LENNAR CORP-A (LEN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LEN - US5260571048 - Common Stock
106.36 USD
+0.96 (+0.91%)
106.15 USD
-0.21 (-0.2%)
Taking everything into account, LEN scores 5 out of 10 in our fundamental rating. LEN was compared to 60 industry peers in the Household Durables industry. Both the profitability and the financial health of LEN get a neutral evaluation. Nothing too spectacular is happening here. LEN is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year LEN was profitable.
In the past year LEN has reported a negative cash flow from operations.
LEN had positive earnings in each of the past 5 years.
Of the past 5 years LEN 4 years had a positive operating cash flow.
1.2 Ratios
LEN has a Return On Assets of 7.62%. This is in the better half of the industry: LEN outperforms 70.00% of its industry peers.
LEN has a Return On Equity (11.77%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 8.53%, LEN is in the better half of the industry, outperforming 61.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for LEN is in line with the industry average of 9.69%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.62% | ||
| ROE | 11.77% | ||
| ROIC | 8.53% |
ROA(3y)10.3%
ROA(5y)11.22%
ROE(3y)15.58%
ROE(5y)17.34%
ROIC(3y)10.18%
ROIC(5y)11.88%
1.3 Margins
Looking at the Profit Margin, with a value of 7.64%, LEN is in the better half of the industry, outperforming 65.00% of the companies in the same industry.
In the last couple of years the Profit Margin of LEN has remained more or less at the same level.
The Operating Margin of LEN (10.61%) is better than 68.33% of its industry peers.
In the last couple of years the Operating Margin of LEN has declined.
With a Gross Margin value of 12.38%, LEN is not doing good in the industry: 93.33% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of LEN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.61% | ||
| PM (TTM) | 7.64% | ||
| GM | 12.38% |
OM growth 3Y-22.67%
OM growth 5Y-8.83%
PM growth 3Y-4.93%
PM growth 5Y1.45%
GM growth 3Y-7.29%
GM growth 5Y0.84%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), LEN is creating some value.
LEN has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, LEN has less shares outstanding
LEN has a worse debt/assets ratio than last year.
2.2 Solvency
LEN has an Altman-Z score of 4.06. This indicates that LEN is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.06, LEN is doing good in the industry, outperforming 68.33% of the companies in the same industry.
LEN has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.24, LEN is in line with its industry, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.06 |
ROIC/WACC1.02
WACC8.37%
2.3 Liquidity
LEN has a Current Ratio of 9.39. This indicates that LEN is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 9.39, LEN belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
A Quick Ratio of 1.76 indicates that LEN should not have too much problems paying its short term obligations.
LEN has a better Quick ratio (1.76) than 76.67% 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 have decreased strongly by -44.28% in the last year.
LEN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.33% yearly.
The Revenue has decreased by -3.54% in the past year.
Measured over the past years, LEN shows a quite strong growth in Revenue. The Revenue has been growing by 8.74% on average per year.
EPS 1Y (TTM)-44.28%
EPS 3Y-20.53%
EPS 5Y0.33%
EPS Q2Q%-52.46%
Revenue 1Y (TTM)-3.54%
Revenue growth 3Y0.51%
Revenue growth 5Y8.74%
Sales Q2Q%-5.82%
3.2 Future
The Earnings Per Share is expected to grow by 25.99% on average over the next years. This is a very strong growth
LEN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.26% yearly.
EPS Next Y-3.89%
EPS Next 2Y9.36%
EPS Next 3Y16.99%
EPS Next 5Y25.99%
Revenue Next Year0.43%
Revenue Next 2Y-0.66%
Revenue Next 3Y4.69%
Revenue Next 5Y7.26%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 13.31 indicates a correct valuation of LEN.
LEN's Price/Earnings is on the same level as the industry average.
LEN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.17.
The Price/Forward Earnings ratio is 13.85, which indicates a correct valuation of LEN.
LEN's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.79. LEN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.31 | ||
| Fwd PE | 13.85 |
4.2 Price Multiples
LEN's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.01 |
4.3 Compensation for Growth
A more expensive valuation may be justified as LEN's earnings are expected to grow with 16.99% in the coming years.
PEG (NY)N/A
PEG (5Y)40.51
EPS Next 2Y9.36%
EPS Next 3Y16.99%
5. Dividend
5.1 Amount
LEN has a Yearly Dividend Yield of 1.95%.
Compared to an average industry Dividend Yield of 1.23, LEN pays a bit more dividend than its industry peers.
LEN's Dividend Yield is comparable with the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
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 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. This is a low number and sustainable payout ratio.
LEN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP19.91%
EPS Next 2Y9.36%
EPS Next 3Y16.99%
106.36
+0.96 (+0.91%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners96.66%
Inst Owner Change0%
Ins Owners1.22%
Ins Owner Change0.31%
Market Cap27.12B
Revenue(TTM)34.19B
Net Income(TTM)2.66B
Analysts68.7
Price Target118.3 (11.23%)
Short Float %5.42%
Short Ratio1.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
Yearly Dividend2
Dividend Growth(5Y)65.54%
DP19.91%
Div Incr Years1
Div Non Decr Years15
Ex-DateN/A
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)-11.03%
PT rev (3m)-12.2%
EPS NQ rev (1m)-0.32%
EPS NQ rev (3m)-2.12%
EPS NY rev (1m)-14.56%
EPS NY rev (3m)-19.78%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-0.5%
Revenue NY rev (1m)-2.68%
Revenue NY rev (3m)-2.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.31 | ||
| Fwd PE | 13.85 | ||
| P/S | 0.78 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.2 | ||
| P/tB | 1.43 | ||
| EV/EBITDA | 8.01 |
EPS(TTM)7.99
EY7.51%
EPS(NY)7.68
Fwd EY7.22%
FCF(TTM)-2.8
FCFYN/A
OCF(TTM)-2.23
OCFYN/A
SpS136.33
BVpS88.5
TBVpS74.26
PEG (NY)N/A
PEG (5Y)40.51
Graham Number126.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.62% | ||
| ROE | 11.77% | ||
| ROCE | 11.15% | ||
| ROIC | 8.53% | ||
| ROICexc | 8.99% | ||
| ROICexgc | 14.18% | ||
| OM | 10.61% | ||
| PM (TTM) | 7.64% | ||
| GM | 12.38% | ||
| FCFM | N/A |
ROA(3y)10.3%
ROA(5y)11.22%
ROE(3y)15.58%
ROE(5y)17.34%
ROIC(3y)10.18%
ROIC(5y)11.88%
ROICexc(3y)11.92%
ROICexc(5y)13.71%
ROICexgc(3y)18.83%
ROICexgc(5y)18.96%
ROCE(3y)13.3%
ROCE(5y)15.53%
ROICexgc growth 3Y-1.59%
ROICexgc growth 5Y11.09%
ROICexc growth 3Y-22.05%
ROICexc growth 5Y-3.19%
OM growth 3Y-22.67%
OM growth 5Y-8.83%
PM growth 3Y-4.93%
PM growth 5Y1.45%
GM growth 3Y-7.29%
GM growth 5Y0.84%
F-Score4
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 | 4.06 |
F-Score4
WACC8.37%
ROIC/WACC1.02
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-44.28%
EPS 3Y-20.53%
EPS 5Y0.33%
EPS Q2Q%-52.46%
EPS Next Y-3.89%
EPS Next 2Y9.36%
EPS Next 3Y16.99%
EPS Next 5Y25.99%
Revenue 1Y (TTM)-3.54%
Revenue growth 3Y0.51%
Revenue growth 5Y8.74%
Sales Q2Q%-5.82%
Revenue Next Year0.43%
Revenue Next 2Y-0.66%
Revenue Next 3Y4.69%
Revenue Next 5Y7.26%
EBIT growth 1Y-34.32%
EBIT growth 3Y-22.28%
EBIT growth 5Y-0.86%
EBIT Next Year-17.91%
EBIT Next 3Y12.63%
EBIT Next 5Y18.06%
FCF growth 1Y-118.56%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-114.14%
OCF growth 3YN/A
OCF growth 5YN/A
LENNAR CORP-A / LEN FAQ
What is the ChartMill fundamental rating of LENNAR CORP-A (LEN) stock?
ChartMill assigns a fundamental rating of 5 / 10 to LEN.
What is the valuation status for LEN stock?
ChartMill assigns a valuation rating of 3 / 10 to LENNAR CORP-A (LEN). This can be considered as Overvalued.
How profitable is LENNAR CORP-A (LEN) stock?
LENNAR CORP-A (LEN) has a profitability rating of 5 / 10.
How financially healthy is LENNAR CORP-A?
The financial health rating of LENNAR CORP-A (LEN) is 6 / 10.
Is the dividend of LENNAR CORP-A sustainable?
The dividend rating of LENNAR CORP-A (LEN) is 6 / 10 and the dividend payout ratio is 19.91%.