LENCAUTIOUS

LEN Return on Equity (ROE) Analysis

7.4%

Updated 561h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders’ equity — in LEN’s case, $0.074 of profit per $1 of equity, or 7.4%.

Sector Performance

29th percentile

LEN

7.4%

Sector Median

13.3%

Sector Avg

16.9%

Prior Period

9.5%(May 2026)

↓ Declining

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders’ equity — in LEN’s case, $0.074 of profit per $1 of equity, or 7.4%.

That lag the sector median of 13.8%, placing the company at the 28th percentile among sector peers, meaning most comparable firms earn a higher return on their equity. The trend data is not available: both the year-over-year change and quarter-over-quarter change are reported as N/A, and the only historical value shown is the current 7.4%. With a level well below the sector median and no trend to confirm improvement, the risk is that LEN is generating weaker returns than its peers, offering less cushion for capital allocation issues. The low relative ROE alone justifies caution, but the missing trend removes any evidence of a turnaround. This metric directly supports the overall CAUTIOUS verdict: LEN’s profitability on equity is below average and unconfirmed by any positive momentum.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about LEN?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are LEN's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: LOW (-67.1%), MAR (-69.0%), BMBL (-76.9%), WBA (-82.7%), NIO (-84.0%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.