LEN - Embedded Expectations Analysis - 2019 02 13
Lennar Corporation (LEN:USA) currently trades below recent averages relative to UAFRS-based (Uniform) Earnings, with a 9.8x Uniform P/E, implying bearish expectations for the firm. Furthermore, management may be concerned about housing demand, home insurance investments, merger savings, and their pricing modelSpecifically, management may be overstating the demand for new homes and the benefits of lower price points. Additionally, they may be concerned about their home insurance investment and their ability to improve production capacity. Moreover, they may lack confidence in their ability to maintain synergy savings from mergers and reduce sales incentives. Finally, they may be exaggerating their scale advantages and the capabilities of their dynamic pricing model
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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