBIT growth 5Y12.56%
EBIT Next Year-37.95%
EBIT Next 3Y-7.95%
EBIT Next 5Y3.72%
FCF growth 1Y-113.65%
FCF growth 3Y-3.29%
FCF growth 5Y9.84%
OCF growth 1Y-110.71%
OCF growth 3Y-1.73%
OCF growth 5Y10.15%
LENNAR CORP-A / LEN FAQ
What is the ChartMill fundamental rating of LENNAR CORP-A (LEN) stock?
ChartMill assigns a fundamental rating of 6 / 10 to LEN.
Can you provide the valuation status for LENNAR CORP-A?
ChartMill assigns a valuation rating of 4 / 10 to LENNAR CORP-A (LEN). This can be considered as Fairly Valued.
How profitable is LENNAR CORP-A (LEN) stock?
LENNAR CORP-A (LEN) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for LEN stock?
The Price/Earnings (PE) ratio for LENNAR CORP-A (LEN) is 11.97 and the Price/Book (PB) ratio is 1.37.
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 -41.52% in the next year.