Lennar (LEN)
NYSE:LEN
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Lennar
(NYSE:LEN)
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Rating:56Neutral
Price Target:
$92.00
▼(-0.85% Downside)
Action:ReiteratedDate:04/14/26
The score is primarily held back by weakened cash flow and compressed profitability versus prior years, despite a strong, low-leverage balance sheet. Technicals also point to a downtrend. These negatives are partly offset by constructive earnings-call guidance suggesting margins may stabilize and by shareholder returns, but valuation remains relatively rich for the current earnings/cash-flow profile.
Positive Factors
Balance-sheet strength & liquidity
A low debt-to-equity ratio (~0.19), substantial equity (~$22B) and multi-billion liquidity position provide durable financial flexibility. This reduces refinancing and solvency risk in a cyclical housing market, enabling continued land-light growth, buybacks, dividends and weathering temporary cash shortfalls.
Negative Factors
Weak cash flow & negative FCF
Near-zero operating cash flow and negative free cash flow despite positive net income signal weak cash conversion driven by working-capital timing and elevated incentives. Persistent FCF deficits could constrain capital returns, limit reinvestment, and increase dependence on liquidity or debt during slow demand periods.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance-sheet strength & liquidity
A low debt-to-equity ratio (~0.19), substantial equity (~$22B) and multi-billion liquidity position provide durable financial flexibility. This reduces refinancing and solvency risk in a cyclical housing market, enabling continued land-light growth, buybacks, dividends and weathering temporary cash shortfalls.
Read all positive factors
Lennar (LEN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$23.09B
Dividend Yield1.91%
Average Volume (3M)3.48M
Price to Earnings (P/E)30.5
Beta (1Y)0.69
Revenue Growth-7.52%
EPS Growth-49.33%
CountryUS
Employees13,265
SectorConsumer Cyclical
Sector Strength84
IndustryResidential Construction
Share Statistics
EPS (TTM)0.93
Shares Outstanding215,244,400
10 Day Avg. Volume3,108,162
30 Day Avg. Volume3,476,510
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 Cap1.11
Enterprise Value/Revenue0.77
Enterprise Value/Gross Profit4.61
Enterprise Value/Ebitda10.44
Forecast
1Y Price Target
$90.64Price Target Upside-2.32% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering14
EPS Forecast (FY)6.16
Revenue Forecast (FY)$32.98B
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 Serv...
How the Company Makes Money
Lennar primarily makes money by building and selling new homes. Revenue is generated when homes are delivered/closed to buyers, with pricing driven by local housing demand, product mix (e.g., entry-level vs. move-up offerings), and incentives/fina...
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 Earnings Call Summary
Earnings Call Date:Mar 12, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jun 22, 2026
Earnings Call Sentiment Positive
The call portrayed a cautiously optimistic tone. Management acknowledged meaningful near-term headwinds (affordability, elevated incentives, macro/geopolitical uncertainty and softer margins) but highlighted numerous tangible operational improvements: faster cycle times, consistent volume discipline, material cost reductions, stronger inventory turns, a deepening asset-light land program, robust liquidity and continued market-share advantages. Management reiterated Q2 guidance and a full-year delivery target of 85,000 homes while emphasizing that Q1 likely represents the margin low point for 2026. Given the scale and consistency of operational and balance-sheet improvements versus the market-driven challenges, the overall message was constructive with optimism that execution will drive recovery when mortgage rates and affordability improve.Positive Updates
Volume and Production Discipline
Started 17,425 homes and sold 18,515 homes in Q1 while matching production to sales pace; ended the quarter with ~3 completed unsold homes per community (slightly above 2-target) and maintained an even-flow production approach.
Negative Updates
Affordability Pressure & High Incentives
Average sales price was $374,000 in Q1 (essentially flat to plan but down ~8% Y/Y) with delivery sales incentives at 14.1% (Q4 was 14.5%); normalized incentive levels are cited as 4%–6%, indicating a large gap that suppresses margins.
Read all updates
Q1-2026 Updates
Positive
Negative
Volume and Production Discipline
Started 17,425 homes and sold 18,515 homes in Q1 while matching production to sales pace; ended the quarter with ~3 completed unsold homes per community (slightly above 2-target) and maintained an even-flow production approach.
Read all positive updates
Company Guidance
Lennar’s Q2 2026 guidance called for new orders of 21,000–22,000 homes, deliveries of 20,000–21,000, an average sales price of $370,000–$375,000, and a gross margin of 15.5%–16.0% (with Q1’s 15.2% called the year’s low); SG&A was guided to 8.9%–9.1% (corporate G&A ~1.9% of revenue), a combined homebuilding/JV/land/other loss of about $20 million, Financial Services earnings of $100M–$110M, multifamily earnings up ~$10M, a Q2 tax rate of ~25.5%, a weighted average share count of ~243 million, a foundation contribution of $1,000 per home, and an EPS range of $1.10–$1.40, with a full-year delivery target of 85,000 homes.Lennar Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
78
Positive
Cash Flow
32
Negative
| Breakdown | TTM | Nov 2025 | Nov 2024 | Nov 2023 | Nov 2022 | Nov 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 33.14B | 34.19B | 35.48B | 34.29B | 33.71B | 27.14B |
| Gross Profit | 5.56B | 6.07B | 8.01B | 8.23B | 9.20B | 7.34B |
| EBITDA | 2.45B | 2.96B | 5.32B | 5.33B | 6.12B | 5.93B |
| Net Income | 1.79B | 2.06B | 3.93B | 3.94B | 4.61B | 4.43B |
Balance Sheet | ||||||
| Total Assets | 33.21B | 34.43B | 41.31B | 39.23B | 37.98B | 33.21B |
| Cash, Cash Equivalents and Short-Term Investments | 2.09B | 3.80B | 4.98B | 6.56B | 4.79B | 2.93B |
| Total Debt | 4.32B | 6.32B | 4.45B | 5.14B | 6.36B | 6.54B |
| Total Liabilities | 11.18B | 12.29B | 13.29B | 12.53B | 13.74B | 12.21B |
| Stockholders Equity | 21.88B | 21.96B | 27.87B | 26.58B | 24.10B | 20.82B |
Cash Flow | ||||||
| Free Cash Flow | 14.77M | 28.18M | 2.23B | 5.08B | 3.21B | 2.47B |
| Operating Cash Flow | 177.35M | 216.81M | 2.40B | 5.18B | 3.27B | 2.53B |
| Investing Cash Flow | 178.81M | 221.57M | -302.56M | -176.98M | -128.30M | -105.09M |
| Financing Cash Flow | -549.37M | -1.60B | -3.68B | -3.25B | -1.28B | -2.40B |
Lennar Technical Analysis
Neutral
92.79
Price Trends
101.00
Negative
108.07
Negative
115.46
Negative
Market Momentum
-2.69
Negative
50.62
Neutral
68.09
Neutral
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 92.79 is above the 20-day moving average (MA) of 89.15, below the 50-day MA of 101.00, and below the 200-day MA of 115.46, indicating a neutral trend. The MACD of -2.69 indicates Negative momentum. The RSI at 50.62 is Neutral, neither overbought nor oversold. The STOCH value of 68.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $18.07B | 23.10 | 34.29% | ― | -6.68% | -16.31% | |
74 Outperform | $24.30B | 16.24 | 15.92% | 0.78% | -5.94% | -27.06% | |
72 Outperform | $45.34B | 15.24 | 13.24% | 1.14% | -5.57% | -19.40% | |
69 Neutral | $13.89B | 16.39 | 16.86% | 0.70% | 4.60% | -3.85% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $3.46B | 29.80 | 9.01% | 1.76% | -13.61% | -37.18% | |
56 Neutral | $23.09B | 30.47 | 8.04% | 1.91% | -7.52% | -49.33% |
* Consumer Cyclical Sector Average
LEN
Lennar
93.25
-12.38
-11.72%
DHI
DR Horton
159.33
36.04
29.23%
KBH
KB Home
55.42
3.07
5.87%
NVR
NVR
6,482.53
-631.41
-8.88%
PHM
PulteGroup
128.28
27.35
27.10%
TOL
Toll Brothers
147.36
47.63
47.76%
Lennar Corporate Events
Executive/Board ChangesShareholder Meetings
Lennar Stockholders Back Board, Pay Plans at 2026 Meeting
Positive
Apr 13, 2026
On April 8, 2026, Lennar held its 2026 Annual Meeting of Stockholders, where shareholders elected nine directors to serve until the 2027 Annual Meeting, including Executive Chairman Stuart Miller and several independent board members. Investors al...
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.