Lennar (LEN) AI Stock Analysis

• Market Cap: $28.95B
• Dividend Yield: 1.81%
• Average Volume (3M): 2.28M
• Price to Earnings (P/E): 8.0
• Beta (1Y): 0.91
• Revenue Growth: 2.03%
• EPS Growth: -3.80%
• Country: US
• Employees: 13,265
• Sector: Consumer Cyclical
• Sector Strength: 70
• Industry: Residential Construction
• EPS (TTM): 1.96
• Shares Outstanding: 232,184,460
• 10 Day Avg. Volume: 2,124,130
• 30 Day Avg. Volume: 2,280,870
• PEG Ratio: -1.86
• Price to Book (P/B): 1.25
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.89
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 0.21
• Enterprise Value/Gross Profit: 5.60
• Enterprise Value/Ebitda: 1.42
• 1Y Price Target: $126.64
• Price Target Upside: 15.06% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 13

• Rating: 70 Outperform
• Price Target: $121.00 ▲(9.94%Upside)

Lennar's overall stock score is driven by its solid financial performance and strategic corporate events, which demonstrate financial stability and growth potential. However, technical indicators and mixed earnings call sentiment highlight challenges such as market conditions and margin pressure. The undervaluation provides potential upside for investors.

Positive Factors

Earnings

Lennar Corporation's normalized EPS of $2.14 beat expectations, indicating strong financial performance.

Financial Strategy

Lennar is better positioned for earnings growth due to its underleveraged balance sheet and reset margin profile.

Operational Efficiency

LEN platform provides significant scale, low leverage, and is getting closer to the efficient machine management is looking to achieve long term.

Negative Factors

Market Conditions

Consumer affordability headwinds are clouding the outlook and bringing numbers down.

Profitability Challenges

Gross margin missed expectations and the guidance for the upcoming quarter is lower, reflecting challenges in maintaining profitability.

Sales Strategy

Lennar's strategy to maintain and incentivize volume is expected to keep their profitability at dramatically depressed levels.

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 primarily generates its revenue through its Homebuilding segment, which involves the sale of residential homes. This segment includes the acquisition, development, and sale of land and residential properties. The company also earns income from its Lennar Financial Services segment by providing mortgage financing, title insurance, and closing services to its homebuyers, further enhancing the home purchasing process. Additionally, Lennar's Multifamily segment contributes to its revenue by developing, constructing, and managing multifamily rental properties. Strategic partnerships with suppliers and contractors, along with Lennar's focus on operational efficiency, also play a crucial role in optimizing costs and maximizing profitability across its various revenue streams.

Lennar Financial Statement Overview

Summary

Lennar exhibits solid financial performance with consistent revenue growth and strong margins. The conservative debt management and effective cash flow operations underscore its financial health. However, the recent absence of stockholders' equity in TTM data introduces a reporting anomaly that warrants attention. Despite this, Lennar's financial statements reflect a stable and profitable business with a strong operational foundation.

Income Statement

Lennar's income statement shows a stable trajectory with consistent revenue growth, evidenced by a 6.2% increase from 2023 to 2024. Gross profit margin stands strong, indicating effective cost management. Although there is a slight decline in net income from 2024 to TTM (Trailing-Twelve-Months), the company maintains healthy profitability with solid EBIT and EBITDA margins. The net profit margin remains robust, reflecting strong bottom-line performance.

Balance Sheet

The balance sheet reveals a conservative financial position with zero total debt in the TTM period, suggesting strong financial stability. However, the absence of stockholders' equity in the TTM data raises concerns about reporting consistency. Historically, the debt-to-equity ratio has been improving, and the equity ratio indicates a solid capital structure, though recent data limitations prevent full analysis.

Cash Flow

Lennar demonstrates strong cash flow management with positive operating cash flow and free cash flow figures in TTM. Although there is a decline in free cash flow from 2023 to TTM, the company efficiently covers its net income with operating cash flow, highlighting effective cash conversion. The free cash flow to net income ratio remains positive, indicating adequate cash generation to support operations.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
35.76B	35.44B	34.23B	33.67B	27.13B	22.49B
	Gross Profit
5.28B	5.50B	8.17B	10.47B	6.28B	3.48B
	EBIT
4.65B	4.85B	5.44B	7.46B	5.79B	3.03B
	EBITDA
4.73B	4.97B	5.55B	7.55B	5.88B	3.12B
	Net Income Common Stockholders
3.73B	3.93B	3.94B	4.61B	4.43B	2.47B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.56B	4.95B	6.51B	6.37B	2.75B	2.75B
	Total Assets
34.99B	41.31B	39.23B	37.98B	33.21B	29.94B
	Total Debt
3.61B	2.26B	4.98B	4.06B	4.65B	5.96B
	Net Debt
1.09B	-720.42M	-1.49B	-575.30M	1.90B	3.21B
	Total Liabilities
12.12B	13.29B	12.53B	13.74B	12.21B	11.84B
	Stockholders Equity
22.87B	27.87B	26.58B	24.10B	20.82B	17.99B
Cash Flow		Free Cash Flow
1.59B	2.23B	5.08B	3.21B	2.47B	4.12B
	Operating Cash Flow
1.75B	2.40B	5.18B	3.27B	2.53B	4.19B
	Investing Cash Flow
-133.15M	-302.56M	-176.98M	-128.30M	-105.09M	-280.20M
	Financing Cash Flow
-4.29B	-3.68B	-3.25B	-1.28B	-2.40B	-2.45B

Lennar Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 110.06
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LEN, the sentiment is Neutral. The current price of 110.06 is above the 20-day moving average (MA) of 108.38, above the 50-day MA of 108.42, and below the 200-day MA of 139.17, indicating a neutral trend. The MACD of -0.39 indicates Negative momentum. The RSI at 54.28 is Neutral, neither overbought nor oversold. The STOCH value of 82.41 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LEN.

Lennar Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TOL	82 Outperform	$10.36B	7.82	18.09%	0.87%	1.59%	-8.04%
PHM	78 Outperform	$19.78B	6.96	25.52%	0.82%	8.86%	13.60%
DHI	77 Outperform	$36.35B	8.96	17.83%	1.21%	-4.71%	-10.19%
NVR	76 Outperform	$21.08B	14.80	38.25%	―	8.81%	1.79%
TMHC	75 Outperform	$5.68B	6.73	15.97%	―	12.19%	23.15%
LEN	70 Outperform	$28.95B	8.01	14.97%	1.81%	2.03%	-3.80%
Sector *	62 Neutral	$6.94B	11.29	2.95%	3.87%	2.70%	-24.49%

Lennar Corporate Events

Lennar Settles $700 Million Senior Notes Offering

On May 14, 2025, Lennar Corporation entered into a delayed draw term loan credit agreement, allowing for loans up to $1.61 billion, with an option to increase by $500 million. This agreement involves major financial institutions and is intended for working capital and general corporate purposes. Additionally, on May 19, 2025, Lennar settled a $700 million offering of 5.200% Senior Notes due 2030, guaranteed by its subsidiaries. The proceeds are earmarked for general corporate purposes, including debt repayment, enhancing the company’s financial flexibility.

The most recent analyst rating on (LEN) stock is a Hold with a $164.00 price target. To see the full list of analyst forecasts on Lennar stock, see the LEN Stock Forecast page.