Lennar Corp - Class A
Exchange: NYSESector: Consumer CyclicalIndustry: Residential Construction
Lennar Corporation, founded in 1954, is one of the nation's leading builders of quality homes for all generations. Lennar builds affordable, move-up and active adult homes primarily under the Lennar brand name. Lennar's Financial Services segment provides mortgage financing, title and closing services primarily for buyers of Lennar's homes and, through LMF Commercial, originates mortgage loans secured primarily by commercial real estate properties throughout the United States. Lennar's Multifamily segment is a nationwide developer of high-quality multifamily rental properties. LEN X drives Lennar's technology, innovation and strategic investments.
Did you know?
A large-cap company with a $22.1B market cap.
Current Price
$86.49
+1.23%GoodMoat Value
$167.00
93.1% undervaluedProfile
Valuation (TTM)
Market Cap$22.06B
P/E10.61
EV$24.45B
P/B1.00
Shares Out255.02M
P/Sales0.65
Revenue$34.19B
EV/EBITDA7.77
Lennar Corp - Class A (LEN) Stock Analysis
GoodMoat Analysis
Lennar is a major US homebuilder trading at a significant discount to its estimated intrinsic value, with a P/E of 11.3x and a GoodMoat Target of $167. However, its business quality and moat strength appear limited based on current data, presenting a potential 'value trap' scenario that requires careful investigation.
Read full analysis
Lennar Corporation is a leading national homebuilder in the United States, operating in the cyclical residential construction sector. Applying the GoodMoat Investment Framework, the company's competitive advantages are not immediately apparent from the provided data. A formal Moat Score (Section 1) would likely be low, as the business model does not typically exhibit strong network effects, high switching costs, or proprietary data. The industry is fragmented and capital-intensive, with advantages often stemming from operational scale and local market knowledge rather than durable, wide moats. The financial Quality Indicators (Section 2) are mixed. The company is GAAP profitable with an 11.3x P/E and a manageable Debt/Equity ratio of 0.19, but it shows weak signs with negative revenue growth (-5.8% YoY), a low FCF Yield (0.1%), and a modest ROE of 9.5%, which is below the high-return threshold of 15-20%. The valuation assessment is the most compelling aspect. The current price of $92.19 is 45% below the GoodMoat Target of $167, which suggests a Margin of Safety that falls into the 'Deeply Undervalued' band (>40%) per the framework's DCF logic. According to the Decision Framework (Section 6), this creates a tension: the stock appears to fail the Moat & Quality Gate (Step 1) but passes the Valuation & Risk Gate (Step 2) with a wide margin of safety. This discrepancy makes it a classic candidate for deeper due diligence to determine if the low price adequately compensates for the business's cyclicality and apparent lack of a strong moat, or if it is an unfavourable situation.
Market Cap$22.06B
Current Price$86.49
P/E Ratio10.61
Forward P/E—
PEG Ratio-0.20
EPS$7.98
Book Value$86.11
P/B Ratio1.00
LEN Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use -48.3% FCF growth (CAGR)
Cash vs Debt
Net Debt: 617M
Revenue
22.3B
FY19
22.5B
FY20
27.1B
FY21
33.7B
FY22
34.2B
FY23
35.4B
FY24
34.2B
FY25
Net Income
1.8B
FY19
2.5B
FY20
4.4B
FY21
4.6B
FY22
3.9B
FY23
3.9B
FY24
2.1B
FY25
LEN 52-Week Range
$84.88
$141.19
50-Day MA: $105.43200-Day MA: $116.42
Did you know?
Pays a 2.36% dividend yield.
Lennar Corp - Class A (LEN) Financial Summary
Lennar Corp - Class A (LEN) is a Consumer Cyclical company in the Residential Construction industry, listed on NYSE. The stock currently trades at $86.49 with a market capitalization of $22.06B.
Key valuation metrics include a P/E ratio of 10.61, price-to-book ratio of 1.00, and EPS of $7.98. The company reports a profit margin of 6.1% and return on equity of 9.5%.
LEN Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $22.06B |
| P/E Ratio | 10.61 |
| EPS | $7.98 |
| P/B Ratio | 1.00 |
| P/S Ratio | 0.65 |
| EV/EBITDA | 7.77 |
| Dividend Yield | 2.36% |
| Profit Margin | 6.1% |
| Return on Equity | 9.5% |
| Debt/Equity | 0.19 |
LEN Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $22.26B | $1.85B |
| FY20 | $22.49B | $2.47B |
| FY21 | $27.13B | $4.43B |
| FY22 | $33.67B | $4.61B |
| FY23 | $34.23B | $3.94B |
| FY24 | $35.44B | $3.93B |
| FY25 | $34.19B | $2.08B |
Lennar Corp - Class A (LEN) Valuation
Based on GoodMoat's DCF model, Lennar Corp - Class A has a fair value estimate of $167.00. At the current price of $86.49, the stock appears 48.2% undervalued relative to our intrinsic value estimate.
LEN Quality Indicators
Lennar Corp - Class A maintains a profit margin of 6.1% and an operating margin of 7.8%. Return on equity stands at 9.5%. Debt-to-equity ratio is 0.19.
About Lennar Corp - Class A
Lennar Corporation, founded in 1954, is one of the nation's leading builders of quality homes for all generations. Lennar builds affordable, move-up and active adult homes primarily under the Lennar brand name. Lennar's Financial Services segment provides mortgage financing, title and closing services primarily for buyers of Lennar's homes and, through LMF Commercial, originates mortgage loans secured primarily by commercial real estate properties throughout the United States. Lennar's Multifamily segment is a nationwide developer of high-quality multifamily rental properties. LEN X drives Lennar's technology, innovation and strategic investments.
LEN Free Cash Flow
Lennar Corp - Class A generated $28.18M in trailing twelve-month free cash flow, representing an FCF yield of 0.13%. This low FCF yield may reflect heavy reinvestment or growth spending.
LEN Shares Outstanding
Lennar Corp - Class A has 0.26 billion shares outstanding at a share price of $86.49, giving it a market capitalization of $22.06B.