Lennar (LEN)
Consumer Discretionary · $19.6B market cap · SEC CIK 0000920760
fundamentals score out of 100
Next reports on Mar 10, 2027, with analysts expecting $0.75 in earnings per share.
The case for LEN
- Cheap on earnings at 12.1×, well under the market's usual 20×.
- Trades at 1.02× book value, close to what the balance sheet says it owns.
- Current assets cover the near-term bills 8.0 times over.
- Pays a modest 1.2% dividend.
- Price/sales of 0.6× is lower than 89% of Consumer Discretionary companies.
The case against
- Revenue fell 7.5% year over year.
- Earnings per share down 47.1%.
- Down 38.7% 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 7%.
- Only 1% of FY2025's $2.1B profit arrived as free cash.
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. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 74 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 23 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 20 |
| Momentumhow the price has behaved lately | 15 |
| Stabilityhow violently it moves, what it owes and what it pays you | 24 |
- Each factor except momentum is half fixed thresholds, half rank among the 48 Consumer Discretionary companies.
Key numbers
| Price / earnings | 12.1× |
|---|---|
| Price / book | 1.02× |
| Price / sales | 0.6× |
| Revenue growth (YoY) | -7.5% |
| EPS growth (YoY) | -47.1% |
| Gross margin | 9% |
| Operating margin | 7% |
| Net margin | 5% |
| Return on equity | 7% |
| Debt / equity | 0.28× |
| Current ratio | 8.00 |
| Dividend yield | 1.18% |
| Beta | 1.40 |
| 52-week range | $75.70 – $133.76 |
| Position in that range | 13% of the way up |
| 3-month return | -13.0% |
| 1-year return | -38.7% |
Five years of financials, as filed
Pulled from Lennar's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $34.2B | $35.4B | $34.2B | $33.7B | $27.1B |
| Net income | $2.1B | $3.9B | $3.9B | $4.6B | $4.4B |
| Operating cash flow | $217M | $2.4B | $5.2B | $3.3B | $2.5B |
| Capital expenditure | $189M | $172M | $99.8M | $57.2M | $65.2M |
| Total assets | $34.4B | $41.3B | $39.2B | $38.0B | $33.2B |
| Total liabilities | $12.3B | $13.3B | $12.5B | $13.7B | $12.2B |
| Shareholder equity | $22.0B | $27.9B | $26.6B | $24.1B | $20.8B |
| Cash | $3.8B | $4.9B | $6.6B | $4.8B | $3.0B |
| Long-term debt | $5.9B | $4.2B | — | — | — |
| Free cash flow | $28.2M | $2.2B | $5.1B | $3.2B | $2.5B |
| Net margin | 6.1% | 11.1% | 11.5% | 13.7% | 16.3% |
| Diluted shares | 258M | 272M | 283M | 290M | 307M |
Share count is down 15.9% over 4 years. Buybacks have been shrinking the pie.
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…
Risk factors LEN lists in its 10-K
- Demand for homes we build may be adversely affected by a variety of macroeconomic factors beyond our control
- Negative publicity could hurt our reputation, which could cause our revenues or results of operations to decline
- Our business strategies for our homebuilding and mortgage finance businesses may not increase our value
- The market for new homes is cyclical, and a continuing downturn in the homebuilding market could adversely affect our operations
- Inflation could adversely affect our profitability
- Further increase in mortgage interest rates could reduce potential buyers’ ability or desire to obtain financing with which to buy homes
- A decline in prices of new homes could require us to write down the carrying value of land we own and to write off option costs
- Current and threatened international conflicts could affect demand for the homes we build
- Our results of operations and financial condition may be adversely affected by public health issues and governmental actions
- Homebuilding, mortgage lending and home rentals are very competitive industries, and competitive conditions could adversely affect our business or financial results
- We may be subject to costs of warranty and liability claims in excess of the insurance coverage we can purchase
- Excessive health and safety incidents relating to our operations could be costly to us
- Products supplied to us and work done by subcontractors can expose us to risks that could adversely affect our business
- A reduced number of home sales would extend the time it takes us to recover land purchase and property development costs