Lennar Corp. (LEN) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

M.D.C. Holdings, Inc.

Skyline Champion Corp.

Toll Brothers, Inc.

PulteGroup, Inc.

NVR, Inc.

D.R. Horton, Inc.

Taylor Morrison Home Corp.

KB Home

Lennar Corp.

Meritage Homes Corp.

Tri Pointe Homes, Inc.

Why is Lennar Corp. ?

Negative results in May 25

OPERATING CASH FLOW(Y) Lowest at USD 754.18 MM
ROCE(HY) Lowest at 13.04%
RAW MATERIAL COST(Y) Grown by 25.34% (YoY)

With ROE of 16.71%, it has a fair valuation with a 1.40 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -20.18%, its profits have fallen by -7.1%

Below par performance in long term as well as near term

Along with generating -20.18% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Furniture, Home Furnishing)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Lennar Corp. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Lennar Corp.

-21.2%

-0.30

36.13%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.37%

EBIT Growth (5y)

8.62%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

0.46

Net Debt to Equity (avg)

0.12

Sales to Capital Employed (avg)

1.17

Tax Ratio

23.90%

Dividend Payout Ratio

13.97%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

19.98%

ROE (avg)

16.86%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.40

EV to EBIT

7.14

EV to EBITDA

6.96

EV to Capital Employed

1.38

EV to Sales

0.92

PEG Ratio

Dividend Yield

1.65%

ROCE (Latest)

19.34%

ROE (Latest)

16.71%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

2What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 27.62%

INVENTORY TURNOVER RATIO(HY)

Highest at 1.6 times

-23What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 754.18 MM

ROCE(HY)

Lowest at 13.04%

RAW MATERIAL COST(Y)

Grown by 25.34% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 13.37 %

OPERATING PROFIT(Q)

Lowest at USD 638.12 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 7.64 %

PRE-TAX PROFIT(Q)

Lowest at USD 647.17 MM

NET PROFIT(Q)

Lowest at USD 475.15 MM

EPS(Q)

Lowest at USD 1.81

Here's what is working for Lennar Corp.

Inventory Turnover Ratio

Highest at 1.6 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend Payout Ratio

Highest at 27.62%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at USD 33.83 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Lennar Corp.

Pre-Tax Profit

At USD 647.17 MM has Fallen at -50.08%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 475.15 MM has Fallen at -51.05%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Cash Flow

Lowest at USD 754.18 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Operating Profit

Lowest at USD 638.12 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 7.64 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD 647.17 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 475.15 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 1.81

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Debt-Equity Ratio

Highest at 13.37 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 25.34% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales