Is LEN a high-quality business?

AlphaMadera's AlphaQuality grade scores Lennar Corporation on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how LEN compares to a Buffett-style quality bar.

What is Lennar Corporation's AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to LEN based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes LEN a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

LEN - Lennar Corporation

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $102.14 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Cyclical & Capital-Intensive

AlphaQuality — archetype-weighted quantitative grade

B- 68.0 / 100 composite

Composite Grade

Composite of six pillars weighted for cyclical & capital-intensive businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 15%

C 51.9

5yr Avg ROIC 13.2% 74/100
Operating Margin Trend -2.83 pp/yr 0/100

Capital Efficiency

Weight: 15%

A 89.9

5yr Avg ROE 17.3% 86/100
5yr Share-Count CAGR -4.2% 98/100

Growth Quality

Weight: 10%

C- 45.1

5yr Revenue CAGR 5.9% 65/100
5yr EPS CAGR -13.5% 0/100
Revenue-Growth Years (5) 4/5 80/100

Cash Generation

Weight: 15%

C+ 60.2

5yr FCF Margin 8.0% 62/100
5yr FCF/NI Conversion 0.62x 58/100

Balance Sheet

Weight: 25%

A 91.6

Net Debt / EBITDA 0.87x 86/100
Interest Coverage (EBIT/Int) 198.24x 100/100
Altman Z-Score 3.74 91/100

Stability

Weight: 20%

C 51.3

EPS Volatility (σ/μ) 0.56 25/100
Piotroski F-Score 6 67/100
Negative-Revenue Years (5) 1/5 80/100

4 of 4 gurus held; 1 added; 2 trimmed; 1 full exit.

Holders: 4
Avg Δ position: -9.0%
New buys: 0
Full exits: 1

Druckenmiller sold -100%
Greenblatt decreased -50%
Buffett increased +43%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (15%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (10%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (25%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (20%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.