Lennar Story

<div class='circular--portrait' style='background:#FF6600;color: #FFFAFA;font-size:3em;'>LEN</div>
LEN -- USA Stock  

USD 84.62  1.02  1.22%

As many millenniums are trying to avoid consumer cyclical space, it makes sense to outline Lennar a little further and try to understand its current market patterns. We will analyze why Lennar investors may still consider a stake in the business. What is the entity valuation so far in 2020? We are going to cover the stock perspective on valuation to give investors a better transparency on taking a position in it.
Published over a month ago
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Is Lennar outlook positive for January 2021?
The entity has 8.14 B in debt with debt to equity (D/E) ratio of 0.47, which is OK given its current industry classification. The firm has a current ratio of 11.8, demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due. The company secures a Beta (Market Risk) of 0.0544, which conveys not very significant fluctuations relative to the market. Let's try to break down what Lennar's beta means in this case. As returns on the market increase, Lennar returns are expected to increase less than the market. However, during the bear market, the loss on holding Lennar will be expected to be smaller as well. Even though it is essential to pay attention to Lennar price patterns, it is always good to be careful when utilizing equity historical price patterns. Our philosophy towards estimating any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. Lennar exposes twenty-eight different technical indicators, which can help you to evaluate its performance. Lennar has an expected return of -0.0476%. Please be advised to verify Lennar maximum drawdown, as well as the relationship between the expected short fall and rate of daily change to decide if Lennar stock performance from the past will be repeated at some point in the near future.
We determine the current worth of Lennar using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Lennar based exclusively on its fundamental and basic technical indicators. By analyzing Lennar's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Lennar's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Lennar. We calculate exposure to Lennar's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Lennar's related companies.

Lennar Investment Alerts

Lennar investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Lennar performance across your portfolios.Please check all investment alerts for Lennar

Lennar Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Lennar value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Lennar competition to find correlations between indicators driving the intrinsic value of Lennar.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Lennar, but it might be worth checking our own buy vs. sell analysis

Lennar exotic insider transaction detected

Legal trades by Lennar insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Lennar insider trading alert for general transaction of class b common stock by Jeff McCall, Executive Vice President, on 21st of January 2021. This event was filed by Lennar Corp with SEC on 2021-01-21. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down Lennar Indicators

Lennar reported the last year's revenue of 22.63 B. Total Income to common stockholders was 2.23 B with profit before taxes, overhead, and interest of 4.52 B.
 2017 2018 2019 2020 (projected)
Long Term Debt to Equity0.590.490.560.82
Interest Coverage240.03321.54289.39312.24

Margins Breakdown

Lennar profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Lennar itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Lennar profit margins.
Operating Margin9.12
EBITDA Margin0.13
Gross Margin0.14
Profit Margin0.0957

Lennar Net Income Per Employee is increasing over the last 8 years. Further, Lennar Earnings Before Interest Taxes and Depreciation Amortization USD is increasing over the last 8 years. The previous year's value of Lennar Earnings Before Interest Taxes and Depreciation Amortization USD was 3,143,447,073. Lennar Net Income Per Employee is increasing over the last 8 years. Further, Lennar Earnings Before Interest Taxes and Depreciation Amortization USD is increasing over the last 8 years.

Will Lennar continue to rise?

The value at risk is down to -4.43 as of today. Lennar exhibits very low volatility with skewness of 0.23 and kurtosis of -0.03. However, we advise investors to further study Lennar technical indicators to make sure all market info is available and is reliable.

Our Final Takeaway

Whereas other entities under the residential construction industry are still a bit expensive, Lennar may offer a potential longer-term growth to institutional investors. While some institutional investors may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Lennar.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Lennar. Please refer to our Terms of Use for any information regarding our disclosure principles.

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