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LennarMEX:LEN 65 Cash Ratio is 1.19 as of May. 2026, which is 30% below its 10-year median of 1.70. GuruFocus rates MEX:LEN with a GF Score™ of 65/100 and a GF Value™ of MXN2,157.26 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 94 Homebuilding & Construction companies, Lennar ranks better than 87.23% on this metric.
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
Lennar Cash Ratio Related Terms
Lennar Cash Ratio Historical Data
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The historical data trend for Lennar's Cash Ratio 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.
For the Residential Construction subindustry, Lennar's Cash Ratio, along with its competitors' market caps and Cash Ratio 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 Cash Ratio vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Lennar's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Lennar's Cash Ratio falls into.
* 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 (MEX:LEN) has a Cash Ratio of 1.19 as of May. 2026. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Lennar and its competitors. This is 30% below median its historical median of 1.70. Over the past decade, Lennar's Cash Ratio has ranged from 0.68 to 3.99. According to the industry distribution chart, Lennar ranks #12 out of 94 companies in the Homebuilding & Construction industry, placing it in the top 12.8%.
Is Lennar's Cash Ratio too high?
Lennar's current Cash Ratio of 1.19 is 30% below median its 10-year median of 1.70. Over the past 10 years, this metric has ranged from a low of 0.68 to a high of 3.99. The Homebuilding & Construction industry median Cash Ratio is 0.32. Lennar's value of 1.19 is 271.9% above this industry median. Based on the distribution chart, Lennar ranks #12 out of 94 companies in the Homebuilding & Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Lennar has a GF Score™ of 65/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Lennar's Cash Ratio compare to NVR and PHM?
According to the Homebuilding & Construction industry distribution chart, Lennar ranks #12 out of 94 companies for Cash Ratio. This places Lennar in the top 13% of its industry — outperforming the majority of peers. The industry median Cash Ratio is 0.32. Lennar's value of 1.19 is 271.9% above this benchmark. Historically, Lennar's own Cash Ratio has ranged from 0.68 to 3.99 over the past decade. While the company's 10-year median is 1.70 vs. the industry median of 0.32, Lennar has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Ratio for a Homebuilding & Construction company?
The median Cash Ratio among Homebuilding & Construction companies is 0.32, based on 94 companies in the industry. Companies in the top quartile (top 25%) have a Cash Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cash Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lennar's current Cash Ratio of 1.19 is 271.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Ratio mean?
A high Cash Ratio can signal that a stock is expensive relative to its fundamentals. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Lennar and its competitors. For the Homebuilding & Construction industry, the median Cash Ratio is 0.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lennar's current Cash Ratio is 1.19, which is 30% below median its own 10-year median of 1.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lennar stock overvalued right now?
Based on GuruFocus' analysis, Lennar (MEX:LEN) is currently considered Possible Value Trap. The stock's GF Value™ is MXN2,157.26, compared to a current price of MXN1,430.00 — trading 33.7% below its estimated fair value. The current Cash Ratio is 1.19, which is 30% below median its 10-year median of 1.70 and 271.9% above the Homebuilding & Construction industry median of 0.32. Lennar's overall GF Score™ is 65/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Ratio calculated?
Cash Ratio is calculated from a company's financial statements. For Lennar (MEX:LEN), the current Cash Ratio is 1.19 as of May. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Lennar (MEX:LEN) Overvalued in 2026?
Based on GuruFocus' analysis, Lennar stock appears to be undervalued.
The current stock price of MXN1,430.00 is trading 33.7% below its estimated GF Value™ of MXN2,157.26.
GuruFocus considers Lennar to be Possible Value Trap.
Key valuation signals for MEX:LEN:
Cash Ratio: 1.19 (30% below median its 10-year median of 1.70)
GF Value™: MXN2,157.26 vs. price of MXN1,430.00 (33.7% below fair value)
Industry Position: 271.9% above the Homebuilding & Construction median (#12 of 94)
No single metric tells the full story. See the MEX:LEN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lennar is the second-largest public homebuilder in the United States, behind D.R. Horton, operating in 26 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.
65GF Score
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