LENLennar
Is the business good?
The checks split: nothing decisive, though margins compressing.
Operating profit is mostly backed by cash. Conversion is improving vs a year ago.
Operating margin has narrowed over the past few years, profitability per dollar of sales is eroding.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is LEN?
Lennar earns 6.8% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 2.2 points below what the capital costs: growth destroys value
- Operating margin
- 5.4%
Operating margin · Residential Construction median 9.3% · 12 months to Q3 2026
- Cash conversion
- 0.73×
Cash conversion · −0.22× a year ago · most of the operating profit arrived as cash, working capital took the rest
- Share count, year on year
- −7.0%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 15% |
| FY2021 | 19% |
| FY2023 | 16% |
| FY2024 | 13% |
| FY2025 | 7.8% |
Details›
- Operating margin12 months to Q3 2026
- 5.4%
- Net margin12 months to Q3 2026
- 4.1%
- Free cash flow margin
- 2.5%
- Revenue, trailing twelve months
- $32.0B
- Free cash flow, trailing twelve months
- $795M
- Net income, trailing twelve months
- $1.31B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 6.8%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Residential Construction
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