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 6 out of 10. The analysis compared the fundamentals against 63 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 decent growth rate and is not valued too expensively.
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
The Return On Assets of LEN (9.38%) is better than 73.02% of its industry peers.
The Return On Equity of LEN (14.28%) is better than 66.67% of its industry peers.
The Return On Invested Capital of LEN (10.16%) is better than 66.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LEN is above the industry average of 10.42%.
| 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 Profit Margin of 9.11%. This is in the better half of the industry: LEN outperforms 76.19% of its industry peers.
LEN's Profit Margin has improved in the last couple of years.
LEN's Operating Margin of 12.14% is fine compared to the rest of the industry. LEN outperforms 77.78% of its industry peers.
In the last couple of years the Operating Margin of LEN has grown nicely.
LEN has a worse Gross Margin (13.73%) than 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
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
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 4.53 indicates that LEN is not in any danger for bankruptcy at the moment.
LEN's Altman-Z score of 4.53 is fine compared to the rest of the industry. LEN outperforms 77.78% of its industry peers.
LEN has a debt to FCF ratio of 15.73. This is a negative value and a sign of low solvency as LEN would need 15.73 years to pay back of all of its debts.
LEN has a Debt to FCF ratio (15.73) which is comparable to the rest of the industry.
LEN has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of LEN (0.19) is better than 65.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 15.73 | ||
| Altman-Z | 4.53 |
ROIC/WACC1.24
WACC8.2%
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.
LEN has a better Current ratio (7.62) than 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.
LEN has a Quick ratio (1.02) which is comparable to the rest of the 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 -17.81% 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 decreased by -1.13% in the past year.
The Revenue has been growing by 9.75% on average over the past years. This is quite good.
EPS 1Y (TTM)-17.81%
EPS 3Y3.67%
EPS 5Y20.01%
EPS Q2Q%-47.54%
Revenue 1Y (TTM)-1.13%
Revenue growth 3Y9.32%
Revenue growth 5Y9.75%
Sales Q2Q%-4.43%
3.2 Future
The Earnings Per Share is expected to grow by 9.89% on average over the next years. This is quite good.
Based on estimates for the next years, LEN will show a small growth in Revenue. The Revenue will grow by 5.30% on average per year.
EPS Next Y-38.74%
EPS Next 2Y-15.94%
EPS Next 3Y-2.58%
EPS Next 5Y9.89%
Revenue Next Year-1.15%
Revenue Next 2Y0.34%
Revenue Next 3Y2.18%
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
The Price/Earnings ratio is 10.99, which indicates a very decent valuation of LEN.
Compared to the rest of the industry, the Price/Earnings ratio of LEN indicates a somewhat cheap valuation: LEN is cheaper than 63.49% of the companies listed in the same industry.
LEN is valuated cheaply when we compare the Price/Earnings ratio to 26.93, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 13.11 indicates a correct valuation of LEN.
LEN's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 35.31. LEN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.99 | ||
| Fwd PE | 13.11 |
4.2 Price Multiples
LEN's Enterprise Value to EBITDA ratio is in line with the industry average.
LEN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 123.51 | ||
| EV/EBITDA | 8.38 |
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 -2.58% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.55
EPS Next 2Y-15.94%
EPS Next 3Y-2.58%
5. Dividend
5.1 Amount
LEN has a Yearly Dividend Yield of 1.67%. Purely for dividend investing, there may be better candidates out there.
LEN's Dividend Yield is a higher than the industry average which is at 3.33.
LEN's Dividend Yield is slightly below the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
5.2 History
The dividend of LEN is nicely growing with an annual growth rate of 65.54%!
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)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.
LEN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP16.62%
EPS Next 2Y-15.94%
EPS Next 3Y-2.58%
NYSE:LEN (8/15/2025, 1:18:06 PM)
132.879
+2.43 (+1.86%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners98.63%
Inst Owner Change1.82%
Ins Owners1.79%
Ins Owner Change-3.2%
Market Cap34.42B
Analysts69.17
Price Target125.95 (-5.21%)
Short Float %5.07%
Short Ratio3.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
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)-8.95%
PT rev (3m)-13.1%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)-24.86%
EPS NY rev (1m)0%
EPS NY rev (3m)-15.51%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.82%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.99 | ||
| Fwd PE | 13.11 | ||
| P/S | 0.97 | ||
| P/FCF | 123.51 | ||
| P/OCF | 84.01 | ||
| P/B | 1.52 | ||
| P/tB | 1.8 | ||
| EV/EBITDA | 8.38 |
EPS(TTM)12.09
EY9.1%
EPS(NY)10.13
Fwd EY7.63%
FCF(TTM)1.08
FCFY0.81%
OCF(TTM)1.58
OCFY1.19%
SpS136.57
BVpS87.17
TBVpS73.88
PEG (NY)N/A
PEG (5Y)0.55
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 | 4.53 |
F-Score4
WACC8.2%
ROIC/WACC1.24
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)-17.81%
EPS 3Y3.67%
EPS 5Y20.01%
EPS Q2Q%-47.54%
EPS Next Y-38.74%
EPS Next 2Y-15.94%
EPS Next 3Y-2.58%
EPS Next 5Y9.89%
Revenue 1Y (TTM)-1.13%
Revenue growth 3Y9.32%
Revenue growth 5Y9.75%
Sales Q2Q%-4.43%
Revenue Next Year-1.15%
Revenue Next 2Y0.34%
Revenue Next 3Y2.18%
Revenue Next 5Y5.3%
EBIT growth 1Y-26.49%
EBIT growth 3Y-1.69%
EBIT growth 5Y12.56%
EBIT Next Year-36.3%
EBIT Next 3Y-7.33%
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%