Lennar Corporation (LEN) Stock Analysis — Fair Value, Risk & Moat Rating
NYQ · Consumer Cyclical · Residential Construction
Is Lennar Corporation a safe investment right now?
Lennar Corporation's Altman Z-Score of 3.92 places it in the safe zone. Our fair value estimate is $73.54 (Overvalued). Moat rating: 3.1/5 stars.
Could Lennar Corporation go bankrupt? Altman Z-Score analysis
Z-Score of 3.92 is above 3.0, indicating the company is financially healthy by this metric.
- Below 1.8 — Distress Zone (high bankruptcy risk)
- 1.8 to 3.0 — Gray Zone (elevated uncertainty)
- Above 3.0 — Safe Zone (financially healthy)
What drives LEN's Z-Score?
| Component | Formula | Value | Weight | Contribution |
|---|---|---|---|---|
| A · Working Capital / Total Assets | WC / TA | 0.5107 | 1.2 | 0.61 |
| B · Retained Earnings / Total Assets | RE / TA | 0.6527 | 1.4 | 0.91 |
| C · EBIT / Total Assets | EBIT / TA | 0.0799 | 3.3 | 0.26 |
| D · Market Cap / Total Liabilities | MCap / TL | 1.8929 | 0.6 | 1.14 |
| E · Revenue / Total Assets | Rev / TA | 0.9929 | 1.0 | 0.99 |
How has LEN's financial health changed over time?
| Year | Z-Score | Zone |
|---|---|---|
| 2022 | 4.03 | Safe |
| 2023 | 4.09 | Safe |
| 2024 | 3.97 | Safe |
| 2025 | 3.92 | Safe |
Source: Calculated from LEN's latest 10-K filing on SEC EDGAR.
What is Lennar Corporation actually worth?
How we calculated this
| Input | Value | Source |
|---|---|---|
| Predicted EPS (α) | $6.34 | Proprietary blend of reported actuals (1Q actual) + analyst consensus, weighted by α |
| Last Year EPS | $7.98 | Annual report (SEC EDGAR) |
| Analyst Consensus EPS (This Year) | $6.07 | 14 analysts consensus |
| Trailing P/E | 13.6x | Current market pricing |
| Fair P/E (β discount) | 11.6x | Trailing PE adjusted by value discount factor β, hard-capped |
| Earnings Trend (γ) | Declining | Directional signal: predicted vs trailing EPS |
Wall Street Reference: Analyst consensus target price is $94.00 (14 analysts). This is shown for reference only and is not used in our valuation model.
Source: Earnings data from SEC EDGAR filings. Market data via Yahoo Finance.
Does Lennar Corporation have a durable competitive advantage?
Moat rating: 3.1/5.
What makes up LEN's moat score?
ROIC Stability
ROIC variability over the past decade. Score: 4/5.
Gross Margin Trend
Gross margin trajectory over the past decade. Score: 2/5.
Switching Costs
Estimated customer lock-in based on margin level. Score: 3/5.
How stable is LEN's return on invested capital?
| Year | ROIC | Trend |
|---|---|---|
| 2022 | 22.4% | — |
| 2023 | 17.2% | Declining |
| 2024 | 15.1% | Declining |
| 2025 | 9.9% | Declining |
Source: ROIC calculated from SEC EDGAR filings.
Is Lennar Corporation's dividend safe?
Can Lennar Corporation afford its dividend?
Payout ratio is 28.8%. FCF covers the dividend 7.3x. 40 consecutive years of payments.
Lennar Corporation's key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $34.2B | $35.4B | $33.7B | Stable |
| Net Income | $2.1B | $3.9B | $4.6B | Declining |
| Free Cash Flow | $0.0B | $2.2B | $3.2B | Declining |
| Gross Margin | 9.9% | 15.5% | 21.4% | Declining |
Recent events that affect our LEN analysis
LEN earnings report scheduled
Upcoming report. Consensus EPS estimate: $1.25. Revenue estimate: $8.10B. Our current Fair Value: $73.54 — a significant beat or miss could shift this estimate.
LEN analyst consensus: 11% bullish (2 of 19 analysts)
0 Strong Buy, 2 Buy, 9 Hold, 3 Sell, 5 Strong Sell. Consensus target: $94.00 (0.5% downside). Compare with our independent Fair Value: $73.54.
LEN paid $0.5000/share dividend
Dividend Safety Grade: A. Payout ratio: 28.8%.
LEN filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
LEN filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
LEN missed EPS estimates by 7.2%
Reported EPS: $0.88 vs estimate $0.95. Our Fair Value of $73.54 may face downward pressure if the trend continues.
LEN filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
LEN paid $0.5000/share dividend
Dividend Safety Grade: A. Payout ratio: 28.8%.
LEN filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
LEN missed EPS estimates by 6.8%
Reported EPS: $2.03 vs estimate $2.18. Our Fair Value of $73.54 may face downward pressure if the trend continues.
LEN filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
LEN filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
LEN paid $0.5000/share dividend
Dividend Safety Grade: A. Payout ratio: 28.8%.
LEN filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
LEN filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
LEN missed EPS estimates by 4.5%
Reported EPS: $2.00 vs estimate $2.09. Our Fair Value of $73.54 may face downward pressure if the trend continues.
LEN filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
LEN paid $0.5000/share dividend
Dividend Safety Grade: A. Payout ratio: 28.8%.
LEN filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
LEN filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
LEN missed EPS estimates by 2.0%
Reported EPS: $1.90 vs estimate $1.94. Our Fair Value of $73.54 may face downward pressure if the trend continues.
LEN filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
LEN paid $0.5000/share dividend
Dividend Safety Grade: A. Payout ratio: 28.8%.
LEN filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
LEN filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
LEN beat EPS estimates by 24.9%
Reported EPS: $2.14 vs estimate $1.71. Earnings strength supports our Fair Value of $73.54 (22.1% below current price).
LEN filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
LEN filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
LEN paid $0.5000/share dividend
Dividend Safety Grade: A. Payout ratio: 28.8%.
LEN filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
LEN filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
LEN stock split 1:1
Stock splits don't change fundamental value, but they can affect per-share metrics. Our models automatically adjust for splits.
LEN filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
LEN filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
Common questions about Lennar Corporation
What is Lennar Corporation stock price today?
Lennar Corporation (LEN) stock price is $94.45 as of the latest market close, traded on the NYSE exchange.
What does Lennar Corporation do?
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.
What is Lennar Corporation market cap?
Lennar Corporation has a market capitalization of $23.26B, classifying it as a large-cap stock in the Consumer Cyclical sector.
What sector and industry is LEN in?
Lennar Corporation operates in the Consumer Cyclical sector, specifically within the Residential Construction industry. It trades on the NYSE under the ticker symbol LEN.
Is LEN stock overvalued or undervalued?
Based on our valuation model, Lennar Corporation trades 28.4% above our fair value estimate — potentially overvalued.
- FairValueLabs Fair Value: $73.54
- Current Price: $94.45
- Valuation Zone: Overvalued
What is LEN stock forecast and analyst target price?
Based on 14 Wall Street analysts, the consensus price target for Lennar Corporation is $94.00, implying downside of 0.5% from the current price.
- Analyst High Target: $159.00
- Analyst Low Target: $74.00
Note: Analyst targets are shown for reference and are not used in our valuation model.
Is Lennar Corporation revenue and earnings growing?
Here are the analyst consensus growth estimates for Lennar Corporation:
- Revenue growth (current year est.): -2.3%
- EPS growth (current year est.): -24.7%
- Revenue growth (next year est.): 5.1%
- EPS growth (next year est.): 25.5%
What are Lennar Corporation's key financial metrics?
| Metric | Latest | Trend |
|---|---|---|
| Revenue | $34.2B | Stable |
| Net Income | $2.1B | Declining |
| Free Cash Flow | $0.0B | Declining |
| Gross Margin | 9.9% | Declining |
What is LEN's P/E ratio?
The price-to-earnings ratio measures how much investors pay per dollar of earnings:
- Trailing P/E (last 12 months): 13.6x
- Forward P/E (next 12 months est.): 12.4x
- FairValueLabs Fair P/E: 11.6x
How volatile is LEN stock?
Lennar Corporation has a beta of 1.49, meaning it is somewhat more volatile than the broader market. A beta above 1.0 indicates higher price swings relative to the S&P 500, while below 1.0 suggests more stability.
How much cash and debt does Lennar Corporation have?
Lennar Corporation's balance sheet shows:
- Total Cash: $8.98B
- Total Debt: $5.51B
- Net Cash Position: $3.47B
A positive net cash position means the company holds more cash than debt, reducing financial risk.
What is Lennar Corporation's free cash flow?
Lennar Corporation generated $3.44B in trailing twelve-month free cash flow (from $72.4M in operating cash flow). Free cash flow represents the cash available for dividends, buybacks, and debt reduction after all capital expenditures.
Does Lennar Corporation pay a dividend, and is it safe?
Yes, Lennar Corporation pays a regular dividend. Here are the key metrics:
- Dividend Yield: 2.1%
- Payout Ratio: 28.8%
- Consecutive Years Paid: 40
- 5-Year Dividend Growth: 0.7%
- FairValueLabs Safety Grade: A
Is Lennar Corporation at risk of going bankrupt?
Lennar Corporation's Altman Z-Score is 3.92, placing it in the safe zone (above 3.0) — bankruptcy risk is low. The Z-Score uses five balance sheet ratios to predict bankruptcy probability within two years.
Does Lennar Corporation have a durable competitive advantage?
Lennar Corporation scores 3.1/5 stars (Narrow moat) in our moat analysis:
- ROIC Stability: 4/5
- Gross Margin Trend: 2/5
- Switching Costs: 3/5
A score above 3.5 suggests meaningful pricing power and a defensible market position.
What is LEN's return on equity (ROE)?
Lennar Corporation's return on equity is 8.1%. ROE measures how efficiently a company generates profits from shareholder equity. An ROE above 15% is generally considered strong, while below 10% may signal inefficiency.
How do I buy LEN stock?
LEN shares can be purchased through any brokerage account that provides access to the NYSE. Common steps:
- Open an account with a broker (e.g., Fidelity, Schwab, Interactive Brokers)
- Search for ticker symbol LEN
- Place a market or limit order for your desired number of shares
This is not investment advice. Always do your own research before buying any stock.
Is LEN a value stock or speculative?
FairValueLabs classifies Lennar Corporation as Value Investment. It exhibits consistent profitability, reasonable valuation, and financial stability — characteristics of a traditional value investment.
Who is the CEO of Lennar Corporation?
The current CEO of Lennar Corporation is Mr. Stuart A. Miller.
What is LEN's earnings per share (EPS)?
Earnings per share measures the company's profit allocated to each outstanding share:
- Trailing EPS (last 12 months): $6.95
- Forward EPS (next 12 months est.): $7.61
- Analyst consensus EPS (this year): $6.07
- Analyst consensus EPS (next year): $7.61
Other Consumer Cyclical companies analyzed by FairValueLabs
FairValueLabs Disclaimer
All valuations, scores, ratings, and classifications on this page are produced by the FairValueLabs internal valuation system. They do not represent actual market value, guaranteed outcomes, or professional investment advice. These are analytical estimates for educational and research purposes only.
This is not financial advice. All data is sourced from SEC EDGAR public filings. Always consult a qualified financial advisor before making investment decisions.
Last updated: Apr 22, 2026. Data sources: SEC EDGAR (financial statements), Yahoo Finance (market data, analyst consensus). Data may not reflect the most recent quarter.
LEN analysis methodology: How we calculate fair value, Z-Scores, and moat ratings