Lennar Return On Asset vs. Price To Earning
| LEN Stock | MXN 3,603 176.10 5.14% |
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.
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Lennar Price To Earning vs. Return On Asset 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 currently regarded as number one stock in return on asset category among its peers. It also is currently regarded as number one stock in price to earning category among its peers reporting about 1,318 of Price To Earning per Return On Asset. Comparative valuation analysis is a catch-all model that can be used if you cannot value Lennar by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Lennar's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.Lennar Price To Earning vs. Return On Asset
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
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| = | 0.12 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
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| = | 155.52 X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Lennar Price To Earning Comparison
Lennar is currently under evaluation in price to earning 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 Corporation, together with its subsidiaries, operates as a homebuilder primarily under the Lennar brand in the United States. Lennar Corporation was founded in 1954 and is based in Miami, Florida. Lennar operates under Residential Construction classification in Mexico and is traded on Mexico Stock Exchange. It employs 11626 people.
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.
Use Lennar in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Lennar position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Lennar will appreciate offsetting losses from the drop in the long position's value.Lennar Pair Trading
Lennar Pair Trading Analysis
The ability to find closely correlated positions to Lennar could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Lennar when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Lennar - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Lennar to buy it.
The correlation of Lennar is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Lennar moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Lennar moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Lennar can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.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.Did You Try This Idea?
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Additional Tools for Lennar Stock Analysis
When running Lennar's price analysis, check to measure Lennar's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Lennar is operating at the current time. Most of Lennar's value examination focuses on studying past and present price action to predict the probability of Lennar's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Lennar's price. Additionally, you may evaluate how the addition of Lennar to your portfolios can decrease your overall portfolio volatility.