Is the business good?
How good a business is LEN?
Lennar earns 8.0% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
8.0%
Return on invested capital · cost of capital 9.0% · 1.1 points below what the capital costs: growth destroys value
- Operating margin
- 6.0%
Operating margin · Residential Construction median 9.8% · 12 months to Q2 2026
- Cash conversion
- 0.44×
Cash conversion · 0.09× a year ago · some of the reported profit has not turned into cash yet
- Share count, year on year
- −7.5%
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 Q2 2026
- 6.0%
- Net margin12 months to Q2 2026
- 4.9%
- Free cash flow margin
- 2.2%
- Revenue, trailing twelve months
- $32.7B
- Free cash flow, trailing twelve months
- $717M
- Net income, trailing twelve months
- $1.62B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 8.0%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Residential Construction
Ranks #12 of 14 by Smart Score