LII Stock Analysis: Lennox International | NYSE
Building Products & Equipment | NYSE, USA | Market Cap: 13.923m USD | 12M Return: -29% | US5261071071 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 211M
EPS Trend: 87.4%
Qual. Beats: 0
Rev. Trend: 77.0%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 11.6 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Lennox International Inc. (NYSE: LII) is a U.S.-based manufacturer operating in the Industrials sector (GICS Sub Industry: Building Products), focused on designing, producing, and marketing heating, ventilation, air conditioning, and refrigeration (HVACR) products for residential, commercial, and refrigeration markets across North America and select international markets. Founded in 1895 and headquartered in Richardson, Texas, the company has operated for over 125 years and went public in 1999.
The company operates through reportable segments including Home Comfort Solutions and Building Climate Solutions, offering a broad portfolio ranging from furnaces, air conditioners, and heat pumps to commercial unitary equipment, chillers, and refrigeration components. Lennox uses a multi-brand strategy (e.g., Lennox, Armstrong Air, Ducane, Allied, Bohn, Heatcraft) to serve different price points and customer channels, and distributes its products through direct sales, independent distributors, and company-owned parts and supplies stores. The HVAC industry is closely tied to residential and non-residential construction cycles, replacement demand, and tightening energy efficiency standards, which influence demand for the companys equipment.
- Residential HVAC demand recovers as channel destocking ends
- EPA A2L refrigerant transition accelerates equipment replacement cycle
- Commercial HVAC margins pressured by weak non-residential construction
| Net Income: 774.5m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.16 > 0.02 and ΔFCF/TA -2.37 > 1.0 |
| NWC/Revenue: 15.45% < 20% (prev 10.81%; Δ 4.64% < -1%) |
| CFO/TA 0.20 > 3% & CFO 894.7m > Net Income 774.5m |
| Net Debt (2.49b) to EBITDA (1.15b): 2.17 < 3 |
| Current Ratio: 1.57 > 1.5 & < 3 |
| Outstanding Shares: last quarter (34.8m) vs 12m ago -1.97% < -2% |
| Gross Margin: 33.10% > 18% (prev 33.13%; Δ -0.03% > 0.5%) |
| Asset Turnover: 129.4% > 50% (prev 148.3%; Δ -18.93% > 0%) |
| Interest Coverage Ratio: 18.24 > 6 (EBIT TTM 1.03b / Interest Expense TTM 56.3m) |
| A: 0.18 (Total Current Assets 2.26b - Total Current Liabilities 1.44b) / Total Assets 4.54b |
| B: 1.14 (Retained Earnings 5.19b / Total Assets 4.54b) |
| C: 0.25 (EBIT TTM 1.03b / Avg Total Assets 4.10b) |
| D: 0.40 (Book Value of Equity 1.30b / Total Liabilities 3.25b) |
| Altman-Z'' = 7.00 = AAA |
| DSRI: 1.08 (Receivables 918.1m/868.2m, Revenue 5.30b/5.42b) |
| GMI: 1.00 (GM 33.13% / 33.10%) |
| AQI: 1.58 (AQ_t 0.21 / AQ_t-1 0.13) |
| SGI: 0.98 (Revenue 5.30b / 5.42b) |
| TATA: -0.03 (NI 774.5m - CFO 894.7m) / TA 4.54b) |
| Beneish M = -2.63 (Cap -4..+1) = A |
As of August 30, 2026, the stock is trading at USD 393.39 with a total of 370,330 shares traded. Over the past week, the price has changed by -2.35%, over one month by -27.70%, over three months by -20.66% and over the past year by -28.95%.
Current recommended Stop Loss: 371.60 (which is 5.5% or 1.4 ATR below the current price).
Lennox International has received a consensus analysts rating of 2.95. Therefore, it is recommended to hold LII.
- StrongBuy: 4
- Buy: 2
- Hold: 8
- Sell: 3
- StrongSell: 4
| Analysts Target Price | 511.2 | 29.9% |
P/E Trailing = 17.8894
P/E Forward = 17.3913
P/S = 2.626
P/B = 10.7335
P/EG = 1.2114
Revenue TTM = 5.30b USD
EBIT TTM = 1.03b USD
EBITDA TTM = 1.15b USD
Long Term Debt = 1.09b USD (from longTermDebt, last quarter)
Short Term Debt = 519.3m USD (from shortTermDebt, last quarter)
Debt = 2.54b USD (from shortLongTermDebtTotal, last quarter) + Leases 518.1m
Net Debt = 2.49b USD (calculated: Debt 2.54b - CCE 52.1m)
Enterprise Value = 16.4b USD (13.9b + Debt 2.54b - CCE 52.1m)
Interest Coverage Ratio = 18.24 (Ebit TTM 1.03b / Interest Expense TTM 56.3m)
EV/FCF = 22.22x (Enterprise Value 16.4b / FCF TTM 738.7m)
FCF Yield = 4.50% (FCF TTM 738.7m / Enterprise Value 16.4b)
FCF Margin = 13.93% (FCF TTM 738.7m / Revenue TTM 5.30b)
Net Margin = 14.61% (Net Income TTM 774.5m / Revenue TTM 5.30b)
Gross Margin = 33.10% ((Revenue TTM 5.30b - Cost of Revenue TTM 3.55b) / Revenue TTM)
Gross Margin QoQ = 34.91% (prev 30.95%)
Tobins Q-Ratio = 3.61 (Enterprise Value 16.4b / Total Assets 4.54b)
Interest Expense / Debt = 2.21% (Interest Expense 56.3m / Debt 2.54b)
Taxrate = 19.66% (189.5m / 964.0m)
NOPAT = 825.2m (EBIT 1.03b * (1 - 19.66%))
Current Ratio = 1.57 (Total Current Assets 2.26b / Total Current Liabilities 1.44b)
Debt / Equity = 1.96 (Debt 2.54b / totalStockholderEquity, last quarter 1.30b)
Debt / EBITDA = 2.17 (Net Debt 2.49b / EBITDA 1.15b)
Debt / FCF = 3.37 (Net Debt 2.49b / FCF TTM 738.7m)
Total Stockholder Equity = 1.19b (last 4 quarters mean from totalStockholderEquity)
RoA = 18.90% (Net Income 774.5m / Total Assets 4.54b)
RoE = 65.30% (Net Income TTM 774.5m / Total Stockholder Equity 1.19b)
RoCE = 45.03% (EBIT 1.03b / Capital Employed (Equity 1.19b + L.T.Debt 1.09b))
RoIC = 23.09% (NOPAT 825.2m / Invested Capital 3.57b)
WACC = 9.03% (E(13.9b)/V(16.5b) * Re(10.36%) + D(2.54b)/V(16.5b) * Rd(2.21%) * (1-Tc(0.20)))
Discount Rate = 10.36% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -92.84 | Cagr: -1.25%
[DCF] Terminal Value 74.21% ; FCFF base≈715.3m ; Y1≈769.4m ; Y5≈935.4m
[DCF] Fair Price = 299.2 (EV 12.8b - Net Debt 2.49b = Equity 10.3b / Shares 34.6m; r=9.03% [WACC]; 5y FCF grow 8.62% → 2.50% )
EPS Correlation: 87.38 | EPS CAGR: 11.75% | SUE: 0.17 | # QB: 0
Revenue Correlation: 77.03 | Revenue CAGR: 2.94% | SUE: -0.28 | # QB: 0
EPS current Quarter (2026-09-30): EPS=7.52 | Chg30d=-5.56% | Revisions=-71% | Analysts=16
EPS current Year (2026-12-31): EPS=23.67 | Chg30d=-3.21% | Revisions=-71% | GrowthEPS=+2.2% | GrowthRev=+7.6%
EPS next Year (2027-12-31): EPS=26.33 | Chg30d=-1.59% | Revisions=-56% | GrowthEPS=+11.2% | GrowthRev=+6.3%
[Analyst] Revisions Ratio: -75% (up=4, down=37)