LENNAR CORP - B SHS (LEN.B) Stock Fundamental Analysis
NYSE:LEN.B - New York Stock Exchange, Inc. - US5260573028 - Common Stock - Currency: USD
LEN.B gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 64 industry peers in the Household Durables industry. Both the health and profitability get an excellent rating, making LEN.B a very profitable company, without any liquidiy or solvency issues. LEN.B has a correct valuation and a medium growth rate. 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.
In the past year LEN.B had a positive cash flow from operations.
Each year in the past 5 years LEN.B has been profitable.
In the past 5 years LEN.B always reported a positive cash flow from operatings.
1.2 Ratios
LEN.B has a better Return On Assets (10.56%) than 78.13% of its industry peers.
LEN.B's Return On Equity of 16.26% is fine compared to the rest of the industry. LEN.B outperforms 70.31% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.43%, LEN.B is in the better half of the industry, outperforming 71.88% of the companies in the same industry.
LEN.B had an Average Return On Invested Capital over the past 3 years of 12.52%. This is in line with the industry average of 11.93%.
| 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
LEN.B's Profit Margin of 10.34% is amongst the best of the industry. LEN.B outperforms 81.25% of its industry peers.
In the last couple of years the Profit Margin of LEN.B has grown nicely.
LEN.B has a better Operating Margin (13.74%) than 81.25% of its industry peers.
LEN.B's Operating Margin has improved in the last couple of years.
LEN.B's Gross Margin of 15.21% is on the low side compared to the rest of the industry. LEN.B is outperformed by 92.19% of its industry peers.
LEN.B's Gross Margin has improved in the last couple of years.
| 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.
Compared to 1 year ago, LEN.B has less shares outstanding
LEN.B has less shares outstanding than it did 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 4.19 indicates that LEN.B is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.19, LEN.B is in the better half of the industry, outperforming 67.19% of the companies in the same industry.
LEN.B has a debt to FCF ratio of 2.27. This is a good value and a sign of high solvency as LEN.B would need 2.27 years to pay back of all of its debts.
LEN.B has a better Debt to FCF ratio (2.27) than 70.31% of its industry peers.
A Debt/Equity ratio of 0.16 indicates that LEN.B is not too dependend on debt financing.
LEN.B has a better Debt to Equity ratio (0.16) than 71.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 2.27 | ||
| Altman-Z | 4.19 |
ROIC/WACC1.33
WACC8.58%
2.3 Liquidity
LEN.B has a Current Ratio of 8.37. This indicates that LEN.B is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 8.37, LEN.B belongs to the best of the industry, outperforming 89.06% of the companies in the same industry.
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 Quick ratio of 1.84. This is amongst the best in the industry. LEN.B outperforms 82.81% 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%.
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 2.01% in the last year.
Measured over the past years, LEN.B shows a quite strong growth in Revenue. The Revenue has been growing by 9.75% on average per year.
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 10.67% on average per year.
The Revenue is expected to grow by 5.72% on average over the next years.
EPS Next Y-27.99%
EPS Next 2Y-8.17%
EPS Next 3Y2.27%
EPS Next 5Y10.67%
Revenue Next Year0.9%
Revenue Next 2Y2.61%
Revenue Next 3Y4.43%
Revenue Next 5Y5.72%
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
LEN.B is valuated cheaply with a Price/Earnings ratio of 7.34.
Based on the Price/Earnings ratio, LEN.B is valued a bit cheaper than 68.75% 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 25.82.
With a Price/Forward Earnings ratio of 8.34, the valuation of LEN.B can be described as very reasonable.
LEN.B's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LEN.B is cheaper than 62.50% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, LEN.B is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.34 | ||
| Fwd PE | 8.34 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LEN.B is valued a bit cheaper than the industry average as 78.13% of the companies are valued more expensively.
LEN.B's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.71 | ||
| EV/EBITDA | 5.49 |
4.3 Compensation for Growth
LEN.B has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.37
EPS Next 2Y-8.17%
EPS Next 3Y2.27%
5. Dividend
5.1 Amount
LEN.B has a Yearly Dividend Yield of 1.82%.
LEN.B's Dividend Yield is a higher than the industry average which is at 3.47.
LEN.B's Dividend Yield is slightly below the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
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
14.64% of the earnings are spent on dividend by LEN.B. This is a low number and 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%
100.81
+0.14 (+0.14%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners96.41%
Inst Owner Change-0.9%
Ins Owners1.77%
Ins Owner ChangeN/A
Market Cap26.59B
Analysts70
Price Target136.82 (35.72%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
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)-0.99%
PT rev (3m)-12.75%
EPS NQ rev (1m)-0.13%
EPS NQ rev (3m)-27.55%
EPS NY rev (1m)-0.68%
EPS NY rev (3m)-17.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.35%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-3.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.34 | ||
| Fwd PE | 8.34 | ||
| P/S | 0.74 | ||
| P/FCF | 16.71 | ||
| P/OCF | 15.23 | ||
| P/B | 1.17 | ||
| P/tB | 1.39 | ||
| EV/EBITDA | 5.49 |
EPS(TTM)13.73
EY13.62%
EPS(NY)12.09
Fwd EY12%
FCF(TTM)6.03
FCFY5.99%
OCF(TTM)6.62
OCFY6.57%
SpS135.56
BVpS86.16
TBVpS72.39
PEG (NY)N/A
PEG (5Y)0.37
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 | 4.19 |
F-Score6
WACC8.58%
ROIC/WACC1.33
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 5Y10.67%
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 5Y5.72%
EBIT growth 1Y-14.59%
EBIT growth 3Y-1.69%
EBIT growth 5Y12.56%
EBIT Next Year-24.81%
EBIT Next 3Y0.46%
EBIT Next 5Y5.82%
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%