📊 LEN-B Key Takeaways
Is Lennar Corp. /New/ (LEN-B) a Good Investment?
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.
Lennar’s fundamentals show resilience with EPS growth and strong balance-sheet health, including low leverage and exceptional interest coverage. However, modest revenue contraction, thin operating margins, and negative free cash flow suggest muted operating efficiency and cash conversion near term. Maintain a neutral stance until margin expansion and cash generation improve.
Why Buy Lennar Corp. /New/ Stock? 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
- Low leverage (0.27x D/E) and very strong interest coverage (65.4x)
- Solid gross margin (23.8%) supports profitability despite softer revenue
- Healthy liquidity and sizable equity base provide flexibility
LEN-B Stock Risks: Lennar Corp. /New/ Investment Risks
- 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
- Negative operating and free cash flow indicate working-capital pressure and inventory/land investment risk
- Thin operating margin (4.6%) and very low ROE/ROA point to subpar returns
- Revenue down 3.5% YoY suggests demand softness and potential price/mix pressure
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
- Free cash flow and operating cash flow trend
- Operating and gross margin trajectory
Lennar Corp. /New/ (LEN-B) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
LEN-B Profit Margin, ROE & Profitability Analysis
LEN-B vs Market Sector: How Lennar Corp. /New/ Compares
How Lennar Corp. /New/ compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Lennar Corp. /New/ Stock Overvalued? LEN-B Valuation Analysis 2026
Based on fundamental analysis, Lennar Corp. /New/ has mixed fundamental signals relative to the Market 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.
Lennar Corp. /New/ Balance Sheet: LEN-B Debt, Cash & Liquidity
LEN-B Revenue & Earnings Growth: 5-Year Financial Trend
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 Revenue Growth, EPS Growth & YoY Performance
LEN-B Quarterly Earnings & 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.
Lennar Corp. /New/ Dividends, Buybacks & Capital Allocation
LEN-B SEC Filings: Latest 10-K & 10-Q 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 a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 68% combined 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. ChatGPT: Low leverage (0.27x D/E) and very strong interest coverage (65.4x). Solid gross margin (23.8%) supports profitability despite softer revenue.
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. ChatGPT: Negative operating and free cash flow indicate working-capital pressure and inventory/land investment risk. Thin operating margin (4.6%) and very low ROE/ROA point to subpar returns.
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 68% 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 Market stocks?
Vs Default sector averages: Net margin 3.5% (avg: 12%), ROE 1.0% (avg: 15%), current ratio N/A (avg: 1.8).