Is LENNAR CORP-A (NYSE:LEN) a Suitable Choice for Quality Investing?

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.

Some of the quality metrics of LEN highlighted

• LEN has shown strong performance in revenue growth over the past 5 years, with a 9.75% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
• With a robust ROIC excluding cash and goodwill at 18.99%, LEN 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.
• With a Debt/Free Cash Flow Ratio of 2.27, LEN exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
• With a favorable Profit Quality (5-year) ratio of 96.72%, LEN showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
• LEN has consistently achieved strong EBIT growth over the past 5 years, with a 12.56% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• The EBIT 5-year growth of LEN has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

What else is there to say on the fundamentals of LEN?

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 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 correct valuation and a medium growth rate. This makes LEN very considerable for quality investing!

For an up to date full fundamental analysis you can check the fundamental report of LEN

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.