Lennar Corp

LEN

General Bldg Contractors - Residential Bldgs

Mkt Cap

$42.95B

PE

10.71

Debt

Cash

$5.261B

EV

FCF

$4.402B

Market Cap

$42.95B

P/E Ratio

10.71

Debt

Cash

$5.261B

EV

FCF

$4.402B

Charts data: {"Earnings":[{"time":"2014-11-29","value":628693000},{"time":"2015-11-29","value":794162000},{"time":"2016-11-29","value":902655000},{"time":"2017-11-29","value":771754000},{"time":"2018-11-29","value":1680964000},{"time":"2019-11-29","value":1832910000},{"time":"2020-11-29","value":2436647000},{"time":"2021-11-29","value":4377192000},{"time":"2022-11-29","value":4562145000},{"time":"2023-11-29","value":3889975000}],"Sales":[{"time":"2014-11-29","value":7779812000},{"time":"2015-11-29","value":9474008000},{"time":"2016-11-29","value":10949999000},{"time":"2017-11-29","value":12646365000},{"time":"2018-11-29","value":20571631000},{"time":"2019-11-29","value":22259561000},{"time":"2020-11-29","value":22488854000},{"time":"2021-11-29","value":27130676000},{"time":"2022-11-29","value":33671010000},{"time":"2023-11-29","value":34233366000}],"Net Margins":[{"time":"2014-11-29","value":0.08081082164967482},{"time":"2015-11-29","value":0.08382534614705835},{"time":"2016-11-29","value":0.08243425410358485},{"time":"2017-11-29","value":0.06102575720374985},{"time":"2018-11-29","value":0.08171272370187857},{"time":"2019-11-29","value":0.08234259426769468},{"time":"2020-11-29","value":0.10834909595660143},{"time":"2021-11-29","value":0.16133737323758537},{"time":"2022-11-29","value":0.13549177764492362},{"time":"2023-11-29","value":0.11363109896935054}],"Assets":[{"time":"2014-11-29","value":12958267000},{"time":"2015-11-29","value":14419509000},{"time":"2016-11-29","value":15361781000},{"time":"2017-11-29","value":18745034000},{"time":"2018-11-29","value":28566181000},{"time":"2019-11-29","value":29359511000},{"time":"2020-11-29","value":29935177000},{"time":"2021-11-29","value":33207778000},{"time":"2022-11-29","value":37984295000},{"time":"2023-11-29","value":39234303000}],"Stockholders Equity":[{"time":"2014-11-29","value":5251302000},{"time":"2015-11-29","value":5950072000},{"time":"2016-11-29","value":7211567000},{"time":"2017-11-29","value":7986132000},{"time":"2018-11-29","value":14682957000},{"time":"2019-11-29","value":16033830000},{"time":"2020-11-29","value":18099401000},{"time":"2021-11-29","value":20996282000},{"time":"2022-11-29","value":24240367000},{"time":"2023-11-29","value":26701966000}],"ROE":[{"time":"2014-11-29","value":0.11972135672258041},{"time":"2015-11-29","value":0.13347098993087814},{"time":"2016-11-29","value":0.12516766466982834},{"time":"2017-11-29","value":0.09663676984051854},{"time":"2018-11-29","value":0.11448402389246254},{"time":"2019-11-29","value":0.11431516986272151},{"time":"2020-11-29","value":0.1346258365124901},{"time":"2021-11-29","value":0.20847462422156457},{"time":"2022-11-29","value":0.188204452515096},{"time":"2023-11-29","value":0.14568122062622654}],"ROA":[{"time":"2014-11-29","value":0.08851067816398597},{"time":"2015-11-29","value":0.0988840882168734},{"time":"2016-11-29","value":0.1017480329917475},{"time":"2017-11-29","value":0.07871418104656412},{"time":"2018-11-29","value":0.08622752197782406},{"time":"2019-11-29","value":0.09453175156766065},{"time":"2020-11-29","value":0.11632488426575864},{"time":"2021-11-29","value":0.17523177853092128},{"time":"2022-11-29","value":0.15834349433101233},{"time":"2023-11-29","value":0.13259580525745546}]}

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 Services, Multifamily, and Lennar Other segments. The company's homebuilding operations include the construction and sale of single-family attached and detached homes, as well as the purchase, development, and sale of residential land; and development, construction, and management of multifamily rental properties. It also offers residential mortgage financing, title, insurance, and closing services for home buyers and others, as well as originates and sells securitization commercial mortgage loans. In addition, the company is involved in the fund investment activity. It primarily serves first-time, move-up, active adult, and luxury homebuyers. Lennar Corporation was founded in 1954 and is based in Miami, Florida.

Sector

10-Q
8/31/23
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5/31/23
10-Q
2/28/23
10-K
11/30/22
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11/30/21
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11/30/19
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2/28/19
10-K
11/30/18
10-Q
8/31/18
10-Q
5/31/18
10-Q
2/28/18

DCF

Discounted Cash Flow Valuation of Lennar Corp

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$4.402B	$5.723B	$7.281B	$9.06B	$11.02B	$13.11B	$15.22B	$17.25B	$19.07B	$20.55B	$21.58B	$215.8B
DCF		$4.976B	$5.505B	$5.957B	$6.303B	$6.516B	$6.579B	$6.483B	$6.233B	$5.841B	$5.333B	$53.33B
Value	$113.1B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 29%

Earnings Stability 92%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	11-2015	11-2016	11-2017	11-2018	11-2019	11-2020	11-2021	11-2022	11-2023	TTM
Net Margin	8.4%	8.2%	6.1%	8.2%	8.2%	11%	16%	14%	11%	11%
ROA	9.9%	10%	7.9%	8.6%	9.5%	12%	18%	16%	13%	14%
ROE	13%	13%	9.7%	11%	11%	13%	21%	19%	15%	15%

What is the average Net Margin?

The average Net Margin over the past 5 years is +11.38%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +1.06%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +12.72%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +1.38%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +15.1%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +1.29%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Data are missing

The Graham’s stability indicate reliability of earnings, and consideration about the future are more dependable.

Years	11-2015	11-2016	11-2017	11-2018	11-2019	11-2020	11-2021	11-2022	11-2023	TTM
Debt FCF	-	-	-	-	6.86	1.80	-	-	-	-
Debt Equity	-	-	-	-	0.60	0.41	-	-	-	-
MIN
Graham Stability	-	-	100%	100%	100%	100%	100%	100%	100%	100%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is -.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -5.06.

What is the Graham’s Stability?

Graham’s Stability measure stands at 1.00.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has not been increasing in the past years.

Years	11-2016	11-2018	11-2020	11-2022	Trend
Revenue	18%	11%	15%	1.7%	-1.8%
Net Income	23%	18%	17%	-15%	-1.5%
Stockholders Equity	21%	13%	14%	10%	-1.5%
FCF	42%	26%	7.2%	58%	-9.5%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +10.72%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -1.77%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +18.27%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -1.49%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +12.71%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -1.51%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +26.29%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -9.51%.