LENCAUTIOUS

LEN Gross Margin Analysis

7.0%

Updated 60h ago·SEC filings & market data

Key Takeaway

Gross margin, the percentage of revenue a company keeps after paying for the direct costs of its homes, is currently 7.0%.

Sector Performance

2th percentile

LEN

7.0%

Sector Median

44.6%

Sector Avg

45.5%

Prior Period

5.9%(Jun 2026)

↑ Improving

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Deep Analysis

Gross margin, the percentage of revenue a company keeps after paying for the direct costs of its homes, is currently 7.0%.

This is far below the sector median of 43.9%, placing LEN in the 2nd percentile among its peers—meaning only 2% of similar companies have a lower gross margin. Year-over-year change is not available, but the quarter-over-quarter change is +18.6%, showing a sharp improvement from the prior quarter’s 5.9%. Even with that recent uptick, the gross margin remains extremely low, signaling weak pricing power or high construction costs that still present risk. The combination of a very low level and a single positive quarterly move does not offset the fundamental disadvantage versus the sector. This metric strongly contradicts the overall CAUTIOUS verdict, as such a thin margin typically warrants a more bearish stance.

Frequently Asked Questions

What does the Gross Margin tell investors about LEN?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

Who are LEN's closest peers by Gross Margin?

The closest peers by Gross Margin include: MSCI (82.7%), SYF (82.7%), EA (82.8%), THC (83.4%), INTU (83.9%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.