Lennar Faces Pressure From Shrinking Backlog and Lower EPS

StockStory argued that Lennar’s declining backlog, lower earnings per share and falling returns make the homebuilder less attractive. The analysis said the company’s backlog was $6.3 billion in its latest quarter, after averaging year-over-year declines of 8.6% over two years.

The publisher said the backlog trend points to weaker order momentum and may reflect greater competition or market saturation. It also reported that Lennar’s earnings per share fell by an average of 13.2% annually over five years, while revenue rose 4.6%.

StockStory also said Lennar’s return on invested capital had decreased in recent years, which it viewed as a sign of fewer profitable growth opportunities. The publisher characterized its assessment as a reason to pass on the shares, which it said traded at 17.2 times forward earnings.

The article said Lennar lost 3.1% over six months, compared with a 21.4% gain for the S&P 500. As of 18:33 UTC on Sept. 28, Lennar shares traded at $82.70, up 0.67% from the previous close.