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Market Cap

US$29.3b

Last Updated

2021/05/13 03:28 UTC

Data Sources

Company Financials +

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

Flawless balance sheet, undervalued 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 +/- 7% a week.

Volatility Over Time: LEN's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

-8.9%

LEN

-5.7%

US Consumer Durables

-2.8%

US Market


1 Year Return

96.5%

LEN

116.8%

US Consumer Durables

49.4%

US Market

Return vs Industry: LEN underperformed the US Consumer Durables industry which returned 116.8% over the past year.

Return vs Market: LEN exceeded the US Market which returned 49.4% over the past year.


Shareholder returns

LENIndustryMarket
7 Day-8.9%-5.7%-2.8%
30 Day-8.3%-0.8%-2.3%
90 Day1.7%8.8%-1.3%
1 Year98.5%96.5%119.2%116.8%51.8%49.4%
3 Year92.4%88.6%79.4%72.4%57.5%47.6%
5 Year130.4%124.4%109.1%94.4%121.7%97.1%

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?

40.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LEN ($96.13) is trading below our estimate of fair value ($162.63)

Significantly Below Fair Value: LEN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: LEN is good value based on its PE Ratio (9.8x) compared to the US Consumer Durables industry average (15.5x).

PE vs Market: LEN is good value based on its PE Ratio (9.8x) compared to the US market (19.5x).


Price to Earnings Growth Ratio

PEG Ratio: LEN is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: LEN is good value based on its PB Ratio (1.6x) compared to the US Consumer Durables industry average (2.1x).


Future Growth

How is Lennar forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

4.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LEN's forecast earnings growth (4% per year) is above the savings rate (2%).

Earnings vs Market: LEN's earnings (4% per year) are forecast to grow slower than the US market (14.7% per year).

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

Revenue vs Market: LEN's revenue (8.1% per year) is forecast to grow slower than the US market (9% per year).

High Growth Revenue: LEN's revenue (8.1% 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 (15.6%).


Past Performance

How has Lennar performed over the past 5 years?

27.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LEN has high quality earnings.

Growing Profit Margin: LEN's current net profit margins (13%) are higher than last year (8.7%).


Past Earnings Growth Analysis

Earnings Trend: LEN's earnings have grown significantly by 27.8% per year over the past 5 years.

Accelerating Growth: LEN's earnings growth over the past year (52.4%) exceeds its 5-year average (27.8% per year).

Earnings vs Industry: LEN earnings growth over the past year (52.4%) underperformed the Consumer Durables industry 63.9%.


Return on Equity

High ROE: LEN's Return on Equity (16.3%) is considered low.


Financial Health

How is Lennar's financial position?


Financial Position Analysis

Short Term Liabilities: LEN's short term assets ($22.6B) exceed its short term liabilities ($1.7B).

Long Term Liabilities: LEN's short term assets ($22.6B) exceed its long term liabilities ($9.8B).


Debt to Equity History and Analysis

Debt Level: LEN's debt to equity ratio (36.5%) is considered satisfactory.

Reducing Debt: LEN's debt to equity ratio has reduced from 107.9% to 36.5% over the past 5 years.

Debt Coverage: LEN's debt is well covered by operating cash flow (60.4%).

Interest Coverage: LEN's interest payments on its debt are well covered by EBIT (158.5x coverage).


Balance Sheet


Dividend

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

1.04%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LEN's dividend (1.04%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.28%).

High Dividend: LEN's dividend (1.04%) is low compared to the top 25% of dividend payers in the US market (3.48%).


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 (7.6%), 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 (10.3% payout ratio).


Next Steps

Management

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

2.7yrs

Average management tenure


CEO

Jon Jaffe (60 yo)

0.50

Tenure

US$19,352,016

Compensation

Mr. Jonathan M. Jaffe, also known as Jon, has been the Co-Chief Executive Officer and Co-President of Lennar Corporation since November 2020. He has been a Director of Lennar Corporation since April 12, 20...


CEO Compensation Analysis

Compensation vs Market: Jon's total compensation ($USD19.35M) is above average for companies of similar size in the US market ($USD11.15M).

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


Leadership Team

Experienced Management: LEN's management team is considered experienced (2.7 years average tenure).


Board Members

Experienced Board: LEN's board of directors are considered experienced (7.9 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$29.345b
  • Shares outstanding: 313.38m
  • Website: https://www.lennar.com

Number of Employees


Location

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

Listings


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 Analysis2021/05/13 03:28
End of Day Share Price2021/05/12 00:00
Earnings2021/02/28
Annual Earnings2020/11/30


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.