LEN - Embedded Expectations Analysis - 2018 06 18
Lennar Corporation (LEN:USA) currently trades below recent averages relative to UAFRS-based (Uniform) Earnings, with a 14.5x Uniform P/E, implying muted expectations for the firm. Moreover, management has concerns about CalAtlantic, technology, and revenueSpecifically, management may be concerned about their integration plans, and specifically both their ability to have the entire company on one unified operating platform by the end of their fiscal year, and their ability to convert the CalAtlantic plans. Moreover, they may lack confidence in their various technology initiatives, and may be downplaying concerns about the impact of low unemployment on wages. Furthermore, they may lack confidence in the sustainability of home sale revenue improvements, and may also lack confidence in their ability to bring their capture rate up in Lennar Financial Services
Lennar is a homebuilder in the United States, an originator of residential and commercial mortgage loans, a provider of title insurance and closing services and a developer of multifamily rental properties. The company's homebuilding operations include the construction and sale of single-family attached and detached homes as well as the purchase, development and sale of residential land directly and through unconsolidated entities in which it has investments. The company operates under the Lennar brand name. The company creates and participates in joint ventures that acquire and develop land for its homebuilding operations, for sale to third parties or for use in the ventures' own homebuilding operations.
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