LENNAR CORP-A (LEN)
US5260571048 - Common Stock
Overall LEN gets a fundamental rating of 7 out of 10. We evaluated LEN against 68 industry peers in the Household Durables industry. Both the health and profitability get an excellent rating, making LEN a very profitable company, without any liquidiy or solvency issues. LEN has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year LEN was profitable.
LEN had a positive operating cash flow in the past year.
LEN had positive earnings in each of the past 5 years.
In the past 5 years LEN always reported a positive cash flow from operatings.
1.2 Ratios
LEN has a better Return On Assets (10.30%) than 73.13% of its industry peers.
Looking at the Return On Equity, with a value of 15.06%, LEN is in the better half of the industry, outperforming 67.16% of the companies in the same industry.
With a decent Return On Invested Capital value of 11.84%, LEN is doing good in the industry, outperforming 73.13% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for LEN is above the industry average of 10.06%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.3% | ||
| ROE | 15.06% | ||
| ROIC | 11.84% |
ROA(3y)11.7%
ROA(5y)9.9%
ROE(3y)18.2%
ROE(5y)15.92%
ROIC(3y)13.21%
ROIC(5y)11.33%
1.3 Margins
Looking at the Profit Margin, with a value of 11.45%, LEN belongs to the top of the industry, outperforming 80.60% of the companies in the same industry.
In the last couple of years the Profit Margin of LEN has grown nicely.
The Operating Margin of LEN (16.41%) is better than 86.57% of its industry peers.
In the last couple of years the Operating Margin of LEN has grown nicely.
LEN has a worse Gross Margin (17.94%) than 91.04% of its industry peers.
In the last couple of years the Gross Margin of LEN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.41% | ||
| PM (TTM) | 11.45% | ||
| GM | 17.94% |
OM growth 3Y2.4%
OM growth 5Y6.7%
PM growth 3Y1.6%
PM growth 5Y6.82%
GM growth 3Y2.02%
GM growth 5Y7.08%
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.
LEN has less shares outstanding than it did 1 year ago.
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 5.03. This indicates that LEN is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 5.03, LEN belongs to the best of the industry, outperforming 80.60% of the companies in the same industry.
LEN has a debt to FCF ratio of 1.00. This is a very positive value and a sign of high solvency as it would only need 1.00 years to pay back of all of its debts.
LEN has a better Debt to FCF ratio (1.00) than 76.12% 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.
The Debt to Equity ratio of LEN (0.16) is better than 70.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1 | ||
| Altman-Z | 5.03 |
ROIC/WACC1.16
WACC10.24%
2.3 Liquidity
A Current Ratio of 15.71 indicates that LEN has no problem at all paying its short term obligations.
The Current ratio of LEN (15.71) is better than 97.01% of its industry peers.
A Quick Ratio of 3.82 indicates that LEN has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.82, LEN belongs to the top of the industry, outperforming 95.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 15.71 | ||
| Quick Ratio | 3.82 |
3. Growth
3.1 Past
LEN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.40%.
LEN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.87% yearly.
The Revenue has been growing slightly by 3.23% in the past year.
LEN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.72% yearly.
EPS 1Y (TTM)-12.4%
EPS 3Y20.52%
EPS 5Y19.87%
EPS growth Q2Q24.76%
Revenue 1Y (TTM)3.23%
Revenue growth 3Y15.03%
Revenue growth 5Y10.72%
Revenue growth Q2Q12.67%
3.2 Future
Based on estimates for the next years, LEN will show a small growth in Earnings Per Share. The EPS will grow by 4.65% on average per year.
LEN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.17% yearly.
EPS Next Y7.11%
EPS Next 2Y9.64%
EPS Next 3Y10.56%
EPS Next 5Y4.65%
Revenue Next Year5.96%
Revenue Next 2Y6.69%
Revenue Next 3Y6.88%
Revenue Next 5Y2.17%
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
LEN is valuated reasonably with a Price/Earnings ratio of 10.62.
Based on the Price/Earnings ratio, LEN is valued a bit cheaper than 65.67% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 24.95. LEN is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 9.16, which indicates a very decent valuation of LEN.
LEN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LEN is cheaper than 77.61% of the companies in the same industry.
LEN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.62 | ||
| Fwd PE | 9.16 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LEN indicates a somewhat cheap valuation: LEN is cheaper than 77.61% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, LEN is valued a bit cheaper than 65.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.58 | ||
| EV/EBITDA | 7.05 |
4.3 Compensation for Growth
LEN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of LEN may justify a higher PE ratio.
PEG (NY)1.49
PEG (5Y)0.53
EPS Next 2Y9.64%
EPS Next 3Y10.56%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.31%, LEN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.34, LEN pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.45, LEN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
5.2 History
On average, the dividend of LEN grows each year by 54.01%, 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)54.01%
Div Incr Years0
Div Non Decr Years14
5.3 Sustainability
LEN pays out 11.52% 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.
DP11.52%
EPS Next 2Y9.64%
EPS Next 3Y10.56%
LENNAR CORP-A
NYSE:LEN (4/22/2024, 7:12:25 PM)
After market: 151.7 +0.13 (+0.09%)151.57
+1.38 (+0.92%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners
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Market Cap42.19B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
Dividend Growth(5Y)
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.62 | ||
| Fwd PE | 9.16 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
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SpS
BVpS
TBVpS
PEG (NY)1.49
PEG (5Y)0.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.3% | ||
| ROE | 15.06% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 16.41% | ||
| PM (TTM) | 11.45% | ||
| GM | 17.94% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 15.71 | ||
| Quick Ratio | 3.82 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-12.4%
EPS 3Y20.52%
EPS 5Y
EPS growth Q2Q
EPS Next Y7.11%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.23%
Revenue growth 3Y15.03%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
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