Evaluating LENNAR CORP-A (NYSE:LEN) using Peter Lynch’s legendary strategy

Peter Lynch’s approach focused on identifying undervalued growth stocks with simple, scalable businesses. We examine whether LENNAR CORP-A (NYSE:LEN) fits the characteristics of a Lynch-approved investment.

Applying Peter Lynch’s stock selection rules to LENNAR CORP-A (NYSE:LEN)

• LEN exhibits a strong Return on Equity (ROE) of 16.26%, indicating the company's ability to generate solid returns on shareholder investments. This metric reflects the company's efficient utilization of equity capital and its profitability.
• With a current Debt-to-Equity ratio at 0.16, LEN showcases its disciplined capital structure. The company's prudent management of debt obligations contributes to its financial stability and long-term sustainability.
• Over the past 5 years, LEN has demonstrated 20.01 growth in EPS, signifying its positive financial trajectory and potential for future profitability.
• With a PEG ratio of 0.39, LEN appears to be fairly valued given its strong growth prospects.
• A Current Ratio of 8.37 suggests that LEN is in a solid financial position to handle short-term market fluctuations.

Fundamental analysis 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.

Taking everything into account, LEN scores 7 out of 10 in our fundamental rating. LEN was compared to 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. These ratings could make LEN a good candidate for quality investing.

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

Our Peter Lynch screener lists more Affordable Growth stocks and is updated daily.

Disclaimer

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.