LENNAR CORP-A (LEN) Stock Fundamental Analysis
USA - NYSE:LEN - US5260571048 - Common Stock
126.04 USD
+2.02 (+1.63%)
126.35 USD
+0.31 (+0.25%)
LEN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 63 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.
1. Profitability
1.1 Basic Checks
LEN had positive earnings in the past year.
LEN had a positive operating cash flow in the past year.
LEN had positive earnings in each of the past 5 years.
LEN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
LEN has a better Return On Assets (9.38%) than 74.60% of its industry peers.
Looking at the Return On Equity, with a value of 14.28%, LEN is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
LEN has a Return On Invested Capital of 10.16%. This is in the better half of the industry: LEN outperforms 66.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LEN is above the industry average of 10.52%.
| 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
The Profit Margin of LEN (9.11%) is better than 76.19% of its industry peers.
In the last couple of years the Profit Margin of LEN has grown nicely.
LEN's Operating Margin of 12.14% is fine compared to the rest of the industry. LEN outperforms 77.78% of its industry peers.
LEN's Operating Margin has improved in the last couple of years.
LEN has a Gross Margin of 13.73%. This is amonst the worse of the industry: LEN underperforms 93.65% 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
LEN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, LEN has less shares outstanding
Compared to 5 years ago, LEN has less shares outstanding
The debt/assets ratio for LEN has been reduced compared to a year ago.
2.2 Solvency
LEN has an Altman-Z score of 4.45. This indicates that LEN is financially healthy and has little risk of bankruptcy at the moment.
LEN has a better Altman-Z score (4.45) than 76.19% 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.
LEN has a Debt to FCF ratio (15.73) which is in line with its industry peers.
LEN has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
LEN's Debt to Equity ratio of 0.19 is fine compared to the rest of the industry. LEN outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 15.73 | ||
| Altman-Z | 4.45 |
ROIC/WACC1.17
WACC8.69%
2.3 Liquidity
A Current Ratio of 7.62 indicates that LEN has no problem at all paying its short term obligations.
LEN's Current ratio of 7.62 is amongst the best of the industry. LEN outperforms 82.54% of its industry peers.
A Quick Ratio of 1.02 indicates that LEN should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.02, LEN perfoms like the industry average, outperforming 49.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.62 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
The earnings per share for LEN have decreased strongly by -34.90% in the last year.
The Earnings Per Share has been growing by 20.01% on average over the past years. This is a very strong growth
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)-34.9%
EPS 3Y3.67%
EPS 5Y20.01%
EPS Q2Q%-53.05%
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 9.89% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.30% on average over the next years.
EPS Next Y-39.42%
EPS Next 2Y-18.3%
EPS Next 3Y-5.04%
EPS Next 5Y9.89%
Revenue Next Year-1.17%
Revenue Next 2Y0.36%
Revenue Next 3Y2.05%
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.
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
With a Price/Earnings ratio of 12.82, LEN is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of LEN is on the same level as its industry peers.
LEN is valuated cheaply when we compare the Price/Earnings ratio to 27.32, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 13.17, the valuation of LEN can be described as correct.
LEN's Price/Forward Earnings is on the same level as the industry average.
LEN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.82 | ||
| Fwd PE | 13.17 |
4.2 Price Multiples
LEN's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as LEN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 117.15 | ||
| EV/EBITDA | 8 |
4.3 Compensation for Growth
The decent profitability rating of LEN may justify a higher PE ratio.
LEN's earnings are expected to decrease with -5.04% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.64
EPS Next 2Y-18.3%
EPS Next 3Y-5.04%
5. Dividend
5.1 Amount
LEN has a Yearly Dividend Yield of 1.61%.
Compared to an average industry Dividend Yield of 2.65, LEN pays a bit more dividend than its industry peers.
LEN's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
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%
126.04
+2.02 (+1.63%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners97.43%
Inst Owner Change3.08%
Ins Owners1.8%
Ins Owner Change1.05%
Market Cap32.65B
Analysts69.17
Price Target128.77 (2.17%)
Short Float %5.35%
Short Ratio3.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
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)2.24%
PT rev (3m)-6.91%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)-24.18%
EPS NY rev (1m)0%
EPS NY rev (3m)-14.6%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)-6.06%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-1.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.82 | ||
| Fwd PE | 13.17 | ||
| P/S | 0.92 | ||
| P/FCF | 117.15 | ||
| P/OCF | 79.68 | ||
| P/B | 1.45 | ||
| P/tB | 1.71 | ||
| EV/EBITDA | 8 |
EPS(TTM)9.83
EY7.8%
EPS(NY)9.57
Fwd EY7.6%
FCF(TTM)1.08
FCFY0.85%
OCF(TTM)1.58
OCFY1.25%
SpS136.57
BVpS87.17
TBVpS73.88
PEG (NY)N/A
PEG (5Y)0.64
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%
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-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 | 4.45 |
F-Score4
WACC8.69%
ROIC/WACC1.17
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)-34.9%
EPS 3Y3.67%
EPS 5Y20.01%
EPS Q2Q%-53.05%
EPS Next Y-39.42%
EPS Next 2Y-18.3%
EPS Next 3Y-5.04%
EPS Next 5Y9.89%
Revenue 1Y (TTM)3.53%
Revenue growth 3Y9.32%
Revenue growth 5Y9.75%
Sales Q2Q%-6.43%
Revenue Next Year-1.17%
Revenue Next 2Y0.36%
Revenue Next 3Y2.05%
Revenue Next 5Y5.3%
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 5Y4.38%
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%