Lennar Corp Class A LEN

Morningstar Rating

Company Report

Lennar's Margins Should Improve From the Currently Depressed Levels; Shares Are Cheap

Lennar is the second-largest homebuilder in the United States by number of homes delivered, following D.R. Horton. The company operates in 30 states and primarily constructs single-family homes. It caters to a diverse range of homebuyers, including first-time buyers, those looking to move up, active adults, and luxury buyers, and has recently introduced differentiated offerings such as Next Gen and Everything’s Included.

Price vs Fair Value

LEN is trading at a LOCK|!HF&MHJ premium.
Price
$84.58
Fair Value
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Uncertainty
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1-Star Price
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5-Star Price
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Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

The US housing market is undersupplied. This supply/demand imbalance will take years to address and should support ongoing pricing power for homebuilders.

Bears

Higher-for-longer interest rates, lofty home prices, and economic uncertainty could stifle demand. Muted demand, along with elevated new homes inventory, can pressure margins.

News

Articles & Videos

Trading Information

Previous Close Price
—
Day Range
—–—
52-Week Range
—–—
Bid/Ask
— / —
Shares Outstanding
237.90M
Market Cap
—
Volume/Avg
— / —

Key Statistics

Price/Earnings (Normalized)
13.61
Price/Sales
0.65
Dividend Yield (Trailing)
2.36%
Dividend Yield (Forward)
2.36%
Dividend Payment Schedule
Feb, May, Jul, Oct
Total Yield
7.31%

Company Profile

Lennar is the second-largest public homebuilder in the United States, behind D.R. Horton, operating in 26 states. The company’s homebuilding operations target first-time, move-up, and active adult homebuyers mainly under the Lennar brand name. Lennar’s financial-services segment provides mortgage financing and related services to its homebuyers. Miami-based Lennar is also involved in multifamily construction and has invested in numerous housing-related technology startups.
Sector
Consumer Cyclical
Industry
Residential Construction
Stock Style Box
Mid Value
Total Number of Employees
12,532

Competitors

Valuation

Metric
LEN
TOL
INVH
Price/Earnings (Normalized)
13.619.9546.10
Price/Book Value
0.931.541.77
Price/Sales
0.651.275.77
Price/Cash Flow
9.898.4813.79
Price/Earnings
LEN
TOL
INVH

Financial Strength

Metric
LEN
TOL
INVH
Quick Ratio
2.510.400.29
Current Ratio
9.874.351.00
Interest Coverage
11.21—2.79
Quick Ratio
LEN
TOL
INVH

Profitability

Metric
LEN
TOL
INVH
Return on Assets (Normalized)
4.38%9.04%3.75%
Return on Equity (Normalized)
6.78%15.70%7.44%
Return on Invested Capital (Normalized)
5.82%11.41%5.56%
Return on Assets
LEN
TOL
INVH

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Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
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—LOCK|^&$20B
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