Margin Pressures | Lennar faces gross margins between 15-16%, the lowest since 2009, as strategic shifts toward volume growth and optioned land clash with rising costs |
Leadership Vacuum | Three C-suite departures leave Stuart Miller as sole CEO, concentrating decision-making authority during a critical operational transformation period |
Analyst Outlook | Price targets range from $88 to $96, with multiple downgrades to Underperform reflecting concerns over execution risks and unsustainable valuation premium |
Strategic Crossroads | Discover how the nation's second-largest homebuilder navigates its 100% optioned land strategy amid housing market headwinds and profitability challenges |
Metrics to compare | LEN | Sector Sector - Average of metrics from a broad group of related Consumer Cyclicals sector companies | Relationship RelationshipLENPeersSector | |
|---|---|---|---|---|
P/E Ratio | 12.1x | 9.9x | 10.3x | |
PEG Ratio | −0.23 | 0.00 | 0.02 | |
Price/Book | 1.0x | 1.2x | 1.4x | |
Price / LTM Sales | 0.6x | 0.6x | 0.9x | |
Upside (Analyst Target) | 7.2% | 21.7% | 31.1% | |
Fair Value Upside | Unlock | 26.7% | 12.0% | Unlock |
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. It also offers residential mortgage financing, title insurance, and closing services for home buyers and others, as well as originating and selling securitization commercial mortgage loans. In addition, the company is involved in fund investment activities. It primarily serves first-time, move-up, active adult, and luxury homebuyers. The company was founded in 1954 and is based in Miami, Florida.