Lennar Corporation Stock Fair Value – LENNAR CORPORATION Reports Fourth Quarter Earnings Results for Fiscal Year 2023
December 26, 2023
🌥️Earnings Overview
LENNAR CORPORATION ($NYSE:LEN) reported its earnings results for the fourth quarter of fiscal year 2023, which ended on November 30 2023, on December 14 2023. The total revenue for the quarter was USD 11.0 billion, signifying a 7.9% year-on-year increase. Furthermore, net income rose 3.0% compared to the prior year, totalling USD 1.4 billion.
Stock Price
The positive earnings results were driven by strong demand for Lennar’s homes across the U.S., especially in California, Texas, and Florida. The company’s financial services segment also saw a strong increase in net income, increasing by 11% over the previous quarter to $30 million due largely to higher mortgage loan originations. Overall, Lennar Corporation‘s fourth quarter earnings results were ahead of expectations, and the stock price surged on Thursday in response to the positive news. With continued strength in the housing market and a strong backlog of orders, the company is well-positioned for further growth in the upcoming months. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Lennar Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 34.23k | 3.94k | 11.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Lennar Corporation. More…
| Operations | Investing | Financing |
| 5.3k | -128.3 | -1.28k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Lennar Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 39.23k | 12.53k | 93.48 |
Key Ratios Snapshot
Some of the financial key ratios for Lennar Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 15.0% | 20.1% | 20.2% |
| FCF Margin | ROE | ROA |
| 15.3% | 18.9% | 11.2% |
Analysis – Lennar Corporation Stock Fair Value
At GoodWhale, we have conducted an analysis of LENNAR CORPORATION‘s wellbeing. After crunching the numbers and using our proprietary Valuation Line, we determined that the intrinsic value of LENNAR CORPORATION’s share is approximately $115.9. This stands in stark contrast to the current market rate of $154.8, which is overvalued by 33.5%. Therefore, based on our analysis, we advise investors to take this into consideration when investing in LENNAR CORPORATION. More…
Peers
Lennar Corp, D.R. Horton Inc, PulteGroup Inc, and M/I Homes Inc are all homebuilders that compete for market share in the United States. The competition between these companies is intense, as they all strive to be the top homebuilder in the country. Each company has its own unique strengths and weaknesses, and it is always trying to find new ways to improve its operations and gain an edge over its competitors.
– D.R. Horton Inc ($NYSE:DHI)
D.R. Horton Inc is a homebuilding company that was founded in 1978 and is headquartered in Fort Worth, Texas. As of 2022, the company has a market capitalization of 29.61 billion dollars and a return on equity of 25.26%. The company builds and sells single-family homes, townhomes, condominiums, and apartments in the United States.
– PulteGroup Inc ($NYSE:PHM)
PulteGroup, Inc. is one of America’s largest homebuilders with operations in approximately 50 markets throughout the country. The company reported a market cap of $10.2 billion as of December 31, 2020, and a return on equity of 24.61% for the same period. PulteGroup’s business is focused on the design, build, and sale of single-family detached and attached homes, as well as the provision of mortgage financing and title insurance services. The company has a long history dating back to its founding in 1950, and has built a reputation for quality craftsmanship and customer service.
– M/I Homes Inc ($NYSE:MHO)
M/I Homes Inc is a homebuilding company in the United States. The company is engaged in the construction and sale of single-family homes. It also provides homeowners with the opportunity to purchase or lease land for the construction of their own home. The company operates in two segments: Homebuilding and Financial Services. The Homebuilding segment engages in the construction and sale of single-family homes. The Financial Services segment provides financing to customers for the purchase of homes and for the construction of their own homes.
Summary
Lennar Corporation reported strong fourth quarter earnings results for 2023. Revenue grew 7.9% year-over-year to 11 billion USD, while net income increased 3.0% to 1.4 billion USD. The market reacted positively, pushing the stock price up on the day of the earnings release.
Investors may find Lennar Corporation an attractive investment opportunity due to its strong financial performance and potential for further growth. With a strong balance sheet, Lennar is well-positioned to take advantage of any potential market opportunities and capitalize on its growth potential.
