NYSE:LEN

Stock Analysis Report

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Market Cap

US$32.1b

Last Updated

2021/08/01 22:13 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 +/- 5% a week.

Volatility Over Time: LEN's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

2.2%

LEN

1.2%

US Consumer Durables

-0.4%

US Market


1 Year Return

45.3%

LEN

46.3%

US Consumer Durables

35.9%

US Market

Return vs Industry: LEN matched the US Consumer Durables industry which returned 46.3% over the past year.

Return vs Market: LEN exceeded the US Market which returned 35.9% over the past year.


Shareholder returns

LENIndustryMarket
7 Day2.2%1.2%-0.4%
30 Day3.7%0.1%-0.3%
90 Day-0.7%-5.5%3.1%
1 Year46.9%45.3%47.8%46.3%38.0%35.9%
3 Year108.7%104.3%82.3%75.3%62.9%52.7%
5 Year135.6%129.2%83.0%69.7%121.3%96.9%

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?

27.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LEN ($105.15) is trading below our estimate of fair value ($145.52)

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 (9.7x) compared to the US Consumer Durables industry average (12.1x).

PE vs Market: LEN is good value based on its PE Ratio (9.7x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: LEN's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: LEN is good value based on its PB Ratio (1.7x) compared to the US Consumer Durables industry average (1.8x).


Future Growth

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

-1.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LEN's earnings are forecast to decline over the next 3 years (-1.5% per year).

Earnings vs Market: LEN's earnings are forecast to decline over the next 3 years (-1.5% per year).

High Growth Earnings: LEN's earnings are forecast to decline over the next 3 years.

Revenue vs Market: LEN's revenue (6.8% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: LEN's revenue (6.8% 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 (14.4%).


Past Performance

How has Lennar performed over the past 5 years?

29.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LEN has high quality earnings.

Growing Profit Margin: LEN's current net profit margins (13.7%) are higher than last year (9.2%).


Past Earnings Growth Analysis

Earnings Trend: LEN's earnings have grown significantly by 29.6% per year over the past 5 years.

Accelerating Growth: LEN's earnings growth over the past year (60.5%) exceeds its 5-year average (29.6% per year).

Earnings vs Industry: LEN earnings growth over the past year (60.5%) underperformed the Consumer Durables industry 68.6%.


Return on Equity

High ROE: LEN's Return on Equity (17.3%) is considered low.


Financial Health

How is Lennar's financial position?


Financial Position Analysis

Short Term Liabilities: LEN's short term assets ($23.5B) exceed its short term liabilities ($1.9B).

Long Term Liabilities: LEN's short term assets ($23.5B) exceed its long term liabilities ($9.7B).


Debt to Equity History and Analysis

Debt Level: LEN's debt to equity ratio (34.6%) is considered satisfactory.

Reducing Debt: LEN's debt to equity ratio has reduced from 105.4% to 34.6% over the past 5 years.

Debt Coverage: LEN's debt is well covered by operating cash flow (52.7%).

Interest Coverage: LEN's interest payments on its debt are well covered by EBIT (195.9x coverage).


Balance Sheet


Dividend

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

0.95%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LEN's dividend (0.95%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: LEN's dividend (0.95%) is low compared to the top 25% of dividend payers in the US market (3.55%).


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 (8.1%), 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% payout ratio).


Next Steps

Management

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

2.9yrs

Average management tenure


CEO

Jon Jaffe (61 yo)

0.67

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 ($USD19.35M) is above average for companies of similar size in the US market ($USD11.20M).

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 (2.9 years average tenure).


Board Members

Experienced Board: LEN's board of directors are considered experienced (8.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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$32.133b
  • Shares outstanding: 312.32m
  • 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 Analysis2021/08/01 22:13
End of Day Share Price2021/07/30 00:00
Earnings2021/05/31
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.