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The BusinessWeek 50 Ranking

42

Lennar

RIP-ROARING GROWTH in California and Florida, where homebuilder Lennar did nearly half of its business last year, helped propel the Miami company to five-year compound annual growth of 42% in profits and 24% in revenue. But now those saltwater markets are softening, and the company plans to pound the hammer more slowly. It’s looking for 13% growth in unit sales this year. Analysts say Lennar can tolerate a weaker housing market better than some rivals because of its disciplined land-buying program, its conservative 33% ratio of nonfinancial services debt to capital, around $1 billion in cash, and an opportunistic culture. With LNR Property Corp., a commercial real estate developer it spun off in 1997, Lennar builds communities that include housing, offices, and retail. It specializes in developing former military bases. Lennar might gain market share in a housing downturn because it snaps up land and smaller builders at market bottoms. For now, it’s trying to rev up sales. In suddenly cooling Palm Beach, Fla., after cutting broker commissions to 2% in 2004, it set out to entice brokers by raising commissions last year to as high as 5% for multiple sales.

Company Info

2005 Rank

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COMPANY INFO

LEN

Market Value
$ Million

9,431.5

Total Return
$ Million
(1-yr.) -0.6
(3-yr.) 149.7
2005 Sales
$ Billion

13.9

Sales Growth
$ Million
(1-yr.) 32
(3-yr.) 23.6
Long-Term Growth Est. %

15.0

Net income
$ Million

1,344.4

Net Income Growth
$ Million
(1-yr.) 42
(3-yr.) 34.1
Net Margin %*

9.7

Return on Inv. Capital (%)*

17.0

Share Price
12-Mo. Hi/Lo

69/50

P/E Ratio

7

Industry Consumer Durables & Apparel
CORPORATE WEB SITE
More in S&P 500 Companies Scoreboard >
*Trailing 12 months
Company data as of 2/28/06 provided by Standard & Poor's Compustat

Stuart A. Miller

Stuart A. Miller, 48

CEO since 1997


PHOTO BY jeffery salter/redux


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