LII Stock Analysis: Lennox International | NYSE
Building Products & Equipment | NYSE, USA | Market Cap: 19.211m USD | 12M Return: -7.6% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 221M
EPS Trend: 92.7%
Qual. Beats: 0
Rev. Trend: 83.8%
Qual. Beats: 1
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Seasonality 10.5 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: 783.1m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.15 > 0.02 and ΔFCF/TA -6.98 > 1.0 |
| NWC/Revenue: 14.07% < 20% (prev 10.44%; Δ 3.62% < -1%) |
| CFO/TA 0.19 > 3% & CFO 809.5m > Net Income 783.1m |
| Net Debt (2.40b) to EBITDA (1.16b): 2.07 < 3 |
| Current Ratio: 1.57 > 1.5 & < 3 |
| Outstanding Shares: last quarter (35.0m) vs 12m ago -1.96% < -2% |
| Gross Margin: 33.06% > 18% (prev 32.80%; Δ 0.26% > 0.5%) |
| Asset Turnover: 135.7% > 50% (prev 155.3%; Δ -19.60% > 0%) |
| Interest Coverage Ratio: 20.43 > 6 (EBIT TTM 1.02b / Interest Expense TTM 49.9m) |
| A: 0.17 (Total Current Assets 2.03b - Total Current Liabilities 1.29b) / Total Assets 4.29b |
| B: 1.16 (Retained Earnings 4.96b / Total Assets 4.29b) |
| C: 0.26 (EBIT TTM 1.02b / Avg Total Assets 3.87b) |
| D: 0.39 (Book Value of Equity 1.21b / Total Liabilities 3.08b) |
| Altman-Z'' = 7.08 = AAA |
| DSRI: 1.01 (Receivables 647.9m/651.7m, Revenue 5.26b/5.37b) |
| GMI: 0.99 (GM 32.80% / 33.06%) |
| AQI: 1.62 (AQ_t 0.22 / AQ_t-1 0.14) |
| SGI: 0.98 (Revenue 5.26b / 5.37b) |
| TATA: -0.01 (NI 783.1m - CFO 809.5m) / TA 4.29b) |
| Beneish M = -2.67 (Cap -4..+1) = A |
As of July 15, 2026, the stock is trading at USD 562.77 with a total of 339,836 shares traded. Over the past week, the price has changed by +1.05%, over one month by +7.62%, over three months by +8.40% and over the past year by -7.57%.
Current recommended Stop Loss: 536.10 (which is 4.7% 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 | 572.9 | 1.8% |
P/E Trailing = 24.5129
P/E Forward = 22.8311
P/S = 3.6537
P/B = 15.8255
P/EG = 1.5912
Revenue TTM = 5.26b USD
EBIT TTM = 1.02b USD
EBITDA TTM = 1.16b USD
Long Term Debt = 1.09b USD (from longTermDebt, last quarter)
Short Term Debt = 463.0m USD (from shortTermDebt, last quarter)
Debt = 2.45b USD (from shortLongTermDebtTotal, last quarter) + Leases 499.9m
Net Debt = 2.40b USD (calculated: Debt 2.45b - CCE 50.2m)
Enterprise Value = 21.6b USD (19.2b + Debt 2.45b - CCE 50.2m)
Interest Coverage Ratio = 20.43 (Ebit TTM 1.02b / Interest Expense TTM 49.9m)
EV/FCF = 32.72x (Enterprise Value 21.6b / FCF TTM 660.7m)
FCF Yield = 3.06% (FCF TTM 660.7m / Enterprise Value 21.6b)
FCF Margin = 12.57% (FCF TTM 660.7m / Revenue TTM 5.26b)
Net Margin = 14.89% (Net Income TTM 783.1m / Revenue TTM 5.26b)
Gross Margin = 33.06% ((Revenue TTM 5.26b - Cost of Revenue TTM 3.52b) / Revenue TTM)
Gross Margin QoQ = 30.95% (prev 32.58%)
Tobins Q-Ratio = 5.04 (Enterprise Value 21.6b / Total Assets 4.29b)
Interest Expense / Debt = 2.03% (Interest Expense 49.9m / Debt 2.45b)
Taxrate = 19.22% (186.3m / 969.4m)
NOPAT = 823.4m (EBIT 1.02b * (1 - 19.22%))
Current Ratio = 1.57 (Total Current Assets 2.03b / Total Current Liabilities 1.29b)
Debt / Equity = 2.02 (Debt 2.45b / totalStockholderEquity, last quarter 1.21b)
Debt / EBITDA = 2.07 (Net Debt 2.40b / EBITDA 1.16b)
Debt / FCF = 3.64 (Net Debt 2.40b / FCF TTM 660.7m)
Total Stockholder Equity = 1.09b (last 4 quarters mean from totalStockholderEquity)
RoA = 20.21% (Net Income 783.1m / Total Assets 4.29b)
RoE = 72.05% (Net Income TTM 783.1m / Total Stockholder Equity 1.09b)
RoCE = 46.74% (EBIT 1.02b / Capital Employed (Equity 1.09b + L.T.Debt 1.09b))
RoIC = 24.13% (NOPAT 823.4m / Invested Capital 3.41b)
WACC = 9.04% (E(19.2b)/V(21.7b) * Re(9.99%) + D(2.45b)/V(21.7b) * Rd(2.03%) * (1-Tc(0.19)))
Discount Rate = 9.99% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -87.90 | Cagr: -1.00%
[DCF] Terminal Value 70.63% ; FCFF base≈705.7m ; Y1≈621.6m ; Y5≈506.8m
[DCF] Fair Price = 140.4 (EV 7.29b - Net Debt 2.40b = Equity 4.89b / Shares 34.8m; r=9.04% [WACC]; 5y FCF grow -14.54% → 2.50% )
EPS Correlation: 92.72 | EPS CAGR: 15.40% | SUE: 0.40 | # QB: 0
Revenue Correlation: 83.78 | Revenue CAGR: 3.76% | SUE: 1.03 | # QB: 1
EPS current Quarter (2026-06-30): EPS=7.66 | Chg30d=+0.73% | Revisions=-40% | Analysts=16
EPS next Quarter (2026-09-30): EPS=7.97 | Chg30d=+0.76% | Revisions=-40% | Analysts=16
EPS current Year (2026-12-31): EPS=24.46 | Chg30d=+0.54% | Revisions=+17% | GrowthEPS=+5.6% | GrowthRev=+8.3%
EPS next Year (2027-12-31): EPS=26.76 | Chg30d=+0.19% | Revisions=+0% | GrowthEPS=+9.4% | GrowthRev=+5.7%
[Analyst] Revisions Ratio: -25% (up=3, down=6)