LEN · NYSE · General Bldg Contractors - Residential Bldgs
$78.57 · $20.3B market value · fiscal year to 30 Nov 2025
Live from the latest filings
6 of 10
Buffett tests pass
Margin of safety 72%
Bear
$157.13
Base
$280.06
Bull
$453.07
Price $78.57
The price is below even the bear case.
6 pass · 1 mixed · 3 fail · 0 can't tell
Return on equity averaged 15%, reaching 15% in 4 of the years measured; the weakest year was 8.3%. The latest year (8.3%) is below 12%, so the average overstates where returns are now.
Why this testEach dollar retained over the period has been matched by 0.5× of market value created ($23.2B retained in total).
Why this testThe diluted share count has changed by 1.0% a year. Shrinking means buybacks are returning value; growing means owners are being diluted.
Why this testAfter-tax return on invested capital averaged 17% over 10 years and was 8.9% in the latest year. The latest year is below the 10% a pass needs, so recent returns are weaker than the average.
Why this testNo loss years across 15 years of filings, with operating margin varying by 3.7% around its average.
Why this testTotal debt of $5.9B would take 2.0 yrs of normalised owner earnings to repay; operating income covers interest 57×. Both tests pass: payback within 4 years and interest cover of 8x or more.
Why this testNormalised owner earnings are $3.0B, and free cash flow has averaged 80% of reported profit.
Why this testCapital spending has averaged 1.2× depreciation; estimated maintenance capex was $188.6M last year.
Why this testAt $78.57, the price is 72% below the base-case value of $280.06 (the bear case is $157.13). The standard lens asks for a 25% margin.
Why this testThe owner-earnings yield is 15% against a 10-year Treasury yield of 5.2%.
Why this testDiscounted owner earnings
Bear
$157.13
Base
$280.06
Bull
$453.07
Price $78.57
The price is below even the bear case.
| Scenario | Starting owner earnings | Growth (yrs 1–5) | Terminal | Discount | Value / share |
|---|---|---|---|---|---|
| bear | $3.0B | 4.0% | 1.5% | 9.7% | $157.13 |
| base | $3.0B | 8.0% | 2.5% | 8.2% | $280.06 |
| bull | $3.0B | 11.0% | 3.0% | 7.2% | $453.07 |
How sensitive is that?
| Discount ↓ / Growth → | 4.0% | 6.0% | 8.0% | 10.0% | 12.0% |
|---|---|---|---|---|---|
| 6.2% | $348 | $394 | $445 | $503 |
Fiscal year to 30 Nov 2025
Replicly is a research and education tool. It is not financial advice and does not recommend that you buy or sell any investment. Analyses apply Buffett-inspired principles to public data and can be wrong. Warren Buffett and Berkshire Hathaway are not affiliated with and do not endorse Replicly. Capital is at risk.
| $566 |
| 7.1% | $271 | $306 | $345 | $388 | $437 |
|---|
| 8.2% | $221 | $249 | $280 | $315 | $353 |
|---|
| 9.2% | $186 | $209 | $235 | $263 | $295 |
|---|
| 10.2% | $160 | $180 | $201 | $226 | $252 |
|---|
Green: at least 25% above the price. Amber: above it. Red: below it. n/a means the discount rate is at or below growth, where the model has no finite answer. The corners combine the most extreme assumptions, so treat them as bounds.
Discount rate: 10-year Treasury (5.2%) plus a 3% equity hurdle. Price $78.57 on 20 Oct 2026. End-of-day prices from free public sources, may be delayed or missing.
Revenue
$34.2B
Revenue growth (CAGR)
13%
Operating margin (avg)
14%
Return on equity (avg)
15%
ROIC (avg)
17%
Normalised owner earnings
$3.0B
Cash conversion
80%
Net debt
$2.1B
Debt payback
2.0 yrs
Share count change (CAGR)
1.0%
Price / earnings
9.7×
Owner earnings yield
15%