NYSE:LEN
$16.33
(3/12 6:40PM)
-1.9%
| Open | $16.74 |
Mkt Cap | $2.5 Billion |
| High | $16.82 |
52Wk High | $17.88 |
| Low | $16.22 |
52Wk Low | $7.02 |
| Volume | 4.4 Million |
Avg Vol 10D | 4.3 Million |
Ockham's Rating/Recommendation Summary
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LEN Revenue
For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at LEN through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 10 years are 0.97x and 0.38x respectively.
Utilizing this range we can see that LEN’s current Price to Sales per share ratio of 0.97x is high enough compared with historical norms of LEN to cause some concern. The current Price to Sales per share is near the upper end of the historical range. In our eyes, this is a negative factor because it is more likely that it will return to the normal range than continue rising outside of the range. At current sales per share levels, we would need to see a decline in the Price to Sales ratio of 43% merely to return LEN to its historical average.
LEN Cash Earnings
Price to Cash Earnings analysis is inappropriate for this company due to anticipated negative cash flows for this year. A negative cash flow presents many complications when comparing the company's current value to historically normal valuations. Clearly, when a company fails to earn a profit, it should be a concern for investors. As such, we have taken a negative view on LEN from a cash perspective. We should point out that this metric is a significant element in Ockham’s methodology for analyzing the outlook for any company.
Many young companies have come through difficult times like this before; these companies have an opportunity to grow revenue appropriately to bring them around to profitablity. However, for mature company's with a history of positive cash flow this can be much more distressing. Therefore, for LEN, our overall valutaion is now more dependent on the Price to Sales analysis, and investors should be cautious with a company with very limited, if any, positive cash earnings.
LEN Dividends
A strong dividend payment history is looked upon as a favorable characteristic on a company’s future and potentially can receive a positive Ockham rating. That being said, we don't require dividend payments for company's whose management has elected to forgo them entirely.
When reviewing dividend yields for LEN, we compare the historic high and low levels over the past, which is similar to our evaluation of Sales and Cash Earnings per share. Paying a dividend is not necessary for any company, but changes in dividend often can lend clues as to the health of the business. A rising dividend is a strong sign for an established company, as it reflects management's confidence in the company. LEN’s estimated annual dividend is $0.16 resulting in a current dividend yield of 0.98%. The highest dividend yield from LEN over recent history was 15.20% while the lowest dividend yield was 0.07%. With that range in mind, LEN’s current dividend yield is a full 87.16% below its median dividend yield historically. This is a negative from our perspective.
Power Lunch Brings News Related to Lennar Corp Cl A
Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on LEN from Power Lunch.
While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform. We noticed recently that in comparison to all other stocks we analyze in the news; LEN has received less coverage from the financial media in business television and blogs. At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued.
“… Terex, ak steel and not to mention kbhome, putty and LENNAR, the homebuilders. We were told home belding would be the next catastrophe. …”
Power Lunch Has the Latest News on LEN
News has broken via the television and viral blogs regarding LEN, so investors should take an interest in learning what was said.
We noticed recently that in comparison to all other stocks we analyze in the news; LEN has received less coverage from the financial media in business television and blogs. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform. At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued.
“… fdic recently gave a very big chunk of property to LENNAR. I know these commercial banks a lot of them have outside shopping centering. …”
Power Lunch Discusses Higher Prices and Lennar Corp Cl A
Stick with it or dump it? Power Lunch discusses what an abnormally high price means for LEN's investors. Take note of Ockham's valaution on the stock as well.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, LEN has been less covered in the news compared to the rest of our universe of stocks. The crowd at The Motley Fool does not like LEN and believes that it will Underperform. At Ockham, we are not advising buying Lennar Corp Cl A at the current price level because according to our methodology it is not supported by the fundamentals.
“… that hit new 52-week highs at the open are doing right now. Home depot is up about 56 cents. LENNAR is down slightly and …”
A Few Words from The Call on Lennar Corp Cl A and Sentiment
The Call talked about the sentiment surrounding LEN and the way they are perceived in the marketplace.
Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see Lennar Corp Cl A underperforming. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Lennar Corp Cl A has actually sunk a bit in comparison to the others. As of this week's report, we have an Overvalued valuation on LEN because the price has gotten too high to be justified by the fundamentals.
“… when I look at these stocks I look at ryland and LENNAR. They're both trading at the top of the 52-week range. They're treading at 20 times forward earnings. …”
LEN Profits on the Mind of Squawk On The Street
In our methodology at Ockham we weight earnings performance heavily, so we always pay attention to earnings news coming from legitimate sources like Squawk On The Street.
The crowd at The Motley Fool does not like LEN and believes that it will Underperform. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, LEN has been less covered in the news compared to the rest of our universe of stocks. At Ockham, we are not advising buying Lennar Corp Cl A at the current price level because according to our methodology it is not supported by the fundamentals.
“… And 13 stocks hitting new 52-week highs including the depot, LENNAR, and altera. Erin? > > thank you very much, mark haines. I'm here with a cheery bob pisani. > > …”
LEN in Developing Markets on Power Lunch
There is no doubt that the emerging markets are where the growth is right now. The latest news mention of LEN on Power Lunch was in relation to emerging markets.
The latest news on LEN has created quite a stir as the stock is trading $1.34 higher in today's session. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform. We noticed recently that in comparison to all other stocks we analyze in the news; LEN has received less coverage from the financial media in business television and blogs. At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued. The price has continued to rise to $16.95 even since we issued the Overvalued stance at a lower price.
“… topping the tape, home builders, LENNAR, $3 billion worth of loans from the fdic. Is there a trade here? Xhb options? > > could be. …”
Looking for Growth? See What Squawk On The Street Said About Lennar Corp Cl A
Trends in sales growth can show the direction of a company, and we have the latest news on LEN's sales growth via Squawk On The Street.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, LEN has been less covered in the news compared to the rest of our universe of stocks. At Ockham, we are not advising buying Lennar Corp Cl A at the current price level because according to our methodology it is not supported by the fundamentals. Check the news on this stock because there is a catalyst that has allowed this stock to advance 6.66% today. The crowd at The Motley Fool does not like LEN and believes that it will Underperform.
“… LENNAR leading the pack up 6%. Back to you. > > thank you. Markets have been down for two of the last three sessions plus volatility on the rise. …”
Interested in LEN? See What the Pundits Said on The Call
The latest news from The Call on LEN is available through Ockham's news analytics platform RazorWire.
As of this week's report, we have an Overvalued valuation on LEN because the price has gotten too high to be justified by the fundamentals. Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see Lennar Corp Cl A underperforming. In comparison to the other stocks that we follow, Lennar Corp Cl A has seen more discussion in relation to its normal ranking among the group. Be aware that the news sources we track are focusing on this stock more often these days.
“… Hasbro, LENNAR. You love to see the buying ahead of an earnings report. Then newell rubbermaid. The retail patch -- I will clump cvs in there. …”
LEN News Mentioned on Squawk On The Street Recently
The latest news from Squawk On The Street on LEN is available through Ockham's news analytics platform RazorWire.
At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued. Ranking all stocks in terms of news coverage offers some interesting data. In the case of LEN, it is getting significantly more attention in recent news coverage than we are used to seeing. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform.
“… these are raelian, kb, LENNAR, will eventually rise to a buy? > > some of those possibly, sure. I couldn't tell you which ones but some of them. > > …”
See Who is Talking About News from LEN on Closing Bell
The latest news from Closing Bell on LEN is available through Ockham's news analytics platform RazorWire.
In comparison to the other stocks that we follow, Lennar Corp Cl A has seen more discussion in relation to its normal ranking among the group. Be aware that the news sources we track are focusing on this stock more often these days. Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see Lennar Corp Cl A underperforming. As of this week's report, we have an Overvalued valuation on LEN because the price has gotten too high to be justified by the fundamentals.
“… discretionary. Archer daniels, starbucks, international game tech, sears holding, LENNAR all not participating in this bounceback …”