| LEN-B Stock | | | USD 155.04 2.87 1.82% |
Considering Lennar's profitability and operating efficiency indicators, Lennar may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Lennar's ability to earn profits and add value for shareholders. At present, Lennar's
Price To Sales Ratio is projected to slightly decrease based on the last few years of reporting. The current year's
Price Sales Ratio is expected to grow to 0.53, whereas
Days Sales Outstanding is forecasted to decline to 17.95. At present, Lennar's
Accumulated Other Comprehensive Income is projected to increase significantly based on the last few years of reporting. The current year's
Operating Income is expected to grow to about 6.7
B, whereas
Total Other Income Expense Net is forecasted to decline to (392.9
M).
For Lennar profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Lennar to generate income relative to revenue, assets, operating costs, and current equity. These
fundamental indicators attest to how well Lennar utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Lennar's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Lennar over time as well as its relative position and ranking within its peers.
Check out
Correlation Analysis.
For information on how to trade Lennar Stock refer to our
How to Trade Lennar Stock guide.
Please note, there is a significant difference between Lennar's value and its price as these two are different measures arrived at by different means. Investors typically determine if Lennar is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Lennar's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Lennar Operating Margin vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Lennar's current stock value. Our valuation model uses many indicators to compare Lennar value to that of its competitors to determine the firm's financial worth.
Lennar is rated
second overall in current valuation category among its peers. It is rated
below average in operating margin category among its peers . The ratio of Current Valuation to Operating Margin for Lennar is about
318,808,722,693 . At present, Lennar's
Operating Profit Margin is projected to increase slightly based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Lennar's earnings, one of the primary drivers of an investment's value.
Lennar Current Valuation vs. Competition
Lennar is rated
second overall in current valuation category among its peers. After adjusting for long-term liabilities,
total market size of
Consumer Discretionary industry is now estimated at about 216.83 Billion. Lennar totals roughly 44.28 Billion in current valuation claiming about 20% of stocks in Consumer Discretionary industry.
Lennar Operating Margin vs. Current Valuation
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Lennar | Enterprise Value | = | Market Cap + Debt | - | Cash |
| = | 44.28 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Lennar | Operating Margin | = | Operating IncomeRevenue | X | 100 |
| = | 0.14 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Lennar Operating Margin Comparison
Lennar is currently under evaluation in operating margin category among its peers.
Lennar Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Lennar, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Lennar will eventually generate negative long term returns. The profitability progress is the general direction of Lennar's change in net profit over the period of time. It can combine
multiple indicators of Lennar, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Lennar Profitability Driver Comparison
Profitability drivers are factors that can directly affect your
investment outlook on Lennar. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Lennar position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Lennar's important profitability drivers and their relationship over time.
Learn to be your own money manager
Our tools can tell you how much better you can do entering a position in Lennar without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.
| | Money ManagersScreen money managers from public funds and ETFs managed around the world |
Use Investing Themes to Complement your Lennar position
In addition to having Lennar in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Management
Companies providing management services to businesses. The Management theme has 39 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can
partner with us for reliable portfolio optimization as you plan to utilize
Management Theme or any other
thematic opportunities.
To fully project Lennar's
future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the
financial position of Lennar at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Lennar's income statement, its balance sheet, and the statement of cash flows.
