Lennar Corporation (LEN) is a publicly traded company in the Consumer Cyclical — Residential Construction industry listed on NYSE. This overview shows the latest price, key valuation ratios, profitability metrics and financial-health indicators used by fundamental investors.
Lennar Corporation, an influential homebuilder in the United States, operates primarily under its widely recognized Lennar brand, alongside its various subsidiaries. The company structures its diverse business initiatives across several distinct divisions: regional homebuilding segments (East, Central, Texas, and West), a Financial Services arm, a Multifamily property development unit, and a broader "Lennar Other" category.
Is Lennar Corporation stock overvalued or undervalued in 2026?
Lennar Corporation (LEN) trades at 16.4× earnings (P/E), against a median of 18.4× across the 212 consumer cyclicals companies above $2bn in Kaplio's universe. It trades at 10.8 times the earnings of a typical year of the decade; between 10 and 25 times. It is fairly priced.
Kaplio overview: Lennar Corporation
Market cap $21B · 52 weeks $74 – $133 (34 % below the high) · P/E 16.4× · 2027 est. P/E 17.0× · Dividend 2.3 % · 9 years rising · Next earnings December 15, 2026 · expected EPS $1.47 · Closing price, Oct 30 · accounts published Sep 16.
- Valuation: 10.8× typical earnings (fairly priced).
- Business: 5-year ROIC 11.3 % (fair).
- Balance sheet: Net debt/EBITDA 0.8× (solid).
- Earnings: 1 of 8 (disappointing).
It trades at 16.4 times its last-12-month earnings and at 10.8 times those of a typical year of the decade; between 10 and 25 times. It is fairly priced.
On the ten-year average it would be 9.3 times; we use a typical year because a peak year inflates the average.
What matters in consumer cyclicals: 5 of 7 pass
- Inventory turnover 2.6×, fails.
- 5y avg ROIC 11.3 %, borderline.
- 5y avg operating margin 15.3 %, passes.
- Net debt / EBITDA 0.8×, passes.
- Current Ratio 8.38, passes.
- Altman Z-Score 4.2, passes.
- EV/Sales vs history 1.1×, passes.
- P/E read in reverse (cyclicals) 16.4×, info.
Against its peers (reference peers) — Lennar Corporation: P/E 16.4×; EV/EBITDA 11.9×; ROIC 4.0 %; $20.7B. PulteGroup, Inc. (P/E 13.4×; EV/EBITDA 10.9×; ROIC 10.9 %; $23.8B), NVR, Inc. (P/E 16.4×; EV/EBITDA 11.3×; ROIC 22.1 %; $16.0B), Toll Brothers, Inc. (P/E 11.7×; EV/EBITDA 9.2×; ROIC 9.8 %; $13.4B).
Expensive or cheap against its last ten years?
P/E at each close: today 16.4× · median 11.1× · minimum 4.5× · maximum 18.0× · cheap below 8.7× · expensive above 13.1×. It has been cheaper than today 97% of the time over its last ten years.
Dividend
solid · Yield 2.3 % ($2.02 per share in 2025) · Years raising it 9 · 5-year growth +26 % a year · Free cash flow coverage 4.7× · With $1,000 invested today you'd collect $23.00 a year ($1.92 a month).
Kaplio's reading: Lennar Corporation
Updated on November 1, 2026 · accounts published on September 16, 2026
A cyclical business with shrinking margins and a strong, low-debt balance sheet
Lennar trades at a P/E of 16.4× over the last 12 months, 48 % above its ten-year median of 11.1×, while EPS fell 44 % year over year.
- Is Lennar expensive or cheap? Lennar's P/E of 16.4× is 48 % above its ten-year median and higher than in 97 % of the last decade.
- How is the business doing? Operating margin is 5.3 % over the last 12 months, less than half its 13.1 % average for fiscal 2014-2025.
- How strong is the balance sheet? Net debt was $9.80 per share in fiscal 2025, 11 % of the share price, and the dividend has risen for 9 straight years.
- What to expect from the next earnings? Analysts expect EPS of $1.47 on December 15, 2026; Lennar beat estimates in only 1 of the last 8 quarters.
- Can Lennar's balance sheet withstand a recession? Lennar's Altman Z of 4.2 and net debt of 0.8× EBITDA in fiscal 2025 sit well inside cyclical safety thresholds.
Is Lennar expensive or cheap?
Over the last 12 months Lennar trades at a P/E of 16.4×, 48 % above its ten-year median of 11.1× and close to the decade high of 18.0×. Against its sector it looks less stretched, 11 % below the median P/E of 18.4× for 212 companies. The multiple is high because earnings fell, while the share price is down 29 % over 12 months and sits 34 % below its 52-week high of $133.13. Price to book of 1.0× and EV/sales of 1.1× in fiscal 2025, under its ten-year average of 1.2×, tell a calmer story than the P/E.
How is the business doing?
Profits are shrinking much faster than sales. Over the last 12 months revenue fell 3.5 % while EPS dropped 44 %, and the operating margin of 5.3 % is well below the 13.1 % average of fiscal 2014-2025. Fiscal 2025 already marked the low of those 12 years at 8.0 %, and the latest figure is lower still. Returns follow the same path: ROIC is 4.0 %, 5.4 points below the sector median of 9.4 %, and ROE is 6.0 %. ROIC topped 10 % in only 4 of the last 10 fiscal years, so high returns have been the exception.
How strong is the balance sheet?
Lennar carries little leverage. Debt to equity is 0.20 over the last 12 months, and net debt of $9.80 per share in fiscal 2025 ($24.56 of debt minus $14.76 of cash) equals 11 % of the current price. The dividend yields 2.3 % over the last 12 months and has grown for 9 consecutive fiscal years through 2025, with a payout of 25 % of earnings in fiscal 2025, which leaves room even if profits stay weak. The Piotroski score of 4 out of 9 is a middling reading, consistent with the falling margins and returns seen above.
What to expect from the next earnings?
Expectations are drifting lower. The 2026 EPS consensus fell 1.4 % in the last 30 days, from $4.89 to $4.82 across 10 analysts, while the revenue consensus barely moved. On September 16, 2026 Lennar reported EPS of $1.23 against $1.28 expected, a 3.9 % miss, and it has beaten EPS estimates in just 1 of the last 8 quarters. For the report on December 15, 2026 analysts expect $1.47 per share. Of the 50 analysts covering the company, 23 rate it a buy, 18 a hold and 9 a sell, a split view that matches the uneven earnings record.
Can Lennar's balance sheet withstand a recession?
In consumer cyclicals demand can fall sharply in a downturn, so analysts test staying power and margins across a full cycle, which a single year's P/E can hide. Lennar passes the balance sheet tests: net debt to EBITDA of 0.8× in fiscal 2025 against a healthy ceiling of 3.0×, a current ratio of 8.38 over the last 12 months versus a 1.5 minimum, and an Altman Z of 4.2, above the 2.99 safe line. The 2021-2025 operating margin averaged 15 %, above the 8 % bar, while ROIC averaged 11.3 %, just short of 12 %, and inventory turned 2.6× in fiscal 2025, below the healthy 4.0×.
How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.
Investor methods verdict
Would Peter Lynch approve Lennar today?
The Lynch Method approves Lennar today. Business quality: 86 out of 100 (price not included). Lynch classifies it as a slow grower. Kaplio assessment with data from the week of October 26, 2026; not investment advice.
Profitability
| Return on Equity | 6.03% |
| Return on Invested Capital | 4.01% |
| Return on Assets | 3.93% |
| Gross Margin | 9.52% |
| Operating Margin | 5.34% |
| Net Margin | 4.10% |
Financial Health
| Debt / Equity | 0.20 |
| Current Ratio | 8.38 |
| Piotroski F-Score | 4 |
| Altman Z-Score | 4.21 |
Price Performance
| 1 month | +8.93% |
| 3 months | -0.09% |
| Year-to-date | -15.43% |
| 1 year | -29.76% |
| 3 years | -27.44% |
| 5 years | -14.69% |
| 10 years | +110.00% |
Dividend History
Paid in the last 12 months: $2.00 per share in 4 payments.
| Date | Amount |
|---|---|
| October 7, 2026 | $0.50 |
| July 10, 2026 | $0.50 |
| April 22, 2026 | $0.50 |
| February 4, 2026 | $0.50 |
| October 10, 2025 | $0.50 |
| July 3, 2025 | $0.50 |
| April 23, 2025 | $0.50 |
| January 29, 2025 | $0.50 |
| October 9, 2024 | $0.4840 |
| July 5, 2024 | $0.4840 |
Amounts adjusted for stock splits.
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Explore sector: Consumer Cyclical · Residential Construction
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