Lennar (LEN) AI Stock Analysis

• Market Cap: $31.82B
• Dividend Yield: 1.59%
• Average Volume (3M): 4.13M
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.88
• 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: 4,096,981
• 30 Day Avg. Volume: 4,130,554
• 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: 1.20
• Enterprise Value/Revenue: 1.10
• Enterprise Value/Gross Profit: 7.32
• Enterprise Value/Ebitda: 9.25
• 1Y Price Target: $122.36
• Price Target Upside: -2.75% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 13

• Rating: 64 Neutral
• Price Target: $139.00 ▲(10.48% Upside)

Lennar's overall stock score reflects a mixed financial performance with strong balance sheet stability but challenges in profitability and cash flow. Technical indicators suggest neutral momentum, while valuation remains reasonable. The earnings call provided a balanced view of operational strengths and market pressures.

Positive Factors

Strong Balance Sheet

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

Operational Efficiency

Reduced cycle times indicate improved operational efficiency, enabling Lennar to deliver homes faster, enhancing customer satisfaction and potentially increasing sales volume.

Technological Advancements

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

Negative Factors

Margin Pressures

Declining margins due to increased sales incentives suggest profitability challenges, which could impact Lennar's ability to maintain its financial health if market conditions persist.

Cash Flow Challenges

Significant cash flow issues could limit Lennar's ability to invest in growth initiatives and meet financial obligations, posing a risk to its long-term stability.

Market Challenges

Adverse market conditions, such as high mortgage rates, may reduce housing demand, impacting Lennar's sales and revenue growth prospects in the medium term.

Lennar Business Overview & Revenue Model

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.

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 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	4.13B	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: Positive
• Last Price: 125.82
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 125.82 is above the 20-day moving average (MA) of 123.53, below the 50-day MA of 128.85, and above the 200-day MA of 118.33, indicating a neutral trend. The MACD of -1.81 indicates Negative momentum. The RSI at 51.61 is Neutral, neither overbought nor oversold. The STOCH value of 59.88 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
TOL	76 Outperform	$13.08B	9.97	17.73%	0.72%	3.26%	-6.40%
KBH	74 Outperform	$4.01B	8.69	13.04%	1.62%	-0.95%	-9.22%
PHM	71 Outperform	$24.55B	9.30	23.05%	0.71%	5.04%	2.07%
DHI	70 Outperform	$45.82B	12.32	16.27%	1.04%	-7.31%	-16.37%
LEN	64 Neutral	$31.82B	12.43	10.63%	1.59%	-4.69%	-32.95%
NVR	64 Neutral	$21.92B	16.12	38.10%	―	5.87%	-1.74%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

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.