📊 LEN-B Key Takeaways
Is LEN-B a Good Investment? Thesis Analysis
Lennar faces fundamental deterioration despite balance sheet strength: revenues declining 3.5% YoY while the company generates negative operating cash flow of -$433.5M, indicating severe working capital stress and unsustainable cash burn. Minimal returns on capital (ROE 1.0%, ROA 0.7%) signal inefficient asset deployment, and positive net income masks the disconnect between reported earnings and actual cash generation.
Why Buy LEN-B? Key Strengths
- Conservative leverage with debt-to-equity of 0.27x provides financial flexibility
- Exceptional interest coverage of 65.4x demonstrates strong debt service capability
- Substantial equity base of $21.9B and total assets of $33.2B provide balance sheet cushion
- EPS grew 4.2% YoY despite revenue headwinds
LEN-B Investment Risks to Consider
- Negative operating cash flow of -$433.5M indicates fundamental business challenges and working capital deterioration
- Negative free cash flow of -$463.5M and -7.0% FCF margin are unsustainable; company is burning cash despite profitability
- Revenue decline of 3.5% YoY suggests weakening residential construction demand and market headwinds
- Critically weak return on equity (1.0%) and return on assets (0.7%) indicate severely inefficient capital deployment
- Thin operating margin of 4.6% and net margin of 3.5% provide minimal earnings cushion for downturns
Key Metrics to Watch
- Operating cash flow trend - must return to positive territory
- Revenue growth acceleration or stabilization
- Return on equity improvement - currently unacceptable at 1.0%
- Free cash flow generation and working capital management
- Debt levels relative to declining profitability
LEN-B Financial Metrics
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
LEN-B Profitability Ratios
LEN-B vs Default Sector
How LENNAR CORP /NEW/ compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is LEN-B Overvalued or Undervalued?
Based on fundamental analysis, LENNAR CORP /NEW/ has mixed fundamental signals relative to the Default sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
LEN-B Balance Sheet & Liquidity
LEN-B 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: LENNAR CORP /NEW/'s revenue has grown significantly by 58% over the 5-year period, indicating strong business expansion. The most recent EPS of $15.72 reflects profitable operations.
LEN-B Growth Metrics (YoY)
LEN-B Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $6.6B | $229.4M | $0.93 |
| Q3 2025 | $8.8B | $591.0M | $2.29 |
| Q2 2025 | $8.4B | $477.4M | $1.81 |
| Q1 2025 | $7.3B | $519.5M | $1.96 |
| Q3 2024 | $8.7B | $1.1B | $3.87 |
| Q2 2024 | $8.0B | $871.7M | $3.01 |
| Q1 2024 | $6.5B | $596.5M | $2.06 |
| Q3 2023 | $8.7B | $1.1B | $3.87 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
LEN-B Capital Allocation
LEN-B SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for LENNAR CORP /NEW/ (CIK: 0000920760)
📋 Recent SEC Filings
❓ Frequently Asked Questions about LEN-B
What is the AI rating for LEN-B?
LENNAR CORP /NEW/ (LEN-B) has an AI rating of SELL with 70% confidence, based on fundamental analysis of SEC EDGAR filings.
What are LEN-B's key strengths?
Claude: Conservative leverage with debt-to-equity of 0.27x provides financial flexibility. Exceptional interest coverage of 65.4x demonstrates strong debt service capability.
What are the risks of investing in LEN-B?
Claude: Negative operating cash flow of -$433.5M indicates fundamental business challenges and working capital deterioration. Negative free cash flow of -$463.5M and -7.0% FCF margin are unsustainable; company is burning cash despite profitability.
What is LEN-B's revenue and growth?
LENNAR CORP /NEW/ reported revenue of $6.6B.
Does LEN-B pay dividends?
LENNAR CORP /NEW/ pays dividends, with $123.5M distributed to shareholders in the trailing twelve months.
Where can I find LEN-B SEC filings?
Official SEC filings for LENNAR CORP /NEW/ (CIK: 0000920760) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is LEN-B's EPS?
LENNAR CORP /NEW/ has a diluted EPS of $0.93.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is LEN-B a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, LENNAR CORP /NEW/ has a SELL rating with 70% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is LEN-B stock overvalued or undervalued?
Valuation metrics for LEN-B: ROE of 1.0% (sector avg: 15%), net margin of 3.5% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy LEN-B stock in 2026?
Our dual AI analysis gives LENNAR CORP /NEW/ a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is LEN-B's free cash flow?
LENNAR CORP /NEW/'s operating cash flow is $-433.5M, with capital expenditures of $30.0M. FCF margin is -7.0%.
How does LEN-B compare to other Default stocks?
Vs Default sector averages: Net margin 3.5% (avg: 12%), ROE 1.0% (avg: 15%), current ratio N/A (avg: 1.8).