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Lennar
(NYSE:LEN)
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Rating:69Neutral
Price Target:
$99.00
▲(6.69% Upside)
Action:Reiterated
Date:06/30/26
The score is driven primarily by solid financial stability (strong balance sheet and improving TTM cash flow) but tempered by clear TTM margin compression and cyclical volatility. Valuation is supportive (mid-teens P/E and ~2.2% yield), and the latest earnings call was moderately positive on execution and sequential margin outlook, while technical signals could not be assessed due to missing indicator data.
Positive Factors
Conservative leverage and strong liquidity
A low debt-to-equity ratio and nearly $5B total liquidity give Lennar durable financial flexibility. This supports capital allocation through buybacks/dividends, absorbs timing mismatches in land capitalization, and reduces refinancing risk across housing cycles, strengthening long-term resilience.
Negative Factors
Significant margin compression
A sharp decline in gross and net margins meaningfully reduces the firm's earnings power and cushion against downturns. Even with operational gains, persistent margin erosion limits free cash flow and constrains sustainable returns and reinvestment capacity over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative leverage and strong liquidity
A low debt-to-equity ratio and nearly $5B total liquidity give Lennar durable financial flexibility. This supports capital allocation through buybacks/dividends, absorbs timing mismatches in land capitalization, and reduces refinancing risk across housing cycles, strengthening long-term resilience.
Read all positive factors
Lennar Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down revenue from different business segments, providing insight into which areas drive sales and where there might be opportunities or challenges.
Breaks down revenue from different business segments, providing insight into which areas drive sales and where there might be opportunities or challenges.
Data provided by:
The Fly
The FlyLennar (LEN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$21.19B
Dividend Yield1.91%
Average Volume (3M)2.89M
Price to Earnings (P/E)13.8
Beta (1Y)0.62
Revenue Growth-7.47%
EPS Growth-47.15%
CountryUS
Employees13,265
SectorConsumer Cyclical
Sector Strength84
IndustryResidential Construction
Share Statistics
EPS (TTM)6.39
Shares Outstanding210,506,000
10 Day Avg. Volume3,644,617
30 Day Avg. Volume2,888,195
Financial Highlights & Ratios
PEG Ratio-0.37
Price to Book (P/B)1.53
Price to Sales (P/S)0.98
P/FCF Ratio1.19K
Enterprise Value/Market Cap1.22
Enterprise Value/Revenue0.79
Enterprise Value/Gross Profit9.93
Enterprise Value/Ebitda11.02
Forecast
1Y Price Target
$84.17Price Target Upside-9.29% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering14
EPS Forecast (FY)5.64
Revenue Forecast (FY)$32.42B
Lennar Business Overview & Revenue Model
Company Description
Lennar Corporation, an influential homebuilder in the United States, operates primarily under its widely recognized Lennar brand, alongside its various subsidiaries. The company structures its diverse business initiatives across several distinct d...
How the Company Makes Money
Lennar makes money primarily by building and selling homes. The largest revenue stream is generated when the company sells newly constructed single-family homes and, where applicable, attached homes or communities it develops; revenue is recognize...
Lennar Earnings Call Summary
Earnings Call Date:Jun 11, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Sep 17, 2026
Earnings Call Sentiment Positive
The call highlighted strong operational execution (solid deliveries and orders), clear efficiency gains (lower cycle times, reduced construction cost per sqft, higher inventory turns), healthy liquidity and continued shareholder returns. Management provided constructive Q3 guidance and affirmed progress on the asset-light transformation. However, macroeconomic headwinds — elevated mortgage rates, a recent inflation/energy spike, ongoing commodity and labor pressures — and a modest downward adjustment to full-year deliveries introduce caution. Non-core segment losses and temporary land-bank capitalization timing also pose short-term drags. On balance the company’s internal execution and balance sheet strength outweigh near-term macro and segment-level challenges.Positive Updates
Strong Unit Volume and Orders
Delivered 20.5k homes in Q2 2026 and generated 21.7k new orders (near high end of guidance), with ~20.6k home starts in the quarter and Q3 orders guided to 21k–22k.
Negative Updates
Choppy Macro Backdrop and Consumer Headwinds
Mortgage rates remained elevated in the mid-to-upper 6% range (30-year ~6.4%–6.5%), keeping affordability constrained; at 6.5% a median buyer is spending >30% of gross income on housing, reducing urgency to close despite high intent.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Unit Volume and Orders
Delivered 20.5k homes in Q2 2026 and generated 21.7k new orders (near high end of guidance), with ~20.6k home starts in the quarter and Q3 orders guided to 21k–22k.
Read all positive updates
Company Guidance
Lennar guided Q3 2026 new orders of 21,000–22,000 homes and deliveries of 20,500–21,500 homes with an average sales price of $375k–$380k, gross margin of ~16% and SG&A of 8.8%–9%; they forecast financial services earnings of $95–$100M, a multifamily loss of ≈$15M, Lennar Other loss of ≈$20M (ex‑mark‑to‑market), and a combined homebuilding/JV/land sales/other loss of ≈$15M, with a tax rate of ~28%, ~238M weighted average shares and EPS of ~$1.20–$1.40 for the quarter, and they trimmed full‑year delivery guidance to 82k–83k while reiterating an expectation of sequential margin improvement.Lennar Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
78
Positive
Cash Flow
67
Positive
| Breakdown | TTM | Nov 2025 | Nov 2024 | Nov 2023 | Nov 2022 | Nov 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 32.74B | 34.19B | 35.44B | 34.23B | 33.67B | 27.13B |
| Gross Profit | 2.60B | 3.39B | 5.50B | 5.94B | 7.20B | 5.54B |
| EBITDA | 2.35B | 2.96B | 5.32B | 5.33B | 6.12B | 5.93B |
| Net Income | 1.62B | 2.08B | 3.93B | 3.94B | 4.61B | 4.43B |
Balance Sheet | ||||||
| Total Assets | 33.70B | 34.43B | 41.31B | 39.23B | 37.98B | 33.21B |
| Cash, Cash Equivalents and Short-Term Investments | 1.82B | 3.80B | 4.98B | 6.56B | 4.79B | 2.93B |
| Total Debt | 6.20B | 6.32B | 4.45B | 5.14B | 6.36B | 6.54B |
| Total Liabilities | 11.94B | 12.29B | 13.29B | 12.53B | 13.74B | 12.21B |
| Stockholders Equity | 21.62B | 21.96B | 27.87B | 26.58B | 24.10B | 20.82B |
Cash Flow | ||||||
| Free Cash Flow | 716.77M | 28.18M | 2.23B | 5.08B | 3.21B | 2.47B |
| Operating Cash Flow | 882.99M | 216.81M | 2.40B | 5.18B | 3.27B | 2.53B |
| Investing Cash Flow | -41.28M | 221.57M | -302.56M | -176.98M | -128.30M | -105.09M |
| Financing Cash Flow | -280.49M | -1.60B | -3.68B | -3.25B | -1.28B | -2.40B |
Lennar Technical Analysis
Negative
92.79
Price Trends
89.37
Negative
94.52
Negative
106.45
Negative
Market Momentum
<0.01
Positive
46.53
Neutral
23.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LEN, the sentiment is Negative. The current price of 92.79 is above the 20-day moving average (MA) of 90.41, above the 50-day MA of 89.37, and below the 200-day MA of 106.45, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 46.53 is Neutral, neither overbought nor oversold. The STOCH value of 23.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LEN.
Lennar Risk Analysis
Lennar disclosed 49 risk factors in its most recent earnings report. Lennar reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Lennar Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $25.46B | 12.83 | 15.92% | 0.78% | -5.94% | -27.06% | |
74 Outperform | $14.69B | 11.80 | 15.49% | 0.70% | 3.62% | -2.11% | |
72 Outperform | $44.97B | 14.81 | 13.24% | 1.14% | -5.57% | -19.40% | |
69 Neutral | $21.19B | 13.80 | 7.36% | 1.91% | -7.47% | -47.15% | |
69 Neutral | $3.83B | 14.56 | 9.01% | 1.76% | -17.52% | -45.75% | |
67 Neutral | $18.22B | 15.58 | 32.66% | ― | -7.05% | -16.31% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
LEN
Lennar
88.21
-19.49
-18.10%
DHI
DR Horton
158.57
29.10
22.48%
KBH
KB Home
61.16
9.30
17.92%
NVR
NVR
6,750.79
-824.21
-10.88%
PHM
PulteGroup
133.67
26.39
24.59%
TOL
Toll Brothers
157.14
41.72
36.15%
Lennar Corporate Events
Business Operations and Strategy
Lennar Showcases Asset-Light Strategy and Volume-Led Growth
Positive
Jun 12, 2026
On June 12, 2026, Lennar highlighted an extensive transformation into an asset-light homebuilder, moving most land off its balance sheet and relying on developers and land banks to control homesites while focusing internal capital on short-cycle h...
Executive/Board ChangesShareholder Meetings
Lennar Stockholders Back Board, Pay Plans at 2026 Meeting
Positive
Apr 13, 2026
On April 8, 2026, Lennar held its 2026 Annual Meeting of Stockholders, where shareholders elected nine directors to serve until the 2027 Annual Meeting, including Executive Chairman Stuart Miller and several independent board members. Investors al...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.