Lennar (LEN)
Consumer Discretionary · $20.6B market cap · SEC CIK 0000920760
ahead of 2% of the S&P 500 · #48 of 48 in Consumer Discretionary
Next reports on Dec 14, 2026, after the close, with analysts expecting $1.50 in earnings per share.
52-week range $71.78 to $133.76. 35% below its 52-week high and 21% above its low.
The case for LEN
- Trades at 0.94× book value, below what the balance sheet says it owns.
- Current assets cover the near-term bills 7.8 times over.
- Pays a modest 1.2% dividend.
- Price/sales of 0.6× is lower than 89% of Consumer Discretionary companies.
The case against
- Expensive for its growth: 15.8× earnings, where 0% a year of growth plus a 1.2% dividend would justify about 10×.
- Revenue fell 8.0% year over year.
- Earnings per share down 47.8%.
- Down 24.7% over the past year.
- Long-term debt of $5.9B would take 27 years of operating cash flow to repay.
- Return on equity of only 6%.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Consumer Discretionary companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 16 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 21 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 17 |
| Momentumhow the price has behaved lately | 36 |
| Stabilityhow violently it moves, what it owes and what it pays you | 33 |
- Each factor except momentum is half fixed thresholds, half rank among the 48 Consumer Discretionary companies.
The financials
Revenue growth
Is the business growing? No, shrinking
| Last 12 months | −8.0% |
|---|---|
| Over 5 years | +8.7% a year |
| FY2025 revenue | $34.2B (−4%) |
Free cash flow
Is it generating real cash? Less than its profits suggest
| FY2025 free cash flow | $28.2M |
|---|---|
| Of revenue | 0% |
| Of profit | 1% |
Profit margins
Is profitability improving? No, slipping
| Gross margin | 8% |
|---|---|
| Operating margin | 6% |
| Net margin, FY24 → FY25 → now | 11.1% → 6.1% → 4.1% |
Debt vs. cash
Is the balance sheet healthy? Stretched
| Cash | $3.8B |
|---|---|
| Long-term debt | $5.9B |
| Net debt | $2.1B |
| Years to repay | 27.1 yrs |
Valuation
Is the stock price reasonable? No, expensive
| P/E | 15.8× |
|---|---|
| Fair P/E for its growth | 10× |
| P/FCF | 732.5× |
| Forward P/E | 16.5× |
| EV / EBITDA | 13.0× |
At 15.8× earnings it trades above the 10× that 0% a year of growth plus a 1.2% dividend would justify. At 732.5× free cash flow it trades well above that same mark.
The financials, five years deep
Pulled from Lennar's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $34.2B | $35.4B | $34.2B | $33.7B | $27.1B |
| Change on the year | −4% | +4% | +2% | +24% | — |
| Free cash flow | |||||
| Free cash flow | $28.2M | $2.2B | $5.1B | $3.2B | $2.5B |
| Of revenue | 0% | 6% | 15% | 10% | 9% |
| Profit margins | |||||
| Net margin | 6.1% | 11.1% | 11.5% | 13.7% | 16.3% |
| Debt vs. cash | |||||
| Cash | $3.8B | $4.9B | $6.6B | $4.8B | $3.0B |
| Long-term debt | $5.9B | $4.2B | — | — | — |
| Net cash (debt) | −$2.1B | $720M | — | — | — |
What Lennar says it does
Overview of Lennar Corporation We are one of the largest homebuilders in the United States by deliveries, revenues and net earnings, an originator of residential and commercial mortgage loans, a provider of title insurance and closing services and a developer of multifamily rental properties. In addition, we are a sponsor and manager of funds and joint ventures engaged in development and ownership of multifamily rental properties and a sponsor and manager of a fund engaged in ownership of single-family rental properties. We also have investments in companies that are engaged in applying technology to improve the homebuilding industry and real estate related aspects of the financial services industry. Our homebuilding operations are the most substantial part of our business, generating $32 billion in revenues, or approximately 94% of consolidated revenues, in fiscal 2025. As of November 30, 2025, our reportable Homebuilding segments and…