Lennar (LEN) AI Stock Analysis

• Market Cap: $34.18B
• Dividend Yield: 1.44%
• Average Volume (3M): 2.95M
• Price to Earnings (P/E): 11.0
• Beta (1Y): 0.87
• Revenue Growth: -1.26%
• EPS Growth: -17.78%
• Country: US
• Employees: 13,265
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Residential Construction
• EPS (TTM): 1.81
• Shares Outstanding: 227,601,640
• 10 Day Avg. Volume: 2,869,776
• 30 Day Avg. Volume: 2,947,232
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 0.87
• Enterprise Value/Gross Profit: 6.56
• Enterprise Value/Ebitda: 7.42
• 1Y Price Target: $118.02
• Price Target Upside: -11.98% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 15

• Rating: 74 Outperform
• Price Target: $147.00 ▲(9.64% Upside)

Lennar's overall stock score reflects strong technical momentum and a solid financial foundation, tempered by challenges in revenue growth and cash flow. The strategic focus on technology and volume is promising, but declining margins and increased expenses present risks.

Positive Factors

Cost Management

Direct construction costs decreased 1.5% sequentially to the lowest level since 3Q21 and are expected to decline further.

Financial Performance

Despite challenges, net orders were in-line with guidance, and the company increased incentive levels to maintain sales pace.

Share Buyback

The company repurchased 4.72 million shares, which could signal confidence in future performance.

Negative Factors

Earnings Performance

The company reported earnings per share below estimates due to higher selling, general, and administrative expenses and lower deliveries.

Expense Management

Higher technology investments and broker commissions led to increased expenses, impacting the company's earnings outlook.

Market Conditions

The housing market is softening due to high mortgage rates and weaker consumer confidence, affecting Lennar.

Lennar Business Overview & Revenue Model

Company Description

Lennar Corporation (LEN) is one of the largest homebuilders in the United States, primarily engaged in the design, construction, and sale of residential homes. The company operates in various segments including Homebuilding, Financial Services, and Multifamily, offering a range of products from single-family homes to multi-family communities. Lennar focuses on providing high-quality homes at various price points and serves a diverse customer base across the nation.

How the Company Makes Money

Lennar generates revenue primarily through the sale of homes, which constitutes the bulk of its earnings. The company builds and sells homes across multiple regions, targeting various demographics including first-time buyers, move-up buyers, and active adult communities. In addition to home sales, Lennar earns revenue from its Financial Services segment, which provides mortgage financing, title insurance, and closing services to homebuyers. This segment helps streamline the home purchasing process, enhancing customer experience and increasing revenue. Furthermore, Lennar's Multifamily segment contributes to its financial performance by developing and leasing multi-family rental properties. The company also engages in joint ventures and partnerships with land developers and investment firms, which can provide additional revenue streams and enhance its project pipeline.

Lennar Financial Statement Overview

Summary

Lennar displays stable financial health with strong profitability margins and a robust balance sheet. However, recent declines in revenue growth and cash flow generation pose challenges. Effective debt management is a positive, but focus on revenue growth and cash flow management is crucial.

Income Statement

Lennar demonstrates a consistent ability to generate revenue, with a slight decline in gross profit margin from the previous annual report to TTM (Trailing-Twelve-Months). The net profit margin remains stable, indicating effective cost management. However, a decrease in revenue compared to the prior period suggests potential challenges in sales growth. EBIT and EBITDA margins are strong, reflecting operational efficiency.

Balance Sheet

The company maintains a solid equity base with a decreasing debt-to-equity ratio, indicating improved financial leverage. The return on equity remains robust, showcasing effective utilization of shareholder funds. The equity ratio is strong, suggesting a stable financial structure. However, a decrease in total assets and stockholders' equity from the previous period points to some potential risk.

Cash Flow

Lennar's operating cash flow has decreased significantly, impacting the free cash flow negatively. The free cash flow to net income ratio reflects reduced cash conversion efficiency. While the operating cash flow to net income ratio remains healthy, indicating solid profit conversion, the negative trend in cash flows poses a concern for liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	35.37B	35.44B	34.23B	33.67B	27.13B	22.49B
Gross Profit	4.69B	5.50B	5.94B	7.20B	5.54B	3.47B
EBITDA	4.15B	4.97B	5.55B	6.87B	5.22B	3.24B
Net Income	3.26B	3.93B	3.94B	4.61B	4.43B	2.47B
Balance Sheet
Total Assets	34.37B	41.31B	39.23B	37.98B	33.21B	29.94B
Cash, Cash Equivalents and Short-Term Investments	1.45B	4.95B	6.51B	4.81B	2.96B	2.92B
Total Debt	4.21B	4.19B	4.98B	6.20B	6.38B	7.42B
Total Liabilities	11.64B	13.29B	12.53B	13.74B	12.21B	11.84B
Stockholders Equity	22.58B	27.87B	26.58B	24.10B	20.82B	17.99B
Cash Flow
Free Cash Flow	278.66M	2.23B	5.08B	3.21B	2.47B	4.12B
Operating Cash Flow	409.69M	2.40B	5.18B	3.27B	2.53B	4.19B
Investing Cash Flow	155.11M	-302.56M	-176.98M	-128.30M	-105.09M	-280.20M
Financing Cash Flow	-3.01B	-3.68B	-3.25B	-1.28B	-2.40B	-2.45B

Lennar Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 134.08
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LEN, the sentiment is Positive. The current price of 134.08 is above the 20-day moving average (MA) of 130.60, above the 50-day MA of 120.20, and above the 200-day MA of 122.36, indicating a bullish trend. The MACD of 4.54 indicates Positive momentum. The RSI at 70.77 is Negative, neither overbought nor oversold. The STOCH value of 74.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LEN.

Lennar Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DHI	78 Outperform	$50.76B	13.65	16.27%	0.91%	-7.31%	-16.37%
PHM	78 Outperform	$26.06B	9.87	23.05%	0.62%	5.04%	2.07%
TOL	78 Outperform	$13.33B	10.16	17.73%	0.68%	3.26%	-6.40%
LEN	74 Outperform	$34.18B	10.97	13.04%	1.44%	-1.26%	-17.78%
KBH	73 Outperform	$4.27B	8.30	14.07%	1.57%	3.65%	-0.61%
NVR	69 Neutral	$23.45B	17.29	38.10%	―	5.87%	-1.74%
Sector *	61 Neutral	$17.96B	13.14	-5.36%	3.00%	1.25%	-13.95%

Lennar Corporate Events

Lennar Announces COO Retirement and Leadership Changes

On July 30, 2025, Lennar Corporation announced the retirement of its Chief Operating Officer, Fred Rothman, effective September 2, 2025. Rothman, who joined Lennar in 2006 and became COO in 2019, has been instrumental in the company’s growth and strategic initiatives. Additionally, Mark Sustana, Vice President, General Counsel, and Secretary, will retire on the same date, transitioning to a consulting role. Katherine Lee Martin will succeed Sustana as Chief Legal Officer, bringing extensive legal and compliance experience from her previous roles at Hertz and X Corp. These leadership changes mark a significant transition for Lennar, as it continues to evolve and strengthen its operations.