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Should Quality Investors Include NYSE:LEN in Their Portfolio?

By Mill Chart

Last update: Nov 13, 2023

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if LENNAR CORP-A (NYSE:LEN) is suited for quality investing. Investors should of course do their own research, but we spotted LENNAR CORP-A showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Exploring Why NYSE:LEN Holds Appeal for Quality Investors.

  • LENNAR CORP-A has achieved substantial revenue growth over the past 5 years, with a 21.64% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
  • LENNAR CORP-A demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 19.21% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
  • With a favorable Debt/Free Cash Flow Ratio of 0.86, LENNAR CORP-A showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
  • LENNAR CORP-A exhibits impressive Profit Quality (5-year) with a 92.94% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
  • LENNAR CORP-A has demonstrated consistent growth in EBIT over the past 5 years, with a strong 35.2%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
  • LENNAR CORP-A has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

What is the full fundamental picture of NYSE:LEN telling us.

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

LEN gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 67 industry peers in the Household Durables industry. LEN scores excellent points on both the profitability and health parts. This is a solid base for a good stock. LEN has a decent growth rate and is not valued too expensively. These ratings could make LEN a good candidate for quality investing.

Check the latest full fundamental report of LEN for a complete fundamental analysis.

More quality stocks can be found in our Caviar Cruise screen.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

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