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Lennar (Class A) LEN

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

Last price$76.69Oct 9, 2026
Business qualityWeak
Next earningsDec 14, 2026, after the close
Insiders, 90 daysQuiet

Why it matters

  1. What Lennar (Class A) does

    Lennar builds residential homes across the United States, selling directly to first-time, move-up, and active adult homebuyers through its primary homebuilding operations. Berkshire Hathaway recently expanded its stake by 30% with a $6.8 billion commitment, signaling long-term institutional backing despite soft market conditions.

  2. What it does best

    Lennar excels at capital deployment and share repurchases, returning $1.2B via buybacks while maintaining an interest coverage ratio of 10.3x. This scale-driven liquidity buffer protects its balance sheet better than peers like DHI.

  3. The main risk

    Mortgage rates sitting near 7.5% drag on buyer sentiment and push out volume growth. This rate pressure directly threatens the company's revenue generation, leading to a revenue decline of 3.5% over the latest period.

Quality, check by check

Scored against its own industry, from company filings.

ProfitabilityWeak

Operating margin sits at 6.3% with an ROE of 7.3%, placing it in the bottom quartile for gross margins at the 5th sector percentile. Profitability narrows as scale-driven efficiencies stall.

MoatFair

The company holds a bottom-quartile moat ranking in the sector with a gross margin of 8.8%. Rivals easily match its land-light construction model, limiting lasting competitive isolation.

GrowthSlow

Revenue contracted 3.5% over the latest period to $32.7B, sitting in the bottom decile at a 6th sector percentile for growth. This marks a clear slowdown compared to historical annual revenue peaks.

Financial healthStrong

Debt-to-equity sits at 0.3x with $3.8B in cash backing the balance sheet. Free cash flow dropped to $717M from prior years, showing softer cash generation as conditions tighten.

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

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 a good business?

Lennar (Class A) 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?

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

When does LEN report earnings?

Dec 14, 2026, after the close.

For members

See LEN today

  • Today's verdict on LEN, 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 A) (LEN)”, https://cluenex.com/stocks/len/, data as of Oct 10, 2026.