LENNAR CORP - B SHS (LEN.B) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LEN.B - US5260573028 - Common Stock
110.13 USD
-2.62 (-2.32%)
110.13 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. LEN.B has an excellent profitability rating, but there are some minor concerns on its financial health. LEN.B has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
LEN.B had positive earnings in the past year.
LEN.B had a negative operating cash flow in the past year.
LEN.B had positive earnings in each of the past 5 years.
LEN.B had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.62%, LEN.B is in the better half of the industry, outperforming 72.13% of the companies in the same industry.
LEN.B has a Return On Equity of 11.77%. This is in the better half of the industry: LEN.B outperforms 60.66% of its industry peers.
LEN.B has a better Return On Invested Capital (8.51%) than 63.93% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LEN.B is above the industry average of 9.73%.
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 has a better Profit Margin (7.64%) than 67.21% of its industry peers.
In the last couple of years the Profit Margin of LEN.B has grown nicely.
LEN.B's Operating Margin of 10.61% is fine compared to the rest of the industry. LEN.B outperforms 70.49% of its industry peers.
LEN.B's Operating Margin has improved in the last couple of years.
The Gross Margin of LEN.B (12.38%) is worse than 91.80% of its industry peers.
In the last couple of years the Gross Margin of LEN.B has grown nicely.
| 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
LEN.B has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for LEN.B has been reduced compared to 1 year ago.
The number of shares outstanding for LEN.B has been reduced compared to 5 years ago.
The debt/assets ratio for LEN.B has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.15 indicates that LEN.B is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.15, LEN.B is in the better half of the industry, outperforming 67.21% of the companies in the same industry.
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 has a better Debt to Equity ratio (0.24) than 62.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.15 |
ROIC/WACC0.99
WACC8.64%
2.3 Liquidity
A Current Ratio of 9.39 indicates that LEN.B has no problem at all paying its short term obligations.
LEN.B has a Current ratio of 9.39. This is amongst the best in the industry. LEN.B outperforms 93.44% of its industry peers.
A Quick Ratio of 1.76 indicates that LEN.B should not have too much problems paying its short term obligations.
LEN.B's Quick ratio of 1.76 is fine compared to the rest of the industry. LEN.B outperforms 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.
The Earnings Per Share has been growing by 20.01% on average over the past years. This is a very strong growth
The Revenue has decreased by -4.65% in the past 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)-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
Based on estimates for the next years, LEN.B will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.06% 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 5.09% on average per year.
EPS Next Y-41.54%
EPS Next 2Y-20.83%
EPS Next 3Y-8.6%
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.
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
The Price/Earnings ratio is 10.88, which indicates a very decent valuation of LEN.B.
LEN.B's Price/Earnings ratio is a bit cheaper when compared to the industry. LEN.B is cheaper than 63.93% of the companies in the same industry.
LEN.B's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.43.
With a Price/Forward Earnings ratio of 12.25, LEN.B is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LEN.B indicates a somewhat cheap valuation: LEN.B is cheaper than 63.93% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.66. LEN.B is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.88 | ||
| Fwd PE | 12.25 |
4.2 Price Multiples
LEN.B's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.5 |
4.3 Compensation for Growth
The decent profitability rating of LEN.B may justify a higher PE ratio.
A cheap valuation may be justified as LEN.B's earnings are expected to decrease with -8.60% in the coming years.
PEG (NY)N/A
PEG (5Y)0.54
EPS Next 2Y-20.83%
EPS Next 3Y-8.6%
5. Dividend
5.1 Amount
LEN.B has a Yearly Dividend Yield of 1.68%. Purely for dividend investing, there may be better candidates out there.
LEN.B's Dividend Yield is a higher than the industry average which is at 1.16.
Compared to an average S&P500 Dividend Yield of 1.87, LEN.B has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
5.2 History
The dividend of LEN.B is nicely growing with an annual growth rate of 65.54%!
LEN.B has paid a dividend for at least 10 years, which is 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-20.83%
EPS Next 3Y-8.6%
110.13
-2.62 (-2.32%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners95.99%
Inst Owner Change-0.47%
Ins Owners1.2%
Ins Owner ChangeN/A
Market Cap28.09B
Revenue(TTM)34.77B
Net Income(TTM)2.66B
Analysts68.7
Price Target121.77 (10.57%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
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)-2.94%
PT rev (3m)-1.45%
EPS NQ rev (1m)-0.04%
EPS NQ rev (3m)-19.56%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-4.56%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-11.88%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.88 | ||
| Fwd PE | 12.25 | ||
| P/S | 0.81 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.24 | ||
| P/tB | 1.48 | ||
| EV/EBITDA | 8.5 |
EPS(TTM)10.12
EY9.19%
EPS(NY)8.99
Fwd EY8.16%
FCF(TTM)-2.8
FCFYN/A
OCF(TTM)-2.23
OCFYN/A
SpS136.33
BVpS88.5
TBVpS74.26
PEG (NY)N/A
PEG (5Y)0.54
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 | 4.15 |
F-Score3
WACC8.64%
ROIC/WACC0.99
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-41.54%
EPS Next 2Y-20.83%
EPS Next 3Y-8.6%
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-40.27%
EBIT Next 3Y-11.87%
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 10.88 and the Price/Book (PB) ratio is 1.24.
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 -41.54% in the next year.