LEN: Lennar Corporation Stock Analysis

Homebuilding company Lennar Corporation (NYSE:LEN) operates in numerous states.

Deliveries of over 24,290 new homes. The segments in which the companies operate include
Homebuilding East, West, Central, SE Florida and Houston as well as Railto and Lennar
Multifamily. Single attached and detached homes and residential land sales are areas where it
operates. Lenore Financial Services segment includes mortgage financing, title insurance and
closing services for homebuyers and others.
Analysis of Results
Lennar Corp has acquired revenue of USD 1993.66 million and Net Earnings of USD 142.57 m
Gross margins increased from 20.66 to 21 percent as against same period last year and EBITDA
margins were now 9.59 from 8.68 percent
Y-O-Y change in operating cash flow of 77.47 percent is the same as change in earnings,
indicating no significant movement in accruals or reserves. See the table below for trends:

2015-02 2015-05 2015-08 2015-30 2016-29

Numbers (Quarterly)
Revenues (million)

1633.03 2388.3 2492.74 2945.57 1993.66

Revenue Growth (percentYOY) 19.45

Earnings (mil)

31.32

23.77

14

22.08

113.69 183.02 220.91 278.57 142.57

Earnings Growth (percentYOY) 47.31

34.49

25.86

14.96

25.41

Net Margin (percent)

6.96

7.66

8.86

9.46

7.15

EPS

0.5

0.79

0.96

1.21

0.63

Return on Equity (percent)

8.61

13.58

15.85

19.17

9.47

Return on Assets (percent)

3.49

5.42

6.3

7.8

3.99

Source: Capital Cube

Market Share Versus Profits

LEN-US has experienced a change in revenue compared to the same period last year of 22.06
percent which is nearly the same as change in earnings and average in results announced for the
peer group. This indicates LEN group is holding on to market share and profits both.

Earnings Growth Analysis and Gross Margin Trend

Company's earnings were guided by Y-O-Y improvement in gross margins from 20.66 to 21
percent and better cost controls. Operating margins EBITDA rose from 8.68 to 9.59 percent.
LEN US is a strong buy because its gross margin improvements have been alongside balance
sheet improvement. This indicates gross margin improvements are from operating decisions.
LEN's change in operating cash flow of 77.47 percent and expansion in EBIT margins has
impacted earnings growth.
Conclusion
This is a strong candidate for purchase as this real estate related financial services company is
also a developer of multifamily rental properties and has interests across N. America with further
plans for expansion. The company was founded in 1954 by Gene Fisher and Arnold Paul Rosen
in 1954. Its headquarters are located in Miami Florida and it has expanded across the US with
new projects in the field of homebuilding.

Photo Sources: Facebook

Published at: http://daddyinsider.com/index.php/2016/06/10/len-lennar-corporation-stockanalysis/