| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 73 | 15.9x | 17.3x | Top tier | |
Growth | 10 | -8.0% | 7.1% | Bottom tier | |
Quality | 29 | 4.6% | 4.5% | Bottom tier | |
Safety | 76 | 1.5x | 2.6x | Top tier | |
Capital Return | 96 | 2.32% | 0.06% | Top tier | |
Momentum | 31 | -35.9% | -1.6% | Bottom tier | |
Sentiment | 96 | 12 | 3 | Top tier |
The floor: what the company is worth if growth stopped today
59% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Lennar Corporation builds and sells homes, linking this activity with mortgage financing and title services and the Everything's Included program, which standardizes home features to benefit from large-scale purchasing. Its strategy centers on pricing homes to match buyers' ability to pay and maintaining the pace of construction, while relying on third parties to control land rather than owning it directly. In fiscal Q3 2026, ended 2026-08-31, the company delivered 20,840 homes, recorded 20,879 new orders, and achieved an 83% financing capture rate among its homebuyers through its financing arm, allowing it to link home sales with mortgage rate buydown programs and closing-cost assistance.
Revenue in fiscal Q3 2026, ended 2026-08-31, was approximately $8.0 billion, down 8.7% from $8.8 billion in the same quarter of the previous year. Net income was $283.9 million and diluted earnings per share were $1.19, compared with $591.0 million and $2.29 in fiscal Q3 2025. Alongside homebuilding, financial services generated earnings of $129 million in fiscal Q3 2026, supported by a nonrecurring gain in the title business. These results reflect Lennar's trade-off between maintaining delivery volumes and profitability per sale, while operating cash flow according to EL7 data was negative $104.3 million for the same quarter.
Q3 FY2026
Last 12 months to 2026-08-31
When: 2026-12-15
Fiscal Q4 2026 deliveries within the range of 22,000 to 23,000 homes, in the expected earnings announcement
Fiscal Q4 2026 earnings per share within the range of $1.30 to $1.65, in the expected earnings announcement
Fiscal Q4 2026 orders within the range of 19,500 to 20,500 homes, in the expected earnings announcement
The value based on the industry multiple is $75, within a range of $65 to $114, pricing next year's earnings at a median multiple of 12.0 across 22 comparable companies. The median analyst price target is $73, within a range of $63 to $108, a low-confidence indicative estimate based on 3 analysts that reflects expected growth; analyst targets are inherently optimistic. The discounted cash flow model yields $51, within a range of $41 to $66 and at a discount rate of 11.4%, to value the cash expected to be generated; this model is inherently conservative, while the no-growth value is $34 at the same discount rate, assuming current after-tax operating profit remains constant forever. The industry-multiple estimate of $75 and the analyst median of $73 are close to each other and differ from the cash flow and no-growth estimates because the first two reflect peer pricing and growth expectations, while the other two focus on cash and the continuation of earnings without expansion. Lennar ranks 27 out of 36 in its industry on EL7's valuation dimension, which compares the company's multiples with those of its peers, while RBC Capital cut its target to $69 from $85 and BTIG cut its target to $63 from $67 on 2026-09-18.
Figures in the text are as of 2026-10-19; the live price is shown at the top of the page.
Deliveries in fiscal Q3 2026, ended 2026-08-31, totaled approximately 20,840 homes, but revenue fell 8.7% from the same quarter of the previous year to $8.0 billion. Net income declined to $283.9 million from $591.0 million in the same quarter of the previous year. Management explained on the 2026-09-17 call that it accepts lower profitability to maintain volume, while previously contracted land, option fees, and the cost of financing support weigh on results.
Lennar owned 2% of homesites and controlled 98% through third parties in fiscal Q3 2026, ended 2026-08-31. Of the homes delivered during the same quarter, 86% came from land held through land-bank partnerships, reducing reliance on direct ownership. However, management explained on the 2026-09-17 call that delays in using land extend option durations and increase their fees, so the model replaces part of the ownership burden with a contractual cost affected by the pace of sales.
Automated analysis for informational purposes only — not investment advice.
Operating cash flow according to EL7 data was approximately $937.3 million for the trailing 12 months through 2026-08-31, equivalent to 72% of net income of $1.3 billion for the same period. Free cash flow as calculated by EL7 (operating cash flow minus capital expenditure) for the trailing 12 months was $795.2 million, compared with share repurchases of $992.8 million for the same period. Repurchases therefore exceeded free cash flow, while the diluted share count in fiscal Q3 2026, ended 2026-08-31, fell to 237.8 million shares from 255.6 million shares in the same quarter of the previous year.
The earnings announcement is expected on 2026-12-15, and management targets deliveries of 22,000 to 23,000 homes for fiscal Q4 2026. It expects 19,500 to 20,500 new orders and earnings per share of $1.30 to $1.65 for the same quarter. It also expects financial services earnings of $90 to $95 million and a loss of approximately $25 million for the multifamily business in fiscal Q4 2026. This guidance depends on market conditions, so the report will test whether higher deliveries can support earnings and cash generation.
On the 2026-09-17 call, management identified Texas and Florida as Lennar's largest markets and noted increased competitiveness from existing-home supply in both states. In fiscal Q3 2026, ended 2026-08-31, the company recorded 20,879 new orders, down 9% from the same quarter of the previous year. Existing-home sellers' willingness to lower prices weighs on Lennar's ability to reduce incentives, even as Everything's Included and its financing programs help support its offering to buyers.