Home Sectors Consumer Cyclical Stock Analysis: Lennar Corporation (NYSE: LEN)

Stock Analysis: Lennar Corporation (NYSE: LEN)


Lennar Corporation trades as part of the homebuilding and construction industry and consumer cyclical sector. The company CEO is Richard Beckwitt. Lennar Corp is a homebuilding service provider. Its operations include the construction and sale of single-family attached and detached homes, and to a lesser extent multi-level residential buildings.

Previous Intraday Trading Performance:

The LEN stock showed a previous change of -0.35% with an open at 45.83 and a close of 46.03. It reached an intraday high of 46.14 and a low of 45.47.

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The stock has a market cap of $14.9b with 324.2m shares outstanding, of which the float is 323.8m shares. Trading volume reached 2,049,771 shares compared to its average volume of 4,113,205 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, Lennar Corporation shares returned -1.39% and in the past 30 trading days it returned 16.64%. Over three months, it changed 12.34%. In one year it has changed -28.97% and within that year its 52-week high was 64.90 and its 52-week low was 37.29. LEN stock is 23.44% above its 52 Week Low.

Our calculations show a 200 day moving average of 48.14 and a 50 day moving average of 43.11. Currently LEN stock is trading -4.39% below its 200 day moving average and may be a good opportunity to buy, but should check other indicators to confirm a buy signal.

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The last annual fiscal EPS for the company was reported at 6.05 that ended on 30th of November 2018, which according to the previous close, that is a PE of 8.62. Based on 6 analyst estimates, the consensus EPS for the next quarter is 1.91. The TTM EPS is 6.05, which comes to a TTM PE of 7.61. Historically, the PE high was 22.40 and the PE low was 7.61. LEN stock has set a new PE low record!

The following are the last four quarter reported earnings per share:
11-30-2018:  1.96
08-31-2018:  1.40
05-31-2018:  1.58
02-28-2018:  1.11

The dividend per share is currently 0.16, which is a dividend yield of 0.35%. Also, the payout ratio is 2.64%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 64.21, which means it is possibly undervalued and has a margin of safety of 28.31%

Indicators to Watch:

Based on the latest filings, there is 0.10% of insider ownership and 128.20% of institutional ownership. Short-interest is 12,323,491, which is 3.80% of shares outstanding. The short-interest ratio or days-to-cover ratio is 2.47. This stock has some short interest, but it may be normal and no cause for concern if long the position.

The current calculated beta is 1.34

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Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 14.97%, return on assets is 7.11%, profit margin is 8.35%, price-to-sales is 0.73 and price-to-book is 1.02.

Company Scores:

All scores are out of six:
 5  :Valuation Score
 4  :Past Performance Score
 4  :Financial Strength Score
 1  :Future Growth Score
 0  :Dividend Score
 3  :Overall Score

John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.