Lennar Corporation, together with its subsidiaries, operates as a homebuilder primarily under the Lennar brand in the United States. It operates through Homebuilding East, Homebuilding Central, Homebuilding South Central, Homebuilding West, Financial Services, Multifamily, and Lennar Other segments. The company’s homebuilding operations include the construction and sale of single-family attached and detached homes, as well as the purchase, development, and sale of residential land; and development, construction, and management of multifamily rental properties. It also offers residential mortgage financing, title insurance, and closing services for home buyers and others, as well as originating and selling securitization commercial mortgage loans. In addition, the company is involved in fund investment activities. It primarily serves first-time, move-up, active adult, and luxury homebuyers. The company was founded in 1954 and is based in Miami, Florida.
Demand Headwinds | Housing market shows limited elasticity despite incentives and lower rates, as affordability challenges and employment weakness constrain buyer activity |
Analyst Outlook | Price targets range from $88 to $96, with multiple downgrades reflecting concerns over deteriorating returns and premium valuation amid weak fundamentals |
Strategic Gamble | The homebuilder's shift to 100% optioned land and even-flow production aims for volume growth, but execution risks mount amid leadership exodus |
Margin Crisis Unfolds | Lennar faces gross margins at lowest levels since 2009, with Q1 guidance between 15-16% as rising costs and incentives pressure profitability |
Metrics to compare | LEN | Sector Sector - Average of metrics from a broad group of related Consumer Cyclicals sector companies | Relationship RelationshipLENPeersSector | |
|---|---|---|---|---|
P/E Ratio | 13.1x | 12.8x | 11.0x | |
PEG Ratio | −0.27 | −0.47 | 0.02 | |
Price / Book | 1.1x | 1.5x | 1.4x | |
Price / LTM Sales | 0.7x | 1.0x | 0.9x | |
Upside (Analyst Target) | −6.1% | −3.6% | 25.8% | |
Fair Value Upside | Unlock | 17.7% | 10.0% | Unlock |