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Is LENNAR CORP-A (NYSE:LEN) suited for quality investing?

By Mill Chart

Last update: Feb 7, 2024

In this article we will dive into LENNAR CORP-A (NYSE:LEN) as a possible candidate for quality investing. Investors should always do their own research, but we noticed LENNAR CORP-A showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Key Considerations for Quality Investors.

  • The 5-year revenue growth of LENNAR CORP-A has been remarkable, with 10.72% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
  • With a robust ROIC excluding cash and goodwill at 18.26%, LENNAR CORP-A showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
  • LENNAR CORP-A demonstrates a well-balanced Debt/Free Cash Flow Ratio of 0.98, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
  • With a robust Profit Quality (5-year) ratio of 100.0%, LENNAR CORP-A highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
  • With a robust 5-year EBIT growth of 18.14%, LENNAR CORP-A showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
  • LENNAR CORP-A has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

Zooming in on the fundamentals.

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

LEN gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 68 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.

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

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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