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Lennar Piotroski F-Score

: 8 (As of Today)
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Good Sign:

Piotroski F-Score is 8, indicating very healthy situation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Lennar has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

The historical rank and industry rank for Lennar's Piotroski F-Score or its related term are showing as below:

NYSE:LEN' s Piotroski F-Score Range Over the Past 10 Years
Min: 1   Med: 5   Max: 9
Current: 8

1
9

During the past 13 years, the highest Piotroski F-Score of Lennar was 9. The lowest was 1. And the median was 5.


Lennar Piotroski F-Score Historical Data

The historical data trend for Lennar's Piotroski F-Score 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
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.00 5.00 6.00 8.00 -

Lennar Quarterly Data
Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21
Piotroski F-Score 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 8.00 9.00 7.00 8.00 -

Competitive Comparison

For the Residential Construction subindustry, Lennar's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score 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 Piotroski F-Score Distribution

For the Homebuilding & Construction industry and Consumer Cyclical sector, Lennar's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Lennar's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* 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.

This Year (Aug21) TTM:Last Year (Aug20) TTM:
Net Income was 882.76 + 1001.369 + 831.363 + 1406.888 = $4,122 Mil.
Cash Flow from Operations was 1293.975 + 385.508 + 332.612 + 594.227 = $2,606 Mil.
Revenue was 6825.89 + 5325.468 + 6430.245 + 6941.403 = $25,523 Mil.
Gross Profit was 1242.298 + 974.019 + 1248.64 + 1437.596 = $4,903 Mil.
Average Total Assets from the begining of this year (Aug20)
to the end of this year (Aug21) was
(29315.285 + 29935.177 + 30551.98 + 31223.227 + 32744.19) / 5 = $30753.9718 Mil.
Total Assets at the begining of this year (Aug20) was $29,315 Mil.
Long-Term Debt & Capital Lease Obligation was $6,651 Mil.
Total Current Assets was $24,440 Mil.
Total Current Liabilities was $1,231 Mil.
Net Income was 674.304 + 398.452 + 517.406 + 666.418 = $2,257 Mil.

Revenue was 6971.531 + 4505.337 + 5287.373 + 5870.254 = $22,634 Mil.
Gross Profit was 983.493 + 516.265 + 741.286 + 974.259 = $3,215 Mil.
Average Total Assets from the begining of last year (Aug19)
to the end of last year (Aug20) was
(29459.447 + 29359.511 + 29173.699 + 29309.025 + 29315.285) / 5 = $29323.3934 Mil.
Total Assets at the begining of last year (Aug19) was $29,459 Mil.
Long-Term Debt & Capital Lease Obligation was $8,139 Mil.
Total Current Assets was $22,080 Mil.
Total Current Liabilities was $1,140 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Lennar's current Net Income (TTM) was 4,122. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Lennar's current Cash Flow from Operations (TTM) was 2,606. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Aug20)
=4122.38/29315.285
=0.1406222

ROA (Last Year)=Net Income/Total Assets (Aug19)
=2256.58/29459.447
=0.07659954

Lennar's return on assets of this year was 0.1406222. Lennar's return on assets of last year was 0.07659954. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Lennar's current Net Income (TTM) was 4,122. Lennar's current Cash Flow from Operations (TTM) was 2,606. ==> 2,606 <= 4,122 ==> CFROA <= ROA ==> Score 0.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Aug21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Aug20 to Aug21
=6650.866/30753.9718
=0.21626039

Gearing (Last Year: Aug20)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Aug19 to Aug20
=8138.594/29323.3934
=0.27754612

Lennar's gearing of this year was 0.21626039. Lennar's gearing of last year was 0.27754612. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Aug21)=Total Current Assets/Total Current Liabilities
=24440.478/1230.577
=19.86099041

Current Ratio (Last Year: Aug20)=Total Current Assets/Total Current Liabilities
=22080.185/1140.341
=19.36279148

Lennar's current ratio of this year was 19.86099041. Lennar's current ratio of last year was 19.36279148. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Lennar's number of shares in issue this year was 307.296. Lennar's number of shares in issue last year was 308.89. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=4902.553/25523.006
=0.19208368

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=3215.303/22634.495
=0.14205322

Lennar's gross margin of this year was 0.19208368. Lennar's gross margin of last year was 0.14205322. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Aug20)
=25523.006/29315.285
=0.87063817

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Aug19)
=22634.495/29459.447
=0.76832722

Lennar's asset turnover of this year was 0.87063817. Lennar's asset turnover of last year was 0.76832722. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+0+1+1+1+1+1
=8

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Lennar has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

Lennar  (NYSE:LEN) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Lennar Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of Lennar's Piotroski F-Score 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

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