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Lennar
(NYSE:LEN)
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Rating:61Neutral
Price Target:
$78.00
▼(-11.04% Downside)
Action:Reiterated
Date:10/15/26
The score is led by solid financial foundation (conservative leverage) but is held back by a clear earnings/margin downshift and uneven cash-flow conversion. Technicals are notably weak with the stock below major moving averages and negative momentum, while valuation and the dividend offer partial support. Earnings-call commentary points to strong execution, but demand and affordability headwinds plus margin concessions keep the outlook cautious.
Positive Factors
Conservative Balance Sheet
Low leverage and substantial liquidity give Lennar flexibility to manage housing-cycle volatility, fund operations, and maintain land and construction activity without excessive balance-sheet strain. This financial resilience can support market share and strategic investment through weaker conditions.
Negative Factors
Revenue and Margin Downturn
The combination of declining revenue and materially lower profitability indicates reduced earnings power during the housing down-cycle. Persistently compressed margins can limit internal funding for growth, weaken returns on equity, and make results more sensitive to further changes in demand or costs.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Low leverage and substantial liquidity give Lennar flexibility to manage housing-cycle volatility, fund operations, and maintain land and construction activity without excessive balance-sheet strain. This financial resilience can support market share and strategic investment through weaker conditions.
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
$18.33B
Dividend Yield2.59%
Average Volume (3M)5.56M
Price to Earnings (P/E)14.6
Beta (1Y)0.70
Revenue Growth-8.01%
EPS Growth-47.77%
CountryUS
Employees12,532
SectorConsumer Cyclical
Sector Strength84
IndustryResidential Construction
Share Statistics
EPS (TTM)5.29
Shares Outstanding207,876,220
10 Day Avg. Volume6,119,063
30 Day Avg. Volume5,558,722
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 Cap1.35
Enterprise Value/Revenue0.78
Enterprise Value/Gross Profit8.15
Enterprise Value/Ebitda12.37
Forecast
1Y Price Target
$75.42Price Target Upside-13.99% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering14
EPS Forecast (FY)4.86
Revenue Forecast (FY)$31.45B
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 primarily makes money by building and selling new homes. The largest revenue stream is Homebuilding, where revenue is recognized when a home sale closes; earnings are driven by the number of homes delivered, average selling prices, product ...
Lennar Earnings Call Summary
Earnings Call Date:Sep 16, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Dec 16, 2026
Earnings Call Sentiment Positive
The call was cautiously positive overall. Lennar reported solid operational execution, sequential gross-margin improvement, record cycle time, lower completed-unsold inventory, strong liquidity and continued progress toward an asset-light model. However, these achievements occurred amid higher interest rates, inflation, weaker consumer confidence, increasing resale competition, labor constraints, rising land-related costs and orders below guidance and prior year. Management remained confident in its strategy but acknowledged that market conditions remain difficult and volatile.Positive Updates
Third-Quarter Deliveries Within Guidance
Lennar delivered 20,840 homes in the third quarter, within its guidance range of 20,500 to 21,500 homes.
Negative Updates
New Orders Below Guidance and Prior Year
Third-quarter new orders were 20,879, below the guidance range of 21,000 to 22,000 and below the 23,000 new orders generated in the prior year.
Read all updates
Q3-2026 Updates
Positive
Negative
Third-Quarter Deliveries Within Guidance
Lennar delivered 20,840 homes in the third quarter, within its guidance range of 20,500 to 21,500 homes.
Read all positive updates
Company Guidance
For Q4, Lennar expects new orders to be in the range of 19,500 to 20,500 homes, deliveries to be in the range of 22,000 to 23,000 homes, average sales price to be between $370,000 and $380,000, gross margins to be in the range of 15.5% to 16%, SG&A percentage to be in the range of 8.7% to 9%, Financial Services earnings to be in the range of $90 million to $95 million, a loss of approximately $25 million for multifamily, a loss of approximately $20 million for Lennar Other excluding the impact of any potential mark-to-market adjustments, earnings of approximately $10 million for the combined homebuilding joint venture, land sales and other categories, corp G&A of approximately 1.7% of total revenues, a tax rate of approximately 25%, a weighted average share count of approximately 235 million, and an EPS range of approximately $1.30 to $1.65; all of these metrics, of course, are dependent on market conditions.Lennar Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
78
Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Nov 2025 | Nov 2024 | Nov 2023 | Nov 2022 | Nov 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 31.97B | 34.19B | 35.44B | 34.23B | 33.67B | 27.13B |
| Gross Profit | 3.04B | 3.39B | 5.50B | 5.94B | 7.20B | 5.54B |
| EBITDA | 2.00B | 2.96B | 5.32B | 5.33B | 6.12B | 5.93B |
| Net Income | 1.31B | 2.08B | 3.93B | 3.94B | 4.61B | 4.43B |
Balance Sheet | ||||||
| Total Assets | 33.38B | 34.43B | 41.31B | 39.23B | 37.98B | 33.21B |
| Cash, Cash Equivalents and Short-Term Investments | 1.15B | 3.80B | 4.98B | 6.56B | 4.79B | 2.93B |
| Total Debt | 4.30B | 6.32B | 4.45B | 5.14B | 6.36B | 6.54B |
| Total Liabilities | 11.68B | 12.29B | 13.29B | 12.53B | 13.74B | 12.21B |
| Stockholders Equity | 21.56B | 21.96B | 27.87B | 26.58B | 24.10B | 20.82B |
Cash Flow | ||||||
| Free Cash Flow | 908.25M | 28.18M | 2.23B | 5.08B | 3.21B | 2.47B |
| Operating Cash Flow | 1.04B | 216.81M | 2.40B | 5.18B | 3.27B | 2.53B |
| Investing Cash Flow | 45.70M | 221.57M | -302.56M | -176.98M | -128.30M | -105.09M |
| Financing Cash Flow | -1.35B | -1.60B | -3.68B | -3.25B | -1.28B | -2.40B |
Lennar Technical Analysis
Neutral
87.68
Price Trends
81.41
Negative
84.06
Negative
91.47
Negative
Market Momentum
-1.54
Positive
46.62
Neutral
53.32
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LEN, the sentiment is Neutral. The current price of 87.68 is above the 20-day moving average (MA) of 78.44, above the 50-day MA of 81.41, and below the 200-day MA of 91.47, indicating a bearish trend. The MACD of -1.54 indicates Positive momentum. The RSI at 46.62 is Neutral, neither overbought nor oversold. The STOCH value of 53.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $21.29B | 11.55 | 14.73% | 0.92% | -7.28% | -26.86% | |
74 Outperform | $12.32B | 10.66 | 14.23% | 0.77% | -1.08% | -8.57% | |
72 Outperform | $15.78B | 14.57 | 31.02% | ― | -9.66% | -19.36% | |
69 Neutral | $38.99B | 13.24 | 12.77% | 1.29% | -3.54% | -15.86% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $18.33B | 14.57 | 6.03% | 2.59% | -8.01% | -47.77% | |
52 Neutral | $2.63B | 11.93 | 5.93% | 2.31% | -20.80% | -50.30% |
* Consumer Cyclical Sector Average
LEN
Lennar
77.08
-46.01
-37.38%
DHI
DR Horton
139.39
-12.55
-8.26%
KBH
KB Home
43.30
-17.52
-28.80%
NVR
NVR
5,919.82
-1,761.26
-22.93%
PHM
PulteGroup
113.55
-8.68
-7.10%
TOL
Toll Brothers
133.70
-1.02
-0.76%
Lennar Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Lennar Raises Capital via New Senior Notes Offering
Positive
Oct 15, 2026
On October 15, 2026, Lennar Corporation completed the settlement of an offering of $300 million in 5.700% Senior Notes due 2029 and $300 million in 5.950% Senior Notes due 2032, with the notes guaranteed by certain wholly owned subsidiaries. The r...
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.