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Lennar (Class B) LEN.B

Lennar (Class B) scores weak on business quality (3.8 of 10). Here is why, in plain words, and what our sealed record shows.

Last price$76.02Oct 9, 2026
Business qualityWeak
Next earningsDec 14, 2026, after the close
Insiders, 90 daysQuiet

Why it matters

  1. What Lennar (Class B) does

    Lennar Corp builds single-family homes and sells them to individual buyers, generating revenue through construction and land sales across the United States. Berkshire Hathaway recently increased its stake by 30% as major investors back its scale amid ongoing mortgage rate pressures.

  2. What it does best

    Lennar executes massive land and construction scale, operating in the bottom quartile of its sector for gross margin at 8.7% while peers like PHM achieve 25.1%. This low-margin volume model relies on rapid inventory turns that smaller builders cannot easily replicate.

  3. The main risk

    Mortgage rates sitting near 7.5% threaten homebuyer demand, directly pressuring volume growth as builder sentiment wavers. High borrowing costs risk slowing the pace of home sales and compressing cash generation.

Quality, check by check

Scored against its own industry, from company filings.

ProfitabilityWeak

Gross margin sits at 8.8% with operating margin at 6.3% and FCF margin at 2.2%. Profitability remains compressed due to thin margins, showing that scale does not yield higher margins here.

MoatFair

Scale forms its primary moat, locking in land suppliers and subcontractors through sheer volume. Yet a gross margin sitting in the 5th sector percentile limits pricing power against local rivals.

GrowthSlow

Revenue growth fell 3.5% over the latest period, continuing a fading trend from prior annual revenues of $35.4B. The core homebuilding engine is currently contracting rather than accelerating.

Financial healthStrong

Debt-to-equity sits at 0.3 with interest coverage at 10.2x, meaning debt costs are manageable. Free cash flow came in at $717.0M, recovering from a prior year dip. The balance sheet is holding steady.

Insiders

Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.

No open market buys or unplanned sales by executives or directors.

Our sealed record on LEN.B

Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.

The first sealed verdicts appear here on Oct 11, 2026.

Questions

Is LEN.B a good business?

Lennar (Class B) scores weak on the Cluenex quality check (3.8 of 10), measured against its own industry. Profitability is weak, moat fair, growth slow and financial health strong.

Are insiders buying LEN.B?

In the last 90 days of SEC Form 4 filings: No open market buys or unplanned sales by executives or directors.

When does LEN.B report earnings?

Dec 14, 2026, after the close.

For members

See LEN.B today

  • Today's verdict on LEN.B, and why
  • Fair value with cautious, base and optimistic cases
  • The exact price that would change the verdict
  • Which stocks each signal names, the night it fires
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Cite this page: Cluenex, “Lennar (Class B) (LEN.B)”, https://cluenex.com/stocks/len.b/, data as of Oct 10, 2026.