Lennar (LEN) AI Stock Analysis

• Market Cap: $30.40B
• Dividend Yield: 1.68%
• Average Volume (3M): 7.98M
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.75
• Revenue Growth: -4.69%
• EPS Growth: -32.95%
• Country: US
• Employees: 13,265
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Residential Construction
• EPS (TTM): 2.29
• Shares Outstanding: 223,803,530
• 10 Day Avg. Volume: 7,386,205
• 30 Day Avg. Volume: 7,977,791
• PEG Ratio: 2.86
• Price to Book (P/B): 1.70
• Price to Sales (P/S): 1.34
• P/FCF Ratio: 21.25
• Enterprise Value/Market Cap: 1.25
• Enterprise Value/Revenue: 1.10
• Enterprise Value/Gross Profit: 7.32
• Enterprise Value/Ebitda: 10.49
• 1Y Price Target: $122.33
• Price Target Upside: 2.48% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 14
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: $139.00 ▲(16.44% Upside)

Lennar's overall stock score reflects a balance of strong financial stability and reasonable valuation against profitability challenges and mixed technical signals. The company's strategic focus on maintaining volume and reducing costs is positive, but market pressures and cash flow issues remain concerns.

Positive Factors

Strong Balance Sheet

Lennar's low leverage and strong equity position provide financial stability, allowing it to withstand market fluctuations and invest in growth opportunities.

Operational Efficiency

Reduced cycle times enhance Lennar's operational efficiency, enabling faster project completion and better resource utilization, which can improve profitability over time.

Technological Advancements

Investments in technology enhance Lennar's competitive edge by streamlining operations and improving customer experience, supporting long-term growth and market position.

Negative Factors

Declining Margins

Margin pressures from increased sales incentives can impact profitability, challenging Lennar's ability to maintain earnings growth in a competitive market.

Cash Flow Challenges

Significant cash flow challenges limit Lennar's ability to reinvest in the business and manage financial obligations, potentially affecting long-term sustainability.

Market Challenges

Rising mortgage rates and declining consumer confidence can reduce housing affordability, impacting Lennar's sales volume and revenue growth prospects.

Lennar Business Overview & Revenue Model

Company Description

Lennar Corporation (LEN) is one of the largest homebuilders in the United States, primarily focused on the construction and sale of residential homes. The company operates in several sectors, including homebuilding, financial services, and multifamily housing. Lennar offers a diverse range of products, including single-family detached homes, townhomes, and condominiums, catering to various customer segments and price points. Additionally, the company provides mortgage financing, title, and closing services through its subsidiaries, enhancing its integrated homebuilding model.

How the Company Makes Money

Lennar generates revenue primarily through the sale of residential homes, which includes both the construction and sale of new homes to consumers. The company also earns significant income from its financial services segment, which provides mortgage financing and related services to homebuyers. Key revenue streams include home sales, which account for the majority of its revenue, and service fees from mortgage origination and title services. Furthermore, Lennar benefits from strategic partnerships with land developers and financial institutions, allowing for efficient land acquisition and financing solutions. The company's ability to manage costs effectively and streamline operations also contributes to its profitability.

Lennar Financial Statement Overview

Summary

Lennar faces profitability and cash flow challenges, with declining margins and negative cash flow growth. However, the company maintains a strong balance sheet with low leverage, providing a buffer against financial instability.

Income Statement

Lennar's income statement shows a decline in revenue growth rate at -1.71% TTM, indicating a slowdown compared to previous periods. Gross profit margin decreased to 14.99% TTM from 15.52% in 2024, and net profit margin also fell to 7.72% TTM from 11.10% in 2024. EBIT and EBITDA margins have similarly declined, reflecting reduced profitability. Despite these challenges, the company maintains a positive net income, which is a strength.

Balance Sheet

The balance sheet reflects a strong equity position with a debt-to-equity ratio of 0.16 TTM, improving from 0.15 in 2024. Return on equity is at 11.21% TTM, down from 14.11% in 2024, indicating reduced efficiency in generating returns. The equity ratio remains robust, suggesting financial stability despite some profitability pressures.

Cash Flow

Lennar's cash flow statement shows significant challenges, with a negative operating cash flow of -$568 million TTM and a free cash flow of -$713 million TTM. The free cash flow growth rate is notably negative at -355.85% TTM, highlighting cash flow difficulties. The operating cash flow to net income ratio is negative, indicating cash flow issues despite positive net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	34.77B	35.44B	34.23B	33.67B	27.13B	22.49B
Gross Profit	5.21B	5.50B	5.94B	7.20B	5.54B	3.47B
EBITDA	3.64B	4.97B	5.55B	6.87B	5.22B	3.24B
Net Income	2.68B	3.93B	3.94B	4.61B	4.43B	2.47B
Balance Sheet
Total Assets	34.88B	41.31B	39.23B	37.98B	33.21B	29.94B
Cash, Cash Equivalents and Short-Term Investments	1.44B	4.95B	6.51B	4.81B	2.96B	2.92B
Total Debt	3.52B	4.19B	4.98B	6.20B	6.38B	7.42B
Total Liabilities	12.13B	13.29B	12.53B	13.74B	12.21B	11.84B
Stockholders Equity	22.57B	27.87B	26.58B	24.10B	20.82B	17.99B
Cash Flow
Free Cash Flow	-652.57M	2.23B	5.08B	3.21B	2.47B	4.12B
Operating Cash Flow	-507.78M	2.40B	5.18B	3.27B	2.53B	4.19B
Investing Cash Flow	-7.35M	-302.56M	-176.98M	-128.30M	-105.09M	-280.20M
Financing Cash Flow	-2.04B	-3.68B	-3.25B	-1.28B	-2.40B	-2.45B

Lennar Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 119.37
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LEN, the sentiment is Negative. The current price of 119.37 is below the 20-day moving average (MA) of 123.13, below the 50-day MA of 123.42, and above the 200-day MA of 117.88, indicating a neutral trend. The MACD of -0.87 indicates Positive momentum. The RSI at 43.19 is Neutral, neither overbought nor oversold. The STOCH value of 14.81 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LEN.

Lennar Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TOL	78 Outperform	$13.48B	10.36	16.89%	0.70%	1.11%	-10.03%
KBH	76 Outperform	$4.25B	9.20	13.04%	1.53%	-0.95%	-9.22%
NVR	70 Outperform	$21.33B	16.50	34.80%	―	3.61%	-6.94%
PHM	70 Outperform	$24.87B	9.82	21.57%	0.70%	1.76%	-4.24%
DHI	66 Neutral	$45.69B	13.52	14.48%	1.05%	-6.93%	-19.41%
LEN	64 Neutral	$30.40B	11.86	10.63%	1.68%	-4.69%	-32.95%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Lennar Corporate Events

Lennar Announces Co-CEO Jonathan Jaffe’s Retirement

On November 12, 2025, Lennar Corporation announced the retirement of Jonathan M. Jaffe, Co-Chief Executive Officer and President, effective December 31, 2025. Jaffe, who joined Lennar in 1983, played a pivotal role in the company’s national expansion and resilience through significant challenges. His departure marks a strategic shift towards a leaner, more efficient organization focused on affordability and technological advancement, with Stuart Miller continuing as Executive Chairman and CEO.