LENNAR CORP - B SHS (LEN.B) Stock Fundamental Analysis
NYSE:LEN.B - New York Stock Exchange, Inc. - US5260573028 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to LEN.B. LEN.B was compared to 64 industry peers in the Household Durables industry. LEN.B gets an excellent profitability rating and is at the same time showing great financial health properties. LEN.B has a decent growth rate and is not valued too expensively. These ratings could make LEN.B a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year LEN.B was profitable.
LEN.B had a positive operating cash flow in the past year.
In the past 5 years LEN.B has always been profitable.
Each year in the past 5 years LEN.B had a positive operating cash flow.
1.2 Ratios
LEN.B has a better Return On Assets (10.56%) than 82.81% of its industry peers.
The Return On Equity of LEN.B (16.26%) is better than 73.44% of its industry peers.
LEN.B has a Return On Invested Capital of 11.43%. This is in the better half of the industry: LEN.B outperforms 73.44% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LEN.B is above the industry average of 10.33%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.56% | ||
| ROE | 16.26% | ||
| ROIC | 11.43% |
ROA(3y)10.45%
ROA(5y)10.53%
ROE(3y)15.85%
ROE(5y)16.42%
ROIC(3y)12.52%
ROIC(5y)11.96%
1.3 Margins
With an excellent Profit Margin value of 10.34%, LEN.B belongs to the best of the industry, outperforming 82.81% of the companies in the same industry.
LEN.B's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 13.74%, LEN.B belongs to the best of the industry, outperforming 82.81% of the companies in the same industry.
In the last couple of years the Operating Margin of LEN.B has grown nicely.
Looking at the Gross Margin, with a value of 15.21%, LEN.B is doing worse than 90.63% of the companies in the same industry.
In the last couple of years the Gross Margin of LEN.B has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.74% | ||
| PM (TTM) | 10.34% | ||
| GM | 15.21% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), LEN.B is creating some value.
The number of shares outstanding for LEN.B has been reduced compared to 1 year ago.
Compared to 5 years ago, LEN.B has less shares outstanding
LEN.B has a better debt/assets ratio than last year.
2.2 Solvency
LEN.B has an Altman-Z score of 4.23. This indicates that LEN.B is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of LEN.B (4.23) is better than 68.75% of its industry peers.
The Debt to FCF ratio of LEN.B is 2.27, which is a good value as it means it would take LEN.B, 2.27 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.27, LEN.B is in the better half of the industry, outperforming 73.44% of the companies in the same industry.
A Debt/Equity ratio of 0.16 indicates that LEN.B is not too dependend on debt financing.
The Debt to Equity ratio of LEN.B (0.16) is better than 70.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 2.27 | ||
| Altman-Z | 4.23 |
ROIC/WACC1.21
WACC9.42%
2.3 Liquidity
A Current Ratio of 8.37 indicates that LEN.B has no problem at all paying its short term obligations.
LEN.B has a better Current ratio (8.37) than 87.50% of its industry peers.
LEN.B has a Quick Ratio of 1.84. 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 (1.84) than 79.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.37 | ||
| Quick Ratio | 1.84 |
3. Growth
3.1 Past
LEN.B shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.78%.
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.
Looking at the last year, LEN.B shows a small growth in Revenue. The Revenue has grown by 2.01% in the last year.
LEN.B shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.75% yearly.
EPS 1Y (TTM)-3.78%
EPS 3Y3.67%
EPS 5Y20.01%
EPS Q2Q%-23.74%
Revenue 1Y (TTM)2.01%
Revenue growth 3Y9.32%
Revenue growth 5Y9.75%
Sales Q2Q%4.36%
3.2 Future
Based on estimates for the next years, LEN.B will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.19% on average per year.
Based on estimates for the next years, LEN.B will show a small growth in Revenue. The Revenue will grow by 5.79% on average per year.
EPS Next Y-27.99%
EPS Next 2Y-8.17%
EPS Next 3Y2.27%
EPS Next 5Y10.19%
Revenue Next Year0.9%
Revenue Next 2Y2.61%
Revenue Next 3Y4.43%
Revenue Next 5Y5.79%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 7.60, the valuation of LEN.B can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of LEN.B indicates a somewhat cheap valuation: LEN.B is cheaper than 68.75% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.32. LEN.B is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 8.63 indicates a reasonable valuation of LEN.B.
LEN.B's Price/Forward Earnings ratio is in line with the industry average.
LEN.B is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.6 | ||
| Fwd PE | 8.63 |
4.2 Price Multiples
LEN.B's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. LEN.B is cheaper than 81.25% of the companies in the same industry.
64.06% of the companies in the same industry are more expensive than LEN.B, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.3 | ||
| EV/EBITDA | 5.67 |
4.3 Compensation for Growth
The excellent profitability rating of LEN.B may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.38
EPS Next 2Y-8.17%
EPS Next 3Y2.27%
5. Dividend
5.1 Amount
LEN.B has a Yearly Dividend Yield of 1.78%.
Compared to an average industry Dividend Yield of 3.54, LEN.B pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.40, LEN.B is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
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
LEN.B pays out 14.64% of its income as dividend. This is a sustainable payout ratio.
LEN.B's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP14.64%
EPS Next 2Y-8.17%
EPS Next 3Y2.27%
NYSE:LEN.B (6/16/2025, 1:02:20 PM)
104.4
+0.41 (+0.39%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners96.74%
Inst Owner Change-0.95%
Ins Owners1.76%
Ins Owner ChangeN/A
Market Cap27.54B
Analysts70
Price Target138.4 (32.57%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
Yearly Dividend2
Dividend Growth(5Y)65.54%
DP14.64%
Div Incr Years1
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.28%
Min EPS beat(2)-3.31%
Max EPS beat(2)11.86%
EPS beat(4)3
Avg EPS beat(4)7.52%
Min EPS beat(4)-3.31%
Max EPS beat(4)16.11%
EPS beat(8)7
Avg EPS beat(8)10.85%
EPS beat(12)10
Avg EPS beat(12)10.69%
EPS beat(16)12
Avg EPS beat(16)7.75%
Revenue beat(2)1
Avg Revenue beat(2)-0.33%
Min Revenue beat(2)-2.32%
Max Revenue beat(2)1.66%
Revenue beat(4)3
Avg Revenue beat(4)0.71%
Min Revenue beat(4)-2.32%
Max Revenue beat(4)1.88%
Revenue beat(8)6
Avg Revenue beat(8)2.52%
Revenue beat(12)8
Avg Revenue beat(12)2.42%
Revenue beat(16)12
Avg Revenue beat(16)2.39%
PT rev (1m)1.15%
PT rev (3m)-8.86%
EPS NQ rev (1m)-0.67%
EPS NQ rev (3m)-27.42%
EPS NY rev (1m)0%
EPS NY rev (3m)-17.11%
Revenue NQ rev (1m)-0.37%
Revenue NQ rev (3m)-6.16%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.6 | ||
| Fwd PE | 8.63 | ||
| P/S | 0.77 | ||
| P/FCF | 17.3 | ||
| P/OCF | 15.77 | ||
| P/B | 1.21 | ||
| P/tB | 1.44 | ||
| EV/EBITDA | 5.67 |
EPS(TTM)13.73
EY13.15%
EPS(NY)12.09
Fwd EY11.58%
FCF(TTM)6.03
FCFY5.78%
OCF(TTM)6.62
OCFY6.34%
SpS135.56
BVpS86.16
TBVpS72.39
PEG (NY)N/A
PEG (5Y)0.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.56% | ||
| ROE | 16.26% | ||
| ROCE | 14.98% | ||
| ROIC | 11.43% | ||
| ROICexc | 12.38% | ||
| ROICexgc | 18.99% | ||
| OM | 13.74% | ||
| PM (TTM) | 10.34% | ||
| GM | 15.21% | ||
| FCFM | 4.45% |
ROA(3y)10.45%
ROA(5y)10.53%
ROE(3y)15.85%
ROE(5y)16.42%
ROIC(3y)12.52%
ROIC(5y)11.96%
ROICexc(3y)14.71%
ROICexc(5y)13.75%
ROICexgc(3y)18.6%
ROICexgc(5y)16.93%
ROCE(3y)16.4%
ROCE(5y)15.67%
ROICexcg growth 3Y-0.73%
ROICexcg 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-Score6
Asset Turnover1.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 2.27 | ||
| Debt/EBITDA | 0.72 | ||
| Cap/Depr | 129.15% | ||
| Cap/Sales | 0.43% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 34.71% | ||
| Profit Quality | 43.07% | ||
| Current Ratio | 8.37 | ||
| Quick Ratio | 1.84 | ||
| Altman-Z | 4.23 |
F-Score6
WACC9.42%
ROIC/WACC1.21
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)-3.78%
EPS 3Y3.67%
EPS 5Y20.01%
EPS Q2Q%-23.74%
EPS Next Y-27.99%
EPS Next 2Y-8.17%
EPS Next 3Y2.27%
EPS Next 5Y10.19%
Revenue 1Y (TTM)2.01%
Revenue growth 3Y9.32%
Revenue growth 5Y9.75%
Sales Q2Q%4.36%
Revenue Next Year0.9%
Revenue Next 2Y2.61%
Revenue Next 3Y4.43%
Revenue Next 5Y5.79%
EBIT growth 1Y-14.59%
EBIT growth 3Y-1.69%
EBIT growth 5Y12.56%
EBIT Next Year-25.6%
EBIT Next 3Y-0.73%
EBIT Next 5Y5.08%
FCF growth 1Y-62.63%
FCF growth 3Y-3.29%
FCF growth 5Y9.84%
OCF growth 1Y-59.54%
OCF growth 3Y-1.73%
OCF growth 5Y10.15%