LEN - Embedded Expectations Analysis - 2019 07 29
Lennar Corporation (LEN:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 12.2x Uniform P/E, implying bearish expectations for the firm, and management has concerns about cost management, meeting guidance, and origination volumes.Specifically, management appears concerned about the sustainability of recent declines in origination volumes. Furthermore, they may have concerns about the timing of synergies related to cost negotiations with vendors, and they appear concerned about the sustained impact of tariffs on Chinese materials. Moreover, management may be concerned about their ability to execute on their just-in-time selling platform and to meet their cash flow guidance for 2019. Additionally, management may be concerned about sustained headwinds to promote revenue, and they appear concerned about the value of their partnership with Blend. Finally, management may be concerned about their ability to continue driving cost savings.
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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