Lennar Corporation: Company Profile and SWOT Analysis by ICDResearch

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									Lennar Corporation

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Lennar Corporation                                                           Financial Snapshot

                                                                             Operating Performance
Fast Facts
                                        700 Northwest 107th Avenue, Miami,   The company reported revenues of US$3,074.02
Headquarters Address
                                        33172,United States of America       million during 2010, with a CARC of -34.07% during
                                                                             2006–2010. Its revenue declined at an annual rate of
Telephone                               + 1 800 7414663
                                                                             1.45% over the previous fiscal year. In 2010, the
                                                                             company recorded an operating margin of 3.08%, as
Fax                                     + 1 305 2288383                      against -24.38% in 2009.

Website                                 www.lennar.com
                                                                             Revenue and Margins
                                        LEN, New York Stock ExchangeLEN.B,
Ticker Symbol, Stock Exchange
                                        New York Stock Exchange

Number of Employees                     4,087

Fiscal Year End                         November

Revenue (in US$ million)                3,074.02




SWOT Analysis

Strengths                               Weaknesses                           Return on Equity

Flexible business strategy              Decreasing Order Book                The company recorded a return on equity (ROE) of
                                                                             3.65% for 2010, as compared to its peers, Boston
                                                                             Properties, Inc. (Ticker: BXP), Prologis, Inc. (Ticker:
Healthy portfolio                       Limited geographical reach           AMB) and KB Home (Ticker: KBH), which recorded
                                                                             ROEs of 3.64%, 0.82% and -10.98% respectively.
Quality service                         Low solvency                         The company reported an operating margin of 3.08%
                                                                             in 2010.


                                                                             Return on Equity
Opportunities                           Threats

Green trends                            Environmental regulations

Growth in domestic residential market   Liability of contractors

                                        Shrinking supply of skilled craft
Prefab housing market
                                        professionals

Recovering property sector

Rising demand for senior housing in
the U.S


                                                                             Financial Leverage

                                                                             The company reported a debt to equity ratio of 1.60 in
                                                                             2010, as compared to its peers, Boston Properties,
                                                                             Inc., Prologis, Inc. and KB Home, which recorded
                                                                             debt to equity ratios of 1.78, 1.00 and 2.81
                                                                             respectively. In 2010, the company recorded a debt
                                                                             to capital ratio of 0.00, as compared to its peers,
                                                                             Boston Properties, Inc., Prologis, Inc. and KB Home,
                                                                             which recorded debt to capital ratios of 0.01, 0.00 and
                                                                             0.01 respectively.




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Lennar Corporation - SWOT Profile                                                                                    Page 1
Lennar Corporation

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TABLE OF CONTENTS

1     Business Analysis ................................................................................................................................... 5
    1.1       Company Overview ................................................................................................................................................5
    1.2       Business Description ..............................................................................................................................................5
    1.3       Major Products and Services .................................................................................................................................6
2     Analysis of Key Performance Indicators ............................................................................................... 7
    2.1       Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................7
    2.2       Key Financial Performance Indicators .................................................................................................................10
      2.2.1       Revenue and Operating Profit .........................................................................................................................10
      2.2.2       Asset, Liabilities and Capex .............................................................................................................................11
      2.2.3       Net Debt vs. Gearing Ratio ..............................................................................................................................12
      2.2.4       Valuation ..........................................................................................................................................................13
    2.3       Competitive Benchmarking ..................................................................................................................................14
      2.3.1       Market Capitalization .......................................................................................................................................14
      2.3.2       Efficiency ..........................................................................................................................................................15
      2.3.3       Turnover – Inventory and Asset .......................................................................................................................16
3     Mergers & Acquisitions and Partnerships ........................................................................................... 17
    3.1       M&A and Partnerships Strategy ...........................................................................................................................17
4     Recent Developments ........................................................................................................................... 18
5     SWOT Analysis ...................................................................................................................................... 19
    5.1       SWOT Analysis - Overview ..................................................................................................................................19
    5.2       Strengths ..............................................................................................................................................................19
    5.3       Weaknesses .........................................................................................................................................................19
    5.4       Opportunities ........................................................................................................................................................20
    5.5       Threats .................
								
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