Stock fact sheet · data as of
Lennar Corporation (LEN-B): fair value, margin of safety and Wheel Score
Consumer Cyclical · Residential Construction · United States · Value
Is LEN-B undervalued?
Lennar Corporation (LEN-B) closed at 76.93 on 16 Oct 2026. The GLS average fair value - the simple average of the 9 valuation models that produced a positive number - is 90.39, so the price sits 15% below it. 5 of the 9 models value the shares above the current price. A margin of safety between 10% and 30% is where most of the Sunday Scan candidates come from.
The 9 models disagree widely: GLS Growth gives 15.99 while Graham Growth gives 199.12. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files LEN-B under Value: positive earnings at a P/E of 18 or less.
Nine valuation models for LEN-B
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 132.59 | +72% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 106.09 | +38% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 199.12 | +159% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 78.61 | +2% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 15.99 | -79% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 117.78 | +53% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 73.21 | -5% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 29.43 | -62% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 60.70 | -21% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 20.20 | -74% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 81.60 | +6% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - LEN-B passes 6 of the nine Piotroski tests, which passes the Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is low at 3.5 out of 10, which says the ten-year record of revenue, earnings, margins and returns on capital has been inconsistent - growth and shocks rather than steady compounding.
Returns on capital are moderate - ROIC 7.3%, ROE 9.5%, ROA 6.0% - with debt at 0.29 times equity and a free-cash-flow yield of 4.9%.
The dividend yield is 2.57% at a payout ratio of 38%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Lennar Homebuilding East, Central, West… 96%, Lennar Financial Services 3%, Lennar Other 1% (quarter Q3 FY2026).
Institutional ownership scores 1/10, insider activity 10/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 6 / 9 | ROIC | 7.3% |
|---|---|---|---|
| GLS Moat | 3.5 / 10 | ROE | 9.5% |
| Debt / equity | 0.29 | ROA | 6.0% |
| Free-cash-flow yield | 4.9% | Payout ratio | 38% |
| Institutions | 1 / 10 | Insiders · Congress | 10 · 5 / 10 |
Wheel Score 39: No options
LEN-B has no listed options in the nightly snapshot, so there is nothing to sell and the stock cannot be wheeled however good the business; the Wheel Score is capped at 39 and shown as "No options" (39 here). The valuation and quality numbers still apply to owning the shares outright.
Volume runs at 148k shares a day on a market cap of $18.5B, with a beta of 1.32 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score gives that 13 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 19 / 25 | 15% margin of safety | |
| Health | 13 / 20 | Piotroski 6/9 | |
| Moat | 5 / 15 | moat 3.5/10 | |
| Premium | 0 / 20 | no option data | |
| Stability | 13 / 20 | 148k shares/day, $18.5B cap, beta 1.32 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 15 Dec 2026, 60 days away - outside the window of a 30-45-day put sold today.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Residential Construction
The 12 companies below are the closest to Lennar Corporation by market cap within the Residential Construction industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| LEN Lennar Corporation | 77.69 | 92.40 | +16% | 79Good | $18.5B |
| PHM PulteGroup, Inc. | 109.35 | 197.70 | +45% | 88Prime | $20.8B |
| NVR NVR, Inc. | 5,940.83 | 6,229.48 | +5% | 39No options | $15.9B |
| TOL Toll Brothers, Inc. | 130.41 | 199.69 | +35% | 85Prime | $12.0B |
| DHI D.R. Horton, Inc. | 139.55 | 298.13 | +53% | 89Prime | $39.0B |
| IBP Installed Building Products, Inc. | 187.94 | 112.54 | -67% | 57Fair | $5.0B |
| SKY Champion Homes, Inc. | 75.90 | 80.03 | +5% | 76Good | $4.1B |
| CVCO Cavco Industries, Inc. | 535.60 | 530.46 | -1% | 67Good | $4.1B |
| MTH Meritage Homes Corporation | 60.28 | 101.28 | +40% | 80Prime | $3.9B |
| MHO M/I Homes, Inc. | 126.02 | 176.77 | +29% | 76Good | $3.2B |
| GRBK Green Brick Partners, Inc. | 61.98 | 91.90 | +33% | 79Good | $2.7B |
| KBH KB Home | 43.65 | 62.28 | +30% | 80Prime | $2.7B |
⚖ Compare LEN-B with 7 of them All Consumer Cyclical stocks →
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Start free See the Sunday ScanQuestions about LEN-B
Is LEN-B undervalued right now?
By the GLS models, moderately: at 76.93 the stock trades 15% below the average fair value of 90.39 (data as of 16 Oct 2026).
What is the Wheel Score of LEN-B and what does it mean?
LEN-B has no listed options in our nightly snapshot, so it cannot be wheeled; its Wheel Score is capped at 39 and shown as "No options".
What is the GLS fair value for LEN-B?
90.39 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Lennar Corporation report earnings next?
The next earnings report is due on 15 Dec 2026, 60 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does LEN-B have listed options, and how liquid are they?
No. The nightly options snapshot found no listed contracts on LEN-B, so the wheel strategy cannot be run on it and the Wheel Score is capped at 39.