Lennar Corp (LEN, Financial) has recently captured the attention of investors and financial analysts with its strong financial performance. Currently trading at $180.11 per share, Lennar Corp has enjoyed a daily increase of 3.51% and a notable three-month growth of 10.39%. A detailed analysis, supported by the GF Score, positions Lennar Corp for significant future growth.
What Is the GF Score?
The GF Score is a proprietary ranking system from GuruFocus, assessing stocks based on five key valuation aspects. This system, which has been backtested from 2006 to 2021, shows that stocks with higher GF Scores typically yield better long-term returns. The GF Score ranges from 0 to 100, with 100 indicating the highest potential for outperformance. Lennar Corp boasts a GF Score of 92, suggesting strong future performance potential.
- 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, with a market cap of $49.05 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. Its financial-services segment offers mortgage financing and related services. Based in Miami, Lennar also engages in multifamily and single-family for rent construction and invests in housing-related technology startups.
Financial Strength Breakdown
Lennar Corp's financial strength is evident in its robust balance sheet and strategic debt management. With an Altman Z-Score of 5.58, the company is well-protected against financial distress. Additionally, its Debt-to-Revenue ratio of 0.1 demonstrates effective debt handling, enhancing its financial health.
Profitability Rank Breakdown
Lennar Corp's profitability is impressive, with an Operating Margin that has consistently increased over the past five years, reaching 15.89% in 2023. The company's Gross Margin also reflects a steady rise, indicating efficient revenue conversion into profit. This trend is supported by a Predictability Rank of 4.0 stars, which bolsters investor confidence in its operational consistency.
Growth Rank Breakdown
Lennar Corp is committed to growth, as evidenced by its high Growth rank. The company's 3-Year Revenue Growth Rate of 18.5% outperforms 78.26% of peers in the Homebuilding & Construction industry. Its EBITDA growth further underscores its capacity for expansion and profitability.
Conclusion
Considering Lennar Corp's robust financial strength, impressive profitability, and consistent growth metrics, the GF Score highlights the company's strong position for potential market outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores through 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.
