LennarLEN +0.98%75 Pretax Margin % is 4.57% as of Feb. 2026, which is 65% below its 10-year median of 13.02. GuruFocus rates LEN with a GF Score™ of 75/100 and a GF Value™ of $126.26 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 91 Homebuilding & Construction companies, Lennar ranks worse than 56.04% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. Lennar's Pre-Tax Income for the
three
months ended in Feb. 2026 was $302 Mil. Lennar's Revenue for the
three
months ended in Feb. 2026 was $6,619 Mil. Therefore, Lennar's pretax margin for the quarter that ended in Feb. 2026 was 4.57%.
The historical rank and industry rank for Lennar's Pretax Margin % or its related term are showing as below:
LEN'
s Pretax Margin % Range Over the Past 10 Years
Min: 6.69 Med: 13.02 Max: 21.45
Current: 6.69
LEN's Pretax Margin % is ranked worse than 56.04% of 91
companies
in the Homebuilding & Construction industry
Industry Median: 7.18
vs LEN: 6.69
Lennar (NYSE:LEN) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Lennar Pretax Margin % Related Terms
Lennar Pretax Margin % Historical Data
* Premium members only.
The historical data trend for Lennar's Pretax Margin % 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 Pretax Margin %, along with its competitors' market caps and Pretax Margin % 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 Pretax Margin % vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Lennar's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Lennar's Pretax Margin % 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 (LEN) has a Pretax Margin % of 4.57% as of Feb. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Lennar and its competitors. This is 65% below median its historical median of 13.02. Over the past decade, Lennar's Pretax Margin % has ranged from 6.69 to 21.45. According to the industry distribution chart, Lennar ranks #51 out of 91 companies in the Homebuilding & Construction industry, placing it in the top 56%.
Is Lennar's Pretax Margin % too high?
Lennar's current Pretax Margin % of 4.57% is 65% below median its 10-year median of 13.02. Over the past 10 years, this metric has ranged from a low of 6.69 to a high of 21.45. The Homebuilding & Construction industry median Pretax Margin % is 7.18. Lennar's value of 4.57% is 36.4% below this industry median. Based on the distribution chart, Lennar ranks #51 out of 91 companies in the Homebuilding & Construction industry, which is below the industry midpoint. Overall, Lennar has a GF Score™ of 75/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Lennar's Pretax Margin % compare to PHM and NVR?
According to the Homebuilding & Construction industry distribution chart, Lennar ranks #51 out of 91 companies for Pretax Margin %. This places Lennar in the lower half of its industry. The industry median Pretax Margin % is 7.18. Lennar's value of 4.57% is 36.4% below this benchmark. Historically, Lennar's own Pretax Margin % has ranged from 6.69 to 21.45 over the past decade. While the company's 10-year median is 13.02 vs. the industry median of 7.18, Lennar has consistently been below 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 Pretax Margin % for a Homebuilding & Construction company?
The median Pretax Margin % among Homebuilding & Construction companies is 7.18, based on 91 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lennar's current Pretax Margin % of 4.57% is 36.4% below 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Lennar and its competitors. For the Homebuilding & Construction industry, the median Pretax Margin % is 7.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lennar's current Pretax Margin % is 4.57%, which is 65% below median its own 10-year median of 13.02. 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 (LEN) is currently considered Modestly Undervalued. The stock's GF Value™ is $126.26, compared to a current price of $93.86 — trading 25.7% below its estimated fair value. The current Pretax Margin % is 4.57%, which is 65% below median its 10-year median of 13.02 and 36.4% below the Homebuilding & Construction industry median of 7.18. Lennar's overall GF Score™ is 75/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Lennar (LEN), the current Pretax Margin % is 4.57% as of Feb. 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 (LEN) Overvalued in 2026?
Based on GuruFocus' analysis, Lennar stock appears to be undervalued.
The current stock price of $93.86 is trading 25.7% below its estimated GF Value™ of $126.26.
GuruFocus considers Lennar to be Modestly Undervalued.
Key valuation signals for LEN:
Pretax Margin %: 4.57% (65% below median its 10-year median of 13.02)
GF Value™: $126.26 vs. price of $93.86 (25.7% below fair value)
Industry Position: 36.4% below the Homebuilding & Construction median (#51 of 91)
No single metric tells the full story. See the 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.
75GF Score
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