Lennar Corp (LEN, Financial) has recently captured the attention of investors and financial analysts with its strong financial performance. Currently trading at $185.97 per share, Lennar Corp has experienced a daily increase of 0.51% and an impressive three-month growth of 19.2%. A detailed analysis using the GF Score indicates that Lennar Corp is poised for significant future growth.
What Is the GF Score?
The GF Score is a proprietary ranking system developed by GuruFocus, assessing stocks based on five key valuation aspects from 2006 to 2021. 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, reflecting its strong potential for market outperformance based on its financial strength, profitability, growth, GF Value, and momentum.
Understanding Lennar Corp's Business
Lennar Corp, with a market cap of $50.63 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. Additionally, Lennar operates a financial-services segment offering mortgage financing and related services. Based in Miami, Lennar also engages in multifamily and single-family for rent construction and invests in various housing-related technology startups.
Financial Strength Breakdown
Lennar Corp's financial resilience is evident in its robust balance sheet and strategic debt management. With an Altman Z-Score of 5.74, the company demonstrates a strong buffer against financial distress. Its Debt-to-Revenue ratio of 0.1 further underscores its prudent financial management.
Profitability Rank Breakdown
Lennar Corp's profitability is impressive, with an Operating Margin that has consistently improved over the past five years, reaching 15.89% in 2023. The company's Gross Margin also reflects a steady increase, highlighting its efficiency in converting revenue into profit. This trend is supported by a Predictability Rank of 4.0 stars, indicating reliable operational performance.
Growth Rank Breakdown
Lennar Corp is distinguished by its strong growth metrics. The company's 3-Year Revenue Growth Rate of 18.5% outperforms 78.26% of its industry peers. Additionally, its EBITDA has seen significant growth, with a three-year growth rate of 23.3% and a five-year rate of 29.5%, emphasizing its expanding operational capabilities.
Conclusion
Considering Lennar Corp's robust financial strength, impressive profitability, and consistent growth metrics, the GF Score highlights the company's exceptional position for potential market outperformance. Investors looking for similar opportunities can explore other high-performing companies using the GF Score Screen available to GuruFocus Premium members.
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.
