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LEN

Lennar NYSE:LEN Stock Report

Last Price

US$84.73

Market Cap

US$24.0b

7D

-0.3%

1Y

-18.6%

Updated

06 Aug, 2022

Data

Company Financials +
LEN fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance4/6
Financial Health6/6
Dividends5/6

LEN Stock Overview

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

Lennar Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Lennar
Historical stock prices
Current Share PriceUS$84.73
52 Week HighUS$117.54
52 Week LowUS$62.54
Beta1.51
1 Month Change9.05%
3 Month Change7.88%
1 Year Change-18.57%
3 Year Change69.43%
5 Year Change62.30%
Change since IPO2,525.56%

Recent News & Updates

Jul 25
Here's Why We Think Lennar (NYSE:LEN) Is Well Worth Watching

Here's Why We Think Lennar (NYSE:LEN) Is Well Worth Watching

The excitement of investing in a company that can reverse its fortunes is a big draw for some speculators, so even...

Jul 11
We Think Lennar (NYSE:LEN) Can Stay On Top Of Its Debt

We Think Lennar (NYSE:LEN) Can Stay On Top Of Its Debt

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' It's only natural to consider a company's...

Shareholder Returns

LENUS Consumer DurablesUS Market
7D-0.3%-1.0%1.0%
1Y-18.6%-28.0%-12.9%

Return vs Industry: LEN exceeded the US Consumer Durables industry which returned -28% over the past year.

Return vs Market: LEN underperformed the US Market which returned -12.8% over the past year.

Price Volatility

Is LEN's price volatile compared to industry and market?
LEN volatility
LEN Average Weekly Movement6.3%
Consumer Durables Industry Average Movement8.0%
Market Average Movement7.9%
10% most volatile stocks in US Market17.1%
10% least volatile stocks in US Market3.2%

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.

About the Company

FoundedEmployeesCEOWebsite
195410,753Jon Jaffehttps://www.lennar.com

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, Financial Services, Multifamily, and Lennar Other 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; and development, construction, and management of multifamily rental properties.

Lennar Fundamentals Summary

How do Lennar's earnings and revenue compare to its market cap?
LEN fundamental statistics
Market CapUS$24.03b
Earnings (TTM)US$4.37b
Revenue (TTM)US$29.94b

5.6x

P/E Ratio

0.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LEN income statement (TTM)
RevenueUS$29.94b
Cost of RevenueUS$21.20b
Gross ProfitUS$8.34b
Other ExpensesUS$3.97b
EarningsUS$4.37b

Last Reported Earnings

May 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)15.00
Gross Margin27.86%
Net Profit Margin14.60%
Debt/Equity Ratio27.5%

How did LEN perform over the long term?

See historical performance and comparison

Dividends

1.8%

Current Dividend Yield

9%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is LEN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LEN?

Other financial metrics that can be useful for relative valuation.

LEN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1x
Enterprise Value/EBITDA4.3x
PEG Ratio-0.6x

Price to Earnings Ratio vs Peers

How does LEN's PE Ratio compare to its peers?

LEN PE Ratio vs Peers
The above table shows the PE ratio for LEN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average8.3x
DHI D.R. Horton
4.8x-12.9%US$26.5b
NVR NVR
9.4x-16.5%US$14.3b
PHM PulteGroup
4.4x-10.7%US$9.8b
BLD TopBuild
14.7x0.1%US$6.3b
LEN Lennar
5.6x-8.9%US$24.0b

Price-To-Earnings vs Peers: LEN is good value based on its Price-To-Earnings Ratio (5.6x) compared to the peer average (8.3x).


Price to Earnings Ratio vs Industry

How does LEN's PE Ratio compare vs other companies in the US Consumer Durables Industry?

Price-To-Earnings vs Industry: LEN is good value based on its Price-To-Earnings Ratio (5.6x) compared to the US Consumer Durables industry average (8x)


Price to Earnings Ratio vs Fair Ratio

What is LEN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

LEN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio5.6x
Fair PE Ratio11.6x

Price-To-Earnings vs Fair Ratio: LEN is good value based on its Price-To-Earnings Ratio (5.6x) compared to the estimated Fair Price-To-Earnings Ratio (11.6x).


Share Price vs Fair Value

What is the Fair Price of LEN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LEN ($84.73) is trading below our estimate of fair value ($105.93)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

How is Lennar forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-8.9%

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 (-8.9% per year).

Earnings vs Market: LEN's earnings are forecast to decline over the next 3 years (-8.9% per year).

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

Revenue vs Market: LEN's revenue is expected to decline over the next 3 years (-0.4% per year).

High Growth Revenue: LEN's revenue is forecast to decline over the next 3 years (-0.4% 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 (12.5%).


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Past Performance

How has Lennar performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


33.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: LEN has high quality earnings.

Growing Profit Margin: LEN's current net profit margins (14.6%) are higher than last year (13.7%).


Past Earnings Growth Analysis

Earnings Trend: LEN's earnings have grown significantly by 33.4% per year over the past 5 years.

Accelerating Growth: LEN's earnings growth over the past year (30.8%) is below its 5-year average (33.4% per year).

Earnings vs Industry: LEN earnings growth over the past year (30.8%) underperformed the Consumer Durables industry 34.9%.


Return on Equity

High ROE: LEN's Return on Equity (20.4%) is considered high.


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Financial Health

How is Lennar's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: LEN's short term assets ($26.5B) exceed its short term liabilities ($2.5B).

Long Term Liabilities: LEN's short term assets ($26.5B) exceed its long term liabilities ($10.0B).


Debt to Equity History and Analysis

Debt Level: LEN's net debt to equity ratio (21.1%) is considered satisfactory.

Reducing Debt: LEN's debt to equity ratio has reduced from 98.6% to 27.5% over the past 5 years.

Debt Coverage: LEN's debt is well covered by operating cash flow (31.2%).

Interest Coverage: LEN's interest payments on its debt are well covered by EBIT (328.6x coverage).


Balance Sheet


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Dividend

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

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.77%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: LEN's dividend (1.77%) is higher than the bottom 25% of dividend payers in the US market (1.52%).

High Dividend: LEN's dividend (1.77%) is low compared to the top 25% of dividend payers in the US market (4.09%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (8.5%), LEN's dividend payments are thoroughly covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (24.1%), LEN's dividend payments are well covered by cash flows.


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Management

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

4.0yrs

Average management tenure


CEO

Jon Jaffe (62 yo)

1.75yrs

Tenure

US$34,045,217

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 ($USD34.05M) is above average for companies of similar size in the US market ($USD13.00M).

Compensation vs Earnings: Jon's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: LEN's management team is considered experienced (4 years average tenure).


Board Members

Experienced Board: LEN's board of directors are seasoned and experienced ( 10.7 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 employee growth, exchange listings and data sources


Key Information

  • Name: Lennar Corporation
  • Ticker: LEN
  • Exchange: NYSE
  • Founded: 1954
  • Industry: Homebuilding
  • Sector: Consumer Durables
  • Implied Market Cap: US$24.033b
  • Shares outstanding: 291.39m
  • Website: https://www.lennar.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/06 00:00
End of Day Share Price2022/08/05 00:00
Earnings2022/05/31
Annual Earnings2021/11/30


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.