NYSE:LEN
$15.51
(2/9 12:34PM)
+0.8%
| Open | $15.4 |
Mkt Cap | $2.4 Billion |
| High | $15.77 |
52Wk High | $17.66 |
| Low | $15.03 |
52Wk Low | $5.72 |
| Volume | 3.2 Million |
Avg Vol 10D | 6.8 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 0.89x and 0.35x respectively.
Utilizing this range we can see that LEN’s current Price to Sales per share ratio of 0.87x 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 39% 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 1.09%. 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 85.72% below its median dividend yield historically. This is a negative from our perspective.
WSJ Marketbeat Covers Lennar Corp Cl A and Regulators in Same Segment
A regulatory entity and Lennar Corp Cl A were among the topics covered on WSJ Marketbeat and you can see more details below.
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. 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. Take notice of the news on this stock because it is up $0.79 since the close of trading yesterday. Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see Lennar Corp Cl A underperforming.
“… Companies such as LENNAR, Standard Pacific, Beazer, Hovanian, D. R. Horton and Pulte are all posting tidy increases. Dow Jones Newswires’ Shara Tibken reports: The movement ... …”
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. …”
The Latest News for LEN Was Just on WSJ Marketbeat
The latest news on WSJ Marketbeat in regards to LEN came through on RazorWire recently.
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. 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.
“… Horton, LENNAR, KB Home and Pulte are all up more than 5%. Beazer is up a smoking 10. 5%. Still some analysts remain cautious “Unemployment remains a problem and the housing ... …”
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 …”
Holding LEN Stock? See What Is Being Discussed on Fox Business
The latest news from business television and influential blogs is always available through Ockham's RazorWire, and this news is in relation to Lennar Corp Cl A.
The crowd at The Motley Fool does not like LEN and believes that it will Underperform. When looking at our entire coverage universe and ranking stocks by the attention they receive on RazorWire, it is clear that Lennar Corp Cl A has been talked about more than normal recently. 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.
“… You look at LENNAR. You look at pulte. Look at kb homes. A lot of those companies and those builders have big operations there. And the stocks are all trading higher right ... …”
Squawk On The Street Discussed the Latest Development of Lennar Corp Cl A
As always, the latest news on LEN is available to Ockham clients through RazorWire, and it was mentioned recently on Squawk On The Street.
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. 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.
“… blue chips are a really good buy. Another stock he likes, housing. He's been buying housing like LENNAR, which he calls an …”
The Latest News for LEN Was Just on Squawk Box
As always, the latest news on LEN is available to Ockham clients through RazorWire, and it was mentioned recently on Squawk Box.
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. 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.
“… But the housing stocks now are on a price to book basis, some of them -- LENNAR is 1. 1 times book value. The book has been written down significantly. …”
Investors Sentiment's Effect on Lennar Corp Cl A on Power Lunch
It is always benefitial to understand the market's sentiment for a particular stock, and Power Lunch talked about some aspects of sentiment for LEN recently.
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. Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see Lennar Corp Cl A underperforming.
“… I like the way LENNAR reacted. I think k. B. Reacted. No, i'm not bullish on k. B. At this level. > > charles schwab, a buy ahead of earnings tomorrow? > > I own schwab. …”
LEN Having an Active Day in News, Now on Fast Money
Something important is going on with LEN today, as it is getting a lot of attention on business television and influential 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 $15.49 even since we issued the Overvalued stance at a lower price. 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. The latest news on LEN has created quite a stir as the stock is trading $1.79 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.
“… pop for LENNAR. > > I don't like the space. It's two decision thing. There's too many fast traders that are in the names right now in the home builders. Be careful. > > …”