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Lennar
(NYSE:LEN)
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Rating:69Neutral
Price Target:
$99.00
▲(16.97% Upside)
Action:Reiterated
Date:06/30/26
The score is driven primarily by solid financial stability (strong balance sheet and improving TTM cash flow) but tempered by clear TTM margin compression and cyclical volatility. Valuation is supportive (mid-teens P/E and ~2.2% yield), and the latest earnings call was moderately positive on execution and sequential margin outlook, while technical signals could not be assessed due to missing indicator data.
Positive Factors
Balance Sheet Strength
Conservative leverage, substantial equity, and strong liquidity give Lennar flexibility to fund construction, manage housing-cycle volatility, and maintain shareholder returns without relying heavily on external financing.
Negative Factors
Margin and Earnings Compression
The sharp decline from prior-cycle profitability indicates reduced pricing power and weaker earnings conversion. Even with sequential improvement, sustained margin recovery depends on incentives, costs, and market affordability remaining favorable.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
Conservative leverage, substantial equity, and strong liquidity give Lennar flexibility to fund construction, manage housing-cycle volatility, and maintain shareholder returns without relying heavily on external financing.
Read all positive factors
Lennar Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down revenue from different business segments, providing insight into which areas drive sales and where there might be opportunities or challenges.
Breaks down revenue from different business segments, providing insight into which areas drive sales and where there might be opportunities or challenges.
Data provided by:
The Fly
The FlyLennar (LEN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$20.92B
Dividend Yield2.3%
Average Volume (3M)2.54M
Price to Earnings (P/E)13.6
Beta (1Y)0.69
Revenue Growth-7.47%
EPS Growth-47.15%
CountryUS
Employees12,532
SectorConsumer Cyclical
Sector Strength84
IndustryResidential Construction
Share Statistics
EPS (TTM)6.39
Shares Outstanding210,506,000
10 Day Avg. Volume2,473,805
30 Day Avg. Volume2,539,125
Financial Highlights & Ratios
PEG Ratio-0.37
Price to Book (P/B)1.53
Price to Sales (P/S)0.98
P/FCF Ratio1.19K
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$85.92Price Target Upside1.51% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering14
EPS Forecast (FY)5.5
Revenue Forecast (FY)$32.33B
Lennar Business Overview & Revenue Model
Company Description
Lennar Corporation, an influential homebuilder in the United States, operates primarily under its widely recognized Lennar brand, alongside its various subsidiaries. The company structures its diverse business initiatives across several distinct d...
How the Company Makes Money
Lennar makes money primarily by building and selling homes. The largest revenue stream is generated when the company sells newly constructed single-family homes and, where applicable, attached homes or communities it develops; revenue is recognize...
Lennar Earnings Call Summary
Earnings Call Date:Jun 11, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Sep 17, 2026
Earnings Call Sentiment Positive
The call highlighted strong operational execution (solid deliveries and orders), clear efficiency gains (lower cycle times, reduced construction cost per sqft, higher inventory turns), healthy liquidity and continued shareholder returns. Management provided constructive Q3 guidance and affirmed progress on the asset-light transformation. However, macroeconomic headwinds — elevated mortgage rates, a recent inflation/energy spike, ongoing commodity and labor pressures — and a modest downward adjustment to full-year deliveries introduce caution. Non-core segment losses and temporary land-bank capitalization timing also pose short-term drags. On balance the company’s internal execution and balance sheet strength outweigh near-term macro and segment-level challenges.Positive Updates
Strong Unit Volume and Orders
Delivered 20.5k homes in Q2 2026 and generated 21.7k new orders (near high end of guidance), with ~20.6k home starts in the quarter and Q3 orders guided to 21k–22k.
Negative Updates
Choppy Macro Backdrop and Consumer Headwinds
Mortgage rates remained elevated in the mid-to-upper 6% range (30-year ~6.4%–6.5%), keeping affordability constrained; at 6.5% a median buyer is spending >30% of gross income on housing, reducing urgency to close despite high intent.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Unit Volume and Orders
Delivered 20.5k homes in Q2 2026 and generated 21.7k new orders (near high end of guidance), with ~20.6k home starts in the quarter and Q3 orders guided to 21k–22k.
Read all positive updates
Company Guidance
Lennar guided Q3 2026 new orders of 21,000–22,000 homes and deliveries of 20,500–21,500 homes with an average sales price of $375k–$380k, gross margin of ~16% and SG&A of 8.8%–9%; they forecast financial services earnings of $95–$100M, a multifamily loss of ≈$15M, Lennar Other loss of ≈$20M (ex‑mark‑to‑market), and a combined homebuilding/JV/land sales/other loss of ≈$15M, with a tax rate of ~28%, ~238M weighted average shares and EPS of ~$1.20–$1.40 for the quarter, and they trimmed full‑year delivery guidance to 82k–83k while reiterating an expectation of sequential margin improvement.Lennar Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
78
Positive
Cash Flow
67
Positive
| Breakdown | TTM | Nov 2025 | Nov 2024 | Nov 2023 | Nov 2022 | Nov 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 32.74B | 34.19B | 35.44B | 34.23B | 33.67B | 27.13B |
| Gross Profit | 2.60B | 3.39B | 5.50B | 5.94B | 7.20B | 5.54B |
| EBITDA | 2.35B | 2.96B | 5.32B | 5.33B | 6.12B | 5.93B |
| Net Income | 1.62B | 2.08B | 3.93B | 3.94B | 4.61B | 4.43B |
Balance Sheet | ||||||
| Total Assets | 33.70B | 34.43B | 41.31B | 39.23B | 37.98B | 33.21B |
| Cash, Cash Equivalents and Short-Term Investments | 1.82B | 3.80B | 4.98B | 6.56B | 4.79B | 2.93B |
| Total Debt | 6.20B | 6.32B | 4.45B | 5.14B | 6.36B | 6.54B |
| Total Liabilities | 11.94B | 12.29B | 13.29B | 12.53B | 13.74B | 12.21B |
| Stockholders Equity | 21.62B | 21.96B | 27.87B | 26.58B | 24.10B | 20.82B |
Cash Flow | ||||||
| Free Cash Flow | 821.77M | 28.18M | 2.23B | 5.08B | 3.21B | 2.47B |
| Operating Cash Flow | 987.99M | 216.81M | 2.40B | 5.18B | 3.27B | 2.53B |
| Investing Cash Flow | 1.50M | 221.57M | -302.56M | -176.98M | -128.30M | -105.09M |
| Financing Cash Flow | -294.73M | -1.60B | -3.68B | -3.25B | -1.28B | -2.40B |
Lennar Technical Analysis
Positive
84.64
Price Trends
86.51
Positive
87.45
Negative
99.16
Negative
Market Momentum
0.19
Negative
52.08
Neutral
39.21
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 84.64 is below the 20-day moving average (MA) of 86.02, below the 50-day MA of 86.51, and below the 200-day MA of 99.16, indicating a neutral trend. The MACD of 0.19 indicates Negative momentum. The RSI at 52.08 is Neutral, neither overbought nor oversold. The STOCH value of 39.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LEN.
Lennar Risk Analysis
Lennar disclosed 49 risk factors in its most recent earnings report. Lennar reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Lennar Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $24.18B | 13.12 | 14.73% | 0.78% | -7.28% | -26.86% | |
73 Outperform | $13.75B | 11.73 | 15.49% | 0.68% | -1.08% | -8.57% | |
72 Outperform | $16.94B | 15.65 | 31.02% | ― | -9.66% | -19.36% | |
69 Neutral | $20.92B | 13.62 | 7.36% | 2.36% | -7.47% | -47.15% | |
67 Neutral | $41.49B | 14.09 | 12.77% | 1.19% | -3.54% | -15.86% | |
64 Neutral | $3.39B | 13.18 | 7.04% | 1.74% | -17.52% | -45.77% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
LEN
Lennar
87.02
-45.12
-34.15%
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PHM
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TOL
Toll Brothers
147.09
9.50
6.91%
Lennar Corporate Events
Business Operations and Strategy
Lennar Showcases Asset-Light Strategy and Volume-Led Growth
Positive
Jun 12, 2026
On June 12, 2026, Lennar highlighted an extensive transformation into an asset-light homebuilder, moving most land off its balance sheet and relying on developers and land banks to control homesites while focusing internal capital on short-cycle h...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.