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Lennar Corporation

LEN
34
Residential Construction · Consumer Cyclical
Price
$83.89
-2.51 (-2.91%)
Market Cap
$20.83B
Winston Score
34
Winston is serious
Below-average fundamentals — multiple weak pillars.

Share count falling — buybacks

15.9% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 306.6M (2021) → 257.7M (2025)

Lennar Corporation builds and sells new homes across the United States. It serves first-time buyers, move-up buyers, and retirees, offering homes at a range of price points under the Lennar brand. The company is one of the largest homebuilders in the country, operating in dozens of markets across more than 20 states.

Lennar makes money primarily by selling newly constructed homes, but it also earns revenue from mortgage financing, title insurance, and closing services offered directly to its buyers. This bundled approach gives Lennar some advantage over smaller builders by keeping more of each transaction in-house. The company's growth depends heavily on housing demand, which is sensitive to mortgage interest rates — when rates rise, fewer people can afford to buy, which puts direct pressure on home sales volume and profit margins.

Winston Score History

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Score breakdown

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Quality

Gross Margin
15.2%
Thin — 15.2% gross margin
Operating Margin
3.5%
Thin — 3.5% operating margin
ROCE
0.9%
Weak — 0.9% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
-7.5%
Shrinking sales (-7.5% YoY)
EPS YoY
-49.2%
Earnings shrinking (-49.2% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency
0/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion
10%
Weak — only 10% of profit becomes cash
FCF Margin
0.0%
Thin free cash flow (0.0%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity
0.19
Conservative — low debt load (0.19)
Interest Cover
100.00x
Comfortably covers interest (100.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)
12.0x
Attractive valuation — P/E 12.0

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

P/E vs Forward
-3.4
SLOWING
Earnings expected to fall — forward P/E higher than today

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Dividends

Dividend Yield
2.29%
Moderate income — 2.29% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend Growth
+0.0%
Dividend flat

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