Lennar Corp (LEN.B) stock analysis

P/E above its 5-year median

Lennar's P/E of 16.2 is above its own 5-year median of 9.1.

P/E above the industry

Lennar's P/E of 16.2 is above the Building Construction General Contractors and Operative Builders median of 14.0.

EV/EBITDA above its 5-year median

Lennar's EV/EBITDA of 9.6 is above its 5-year median of 5.8.

P/B below the industry

Lennar's price-to-book of 0.95 is below the Building Construction General Contractors and Operative Builders median of 1.33.

Trading above fair value

The share price of $85.46 is above our fair value estimate of $76.05.

Margin of safety under 20%

The price is 12.4% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 0.5% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings growth not accelerating

Net income grew -51.3% over the last twelve months, against a 5-year average of -3.4% a year.

Growing slower than the industry

Revenue grew -8.0% over the last twelve months; the Building Construction General Contractors and Operative Builders median is -5.7%.

Guidance lowered

Lennar lowered its third quarter of 2026 Deliveries outlook on Jun 11, 2026.

Gross margin trend

This company does not report gross profit.

Return on equity under 15%

Return on equity was 5.9% over the last twelve months and averaged 16.3% over five years; we look for 15% on both.

Return on invested capital

Needs operating income and invested capital.

Return on equity below the industry

Lennar's return on equity of 5.9% is below the Building Construction General Contractors and Operative Builders median of 10.1%.

Earnings shrank over 5 years

Net income shrank 3.4% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 4.1% over the last twelve months, against a 5-year average of 11.7%.

Net margin below the industry

Lennar's net margin of 4.1% is below the Building Construction General Contractors and Operative Builders median of 4.1%.

No debt

Lennar has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

No meaningful interest expense to cover.

Short-term liquidity

The balance sheet is not split into current and non-current items.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.93; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Lennar paid dividends worth 2.3% of the share price over the last twelve months.

Yield below Treasuries

The 2.3% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 4.0% or more; Lennar yields 2.3%.

Dividend stability

Fewer than five years of dividend history.

Covered by earnings

Dividends take 37.6% of net income.

Covered by free cash flow

Dividends take 60.7% of free cash flow.