Lennar Corporation
LEN.B Consumer Cyclical Residential Construction
Lennar Corporation’s revenue for fiscal 2025 (year ended November 2025) was $34.2 billion, down 3.54% from fiscal 2024. In the quarter to August 2026, revenue fell 8.67%, EPS fell 48.0%, free cash flow grew 50.1% and total debt rose 22.0%, each against the same quarter a year earlier. Dividend growth for ten consecutive years.
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Lennar Corporation (LEN.B) Altman Z-score
Lennar Corporation's Altman Z-score for fiscal 2025 is 4.17, in the safe zone (above 2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 4.17 | (0.45) |
| FY2024 | 4.62 | 0.36 |
| FY2023 | 4.26 | 0.54 |
| FY2022 | 3.72 | (0.16) |
| FY2021 | 3.89 | 0.66 |
| FY2020 | 3.23 | 0.42 |
| FY2019 | 2.81 | 0.39 |
| FY2018 | 2.42 | (0.27) |
| FY2017 | 2.68 | 0.04 |
| FY2016 | 2.65 | 0.09 |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.37 | — | 0.45 | |
| Retained earnings / total assets | 0.65 | — | 0.91 | |
| EBIT / total assets | 0.08 | — | 0.26 | |
| Market value of equity / total liabilities | 2.59 | — | 1.56 | |
| Sales / total assets | 0.99 | — | 0.99 | |
| Altman Z-score | Safe zone | 4.17 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Safe zone | 6.99 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| NVR NVR, Inc. compare | 13.8× |
| CVCO Cavco Industries, Inc. compare | 9.6× |
| SKY Champion Homes, Inc. compare | 7.1× |
| DHI D.R. Horton, Inc. compare | 6.4× |
| IBP Installed Building Products, Inc. compare | 6.3× |
| PHM PulteGroup, Inc. compare | 5.0× |
| LEN Lennar Corporation compare | 4.3× |
| LEN.B Lennar Corporation | 4.2× |
| TOL Toll Brothers Inc. compare | 4.1× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets