LENNAR CORP-A (LEN) Stock Fundamental Analysis
USA - NYSE:LEN - US5260571048 - Common Stock
127.14 USD
-1.1 (-0.86%)
127.14 USD
0 (0%)
Overall LEN gets a fundamental rating of 6 out of 10. We evaluated LEN against 61 industry peers in the Household Durables industry. LEN gets an excellent profitability rating and is at the same time showing great financial health properties. While showing a medium growth rate, LEN is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year LEN was profitable.
LEN had a positive operating cash flow in the past year.
Each year in the past 5 years LEN has been profitable.
In the past 5 years LEN always reported a positive cash flow from operatings.
1.2 Ratios
LEN's Return On Assets of 9.38% is fine compared to the rest of the industry. LEN outperforms 73.77% of its industry peers.
LEN has a better Return On Equity (14.28%) than 65.57% of its industry peers.
LEN's Return On Invested Capital of 10.16% is fine compared to the rest of the industry. LEN outperforms 65.57% of its industry peers.
LEN had an Average Return On Invested Capital over the past 3 years of 12.81%. This 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 has a better Profit Margin (9.11%) than 77.05% of its industry peers.
LEN's Profit Margin has improved in the last couple of years.
The Operating Margin of LEN (12.14%) is better than 77.05% of its industry peers.
In the last couple of years the Operating Margin of LEN has grown nicely.
LEN has a Gross Margin of 13.73%. This is amonst the worse of the industry: LEN underperforms 93.44% of its industry peers.
LEN'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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), LEN is 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
An Altman-Z score of 4.48 indicates that LEN is not in any danger for bankruptcy at the moment.
LEN's Altman-Z score of 4.48 is fine compared to the rest of the industry. LEN outperforms 75.41% of its industry peers.
The Debt to FCF ratio of LEN is 15.73, which is on the high side as it means it would take LEN, 15.73 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 15.73, LEN perfoms like the industry average, outperforming 44.26% of the companies in the same industry.
A Debt/Equity ratio of 0.19 indicates that LEN is not too dependend on debt financing.
LEN has a better Debt to Equity ratio (0.19) than 65.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 15.73 | ||
| Altman-Z | 4.48 |
ROIC/WACC1.19
WACC8.52%
2.3 Liquidity
LEN has a Current Ratio of 7.62. This indicates that LEN is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 7.62, LEN belongs to the best of the industry, outperforming 81.97% of the companies in the same industry.
A Quick Ratio of 1.02 indicates that LEN should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.02, LEN is in line with its industry, outperforming 50.82% 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 shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -32.98%.
The Earnings Per Share has been growing by 20.01% on average over the past years. This is a very strong growth
LEN shows a small growth in Revenue. In the last year, the Revenue has grown by 3.53%.
The Revenue has been growing by 9.75% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 8.97% on average over the next years. This is quite good.
Based on estimates for the next years, LEN 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
The EPS growth rate is decreasing: in the next years the growth will be less 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.56, the valuation of LEN can be described as correct.
LEN's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.57, LEN is valued rather cheaply.
A Price/Forward Earnings ratio of 13.28 indicates a correct valuation of LEN.
LEN's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of LEN to the average of the S&P500 Index (23.09), we can say LEN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.56 | ||
| Fwd PE | 13.28 |
4.2 Price Multiples
LEN's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LEN indicates a slightly more expensive valuation: LEN is more expensive than 63.93% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 116.35 | ||
| EV/EBITDA | 8.13 |
4.3 Compensation for Growth
LEN has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as LEN's earnings are expected to decrease with -5.04% in the coming years.
PEG (NY)N/A
PEG (5Y)0.63
EPS Next 2Y-18.3%
EPS Next 3Y-5.04%
5. Dividend
5.1 Amount
LEN has a Yearly Dividend Yield of 1.63%.
LEN's Dividend Yield is a higher than the industry average which is at 3.06.
Compared to the average S&P500 Dividend Yield of 2.32, LEN is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
5.2 History
On average, the dividend of LEN grows each year by 65.54%, which is quite nice.
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
LEN pays out 16.62% of its income as dividend. This is a sustainable payout ratio.
The dividend of LEN 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%
127.14
-1.1 (-0.86%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners97.43%
Inst Owner Change-2.19%
Ins Owners1.8%
Ins Owner Change0.81%
Market Cap32.42B
Revenue(TTM)35.44B
Net Income(TTM)3.22B
Analysts68.33
Price Target134.74 (5.98%)
Short Float %5.55%
Short Ratio3.38
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)4.63%
PT rev (3m)2.1%
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 | 12.56 | ||
| Fwd PE | 13.28 | ||
| P/S | 0.92 | ||
| P/FCF | 116.35 | ||
| P/OCF | 79.14 | ||
| P/B | 1.44 | ||
| P/tB | 1.69 | ||
| EV/EBITDA | 8.13 |
EPS(TTM)10.12
EY7.96%
EPS(NY)9.57
Fwd EY7.53%
FCF(TTM)1.09
FCFY0.86%
OCF(TTM)1.61
OCFY1.26%
SpS138.7
BVpS88.54
TBVpS75.04
PEG (NY)N/A
PEG (5Y)0.63
Graham Number141.99
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%
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-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 | 4.48 |
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%