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

Solid track record and good value.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.7%

LEN

-0.5%

US Consumer Durables

0.5%

US Market


1 Year Return

39.6%

LEN

33.0%

US Consumer Durables

16.1%

US Market

Return vs Industry: LEN exceeded the US Consumer Durables industry which returned 33% over the past year.

Return vs Market: LEN exceeded the US Market which returned 16.1% over the past year.


Shareholder returns

LENIndustryMarket
7 Day0.7%-0.5%0.5%
30 Day-2.1%0.8%3.9%
90 Day14.9%11.8%6.6%
1 Year40.1%39.6%35.0%33.0%18.7%16.1%
3 Year40.2%38.9%29.6%23.8%47.2%37.7%
5 Year32.1%30.0%30.5%22.2%61.5%43.7%

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?

3.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LEN ($59.73) is trading below our estimate of fair value ($62.02)

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 (9.8x) compared to the Consumer Durables industry average (13x).

PE vs Market: LEN is good value based on its PE Ratio (9.8x) compared to the US market (18x).


Price to Earnings Growth Ratio

PEG Ratio: LEN is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: LEN is good value based on its PB Ratio (1.2x) compared to the US Consumer Durables industry average (1.4x).


Next Steps

Future Growth

How is Lennar forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

5.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LEN's forecast earnings growth (5.7% per year) is above the savings rate (2.7%).

Earnings vs Market: LEN's earnings (5.7% per year) are forecast to grow slower than the US market (14.3% per year).

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

Revenue vs Market: LEN's revenue (3.7% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: LEN's revenue (3.7% 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 (11.9%).


Next Steps

Past Performance

How has Lennar performed over the past 5 years?

23.0%

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%) are higher than last year (6.7%).


Past Earnings Growth Analysis

Earnings Trend: LEN's earnings have grown significantly by 23% per year over the past 5 years.

Accelerating Growth: LEN's earnings growth over the past year (63.1%) exceeds its 5-year average (23% per year).

Earnings vs Industry: LEN earnings growth over the past year (63.1%) exceeded the Consumer Durables industry 1.2%.


Return on Equity

High ROE: LEN's Return on Equity (12.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Lennar's financial position?


Financial Position Analysis

Short Term Liabilities: LEN's short term assets ($22.1B) exceeds its short term liabilities ($2.2B)

Long Term Liabilities: LEN's short term assets ($22.1B) exceeds its long term liabilities (11.8B)


Debt to Equity History and Analysis

Debt Level: LEN's debt to equity ratio (66.5%) is considered high.

Reducing Debt: LEN's debt to equity ratio has reduced from 115.1% to 66.5% over the past 5 years.

Debt Coverage: LEN's debt is not well covered by operating cash flow (12.5%).

Interest Coverage: LEN's interest payments on its debt are well covered by EBIT (169.9x 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 2.1x debt).


Next Steps

Dividend

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

0.27%

Current Dividend Yield


Dividend Yield vs Market

company0.3%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years0.3%

Current dividend yield vs market & industry

Notable Dividend: LEN's dividend (0.27%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: LEN's dividend (0.27%) is low compared to the top 25% of dividend payers in the US market (3.65%).


Stability and Growth of Payments

Stable Dividend: LEN is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: LEN is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: LEN is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of LEN's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Lennar's salary, the management and board of directors tenure and is there insider trading?

1.6yrs

Average management tenure


CEO

Rick Beckwitt (60yo)

1.6yrs

Tenure

US$17,583,466

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 ($USD17.58M) is above average for companies of similar size in the US market ($USD11.01M).

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


Management Age and Tenure

1.6yrs

Average Tenure

59yo

Average Age

Experienced Management: LEN's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Age and Tenure

10.6yrs

Average Tenure

62.5yo

Average Age

Experienced Board: LEN's board of directors are seasoned and experienced ( 10.6 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$294,50011 Oct 19
Irving Bolotin
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$58.90
SellUS$892,50008 Oct 19
David Collins
EntityIndividual
Shares15,000
Max PriceUS$59.50
SellUS$497,92008 Oct 19
Jeffrey McCall
EntityIndividual
Role
Senior Key Executive
Senior Vice President
Shares8,367
Max PriceUS$59.51

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 12.4%.


Management Team

  • Stuart Miller (61yo)

    Executive Chairman

    • Tenure: 1.6yrs
    • Compensation: US$20.07m
  • Bruce Gross (60yo)

    Chief Executive Officer of Lennar Financial Services

    • Tenure: 1.6yrs
    • Compensation: US$4.52m
  • Jon Jaffe (59yo)

    President & Director

    • Tenure: 1.6yrs
    • Compensation: US$15.51m
  • Diane Bessette (58yo)

    VP, CFO & Treasurer

    • Tenure: 1.6yrs
    • Compensation: US$3.02m
  • Rick Beckwitt (60yo)

    CEO & Director

    • Tenure: 1.6yrs
    • Compensation: US$17.58m
  • Mark Sustana (57yo)

    VP, General Counsel & Secretary

    • Tenure: 14.8yrs
    • Compensation: US$2.46m
  • Kay Howard

    Chief Marketing & Communications Officer

    • Tenure: 0yrs
  • Fred Rothman

    Chief Operating Officer

    • Tenure: 0.8yrs
  • Allison Bober

    Senior Manager of Investor Relations

    • Tenure: 0yrs
  • Jeff McCall (48yo)

    Senior Vice President

    • Tenure: 1.8yrs
    • Compensation: US$5.60m

Board Members

  • Sid Lapidus (81yo)

    Lead Director

    • Tenure: 14.8yrs
    • Compensation: US$328.19k
  • Sherrill Hudson (76yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: US$298.71k
  • Stuart Miller (61yo)

    Executive Chairman

    • Tenure: 1.6yrs
    • Compensation: US$20.07m
  • Jon Jaffe (59yo)

    President & Director

    • Tenure: 1.6yrs
    • Compensation: US$15.51m
  • Rick Beckwitt (60yo)

    CEO & Director

    • Tenure: 1.6yrs
    • Compensation: US$17.58m
  • Steven Gerard (73yo)

    Independent Director

    • Tenure: 19.5yrs
    • Compensation: US$298.71k
  • Irving Bolotin (86yo)

    Independent Director

    • Tenure: 45.8yrs
    • Compensation: US$281.38k
  • Jeff Sonnenfeld (64yo)

    Independent Director

    • Tenure: 14.2yrs
    • Compensation: US$267.65k
  • Teri McClure (55yo)

    Independent Director

    • Tenure: 6.4yrs
    • Compensation: US$273.37k
  • Tig Gilliam (55yo)

    Independent Director

    • Tenure: 9.4yrs
    • Compensation: US$300.51k

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$18.498b
  • Shares outstanding: 317.62m
  • 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

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 Analysis2019/11/20 23:39
End of Day Share Price2019/11/20 00:00
Earnings2019/08/31
Annual Earnings2018/11/30


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.