Lennar Corp (LEN, Financial) has recently garnered significant attention from investors and financial analysts, thanks to its strong financial performance. With a current share price of $168.32, despite a daily loss of 1.53%, Lennar Corp has achieved an impressive three-month growth of 11.73%. A detailed analysis, supported by the GF Score, indicates that Lennar Corp is poised for substantial future growth.
What Is the GF Score?
The GF Score is a proprietary stock performance ranking system developed by GuruFocus. It evaluates stocks based on five key aspects of valuation, which have shown a strong correlation with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield higher 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 high potential for market outperformance.
- Financial strength rank: 8/10
- Profitability rank: 9/10
- Growth rank: 10/10
- GF Value rank: 3/10
- Momentum rank: 8/10
Understanding Lennar Corp's Business
Lennar Corp, with a market cap of $45.82 billion and annual sales of $35.78 billion, is one of the largest public homebuilders in the U.S. The company primarily serves first-time, move-up, and active adult homebuyers under the Lennar brand. Based in Miami, Lennar Corp also operates a financial-services segment offering mortgage financing and related services. Additionally, the company is involved in multifamily and single-family for rent construction and has investments in various housing-related technology startups.
Financial Strength Breakdown
Lennar Corp's robust balance sheet reflects its resilience against financial volatility, showcasing prudent capital management. With an Altman Z-Score of 5.54, the company demonstrates strong defense against financial distress. Additionally, its favorable Debt-to-Revenue ratio of 0.1 further solidifies its financial health.
Profitability Rank Breakdown
Lennar Corp's impressive profitability is evident in its industry-leading performance. The company's Operating Margin has consistently increased over the past five years, reaching 15.89% in 2023 from 11.15% in 2019. Similarly, its Gross Margin has also shown a steady rise, underscoring its 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 78.95% of peers in the Homebuilding & Construction industry. Moreover, its EBITDA growth over the past three years further highlights its growth capabilities.
Conclusion
Considering 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.
