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Lennar Forward Rate of Return (Yacktman) %

: 27.18% (As of Feb. 2022)
View and export this data going back to 1972. Start your Free Trial

Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Lennar's forward rate of return for was 27.18%.

The historical rank and industry rank for Lennar's Forward Rate of Return (Yacktman) % or its related term are showing as below:

LEN' s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -5.46   Med: 14.49   Max: 28.67
Current: 28.67

During the past 13 years, Lennar's highest Forward Rate of Return was 28.67. The lowest was -5.46. And the median was 14.49.

LEN's Forward Rate of Return (Yacktman) % is ranked better than
88.31% of 77 companies
in the Homebuilding & Construction industry
Industry Median: 11.32 vs LEN: 28.67

Unlike the Earnings Yield %, the Forward Rate of Return uses the normalized Free Cash Flow of the past seven years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.


Lennar Forward Rate of Return (Yacktman) % Historical Data

The historical data trend for Lennar's Forward Rate of Return (Yacktman) % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Lennar Annual Data
Trend Nov12 Nov13 Nov14 Nov15 Nov16 Nov17 Nov18 Nov19 Nov20 Nov21
Forward Rate of Return (Yacktman) %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 18.95 14.55 15.78 21.56 26.57

Lennar Quarterly Data
May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22
Forward Rate of Return (Yacktman) % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 22.24 23.53 25.70 26.57 27.18

Competitive Comparison

For the Residential Construction subindustry, Lennar's Forward Rate of Return (Yacktman) %, along with its competitors' market caps and Forward Rate of Return (Yacktman) % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Lennar Forward Rate of Return (Yacktman) % Distribution

For the Homebuilding & Construction industry and Consumer Cyclical sector, Lennar's Forward Rate of Return (Yacktman) % distribution charts can be found below:

* The bar in red indicates where Lennar's Forward Rate of Return (Yacktman) % falls into.



Lennar Forward Rate of Return (Yacktman) % Calculation

Forward Rate of Return is a concept that Don Yacktman uses in his investment approach. Yacktman explained the forward rate of return concept in detail in his interview with GuruFocus. Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. He said in the interview (March 2012, when the S&P 500 was at about 1400):

If the business is stable, this calculation is fairly straightforward. For instance, on the S&P 500 we would normalize earnings. We would then calculate what percentage of those earnings are not reinvested in the underlying businesses and are therefore free. Historically, for the S&P 500, this has been just under 50% of earnings. Currently, we expect the S&P to earn about 70 on a normalized basis, a number which is far below reported earnings due to our adjusting for record high profit margins. $70 X ½ / 1400 gives you a normalized free cash flow yield of approximately 2.5%.

The historical real growth rate of the S&P 500 (companies) is about 1.5%. Assuming an inflation rate of 2.5%, the forward rate of return on an investment in the S&P 500 is about 6.5% today (2.5% free cash flow yield plus 1.5% real growth plus 2.5% inflation).

Lennar's Forward Rate of Return of Feb. 2022 is

Forward Rate of Return=Normalized Free Cash Flow/Price+5-Year EBITDA Growth Rate
=6.45447619/89.88+0.2
=27.18 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Lennar  (NYSE:LEN) Forward Rate of Return (Yacktman) % Explanation

Unlike the Earnings Yield, the Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.

For the growth part of the Forward Rate of Return calculation, GuruFocus uses the 5-year average growth rate of EBITDA per share as the growth rate, and the growth rate is always capped at 20%. For the Free Cash Flow we use per share data averaged over five years. The reason we use five years is to make it comparable to the growth rate.


Be Aware

In the Forward Rate of Return calculation, the growth rate is added directly to today's free cash flow yield. Therefore the calculation is reliable only if the company can grow at the same rate in the future as it did in the past. Investors should pay close attention to this when researching growth stocks. A more accurate measurement for return is Return on Capital.


Lennar Forward Rate of Return (Yacktman) % Related Terms

Thank you for viewing the detailed overview of Lennar's Forward Rate of Return (Yacktman) % provided by GuruFocus.com. Please click on the following links to see related term pages.


Lennar Business Description

Lennar logo
Industry
Address
700 Northwest 107th Avenue, Miami, FL, USA, 33172
After merging with CalAtlantic in February 2018, Lennar has become the largest public homebuilder (by revenue) in the United States. The company's homebuilding operations target first-time, move-up, and active adult homebuyers mainly under the Lennar brand name. Lennar's financial-services segment provides mortgage financing and related services to its homebuyers. Miami-based Lennar is also involved in multifamily construction and has invested in numerous housing-related technology startups.
Executives
Bessette Diane J officer: VP/CFO/Treasurer LENNAR CORPORATION 700 NW 107 AVE 4TH FLR MIAMI FL 33172
Collins David M officer: Controller LENNAR CORPORATION 700 NW 107 AVENUE STE 400 MIAMI FL 33172
Jaffe Jonathan M director, officer: President LENNAR CORPORATION 700 NW 107 AVE 4TH FLR MIAMI FL 33172
Mccall Jeffrey Joseph officer: Executive Vice President 26 TECHNOLOGY DRIVE IRVINE CA 92618
Stowell Scott D director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: STOWELL SCOTT D a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Gerard Steven L director P.O. BOX 554 MILWAUKEE WI 53201-0554
Bolotin Irving director LENNAR CORPORATION 700 NW 107 AVE 4TH FLR MIAMI FL 33172
Sustana Mark officer: VP/General Counsel/Secretary LENNAR CORPORATION 700 NW 107 AVE 4TH FLR MIAMI FL 33172
Beckwitt Richard director, officer: Chief Executive Officer LENNAR CORPORATION 700 NW 107 AVE 4TH FLR MIAMI FL 33172
Olivera Armando J director C/O FLUOR CORPORATION 6700 LAS COLINAS BLVD IRVING TX 75039
Gilliam Theron I director GMS INC. 100 CRESCENT CENTRE PARKWAY, SUITE 800 TUCKER 2Q 30084
Mcclure Teri P director 55 GLENLAKE PARKWAY NE ATLANTA GA 30328
Sonnenfeld Jeffrey director 14 WALL ST 13TH FL NEW YORK NY 10005
Hudson Sherrill W director 201 SOUTH BISCAYNE BOULEVARD 34TH FLOOR, MIAMI CENTER MIAMI FL 33131
Lapidus Sidney director 466 LEXINGTON AVENUE FLOOR NEW YORK NY 10017

Lennar Headlines

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