LENNAR CORP - B SHS (LEN.B) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LEN.B - US5260573028 - Common Stock
122.1 USD
+7.53 (+6.57%)
122.1 USD
0 (0%)
Overall LEN.B gets a fundamental rating of 6 out of 10. We evaluated LEN.B against 61 industry peers in the Household Durables industry. While LEN.B belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. LEN.B has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year LEN.B was profitable.
LEN.B had a negative operating cash flow in the past year.
Each year in the past 5 years LEN.B has been profitable.
LEN.B had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of LEN.B (7.62%) is better than 72.13% of its industry peers.
LEN.B has a better Return On Equity (11.77%) than 60.66% of its industry peers.
LEN.B has a better Return On Invested Capital (8.51%) than 63.93% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LEN.B is above the industry average of 9.75%.
The last Return On Invested Capital (8.51%) for LEN.B is well below the 3 year average (12.81%), which needs to be investigated, but indicates that LEN.B had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.62% | ||
| ROE | 11.77% | ||
| ROIC | 8.51% |
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
LEN.B's Profit Margin of 7.64% is fine compared to the rest of the industry. LEN.B outperforms 67.21% of its industry peers.
LEN.B's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 10.61%, LEN.B is doing good in the industry, outperforming 70.49% of the companies in the same industry.
In the last couple of years the Operating Margin of LEN.B has grown nicely.
With a Gross Margin value of 12.38%, LEN.B is not doing good in the industry: 91.80% of the companies in the same industry are doing better.
LEN.B's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.61% | ||
| PM (TTM) | 7.64% | ||
| GM | 12.38% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LEN.B is still creating some value.
LEN.B has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, LEN.B has less shares outstanding
Compared to 1 year ago, LEN.B has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.27 indicates that LEN.B is not in any danger for bankruptcy at the moment.
The Altman-Z score of LEN.B (4.27) is better than 70.49% of its industry peers.
LEN.B has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
LEN.B's Debt to Equity ratio of 0.24 is fine compared to the rest of the industry. LEN.B outperforms 62.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.27 |
ROIC/WACC1.07
WACC7.98%
2.3 Liquidity
LEN.B has a Current Ratio of 9.39. This indicates that LEN.B is financially healthy and has no problem in meeting its short term obligations.
LEN.B has a better Current ratio (9.39) than 93.44% of its industry peers.
LEN.B has a Quick Ratio of 1.76. This is a normal value and indicates that LEN.B is financially healthy and should not expect problems in meeting its short term obligations.
LEN.B has a better Quick ratio (1.76) than 78.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 9.39 | ||
| Quick Ratio | 1.76 |
3. Growth
3.1 Past
The earnings per share for LEN.B have decreased strongly by -32.98% in the last year.
Measured over the past years, LEN.B shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.01% on average per year.
LEN.B shows a decrease in Revenue. In the last year, the revenue decreased by -4.65%.
The Revenue has been growing by 9.75% on average over the past years. This is quite good.
EPS 1Y (TTM)-32.98%
EPS 3Y3.67%
EPS 5Y20.01%
EPS Q2Q%-46.24%
Revenue 1Y (TTM)-4.65%
Revenue growth 3Y9.32%
Revenue growth 5Y9.75%
Sales Q2Q%-6.43%
3.2 Future
The Earnings Per Share is expected to grow by 9.06% on average over the next years. This is quite good.
Based on estimates for the next years, LEN.B will show a small growth in Revenue. The Revenue will grow by 5.09% on average per year.
EPS Next Y-41.52%
EPS Next 2Y-20.76%
EPS Next 3Y-8.49%
EPS Next 5Y9.06%
Revenue Next Year-4.83%
Revenue Next 2Y-0.9%
Revenue Next 3Y1.88%
Revenue Next 5Y5.09%
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 12.07, the valuation of LEN.B can be described as correct.
Based on the Price/Earnings ratio, LEN.B is valued a bit cheaper than the industry average as 60.66% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 25.98, LEN.B is valued rather cheaply.
LEN.B is valuated correctly with a Price/Forward Earnings ratio of 13.56.
The rest of the industry has a similar Price/Forward Earnings ratio as LEN.B.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.79, LEN.B is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.07 | ||
| Fwd PE | 13.56 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LEN.B is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.13 |
4.3 Compensation for Growth
LEN.B has a very decent profitability rating, which may justify a higher PE ratio.
LEN.B's earnings are expected to decrease with -8.49% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.6
EPS Next 2Y-20.76%
EPS Next 3Y-8.49%
5. Dividend
5.1 Amount
LEN.B has a Yearly Dividend Yield of 1.72%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.27, LEN.B pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.41, LEN.B is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.72% |
5.2 History
On average, the dividend of LEN.B grows each year by 65.54%, which is quite nice.
LEN.B has been paying a dividend for at least 10 years, so it has a reliable track record.
LEN.B has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)65.54%
Div Incr Years1
Div Non Decr Years15
5.3 Sustainability
19.91% of the earnings are spent on dividend by LEN.B. This is a low number and sustainable payout ratio.
The dividend of LEN.B is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP19.91%
EPS Next 2Y-20.76%
EPS Next 3Y-8.49%
122.1
+7.53 (+6.57%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners97.43%
Inst Owner Change-0.48%
Ins Owners1.8%
Ins Owner ChangeN/A
Market Cap31.14B
Revenue(TTM)34.77B
Net Income(TTM)2.66B
Analysts68.33
Price Target124.44 (1.92%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.72% |
Yearly Dividend2
Dividend Growth(5Y)65.54%
DP19.91%
Div Incr Years1
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.1%
Min EPS beat(2)-7.71%
Max EPS beat(2)7.91%
EPS beat(4)2
Avg EPS beat(4)2.19%
Min EPS beat(4)-7.71%
Max EPS beat(4)11.86%
EPS beat(8)6
Avg EPS beat(8)6.21%
EPS beat(12)9
Avg EPS beat(12)9.23%
EPS beat(16)11
Avg EPS beat(16)5.39%
Revenue beat(2)1
Avg Revenue beat(2)-0.69%
Min Revenue beat(2)-3.05%
Max Revenue beat(2)1.66%
Revenue beat(4)2
Avg Revenue beat(4)-0.51%
Min Revenue beat(4)-3.05%
Max Revenue beat(4)1.66%
Revenue beat(8)5
Avg Revenue beat(8)0.71%
Revenue beat(12)8
Avg Revenue beat(12)2.24%
Revenue beat(16)11
Avg Revenue beat(16)1.82%
PT rev (1m)-2.78%
PT rev (3m)2.83%
EPS NQ rev (1m)-0.15%
EPS NQ rev (3m)-19.49%
EPS NY rev (1m)0.01%
EPS NY rev (3m)-4.53%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-11.77%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.07 | ||
| Fwd PE | 13.56 | ||
| P/S | 0.9 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.38 | ||
| P/tB | 1.64 | ||
| EV/EBITDA | 9.13 |
EPS(TTM)10.12
EY8.29%
EPS(NY)9
Fwd EY7.37%
FCF(TTM)-2.8
FCFYN/A
OCF(TTM)-2.23
OCFYN/A
SpS136.33
BVpS88.5
TBVpS74.26
PEG (NY)N/A
PEG (5Y)0.6
Graham Number141.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.62% | ||
| ROE | 11.77% | ||
| ROCE | 11.15% | ||
| ROIC | 8.51% | ||
| ROICexc | 8.96% | ||
| ROICexgc | 14.14% | ||
| OM | 10.61% | ||
| PM (TTM) | 7.64% | ||
| GM | 12.38% | ||
| FCFM | N/A |
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%
ROICexgc growth 3Y-0.73%
ROICexgc 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-Score3
Asset Turnover1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.41 | ||
| Cap/Depr | 111.6% | ||
| Cap/Sales | 0.42% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 9.39 | ||
| Quick Ratio | 1.76 | ||
| Altman-Z | 4.27 |
F-Score3
WACC7.98%
ROIC/WACC1.07
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)-32.98%
EPS 3Y3.67%
EPS 5Y20.01%
EPS Q2Q%-46.24%
EPS Next Y-41.52%
EPS Next 2Y-20.76%
EPS Next 3Y-8.49%
EPS Next 5Y9.06%
Revenue 1Y (TTM)-4.65%
Revenue growth 3Y9.32%
Revenue growth 5Y9.75%
Sales Q2Q%-6.43%
Revenue Next Year-4.83%
Revenue Next 2Y-0.9%
Revenue Next 3Y1.88%
Revenue Next 5Y5.09%
EBIT growth 1Y-34.32%
EBIT growth 3Y-1.69%
EBIT growth 5Y12.56%
EBIT Next Year-37.95%
EBIT Next 3Y-7.95%
EBIT Next 5Y3.72%
FCF growth 1Y-113.65%
FCF growth 3Y-3.29%
FCF growth 5Y9.84%
OCF growth 1Y-110.71%
OCF growth 3Y-1.73%
OCF growth 5Y10.15%
LENNAR CORP - B SHS / LEN.B FAQ
What is the fundamental rating for LEN.B stock?
ChartMill assigns a fundamental rating of 6 / 10 to LEN.B.
What is the valuation status of LENNAR CORP - B SHS (LEN.B) stock?
ChartMill assigns a valuation rating of 4 / 10 to LENNAR CORP - B SHS (LEN.B). This can be considered as Fairly Valued.
Can you provide the profitability details for LENNAR CORP - B SHS?
LENNAR CORP - B SHS (LEN.B) has a profitability rating of 7 / 10.
What is the valuation of LENNAR CORP - B SHS based on its PE and PB ratios?
The Price/Earnings (PE) ratio for LENNAR CORP - B SHS (LEN.B) is 12.07 and the Price/Book (PB) ratio is 1.38.
Can you provide the expected EPS growth for LEN.B stock?
The Earnings per Share (EPS) of LENNAR CORP - B SHS (LEN.B) is expected to decline by -41.52% in the next year.