LENNAR CORP-A (LEN) Stock Fundamental Analysis
NYSE:LEN - New York Stock Exchange, Inc. - US5260571048 - Common Stock - Currency: USD
Taking everything into account, LEN scores 6 out of 10 in our fundamental rating. LEN was compared to 63 industry peers in the Household Durables industry. LEN has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. LEN is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
LEN had positive earnings in the past year.
LEN had a positive operating cash flow in the past year.
LEN had positive earnings in each of the past 5 years.
Each year in the past 5 years LEN had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.38%, LEN is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
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.
LEN's Return On Invested Capital of 10.16% is fine compared to the rest of the industry. LEN outperforms 66.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LEN is above the industry average of 10.49%.
| 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
Looking at the Profit Margin, with a value of 9.11%, LEN is in the better half of the industry, outperforming 76.19% of the companies in the same industry.
In the last couple of years the Profit Margin of LEN has grown nicely.
With a decent Operating Margin value of 12.14%, LEN is doing good in the industry, outperforming 76.19% of the companies in the same industry.
In the last couple of years the Operating Margin of LEN has grown nicely.
LEN's Gross Margin of 13.73% is on the low side compared to the rest of the industry. LEN is outperformed by 93.65% of its industry peers.
In the last couple of years the Gross Margin of LEN has grown nicely.
| 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.
Compared to 5 years ago, LEN has less shares outstanding
Compared to 1 year ago, LEN has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.32 indicates that LEN is not in any danger for bankruptcy at the moment.
LEN has a better Altman-Z score (4.32) than 69.84% 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 47.62% of its industry peers.
A Debt/Equity ratio of 0.19 indicates that LEN is not too dependend on debt financing.
The Debt to Equity ratio of LEN (0.19) is better than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 15.73 | ||
| Altman-Z | 4.32 |
ROIC/WACC1.24
WACC8.2%
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 has a Current ratio of 7.62. This is amongst the best in the industry. LEN outperforms 84.13% of its industry peers.
A Quick Ratio of 1.02 indicates that LEN should not have too much problems paying its short term obligations.
The Quick ratio of LEN (1.02) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.62 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
The earnings per share for LEN have decreased strongly by -17.81% 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.
Looking at the last year, LEN shows a decrease in Revenue. The Revenue has decreased by -1.13% in the last year.
LEN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.75% yearly.
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
Based on estimates for the next years, LEN will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.89% on average per year.
LEN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.30% yearly.
EPS Next Y-38.74%
EPS Next 2Y-15.94%
EPS Next 3Y-2.58%
EPS Next 5Y9.89%
Revenue Next Year-1.15%
Revenue Next 2Y0.39%
Revenue Next 3Y2.27%
Revenue Next 5Y5.3%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
Based on the Price/Earnings ratio of 9.19, the valuation of LEN can be described as reasonable.
Based on the Price/Earnings ratio, LEN is valued a bit cheaper than the industry average as 63.49% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.41, LEN is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.97, the valuation of LEN can be described as very reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as LEN.
When comparing the Price/Forward Earnings ratio of LEN to the average of the S&P500 Index (35.19), we can say LEN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.19 | ||
| Fwd PE | 10.97 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LEN is valued a bit cheaper than the industry average as 63.49% of the companies are valued more expensively.
LEN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 103.3 | ||
| EV/EBITDA | 7.41 |
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 -2.58% in the coming years.
PEG (NY)N/A
PEG (5Y)0.46
EPS Next 2Y-15.94%
EPS Next 3Y-2.58%
5. Dividend
5.1 Amount
LEN has a Yearly Dividend Yield of 1.72%.
Compared to an average industry Dividend Yield of 3.24, LEN pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.35, LEN is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.72% |
5.2 History
On average, the dividend of LEN grows each year by 65.54%, which is quite nice.
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)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-15.94%
EPS Next 3Y-2.58%
NYSE:LEN (7/14/2025, 11:51:06 AM)
111.14
-2.82 (-2.47%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners96.74%
Inst Owner Change-0.03%
Ins Owners1.76%
Ins Owner Change-3.2%
Market Cap28.79B
Analysts68.8
Price Target138.34 (24.47%)
Short Float %4.48%
Short Ratio3.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.72% |
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)-4.55%
PT rev (3m)-4.87%
EPS NQ rev (1m)-24.16%
EPS NQ rev (3m)-24.91%
EPS NY rev (1m)-14.93%
EPS NY rev (3m)-19.35%
Revenue NQ rev (1m)-6.1%
Revenue NQ rev (3m)-6.82%
Revenue NY rev (1m)-2.04%
Revenue NY rev (3m)-2.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.19 | ||
| Fwd PE | 10.97 | ||
| P/S | 0.81 | ||
| P/FCF | 103.3 | ||
| P/OCF | 70.26 | ||
| P/B | 1.27 | ||
| P/tB | 1.5 | ||
| EV/EBITDA | 7.41 |
EPS(TTM)12.09
EY10.88%
EPS(NY)10.13
Fwd EY9.12%
FCF(TTM)1.08
FCFY0.97%
OCF(TTM)1.58
OCFY1.42%
SpS136.57
BVpS87.17
TBVpS73.88
PEG (NY)N/A
PEG (5Y)0.46
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 | 4.32 |
F-Score4
WACC8.2%
ROIC/WACC1.24
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-15.94%
EPS Next 3Y-2.58%
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 2Y0.39%
Revenue Next 3Y2.27%
Revenue Next 5Y5.3%
EBIT growth 1Y-26.49%
EBIT growth 3Y-1.69%
EBIT growth 5Y12.56%
EBIT Next Year-25.6%
EBIT Next 3Y-0.73%
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%