LENNAR CORP-A (LEN) Stock Fundamental Analysis
NYSE:LEN - New York Stock Exchange, Inc. - US5260571048 - Common Stock - Currency: USD
Overall LEN gets a fundamental rating of 7 out of 10. We evaluated LEN against 64 industry peers in the Household Durables industry. LEN gets an excellent profitability rating and is at the same time showing great financial health properties. LEN has a decent growth rate and is not valued too expensively. These ratings would make LEN suitable 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 fine compared to the rest of the industry. LEN outperforms 76.56% of its industry peers.
LEN's Return On Equity of 16.26% is fine compared to the rest of the industry. LEN outperforms 68.75% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.43%, LEN is in the better half of the industry, outperforming 70.31% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for LEN is in line with the industry average of 11.93%.
| 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
With a decent Profit Margin value of 10.34%, LEN is doing good in the industry, outperforming 79.69% of the companies in the same industry.
LEN's Profit Margin has improved in the last couple of years.
The Operating Margin of LEN (13.74%) is better than 79.69% of its industry peers.
LEN's Operating Margin has improved in the last couple of years.
LEN has a worse Gross Margin (15.21%) than 93.75% 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.
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.
The debt/assets ratio for LEN has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.32 indicates that LEN is not in any danger for bankruptcy at the moment.
LEN has a better Altman-Z score (4.32) than 71.88% of its industry peers.
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.
With a decent Debt to FCF ratio value of 2.27, LEN is doing good in the industry, outperforming 68.75% of the companies in the same industry.
A Debt/Equity ratio of 0.16 indicates that LEN is not too dependend on debt financing.
LEN has a Debt to Equity ratio of 0.16. This is in the better half of the industry: LEN outperforms 70.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 2.27 | ||
| Altman-Z | 4.32 |
ROIC/WACC1.32
WACC8.63%
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 87.50% 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.
Looking at the Quick ratio, with a value of 1.84, LEN belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.37 | ||
| Quick Ratio | 1.84 |
3. Growth
3.1 Past
LEN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.78%.
Measured over the past years, LEN shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.01% on average per year.
Looking at the last year, LEN shows a small growth in Revenue. The Revenue has grown by 2.01% in the last 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)-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
Based on estimates for the next years, LEN will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.67% on average per year.
Based on estimates for the next years, LEN will show a small growth in Revenue. The Revenue will grow by 5.72% on average per year.
EPS Next Y-27.99%
EPS Next 2Y-8.17%
EPS Next 3Y2.27%
EPS Next 5Y10.67%
Revenue Next Year0.9%
Revenue Next 2Y2.61%
Revenue Next 3Y4.43%
Revenue Next 5Y5.72%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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
With a Price/Earnings ratio of 7.97, the valuation of LEN can be described as very cheap.
Based on the Price/Earnings ratio, LEN is valued a bit cheaper than 62.50% of the companies in the same industry.
LEN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.70.
With a Price/Forward Earnings ratio of 9.05, the valuation of LEN can be described as very reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as LEN.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.49, LEN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.97 | ||
| Fwd PE | 9.05 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LEN is valued a bit cheaper than the industry average as 70.31% of the companies are valued more expensively.
LEN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.14 | ||
| EV/EBITDA | 6.04 |
4.3 Compensation for Growth
LEN has a very decent 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
With a Yearly Dividend Yield of 1.82%, LEN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.48, LEN pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.36, LEN is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
5.2 History
On average, the dividend of LEN grows each year by 65.54%, which is quite nice.
LEN has been paying a dividend for at least 10 years, so it has 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
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-8.17%
EPS Next 3Y2.27%
109.44
-1.73 (-1.56%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners96.41%
Inst Owner Change-2.13%
Ins Owners1.77%
Ins Owner Change3.95%
Market Cap28.87B
Analysts70
Price Target144.93 (32.43%)
Short Float %2.97%
Short Ratio2.19
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)-0.34%
PT rev (3m)-12.06%
EPS NQ rev (1m)-0.13%
EPS NQ rev (3m)-27.55%
EPS NY rev (1m)-0.68%
EPS NY rev (3m)-17.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.35%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-3.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.97 | ||
| Fwd PE | 9.05 | ||
| P/S | 0.81 | ||
| P/FCF | 18.14 | ||
| P/OCF | 16.53 | ||
| P/B | 1.27 | ||
| P/tB | 1.51 | ||
| EV/EBITDA | 6.04 |
EPS(TTM)13.73
EY12.55%
EPS(NY)12.09
Fwd EY11.05%
FCF(TTM)6.03
FCFY5.51%
OCF(TTM)6.62
OCFY6.05%
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 | 4.32 |
F-Score6
WACC8.63%
ROIC/WACC1.32
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 5Y10.67%
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 5Y5.72%
EBIT growth 1Y-14.59%
EBIT growth 3Y-1.69%
EBIT growth 5Y12.56%
EBIT Next Year-24.81%
EBIT Next 3Y0.46%
EBIT Next 5Y5.82%
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%