LENNAR CORP-A (LEN) Stock Fundamental Analysis
NYSE:LEN - New York Stock Exchange, Inc. - US5260571048 - Common Stock - Currency: USD
LEN gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 64 industry peers in the Household Durables industry. LEN has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. LEN has a correct valuation and a medium growth rate. These ratings could make LEN a good candidate for quality investing.
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.
LEN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
LEN's Return On Assets of 10.56% is amongst the best of the industry. LEN outperforms 81.25% of its industry peers.
Looking at the Return On Equity, with a value of 16.26%, LEN is in the better half of 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 12.52%. This is above the industry average of 10.33%.
| 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's Profit Margin of 10.34% is amongst the best of the industry. LEN outperforms 81.25% of its industry peers.
In the last couple of years the Profit Margin of LEN has grown nicely.
LEN's Operating Margin of 13.74% is amongst the best of the industry. LEN outperforms 81.25% of its industry peers.
LEN's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 15.21%, LEN is not doing good in the industry: 92.19% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of LEN has grown nicely.
| 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 is creating some value.
The number of shares outstanding for LEN has been reduced compared to 1 year ago.
The number of shares outstanding for LEN has been reduced compared to 5 years ago.
Compared to 1 year ago, LEN has an improved debt to assets ratio.
2.2 Solvency
LEN has an Altman-Z score of 4.29. This indicates that LEN is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.29, LEN is in the better half of the industry, outperforming 75.00% 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 Debt to FCF ratio of 2.27. This is in the better half of the industry: LEN outperforms 71.88% of its industry peers.
LEN has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.16, 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 | 4.29 |
ROIC/WACC1.21
WACC9.48%
2.3 Liquidity
LEN has a Current Ratio of 8.37. This indicates that LEN is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of LEN (8.37) is better than 85.94% of its industry peers.
LEN has a Quick Ratio of 1.84. This is a normal value and indicates that LEN is financially healthy and should not expect problems in meeting its short term obligations.
LEN's Quick ratio of 1.84 is fine compared to the rest of the industry. LEN outperforms 78.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.37 | ||
| Quick Ratio | 1.84 |
3. Growth
3.1 Past
The earnings per share for LEN have decreased by -3.78% in the last year.
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 2.01% in the past year.
Measured over the past years, LEN 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
The Earnings Per Share is expected to grow by 10.19% 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 5.79% on average per year.
EPS Next Y-27.99%
EPS Next 2Y-8.17%
EPS Next 3Y2.27%
EPS Next 5Y10.19%
Revenue Next Year0.9%
Revenue Next 2Y2.61%
Revenue Next 3Y4.43%
Revenue Next 5Y5.79%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
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
Based on the Price/Earnings ratio of 7.91, the valuation of LEN can be described as very cheap.
Based on the Price/Earnings ratio, LEN is valued a bit cheaper than the industry average as 64.06% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.32. LEN is valued rather cheaply when compared to this.
LEN is valuated reasonably with a Price/Forward Earnings ratio of 8.98.
LEN's Price/Forward Earnings is on the same level as the industry average.
LEN is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.91 | ||
| Fwd PE | 8.98 |
4.2 Price Multiples
LEN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LEN is cheaper than 71.88% of the companies in the same industry.
LEN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18 | ||
| EV/EBITDA | 5.91 |
4.3 Compensation for Growth
LEN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.4
EPS Next 2Y-8.17%
EPS Next 3Y2.27%
5. Dividend
5.1 Amount
LEN has a Yearly Dividend Yield of 1.78%.
Compared to an average industry Dividend Yield of 3.54, LEN pays a bit more dividend than its industry peers.
LEN's Dividend Yield is slightly below the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
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 14.64% of its income as dividend. This is a sustainable payout ratio.
LEN'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%
108.61
-3.54 (-3.16%)
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 Cap28.65B
Analysts70
Price Target144.93 (33.44%)
Short Float %3.74%
Short Ratio2.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
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%
PT rev (3m)-7.69%
EPS NQ rev (1m)-0.67%
EPS NQ rev (3m)-27.42%
EPS NY rev (1m)0%
EPS NY rev (3m)-17.11%
Revenue NQ rev (1m)-0.37%
Revenue NQ rev (3m)-6.16%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.91 | ||
| Fwd PE | 8.98 | ||
| P/S | 0.8 | ||
| P/FCF | 18 | ||
| P/OCF | 16.4 | ||
| P/B | 1.26 | ||
| P/tB | 1.5 | ||
| EV/EBITDA | 5.91 |
EPS(TTM)13.73
EY12.64%
EPS(NY)12.09
Fwd EY11.13%
FCF(TTM)6.03
FCFY5.56%
OCF(TTM)6.62
OCFY6.1%
SpS135.56
BVpS86.16
TBVpS72.39
PEG (NY)N/A
PEG (5Y)0.4
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 | 4.29 |
F-Score6
WACC9.48%
ROIC/WACC1.21
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 5Y10.19%
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 5Y5.79%
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 5Y5.08%
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%