2.29%
-0.69%
-21.13%
-25.04%
-10.47%
40.73%
101.10%
AI Spotlight on LEN
Company Description
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.
It also offers residential mortgage financing, title insurance, and closing services for home buyers and others, as well as originates and sells securitization commercial mortgage loans.In addition, the company is involved in the fund investment activity.It primarily serves first-time, move-up, active adult, and luxury homebuyers.
Lennar Corporation was founded in 1954 and is based in Miami, Florida.
Market Data
| Last Price | 135.26 |
| Change Percentage | 2.29% |
| Open | 132.24 |
| Previous Close | 132.23 |
| Market Cap ( Millions) | 35696 |
| Volume | 3256831 |
| Year High | 187.61 |
| Year Low | 124.31 |
| M A 50 | 145.84 |
| M A 200 | 158.33 |
Financial Ratios
| FCF Yield | 6.43% |
| Dividend Yield | 1.48% |
| ROE | 14.46% |
| Debt / Equity | 8.10% |
| Net Debt / EBIDTA | -48.39% |
| Price To Book | 1.3 |
| Price Earnings Ratio | 9.19 |
| Price To FCF | 15.56 |
| Price To sales | 1.01 |
| EV / EBITDA | 6.7 |
News
- Jan -29 - Homebuilders Are Drastically Mispriced Given Growth Outlook
- Jan -21 - Previously Disclosed Millrose Spin-off Record Date and Election Period for Lennar Stockholders Begins Today
- Jan -17 - SDI Realty, Nexus Real Estate Co. Partner to Develop Kroger-Anchored Shopping Center in North Fort Worth
- Jan -15 - Rockhill Capital & Investments Sells 1,800-Acre New Fairview Property to Lennar
- Jan -14 - Lennar Corporation Declares Quarterly Dividends
- Jan -09 - Lennar initiated with a Hold at Spin-Off Research
- Jan -09 - Breaking the Mold: 3 Non-Tech Stocks Ready to Surge in 2025
- Jan -08 - Lennar Stock Declines 26% in Three Months: Should You Buy the Dip?
- Jan -04 - 5 Relatively Secure And Cheap Dividend Stocks, Yields Up To 8% (January 2025)
- Jan -02 - Prediction: These 3 Warren Buffett Stocks Will Be the Biggest Winners in 2025
- Dec -31 - Stock Of The Day: Is Home Builder Lennar About To Rally?
- Dec -23 - 3 No-Brainer Warren Buffett Stocks to Buy Right Now
- Dec -20 - Lennar price target lowered to $162 from $190 at Goldman Sachs
- Dec -19 - Lennar Corporation (LEN) Q4 2024 Earnings Call Transcript
- Dec -19 - Lennar's Q4 Earnings Results Are Not Looking Great For 2025
- Dec -19 - LEN's Q4 Earnings & Revenues Miss Estimates, Stock Down on Y/Y Decline
- Dec -19 - Stocks on the Move: Vertex Pharma, Shake Shack, Zoom, Lennar and Home Depot
- Dec -19 - Lennar Stock Drops as Earnings, Revenue Miss Esitmates
- Dec -19 - Lennar blames high rates for sales miss but says its home prices also need to fall
- Dec -19 - Home Builder Lennar Stock Falls as High Mortgage Rates Hurt Results
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Homebuilding - West
Expected Growth : 5 %
What the company do ?
Homebuilding - West from Lennar Corporation refers to the western US operations of Lennar, a leading homebuilder, offering a range of new homes and communities.
Why we expect these perspectives ?
Lennar Corporation's West Homebuilding segment growth is driven by increasing demand for new homes in California and Nevada, fueled by job growth, low unemployment, and favorable demographics. Additionally, the company's focus on affordable and first-time homebuyer products, as well as its strategic land acquisition and development strategies, contribute to its growth momentum.
Segment n°2 -> Homebuilding - East
Expected Growth : 5 %
What the company do ?
Homebuilding - East from Lennar Corporation is a segment that focuses on building and selling homes in the Eastern United States, offering a range of new homes and communities.
Why we expect these perspectives ?
Lennar Corporation's East Homebuilding segment growth is driven by increasing demand for affordable housing, favorable demographics, and strategic land acquisition. Additionally, the company's focus on first-time homebuyers, diverse product offerings, and operational efficiencies contribute to its growth. Furthermore, the East region's strong job market and limited land supply support pricing power, enabling Lennar to capitalize on the growing demand.
Segment n°3 -> Homebuilding - Central
Expected Growth : 5 %
What the company do ?
Homebuilding - Central from Lennar Corporation refers to the segment of the company that focuses on building and selling homes in the central United States.
Why we expect these perspectives ?
Lennar Corporation's Central Homebuilding segment growth is driven by increasing demand for affordable housing, strategic land acquisition and development, and a strong backlog of orders. Additionally, the segment benefits from a favorable geographic mix, with a focus on the fast-growing Central region. Furthermore, Lennar's 'Everything's Included' approach and focus on first-time homebuyers also contribute to its growth.
Segment n°4 -> Homebuilding - Texas
Expected Growth : 5 %
What the company do ?
Homebuilding - Texas from Lennar Corporation refers to the construction of single-family homes in Texas, offering a range of floor plans and communities.
Why we expect these perspectives ?
Lennar Corporation's homebuilding segment in Texas is driven by a strong economy, low unemployment, and high population growth. The state's business-friendly environment, affordable housing, and limited land constraints also contribute to growth. Additionally, Lennar's focus on first-time homebuyers and its 'Everything's Included' approach, which offers high-end features at no extra cost, resonates with Texas buyers, driving sales and revenue growth.
Segment n°5 -> Financial Services
Expected Growth : 4 %
What the company do ?
Lennar Corporation's Financial Services segment provides mortgage financing, title insurance, and closing services to homebuyers and owners.
Why we expect these perspectives ?
Lennar Corporation's Financial Services segment growth is driven by increasing mortgage originations, expansion of title insurance and closing services, and strategic partnerships. Additionally, the company's focus on digital transformation, process efficiencies, and cost savings initiatives contribute to its growth. Furthermore, the segment benefits from the company's strong brand reputation, diversified revenue streams, and a favorable interest rate environment.
Segment n°6 -> Multifamily
Expected Growth : 4 %
What the company do ?
Multifamily from Lennar Corporation offers apartment-style living with amenities, providing residents with a convenient, maintenance-free lifestyle.
Why we expect these perspectives ?
Lennar Corporation's Multifamily segment growth is driven by increasing demand for rental properties, particularly among millennials and Gen Z, who prioritize convenience and amenities. Additionally, the segment benefits from Lennar's diversified geographic presence, strategic partnerships, and a strong pipeline of development projects, contributing to its 4% growth rate.
Segment n°7 -> Homebuilding - Other
Expected Growth : 5 %
What the company do ?
Homebuilding - Other from Lennar Corporation refers to the company's homebuilding operations excluding its core homebuilding business, including its Rialto Investments and Five Point Holdings segments.
Why we expect these perspectives ?
Lennar's 5% growth in Homebuilding - Other segment is driven by increasing demand for affordable housing, strategic land acquisition, and expansion into new markets. Additionally, the company's focus on first-time homebuyers, diversification into multifamily and commercial development, and cost-saving initiatives contribute to its growth momentum.
Segment n°8 -> Lennar Other
Expected Growth : 3 %
What the company do ?
Lennar Other refers to the non-core business segments of Lennar Corporation, including Rialto, a real estate investment and management company, and Five Point, a developer of master-planned communities.
Why we expect these perspectives ?
Lennar's Other segment, with 3% growth, is driven by increasing demand for title insurance and closing services, as well as growth in the company's multifamily business. Additionally, the segment benefits from the company's strategic investments in technology and process improvements, leading to increased efficiency and cost savings.
Lennar Corporation Products
| Product Range | What is it ? |
|---|---|
| Single-Family Homes | Lennar Corporation builds and sells single-family homes in various communities across the United States, offering a range of floor plans and amenities. |
| Multifamily Homes | Lennar's multifamily segment develops and manages apartment communities, offering rental options for individuals and families. |
| Active Adult Communities | Lennar's active adult communities cater to adults aged 55+, offering age-restricted communities with amenities and services tailored to this demographic. |
| Urban Infill | Lennar's urban infill segment focuses on redeveloping underutilized or vacant parcels of land in urban areas, creating new housing opportunities. |
| Mortgage Financing | Lennar's mortgage financing segment offers a range of loan options and financial services to homebuyers. |
| Title Insurance and Settlement Services | Lennar's title insurance and settlement services segment provides title insurance and closing services for homebuyers. |
Lennar Corporation's Porter Forces
Threat Of Substitutes
Lennar Corporation faces moderate threat from substitutes due to the presence of alternative housing options such as apartments and condominiums.
Bargaining Power Of Customers
Lennar Corporation has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's strong brand reputation and quality products also limit the bargaining power of customers.
Bargaining Power Of Suppliers
Lennar Corporation has a moderate level of dependence on its suppliers, particularly for raw materials such as lumber and labor. However, the company's large scale of operations and diversified supplier base mitigate the bargaining power of suppliers.
Threat Of New Entrants
The threat of new entrants in the homebuilding industry is low due to the high barriers to entry, including the need for significant capital investment, regulatory approvals, and established relationships with suppliers and contractors.
Intensity Of Rivalry
The homebuilding industry is highly competitive, with several large players competing for market share. Lennar Corporation faces intense rivalry from other major homebuilders, which can lead to pricing pressures and increased marketing expenses.
Strength
Capital Structure
| Value | |
|---|---|
| Debt Weight | 16.81% |
| Debt Cost | 11.68% |
| Equity Weight | 83.19% |
| Equity Cost | 11.68% |
| WACC | 11.68% |
| Leverage | 20.20% |
Lennar Corporation : Quality Control
Lennar Corporation passed 8 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| TOL | Toll Brothers, Inc., together with its subsidiaries, designs, builds, markets, sells, and arranges finance for a range of detached and attached homes in luxury residential communities in the United States. … |
| PHM | PulteGroup, Inc., through its subsidiaries, primarily engages in the homebuilding business in the United States. It acquires and develops land primarily for residential purposes; and constructs housing on such land. … |
| DHI | D.R. Horton, Inc. operates as a homebuilding company in East, North, Southeast, South Central, Southwest, and Northwest regions in the United States. It engages in the acquisition and development of … |
| NVR | NVR, Inc. operates as a homebuilder in the United States. The company operates in two segments, Homebuilding and Mortgage Banking. It engages in the construction and sale of single-family detached … |
| KBH | KB Home operates as a homebuilding company in the United States. It operates through four segments: West Coast, Southwest, Central, and Southeast. It builds and sells various homes, including attached … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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Lennar
A-Score
1-Year Total Return ->
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Toll Brothers
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1-Year Total Return ->
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PulteGroup
A-Score
1-Year Total Return ->
4
NVR
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1-Year Total Return ->
5
KB Home
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1-Year Total Return ->
6
