As part of our ongoing series here at The Acquirer’s Multiple, we provide this feature article titled ‘Stock in Focus‘ where we focus on one of the stocks from our Stock Screeners.
One of the cheapest stocks in our Stock Screeners is Lennar Corporation (NYSE: LEN).
After merging with CalAtlantic in February 2018, Lennar has become the largest homebuilder (by revenue) in the United States. The company’s homebuilding operations target first-time, move-up, and active adult homebuyers mainly under the Lennar brand name. Lennar’s financial-services segment provides mortgage financing and related services to its homebuyers. Miami-based Lennar is also involved in multifamily construction.
A quick look at the share price history for Lennar (below) over the past twelve months shows that the price is up 132%. Here’s why the company is undervalued.
Summary
Market Cap: $31 Billion
Enterprise Value: $34.6 Billion
Operating Earnings
Operating Earnings: $3.5 Billion
Acquirer’s Multiple
Acquirer’s Multiple: 9.77
Free Cash Flow (TTM)
Free Cash Flow: $4.12 Billion
FCF/EV Yield
FCF/EV Yield: 12%
Other Indicators
Piotroski F-Score: 7
Altman Z-Score: 3.88
Beneish M-Score: -2.69
Shareholder Yield
Shareholder Yield: 2%
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