Lennar shares moved -19.1% over the last 52 weeks, with a high of $116.36 and a low of $62.54. During this time, the stock basically tracked the performance of the S&P 500. As of January 2022, the company's 50-day average price is $85.0.
Lennar Corporation, together with its subsidiaries, operates as a homebuilder primarily under the Lennar brand in the United States. The large-cap Consumer Cyclical company is based in Miami, FL. Lennar has returned a 1.7% dividend yield over the last 12 months.
Growing Revenues With Decreasing Reinvestment in the Business:
| 11/29/2020 | 11/29/2021 | 11/29/2022 | |
|---|---|---|---|
| Revenue (MM) | $22,489 | $27,131 | $33,671 |
| Revenue Growth | 1.03% | 20.64% | 24.11% |
| Gross Margins | 15.4% | 20.4% | 31.1% |
| Gross Margins Growth | 22.22% | 32.47% | 52.45% |
| Operating Margins | 13.8% | 18.9% | 20.3% |
| Operating Margins Growth | 24.32% | 36.96% | 7.41% |
| Earnings Per Share | $7.85 | $14.27 | $15.72 |
| EPS Growth | 36.76% | 81.78% | 10.16% |
| Free Cash Flow (MM) | $1,396 | $4,118 | $2,468 |
| FCF Growth | n/a | 195.02% | -40.08% |
| Capital Expenditures (MM) | -$86 | -$73 | -$65 |
| Net Debt / EBITDA | 1.43 | 0.75 | -0.08 |
Lennar has Attractive P/E and P/B Ratios and Trades Below Its Graham Number:
Compared to the Consumer Cyclical sector's average of 24.11, Lennar has a trailing twelve month price to earnings (P/E) ratio of 5.8 and, based on its EPS guidance of 10.11, an expected P/E ratio of 9.0.
The firm's price to earnings growth (PEG) is 0.42, which indicates that the company is undervalued in terms of its expected earnings growth.
Lennar is undervalued in terms of its assets because its price to book (P/B) ratio is 1.1 compared to its sector average of 3.11. As of the date of publication, the company's shares are trading -47.5% below their Graham number, implying there is a margin of safety for the stock. The Graham number is calculated according to the forumla:
√(22.5 * TTM earnings per share * book value per share) = √(22.5 * 15.72 * 83.868) = $172.23
Lennar Has an Average Rating of Buy and an Analyst Consensus of Some Upside Potential:
17 analysts are following Lennar and have set target prices ranging from $79 to $120 per share. On average, they have given the company a rating of buy. At the current price of $90.5, LEN is trading -13.03% away from its average analyst target price of $104.06 per share, implying an analyst consensus of some upside potential for the stock.
The company has an average amount of shares sold short since 4.2% of the company's shares are tied to short positions. Institutions own 98.1% of Lennar's shares, while the insider ownership rate stands at 2.09%. The biggest shareholder is the Vanguard Group, Inc. with a 11% stake in the company worth approximately $2,532,237,874.
