LENNAR CORP - B SHS (LEN.B) Stock Fundamental Analysis
USA - NYSE:LEN.B - US5260573028 - Common Stock
120.04 USD
+2.4 (+2.04%)
120.04 USD
0 (0%)
Taking everything into account, LEN.B scores 6 out of 10 in our fundamental rating. LEN.B was compared to 61 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.
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.
LEN.B had positive earnings in each of the past 5 years.
Each year in the past 5 years LEN.B had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 9.38%, LEN.B is doing good in the industry, outperforming 75.41% of the companies in the same industry.
With a decent Return On Equity value of 14.28%, LEN.B is doing good in the industry, outperforming 67.21% of the companies in the same industry.
The Return On Invested Capital of LEN.B (10.16%) is better than 67.21% 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 10.36%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.38% | ||
| ROE | 14.28% | ||
| ROIC | 10.16% |
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 Profit Margin of 9.11%. This is in the better half of the industry: LEN.B outperforms 78.69% of its industry peers.
In the last couple of years the Profit Margin of LEN.B has grown nicely.
LEN.B has a Operating Margin of 12.14%. This is in the better half of the industry: LEN.B outperforms 78.69% of its industry peers.
LEN.B's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 13.73%, LEN.B is doing worse than 91.80% of the companies in the same industry.
LEN.B's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.14% | ||
| PM (TTM) | 9.11% | ||
| GM | 13.73% |
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.
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 4.34 indicates that LEN.B is not in any danger for bankruptcy at the moment.
LEN.B has a better Altman-Z score (4.34) than 70.49% of its industry peers.
The Debt to FCF ratio of LEN.B is 15.73, which is on the high side as it means it would take LEN.B, 15.73 years of fcf income to pay off all of its debts.
LEN.B's Debt to FCF ratio of 15.73 is in line compared to the rest of the industry. LEN.B outperforms 45.90% of its industry peers.
A Debt/Equity ratio of 0.19 indicates that LEN.B is not too dependend on debt financing.
LEN.B has a better Debt to Equity ratio (0.19) than 67.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 15.73 | ||
| Altman-Z | 4.34 |
ROIC/WACC1.19
WACC8.52%
2.3 Liquidity
A Current Ratio of 7.62 indicates that LEN.B has no problem at all paying its short term obligations.
LEN.B has a better Current ratio (7.62) than 83.61% of its industry peers.
LEN.B has a Quick Ratio of 1.02. This is a normal value and indicates that LEN.B is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.02, LEN.B perfoms like the industry average, outperforming 52.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.62 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
LEN.B shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -32.98%.
LEN.B shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.01% yearly.
Looking at the last year, LEN.B shows a small growth in Revenue. The Revenue has grown by 3.53% 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)-32.98%
EPS 3Y3.67%
EPS 5Y20.01%
EPS Q2Q%-46.24%
Revenue 1Y (TTM)3.53%
Revenue growth 3Y9.32%
Revenue growth 5Y9.75%
Sales Q2Q%-6.43%
3.2 Future
LEN.B is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.97% yearly.
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-39.42%
EPS Next 2Y-18.3%
EPS Next 3Y-5.04%
EPS Next 5Y8.97%
Revenue Next Year-4.47%
Revenue Next 2Y-0.76%
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
LEN.B is valuated reasonably with a Price/Earnings ratio of 11.86.
LEN.B's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.77, LEN.B is valued rather cheaply.
With a Price/Forward Earnings ratio of 12.54, LEN.B is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as LEN.B.
The average S&P500 Price/Forward Earnings ratio is at 23.23. LEN.B is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.86 | ||
| Fwd PE | 12.54 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LEN.B is valued a bit cheaper than the industry average as 60.66% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LEN.B indicates a slightly more expensive valuation: LEN.B is more expensive than 62.30% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 109.86 | ||
| EV/EBITDA | 7.52 |
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 -5.04% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.59
EPS Next 2Y-18.3%
EPS Next 3Y-5.04%
5. Dividend
5.1 Amount
LEN.B has a Yearly Dividend Yield of 1.63%.
Compared to an average industry Dividend Yield of 3.07, LEN.B pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.36, LEN.B is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)65.54%
Div Incr Years1
Div Non Decr Years15
5.3 Sustainability
LEN.B pays out 16.62% of its income as dividend. This is a sustainable payout ratio.
The dividend of LEN.B is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP16.62%
EPS Next 2Y-18.3%
EPS Next 3Y-5.04%
120.04
+2.4 (+2.04%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners97.43%
Inst Owner Change0.57%
Ins Owners1.8%
Ins Owner ChangeN/A
Market Cap30.61B
Analysts68.33
Price Target128 (6.63%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
Yearly Dividend2
Dividend Growth(5Y)65.54%
DP16.62%
Div Incr Years1
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.08%
Min EPS beat(2)-7.71%
Max EPS beat(2)11.86%
EPS beat(4)2
Avg EPS beat(4)4.24%
Min EPS beat(4)-7.71%
Max EPS beat(4)16.11%
EPS beat(8)6
Avg EPS beat(8)6.35%
EPS beat(12)9
Avg EPS beat(12)9.02%
EPS beat(16)11
Avg EPS beat(16)7.19%
Revenue beat(2)2
Avg Revenue beat(2)1.66%
Min Revenue beat(2)1.66%
Max Revenue beat(2)1.66%
Revenue beat(4)3
Avg Revenue beat(4)0.66%
Min Revenue beat(4)-2.32%
Max Revenue beat(4)1.66%
Revenue beat(8)6
Avg Revenue beat(8)1.37%
Revenue beat(12)8
Avg Revenue beat(12)2.36%
Revenue beat(16)12
Avg Revenue beat(16)2.02%
PT rev (1m)3.59%
PT rev (3m)1.87%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.03%
EPS NY rev (1m)-1.1%
EPS NY rev (3m)-1.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.04%
Revenue NY rev (1m)-3.34%
Revenue NY rev (3m)-3.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.86 | ||
| Fwd PE | 12.54 | ||
| P/S | 0.87 | ||
| P/FCF | 109.86 | ||
| P/OCF | 74.72 | ||
| P/B | 1.36 | ||
| P/tB | 1.6 | ||
| EV/EBITDA | 7.52 |
EPS(TTM)10.12
EY8.43%
EPS(NY)9.57
Fwd EY7.97%
FCF(TTM)1.09
FCFY0.91%
OCF(TTM)1.61
OCFY1.34%
SpS138.7
BVpS88.54
TBVpS75.04
PEG (NY)N/A
PEG (5Y)0.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.38% | ||
| ROE | 14.28% | ||
| ROCE | 13.31% | ||
| ROIC | 10.16% | ||
| ROICexc | 10.54% | ||
| ROICexgc | 20.97% | ||
| OM | 12.14% | ||
| PM (TTM) | 9.11% | ||
| GM | 13.73% | ||
| FCFM | 0.79% |
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%
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-Score4
Asset Turnover1.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 15.73 | ||
| Debt/EBITDA | 0.99 | ||
| Cap/Depr | 104.87% | ||
| Cap/Sales | 0.37% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 9.27% | ||
| Profit Quality | 8.64% | ||
| Current Ratio | 7.62 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z | 4.34 |
F-Score4
WACC8.52%
ROIC/WACC1.19
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-39.42%
EPS Next 2Y-18.3%
EPS Next 3Y-5.04%
EPS Next 5Y8.97%
Revenue 1Y (TTM)3.53%
Revenue growth 3Y9.32%
Revenue growth 5Y9.75%
Sales Q2Q%-6.43%
Revenue Next Year-4.47%
Revenue Next 2Y-0.76%
Revenue Next 3Y1.88%
Revenue Next 5Y5.09%
EBIT growth 1Y-26.49%
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-94.16%
FCF growth 3Y-3.29%
FCF growth 5Y9.84%
OCF growth 1Y-91.56%
OCF growth 3Y-1.73%
OCF growth 5Y10.15%