Lennar Corp (LEN, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its solid financial performance. With its shares currently priced at $160.34, Lennar Corp has experienced a daily gain of 0.29% and a three-month change of 3.26%. A detailed analysis, supported by the GF Score, indicates that Lennar Corp is poised for significant growth in the foreseeable future.
What Is the GF Score?
The GF Score is a proprietary ranking system developed by GuruFocus, assessing stocks based on five key valuation aspects. These aspects have been proven to correlate with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield better returns. The GF Score ranges from 0 to 100, with 100 representing the highest potential for outperformance. Lennar Corp boasts a GF Score of 92, indicating a strong potential for market outperformance.
- Financial strength rank: 8/10
- Profitability rank: 9/10
- Growth rank: 10/10
- GF Value rank: 3/10
- Momentum rank: 10/10
Understanding Lennar Corp's Business
Lennar Corp, one of the largest public homebuilders in the U.S., primarily serves first-time, move-up, and active adult homebuyers under the Lennar brand. With a market cap of $43.7 billion and annual sales of $35.78 billion, the company also offers mortgage financing and related services through its financial-services segment. Based in Miami, Lennar is expanding its presence in multifamily and single-family rental construction and has invested in numerous housing-related technology startups.
Financial Strength Breakdown
Lennar Corp's robust balance sheet demonstrates resilience against financial volatility, reflecting prudent capital management. With an Altman Z-Score of 5.39, the company shows strong defense against financial distress. Additionally, its strategic handling of debt, with a Debt-to-Revenue ratio of 0.1, further solidifies its financial health.
Profitability Rank Breakdown
Lennar Corp stands out for its ability to generate profit, with an impressive Profitability Rank. The company's Operating Margin has consistently increased over the past five years, reaching 15.89% in 2023 from 11.15% in 2019. This trend highlights Lennar's growing efficiency in converting revenue into profit.
Growth Rank Breakdown
Lennar Corp is committed to business expansion, as evidenced by its high Growth Rank. The company's 3-Year Revenue Growth Rate of 18.5% outperforms 77.89% of peers in the Homebuilding & Construction industry. Moreover, its EBITDA has seen significant growth, further underscoring its capacity for sustained growth.
Conclusion
Given Lennar Corp's strong financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores using the GF Score Screen.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
