LENNAR CORP-A (LEN) Stock Fundamental Analysis
NYSE:LEN - New York Stock Exchange, Inc. - US5260571048 - Common Stock - Currency: USD
Taking everything into account, LEN scores 7 out of 10 in our fundamental rating. LEN was compared to 64 industry peers in the Household Durables industry. Both the health and profitability get an excellent rating, making LEN a very profitable company, without any liquidiy or solvency issues. LEN has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
LEN had positive earnings in the past year.
In the past year LEN had a positive cash flow from operations.
In the past 5 years LEN has always been profitable.
Each year in the past 5 years LEN had a positive operating cash flow.
1.2 Ratios
LEN has a Return On Assets of 10.56%. This is amongst the best in the industry. LEN outperforms 81.25% of its industry peers.
With a decent Return On Equity value of 16.26%, LEN is doing good in the industry, outperforming 71.88% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 11.43%, LEN is in the better half of the industry, outperforming 71.88% of the companies in the same industry.
LEN had an Average Return On Invested Capital over the past 3 years of 12.81%. This is above the industry average of 10.34%.
| 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)12.81%
ROIC(5y)12.14%
1.3 Margins
The Profit Margin of LEN (10.34%) is better than 81.25% of its industry peers.
In the last couple of years the Profit Margin of LEN has grown nicely.
With an excellent Operating Margin value of 13.74%, LEN belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
In the last couple of years the Operating Margin of LEN has grown nicely.
The Gross Margin of LEN (15.21%) is worse than 92.19% of its industry peers.
LEN'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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LEN is still creating some value.
Compared to 1 year ago, LEN has less shares outstanding
Compared to 5 years ago, LEN has less shares outstanding
LEN has a better debt/assets ratio than last year.
2.2 Solvency
LEN has an Altman-Z score of 4.31. This indicates that LEN is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.31, LEN is doing good in the industry, outperforming 70.31% of the companies in the same industry.
LEN has a debt to FCF ratio of 2.27. This is a good value and a sign of high solvency as LEN would need 2.27 years to pay back of all of its debts.
LEN has a better Debt to FCF ratio (2.27) than 73.44% of its industry peers.
A Debt/Equity ratio of 0.16 indicates that LEN is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.16, LEN is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 2.27 | ||
| Altman-Z | 4.31 |
ROIC/WACC1.41
WACC8.13%
2.3 Liquidity
A Current Ratio of 8.37 indicates that LEN has no problem at all paying its short term obligations.
LEN's Current ratio of 8.37 is amongst the best of the industry. LEN outperforms 85.94% of its industry peers.
A Quick Ratio of 1.84 indicates that LEN should not have too much problems paying its short term obligations.
LEN has a Quick ratio of 1.84. This is in the better half of the industry: LEN outperforms 76.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.37 | ||
| Quick Ratio | 1.84 |
3. Growth
3.1 Past
LEN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -17.20%.
LEN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.01% yearly.
The Revenue has been growing slightly by 3.53% in the past year.
LEN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.75% yearly.
EPS 1Y (TTM)-17.2%
EPS 3Y3.67%
EPS 5Y20.01%
EPS Q2Q%-44.93%
Revenue 1Y (TTM)3.53%
Revenue growth 3Y9.32%
Revenue growth 5Y9.75%
Sales Q2Q%-4.43%
3.2 Future
LEN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.89% yearly.
The Revenue is expected to grow by 5.30% on average over the next years.
EPS Next Y-28.27%
EPS Next 2Y-8.22%
EPS Next 3Y2.3%
EPS Next 5Y9.89%
Revenue Next Year0.66%
Revenue Next 2Y2.41%
Revenue Next 3Y4.43%
Revenue Next 5Y5.3%
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
The Price/Earnings ratio is 9.04, which indicates a very decent valuation of LEN.
Based on the Price/Earnings ratio, LEN is valued a bit cheaper than the industry average as 65.63% of the companies are valued more expensively.
LEN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.45.
A Price/Forward Earnings ratio of 9.12 indicates a reasonable valuation of LEN.
LEN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LEN is cheaper than 67.19% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.90. LEN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.04 | ||
| Fwd PE | 9.12 |
4.2 Price Multiples
81.25% of the companies in the same industry are more expensive than LEN, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LEN indicates a somewhat cheap valuation: LEN is cheaper than 62.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.25 | ||
| EV/EBITDA | 5.99 |
4.3 Compensation for Growth
LEN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.45
EPS Next 2Y-8.22%
EPS Next 3Y2.3%
5. Dividend
5.1 Amount
LEN has a Yearly Dividend Yield of 1.82%. Purely for dividend investing, there may be better candidates out there.
LEN's Dividend Yield is a higher than the industry average which is at 3.29.
Compared to the average S&P500 Dividend Yield of 2.38, LEN is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
5.2 History
The dividend of LEN is nicely growing with an annual growth rate of 65.54%!
LEN has paid a dividend for at least 10 years, which is a reliable track record.
LEN 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. This is a low number and sustainable payout ratio.
The dividend of LEN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP14.64%
EPS Next 2Y-8.22%
EPS Next 3Y2.3%
110.12
-5.19 (-4.5%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners96.74%
Inst Owner Change-2.17%
Ins Owners1.76%
Ins Owner Change3.96%
Market Cap29.05B
Analysts68.8
Price Target138.34 (25.63%)
Short Float %4.48%
Short Ratio3.67
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)-4.55%
PT rev (3m)-10.65%
EPS NQ rev (1m)-0.67%
EPS NQ rev (3m)-2.36%
EPS NY rev (1m)-0.39%
EPS NY rev (3m)-5.56%
Revenue NQ rev (1m)-0.37%
Revenue NQ rev (3m)-1.01%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)-3.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.04 | ||
| Fwd PE | 9.12 | ||
| P/S | 0.81 | ||
| P/FCF | 18.25 | ||
| P/OCF | 16.63 | ||
| P/B | 1.28 | ||
| P/tB | 1.52 | ||
| EV/EBITDA | 5.99 |
EPS(TTM)12.18
EY11.06%
EPS(NY)12.08
Fwd EY10.97%
FCF(TTM)6.03
FCFY5.48%
OCF(TTM)6.62
OCFY6.01%
SpS135.56
BVpS86.16
TBVpS72.39
PEG (NY)N/A
PEG (5Y)0.45
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)12.81%
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-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 | 4.31 |
F-Score6
WACC8.13%
ROIC/WACC1.41
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)-17.2%
EPS 3Y3.67%
EPS 5Y20.01%
EPS Q2Q%-44.93%
EPS Next Y-28.27%
EPS Next 2Y-8.22%
EPS Next 3Y2.3%
EPS Next 5Y9.89%
Revenue 1Y (TTM)3.53%
Revenue growth 3Y9.32%
Revenue growth 5Y9.75%
Sales Q2Q%-4.43%
Revenue Next Year0.66%
Revenue Next 2Y2.41%
Revenue Next 3Y4.43%
Revenue Next 5Y5.3%
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 5Y4.38%
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%