NYSE:LEN

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Good value with proven track record 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

37.2%

LEN

26.6%

US Consumer Durables

12.5%

US Market


1 Year Return

-17.7%

LEN

-19.9%

US Consumer Durables

-12.7%

US Market

Return vs Industry: LEN exceeded the US Consumer Durables industry which returned -19.9% over the past year.

Return vs Market: LEN underperformed the US Market which returned -12.7% over the past year.


Shareholder returns

LENIndustryMarket
7 Day37.2%26.6%12.5%
30 Day-33.3%-29.5%-14.7%
90 Day-27.8%-33.3%-21.5%
1 Year-17.3%-17.7%-18.8%-19.9%-10.9%-12.7%
3 Year-18.5%-19.3%-20.6%-24.3%12.6%5.4%
5 Year-19.8%-21.1%-16.3%-21.9%31.9%17.5%

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?

6.39x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LEN ($40.26) is trading above our estimate of fair value ($30.49)

Significantly Below Fair Value: LEN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LEN is good value based on its PE Ratio (6.4x) compared to the Consumer Durables industry average (7.7x).

PE vs Market: LEN is good value based on its PE Ratio (6.4x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: LEN is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: LEN is good value based on its PB Ratio (0.8x) compared to the US Consumer Durables industry average (0.8x).


Next Steps

Future Growth

How is Lennar forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

8.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LEN's forecast earnings growth (8% per year) is above the savings rate (1.7%).

Earnings vs Market: LEN's earnings (8% per year) are forecast to grow slower than the US market (12.3% per year).

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

Revenue vs Market: LEN's revenue (3.2% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: LEN's revenue (3.2% 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 (10.9%).


Next Steps

Past Performance

How has Lennar performed over the past 5 years?

23.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LEN has high quality earnings.

Growing Profit Margin: LEN's current net profit margins (8.7%) are higher than last year (8.3%).


Past Earnings Growth Analysis

Earnings Trend: LEN's earnings have grown significantly by 23.9% per year over the past 5 years.

Accelerating Growth: LEN's earnings growth over the past year (11.5%) is below its 5-year average (23.9% per year).

Earnings vs Industry: LEN earnings growth over the past year (11.5%) exceeded the Consumer Durables industry 9.8%.


Return on Equity

High ROE: LEN's Return on Equity (12.4%) is considered low.


Next Steps

Financial Health

How is Lennar's financial position?


Financial Position Analysis

Short Term Liabilities: LEN's short term assets ($22.2B) exceed its short term liabilities ($4.2B).

Long Term Liabilities: LEN's short term assets ($22.2B) exceed its long term liabilities ($9.1B).


Debt to Equity History and Analysis

Debt Level: LEN's debt to equity ratio (59.7%) is considered high.

Reducing Debt: LEN's debt to equity ratio has reduced from 120.8% to 59.7% over the past 5 years.

Debt Coverage: LEN's debt is not well covered by operating cash flow (15.5%).

Interest Coverage: LEN's interest payments on its debt are well covered by EBIT (126.4x coverage).


Balance Sheet

Inventory Level: LEN has a high level of physical assets or inventory.

Debt Coverage by Assets: LEN's debt is covered by short term assets (assets are 2.3x debt).


Next Steps

Dividend

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

1.24%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LEN's dividend (1.24%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.98%).

High Dividend: LEN's dividend (1.24%) is low compared to the top 25% of dividend payers in the US market (5.49%).


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 (3.9%), 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 (8.5% payout ratio).


Next Steps

Management

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

1.9yrs

Average management tenure


CEO

Rick Beckwitt (60yo)

1.92s

Tenure

US$18,279,581

Compensation

Mr. Richard Beckwitt, also known as Rick, has been the Chief Executive Officer of Lennar Corporation since April 12, 2018. Mr. Beckwitt served as the President of Lennar Corporation since January 12, 2011  ...


CEO Compensation Analysis

Compensation vs Market: Rick's total compensation ($USD18.28M) is above average for companies of similar size in the US market ($USD11.74M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Stuart Miller
Executive Chairman1.92yrsUS$20.88m0.66% $80.5m
Richard Beckwitt
CEO & Director1.92yrsUS$18.28m0.53% $64.2m
Jonathan Jaffe
President & Director1.92yrsUS$16.12m0.17% $21.3m
Diane Bessette
VP, CFO & Treasurer1.92yrsUS$3.77m0.095% $11.6m
Jeffrey McCall
Executive Vice President2yrsUS$3.51m0.064% $7.8m
Fred Rothman
Chief Operating Officer1.17yrsno datano data
Allison Bober
Senior Manager of Investor Relationsno datano datano data
Mark Sustana
VP, General Counsel & Secretary15.17yrsUS$2.46m0.032% $3.9m
Kay Howard
Chief Marketing & Communications Officerno datano datano data
Andrew Davis
Chief Human Resources Officer1.58yrsno datano data

1.9yrs

Average Tenure

58.5yo

Average Age

Experienced Management: LEN's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Stuart Miller
Executive Chairman1.92yrsUS$20.88m0.66% $80.5m
Richard Beckwitt
CEO & Director1.92yrsUS$18.28m0.53% $64.2m
Jonathan Jaffe
President & Director1.92yrsUS$16.12m0.17% $21.3m
Sidney Lapidus
Lead Director15.17yrsUS$314.16k0.057% $6.9m
Sherrill Hudson
Independent Director12.17yrsUS$284.59k0.012% $1.5m
Steven Gerard
Independent Director19.83yrsUS$284.01k0.014% $1.7m
Irving Bolotin
Independent Director46.17yrsUS$266.68k0.011% $1.4m
Jeffrey Sonnenfeld
Independent Director14.5yrsUS$253.43k0.011% $1.3m
Teri McClure
Independent Director6.75yrsUS$259.19k0.0059% $723.8k
Theron Gilliam
Independent Director9.75yrsUS$286.40k0.0085% $1.0m

11.0yrs

Average Tenure

62.5yo

Average Age

Experienced Board: LEN's board of directors are seasoned and experienced ( 11 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$12.206b
  • Shares outstanding: 312.58m
  • 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, Homebuilding Texas, Homebuilding West, Lennar Financial Services, Lennar Multifamily, and Rialto segments. The company’s homebuilding operations include the construction and sale of single-family attached and detached homes, as well as the purchase, development, and sale of residential land. It primarily sells single-family attached and detached homes in communities targeted to first-time homebuyers, move-up homebuyers, active adult homebuyers, and luxury homebuyers. The company also offers mortgage financing, title insurance, and closing services for home buyers and others. In addition, it is involved in raising, investing, and managing third party capital; and originating and selling into securitizations commercial mortgage loans, as well as investing in real estate related mortgage loans, properties, and related securities. Further, the company develops, constructs, and manages multifamily rental properties. Lennar Corporation was founded in 1954 and is based in Miami, Florida. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 02:07
End of Day Share Price2020/03/27 00:00
Earnings2020/02/29
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.