Lennar Corporation — Earnings Quality Grade F
LEN · Consumer Cyclical
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 14 days, change -1 days YoY
AR growth -12.7% vs revenue growth -3.5%
Revenue -3.5%, CFFO -91.0%. Cash follows revenue
Expense Quality
Inventory -41.7% vs COGS 2.9%. Normal
CapEx growth 10.0% vs revenue -3.5%. Normal
SG&A/Gross Profit = 18.8%, excellent (<30%)
Gross margin swung -5.6pp (15.5% → 9.9%)
Cash Flow Quality
CFFO/NI = 0.10. Only 10% of profit backed by cash
FCF $0.0B, FCF/NI = 0.01
Accruals ratio = 5.4%. Elevated
Cash $3.8B covers 65% of debt $5.9B
Balance Sheet Health
Goodwill+Intangibles $3.6B = 17% of equity. Manageable
Debt/EBITDA = 2.0x. Healthy
Other assets -1.9% vs revenue -3.5%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 0% YoY. Normal
Manipulation Score
M-Score = -2.08 (grey zone)
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-10