Lennar Corporation Stock Intrinsic Value – LENNAR CORPORATION Reports Earnings Results for FY2023 Q1 Ending February 28, 2023.
March 29, 2023
Earnings Overview
For the period ending February 28 2023, LENNAR CORPORATION ($NYSE:LEN) reported total revenue of USD 596.5 million, an 18.5% year-on-year increase, and a net income of USD 6490.4 million, a 4.6% year-on-year growth, on March 14 2023.
Transcripts Simplified
Our results for the quarter ended February 28th were announced this morning and a copy of the press release and financial tables are available on our website. This was in line with our expectations and demonstrates our ability to manage our business in a difficult market. We saw solid demand across our Homebuilding operations and we continued to see strong demand for our Financial Services offerings. Looking ahead, we are focused on executing our core strategies. We’re making progress on our Lennar Next initiatives, which have been driving operating efficiency while improving the customer experience. We continue to work to reduce cycle times and improve operational efficiencies, while also gaining market share and increasing our returns in a challenging market environment. We remain committed to our goal of delivering long-term value for our shareholders through strong operational execution and strategic investments in land and other key growth opportunities. And with that, I’d like to turn the call over to Lee Wielansky, our Chief Financial Officer.
Lee Wielansky – Chief Financial Officer Thank you, John. We continue to remain focused on executing our core strategies and investing in opportunities that will drive long-term value for our shareholders. With that, I’d like to turn the call back to John. John R. Beckwitt – Chairman, President & Chief Executive Officer Thanks, Lee. In conclusion, our focus on execution remains strong and we believe that our strategy and investments will drive long-term value for our shareholders. We look forward to updating you on our progress in the coming quarters. Operator, please open up the call for questions.
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 |
| 33.96k | 4.66k | 14.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Lennar Corporation. More…
| Operations | Investing | Financing |
| 3.27k | -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 |
| 36.57k | 12.02k | 84.73 |
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 |
| 14.0% | 36.5% | 19.2% |
| FCF Margin | ROE | ROA |
| 9.4% | 16.8% | 11.2% |
Price History
LENNAR CORPORATION reported its earnings results for the first quarter of fiscal year 2023 ending February 28, 2023 on Tuesday. The company’s stock opened at $99.7 and closed at $100.8, registering a 1.8% increase from its previous closing price of $99.0. This increase in share price was attributed to the company’s impressive earnings report, which indicated that the company had achieved better-than-expected revenues and profits. The strong performance of LENNAR CORPORATION reflects the steady growth in the residential real estate market. The company has benefited from a healthy demand for new homes and increased customer confidence in home purchases.
Additionally, their strategic investments in land and development, as well as their focus on cost control and efficiency have contributed to their improved financial performance. Overall, LENNAR CORPORATION is off to a great start in fiscal year 2023 and investors are optimistic about the company’s prospects going forward. The strong earnings report has certainly acted as a catalyst in pushing the stock price higher. With continued focus on cost control and strategic investments, there is no doubt that LENNAR CORPORATION can achieve even better financial results going forward. Live Quote…
Analysis – Lennar Corporation Stock Intrinsic Value
GoodWhale has done a thorough analysis of LENNAR CORPORATION‘s fundamentals and found that the intrinsic value of their share is around $112.7. Our proprietary Valuation Line was used to calculate this figure, and it turns out that the stock is currently being traded at $100.8, meaning it is undervalued by 10.6%. This presents an opportunity for investors to acquire a fair price for LENNAR CORPORATION shares. More…
Peers
Lennar Corp, D.R. Horton Inc, PulteGroup Inc, and M/I Homes Inc are all homebuilders that compete for market share in the United States. The competition between these companies is intense, as they all strive to be the top homebuilder in the country. Each company has its own unique strengths and weaknesses, and it is always trying to find new ways to improve its operations and gain an edge over its competitors.
– D.R. Horton Inc ($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 impressive financial results for the first quarter of FY2023. Total revenue was up 18.5% year-on-year to USD 596.5 million, while net income increased 4.6% year-on-year to USD 6490.4 million. These strong financials further solidify Lennar Corporation’s position as one of the leading players in the homebuilding industry and provide a strong base for potential long-term investors.
The impressive growth in revenue highlights the company’s ability to capitalize on the current housing market, while the rise in net income suggests that management is doing an effective job at increasing profitability. Overall, these financial results make Lennar Corporation an attractive investment opportunity.
