Lennar Corporation (LEN)

FairStock Score: 48/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Lennar as a cyclical homebuilder, not a franchise with a durable moat. The filed figures show why: in fiscal Q3 2026, the quarter ended 2026-08-31, revenue was $8.0B and net income $283.9M, versus $8.8B and $591.0M in fiscal Q3 2025. That is a sharp decline, consistent with FairStock's -51.96% profit growth and its Lynch category of CYCLICAL, because residential construction earnings follow the economic cycle. FY2025 revenue was $34.2B with net income of $2.1B, down from FY2024's $35.4B and $3.9B. Returns are weak: FairStock reports ROE of 5.96% and ROCE of 3.40%. Still, the balance sheet is reasonable with D/E of 0.28, and trailing free cash flow is positive at $811.3M. At the $83.98 close on 2026-10-26, FairStock shows P/B of 0.94, P/E of 15.91, FCF yield of 4.1%, and a Graham Number of $103.76, implying an 18.16% margin of safety. Piotroski 5/9 and Altman 2.86 are middling, not signs of acute distress. I like buying cyclical assets below book when earnings are depressed and the balance sheet can survive; but falling revenue and profits demand caution. The price is not expensive versus book, yet current earnings power is uncertain. A disciplined Graham investor would watch closely and wait for evidence of normalization.

In plain English: Lennar builds and sells homes in the United States. The business looks weaker right now: in fiscal Q3 2026, revenue was $8.0B and net income was $283.9M, down from $8.8B and $591.0M in fiscal Q3 2025. At the $83.98 close on 2026-10-26, the shares look somewhat cheap compared with the company's accounting value but only fair compared with current earnings, and the homebuilding cycle makes results hard to predict.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-08-31) · fiscal Q2 2026 10-Q (period ended 2026-05-31) · fiscal Q1 2026 10-Q (period ended 2026-02-28) · fiscal Q3 2025 10-Q (period ended 2025-08-31) · FY2025 10-K (period ended 2025-11-30) · FY2024 10-K (period ended 2024-11-30) · FY2023 10-K (period ended 2023-11-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer