(LII) Lennox International - Overview
Sector: Industrials | Industry: Building Products & Equipment | Exchange: NYSE (USA) | Market Cap: 16.722m USD | Total Return: -14.8% in 12m
Avg Turnover: 210M
EPS Trend: 92.7%
Qual. Beats: 0
Rev. Trend: 83.8%
Qual. Beats: 1
Warnings
Below Avwap Earnings
Tailwinds
No distinct edge detected
Lennox International Inc. (LII) is a global provider of climate control solutions, specializing in the design and manufacture of heating, ventilation, air conditioning, and refrigeration (HVACR) systems. The company operates through two primary segments: Home Comfort Solutions, which serves the residential market, and Building Climate Solutions, which focuses on commercial equipment and services. Its extensive brand portfolio includes Lennox, Allied Commercial, and Heatcraft Worldwide Refrigeration.
The HVAC industry is characterized by a high percentage of replacement-driven demand, as aging infrastructure and tightening environmental regulations often necessitate equipment upgrades regardless of economic cycles. Lennox utilizes a vertically integrated business model, distributing products through a mix of direct sales channels, independent distributors, and more than 200 company-owned parts and supplies stores. Investors may find it useful to examine ValueRay for deeper insights into the companys valuation metrics.
Founded in 1895 and headquartered in Richardson, Texas, the company maintains a significant presence in the United States and Canada. Its product range spans from residential furnaces and air handlers to complex commercial rooftop units and industrial process chillers.
- Residential replacement demand cycles drive consistent high-margin revenue growth
- Regulatory shifts toward energy-efficient heat pumps accelerate product premiumization
- Raw material price volatility impacts manufacturing margins and bottom-line profitability
- Expansion of company-owned distribution stores strengthens direct-to-consumer market share
- Commercial HVAC modernization projects boost building climate solutions segment backlog
| 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 (1.14b): 2.11 < 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 0.33%; Δ 3.27k% > 0.5%) |
| Asset Turnover: 135.7% > 50% (prev 155.3%; Δ -19.60% > 0%) |
| Interest Coverage Ratio: 20.56 > 6 (EBITDA TTM 1.14b / 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 1.03b / Avg Total Assets 3.87b) |
| D: 1.60 (Book Value of Equity 4.92b / Total Liabilities 3.08b) |
| Altman-Z'' = 8.36 = AAA |
| DSRI: 1.01 (Receivables 647.9m/651.7m, Revenue 5.26b/5.37b) |
| GMI: 0.99 (GM 33.06% / 32.80%) |
| 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 = -2.68 (Cap -4..+1) = A |
As of May 24, 2026, the stock is trading at USD 480.51 with a total of 473,227 shares traded.
Over the past week, the price has changed by -3.07%,
over one month by -1.05%,
over three months by -12.40% and
over the past year by -14.78%.
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 | 567.1 | 18% |
P/E Forward = 19.8807
P/S = 3.1804
P/B = 13.7752
P/EG = 1.385
Revenue TTM = 5.26b USD
EBIT TTM = 1.03b USD
EBITDA TTM = 1.14b 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 = 19.1b USD (16.7b + Debt 2.45b - CCE 50.2m)
Interest Coverage Ratio = 20.56 (Ebit TTM 1.03b / Interest Expense TTM 49.9m)
EV/FCF = 28.95x (Enterprise Value 19.1b / FCF TTM 660.7m)
FCF Yield = 3.45% (FCF TTM 660.7m / Enterprise Value 19.1b)
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 = 4.46 (Enterprise Value 19.1b / Total Assets 4.29b)
Interest Expense / Debt = 2.03% (Interest Expense 49.9m / Debt 2.45b)
Taxrate = 20.22% (29.7m / 146.9m)
NOPAT = 818.6m (EBIT 1.03b * (1 - 20.22%))
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 = 2.11 (Net Debt 2.40b / EBITDA 1.14b)
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 = 47.05% (EBIT 1.03b / Capital Employed (Equity 1.09b + L.T.Debt 1.09b))
RoIC = 23.99% (NOPAT 818.6m / Invested Capital 3.41b)
WACC = 9.07% (E(16.7b)/V(19.2b) * Re(10.16%) + D(2.45b)/V(19.2b) * Rd(2.03%) * (1-Tc(0.20)))
Discount Rate = 10.16% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -86.92 | Cagr: -1.00%
[DCF] Terminal Value 70.54% ; FCFF base≈705.7m ; Y1≈621.6m ; Y5≈506.8m
[DCF] Fair Price = 139.7 (EV 7.27b - Net Debt 2.40b = Equity 4.86b / Shares 34.8m; r=9.07% [WACC]; 5y FCF grow -14.54% → 2.50% )
EPS Correlation: 92.72 | EPS CAGR: 15.40% | SUE: 0.29 | # QB: 0
Revenue Correlation: 83.78 | Revenue CAGR: 3.76% | SUE: 1.03 | # QB: 1
EPS current Quarter (2026-06-30): EPS=7.59 | Chg30d=-1.23% | Revisions=-14% | Analysts=19
EPS next Quarter (2026-09-30): EPS=7.87 | Chg30d=+0.05% | Revisions=+14% | Analysts=19
EPS current Year (2026-12-31): EPS=24.27 | Chg30d=+0.18% | Revisions=+62% | GrowthEPS=+4.8% | GrowthRev=+7.8%
EPS next Year (2027-12-31): EPS=26.63 | Chg30d=+0.05% | Revisions=+37% | GrowthEPS=+9.7% | GrowthRev=+5.7%
[Analyst] Revisions Ratio: +62%