NYSE:LEN

Stock Analysis Report

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Executive Summary

Lennar Corporation, together with its subsidiaries, operates as a homebuilder primarily under the Lennar brand in the United States. More Details


Snowflake Analysis

Excellent balance sheet, good value and pays a dividend.


Similar Companies

Share Price & News

How has Lennar's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LEN is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: LEN's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

2.5%

LEN

1.4%

US Consumer Durables

2.1%

US Market


1 Year Return

30.2%

LEN

21.9%

US Consumer Durables

19.8%

US Market

Return vs Industry: LEN exceeded the US Consumer Durables industry which returned 21.9% over the past year.

Return vs Market: LEN exceeded the US Market which returned 19.7% over the past year.


Shareholder returns

LENIndustryMarket
7 Day2.5%1.4%2.1%
30 Day7.4%8.8%8.1%
90 Day2.3%8.5%6.0%
1 Year31.4%30.2%23.3%21.9%22.5%19.8%
3 Year26.1%24.1%16.5%12.3%46.5%36.8%
5 Year57.6%54.1%55.8%45.9%96.9%75.3%

Long-Term Price Volatility Vs. Market

How volatile is Lennar's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Lennar undervalued compared to its fair value and its price relative to the market?

16.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LEN ($77.04) is trading below our estimate of fair value ($92.38)

Significantly Below Fair Value: LEN is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: LEN is good value based on its PE Ratio (10.7x) compared to the US Consumer Durables industry average (14.2x).

PE vs Market: LEN is good value based on its PE Ratio (10.7x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: LEN is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: LEN is good value based on its PB Ratio (1.4x) compared to the US Consumer Durables industry average (1.6x).


Next Steps

Future Growth

How is Lennar forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

8.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LEN's forecast earnings growth (8.9% per year) is above the savings rate (2.2%).

Earnings vs Market: LEN's earnings (8.9% per year) are forecast to grow slower than the US market (22% per year).

High Growth Earnings: LEN's earnings are forecast to grow, but not significantly.

Revenue vs Market: LEN's revenue (8.5% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: LEN's revenue (8.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LEN's Return on Equity is forecast to be low in 3 years time (13.4%).


Next Steps

Past Performance

How has Lennar performed over the past 5 years?

25.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LEN has high quality earnings.

Growing Profit Margin: LEN's current net profit margins (9.9%) are higher than last year (9%).


Past Earnings Growth Analysis

Earnings Trend: LEN's earnings have grown significantly by 25.1% per year over the past 5 years.

Accelerating Growth: LEN's earnings growth over the past year (14.3%) is below its 5-year average (25.1% per year).

Earnings vs Industry: LEN earnings growth over the past year (14.3%) underperformed the Consumer Durables industry 29.1%.


Return on Equity

High ROE: LEN's Return on Equity (13%) is considered low.


Next Steps

Financial Health

How is Lennar's financial position?


Financial Position Analysis

Short Term Liabilities: LEN's short term assets ($22.1B) exceed its short term liabilities ($1.8B).

Long Term Liabilities: LEN's short term assets ($22.1B) exceed its long term liabilities ($10.2B).


Debt to Equity History and Analysis

Debt Level: LEN's debt to equity ratio (47.1%) is considered high.

Reducing Debt: LEN's debt to equity ratio has reduced from 120.7% to 47.1% over the past 5 years.

Debt Coverage: LEN's debt is well covered by operating cash flow (50.1%).

Interest Coverage: LEN's interest payments on its debt are well covered by EBIT (165x coverage).


Balance Sheet


Next Steps

Dividend

What is Lennar current dividend yield, its reliability and sustainability?

1.29%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LEN's dividend (1.3%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: LEN's dividend (1.3%) is low compared to the top 25% of dividend payers in the US market (4.05%).


Stability and Growth of Payments

Stable Dividend: LEN's dividends per share have been stable in the past 10 years.

Growing Dividend: LEN's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (5.8%), LEN's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LEN's dividends in 3 years are forecast to be thoroughly covered by earnings (7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

Jon Jaffe (60 yo)

no data

Tenure

US$16,118,722

Compensation

Mr. Jonathan M. Jaffe, also known as Jon, has been Co-Chief Executive Officer and Co-President of Lennar Corporation since November 2020. He has been Director of Lennar Corporation since April 12, 2018. He...


CEO Compensation Analysis

Compensation vs Market: Jon's total compensation ($USD16.12M) is above average for companies of similar size in the US market ($USD10.79M).

Compensation vs Earnings: Jon's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Stuart Miller
Executive Chairman2.58yrsUS$20.88m7.58%
$ 1.8b
Jonathan Jaffe
Co-CEO, Co-President & Directorno dataUS$16.12m0.16%
$ 36.8m
Richard Beckwitt
Co-CEO, Co-President & Director2.58yrsUS$18.28m0.52%
$ 123.7m
Diane Bessette
VP, CFO & Treasurer2.58yrsUS$3.77m0.079%
$ 18.6m
Jeffrey McCall
Executive Vice President2.75yrsUS$3.51m0.056%
$ 13.2m
Fred Rothman
Chief Operating Officer1.83yrsno datano data
Allison Bober
Senior Manager of Investor Relationsno datano datano data
Mark Sustana
VP, General Counsel & Secretary15.83yrsUS$2.46m0.023%
$ 5.4m
Kay Howard
Chief Marketing & Communications Officerno datano datano data
Andrew Davis
Chief Human Resources Officer2.25yrsno datano data
Eric Feder
Managing General Partner of LenX1.17yrsno datano data
Tench Tilghman
President of Pennsylvania & Delaware Markets1.08yrsno datano data

2.3yrs

Average Tenure

59.5yo

Average Age

Experienced Management: LEN's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stuart Miller
Executive Chairman2.58yrsUS$20.88m7.58%
$ 1.8b
Jonathan Jaffe
Co-CEO, Co-President & Directorno dataUS$16.12m0.16%
$ 36.8m
Richard Beckwitt
Co-CEO, Co-President & Director2.58yrsUS$18.28m0.52%
$ 123.7m
Sidney Lapidus
Independent Lead Director15.83yrsUS$314.16k0.057%
$ 13.6m
Sherrill Hudson
Independent Director12.83yrsUS$284.59k0.013%
$ 3.0m
Steven Gerard
Independent Director20.5yrsUS$284.01k0.015%
$ 3.6m
Irving Bolotin
Independent Director46.83yrsUS$266.68k0.012%
$ 2.9m
Jeffrey Sonnenfeld
Independent Director15.17yrsUS$253.43k0.012%
$ 2.8m
Armando Olivera
Independent Director5.83yrsUS$258.73k0.0042%
$ 1.0m
Scott Stowell
Independent Director2.75yrsUS$231.68k0.0074%
$ 1.7m
Teri McClure
Independent Director7.42yrsUS$259.19k0.0066%
$ 1.6m
Theron Gilliam
Independent Director10.42yrsUS$286.40k0.0091%
$ 2.2m

8.9yrs

Average Tenure

63.5yo

Average Age

Experienced Board: LEN's board of directors are considered experienced (8.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: LEN insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Lennar Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lennar Corporation
  • Ticker: LEN
  • Exchange: NYSE
  • Founded: 1954
  • Industry: Homebuilding
  • Sector: Consumer Durables
  • Market Cap: US$23.699b
  • Shares outstanding: 312.74m
  • Website: https://www.lennar.com

Number of Employees


Location

  • Lennar Corporation
  • 700 Northwest 107th Avenue
  • Miami
  • Florida
  • 33172
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LENNYSE (New York Stock Exchange)YesClass A Common StockUSUSDJun 1971
LNNDB (Deutsche Boerse AG)YesClass A Common StockDEEURJun 1971
LEN *BMV (Bolsa Mexicana de Valores)YesClass A Common StockMXMXNJun 1971
0JU0LSE (London Stock Exchange)YesClass A Common StockGBUSDJun 1971
LEN.BNYSE (New York Stock Exchange)Class B Common StockUSUSDApr 2003
LENB *BMV (Bolsa Mexicana de Valores)Class B Common StockMXMXNApr 2003
LNN0DB (Deutsche Boerse AG)Class B Common StockDEEURApr 2003
L1EN34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COMBRBRLDec 2019

Biography

Lennar Corporation, together with its subsidiaries, operates as a homebuilder primarily under the Lennar brand in the United States. It operates through Homebuilding East, Homebuilding Central, Homebuildin...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/27 23:32
End of Day Share Price2020/11/27 00:00
Earnings2020/08/31
Annual Earnings2019/11/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.