Based on the aggregated intelligence of 125,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, homebuilder Lennar (NYSE:LEN) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at Lennar's business, and see what CAPS investors are saying about the stock right now.

Lennar facts

Headquarters (founded)

Miami (1954)

Market Cap

$1.38 billion


Residential Construction

TTM Revenue

$4.58 billion


President/CEO Stuart Miller (since 1997)
CFO Bruce Gross (since 1997)

Return on Equity (average, last five years and TTM)

(1.9%) and (34.4%)


Pulte Homes (NYSE:PHM),
Toll Brothers (NYSE:TOL)

CAPS members bearish on LEN also bearish on

Centex (NYSE:CTX),
D.R. Horton (NYSE:DHI)

CAPS members bullish on LEN also bullish on

Citigroup (NYSE:C)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 399 of the 466 All-Star members who have rated Lennar -- or 85.6% -- believe the stock will underperform the S&P 500 going forward. These bears include icanpickm and floridabuilder2, both of whom are ranked in the top 3% of our community.

Two weeks ago, icanpickm tapped Lennar as a highly levered, high-risk situation: "Mountains of debt and no way to pay it off until land appreciates. That could be a decade."

In a pitch from earlier in the month, floridabuilder2 replies to inquiring Fools and raises several more red flags:

I don't like [Lennar] because they have 1.1 billion in cash but they have an aggressive debt maturity schedule the next two years ... Additionally, no one is building [spec homes] today and [Lennar's] backlog of sales is SIGNIFICANTLY below its competitors. What does that mean? It means that in order to build backlog they need to slash prices, which brings in sales, but because they have so few specs it means they will have a lot of cash outflow as they ramp up construction.... plus [Lennar] is trying to do [joint ventures] to off balance sheet their land (shell game). They are the only one doing this tactic, which is stupid because no one is landbanking for anyone today. At this point in the game you don't off balance sheet unless there are issues.

What do you think about Lennar, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 125,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool's disclosure policy always gets a perfect score.