LENNOX INTERNATIONAL INC (LII) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:LII • US5261071071
508.49 USD
+13.2 (+2.67%)
At close: Feb 3, 2026
508.49 USD
0 (0%)
After Hours: 2/3/2026, 4:31:31 PM
We assign a fundamental rating of 6 out of 10 to LII. LII was compared to 42 industry peers in the Building Products industry. LII scores excellent on profitability, but there are some minor concerns on its financial health. LII is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- LII had positive earnings in the past year.
- In the past year LII had a positive cash flow from operations.
- LII had positive earnings in each of the past 5 years.
- LII had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of LII (19.26%) is better than 100.00% of its industry peers.
- Looking at the Return On Equity, with a value of 67.60%, LII belongs to the top of the industry, outperforming 97.62% of the companies in the same industry.
- LII's Return On Invested Capital of 26.39% is amongst the best of the industry. LII outperforms 97.62% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for LII is significantly above the industry average of 12.68%.
- The last Return On Invested Capital (26.39%) for LII is well below the 3 year average (32.47%), which needs to be investigated, but indicates that LII had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.26% | ||
| ROE | 67.6% | ||
| ROIC | 26.39% |
ROA(3y)21.04%
ROA(5y)20.77%
ROE(3y)120%
ROE(5y)N/A
ROIC(3y)32.47%
ROIC(5y)37.4%
1.3 Margins
- Looking at the Profit Margin, with a value of 15.13%, LII belongs to the top of the industry, outperforming 80.95% of the companies in the same industry.
- LII's Profit Margin has improved in the last couple of years.
- LII has a better Operating Margin (19.53%) than 85.71% of its industry peers.
- In the last couple of years the Operating Margin of LII has grown nicely.
- Looking at the Gross Margin, with a value of 32.89%, LII is in line with its industry, outperforming 54.76% of the companies in the same industry.
- LII's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.53% | ||
| PM (TTM) | 15.13% | ||
| GM | 32.89% |
OM growth 3Y13.22%
OM growth 5Y8.35%
PM growth 3Y13.76%
PM growth 5Y9.61%
GM growth 3Y7.04%
GM growth 5Y3.13%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), LII is creating value.
- Compared to 1 year ago, LII has less shares outstanding
- Compared to 5 years ago, LII has less shares outstanding
- LII has a worse debt/assets ratio than last year.
2.2 Solvency
- LII has an Altman-Z score of 7.55. This indicates that LII is financially healthy and has little risk of bankruptcy at the moment.
- LII's Altman-Z score of 7.55 is amongst the best of the industry. LII outperforms 88.10% of its industry peers.
- LII has a debt to FCF ratio of 2.17. This is a good value and a sign of high solvency as LII would need 2.17 years to pay back of all of its debts.
- LII's Debt to FCF ratio of 2.17 is fine compared to the rest of the industry. LII outperforms 69.05% of its industry peers.
- A Debt/Equity ratio of 1.18 is on the high side and indicates that LII has dependencies on debt financing.
- LII has a worse Debt to Equity ratio (1.18) than 85.71% of its industry peers.
- Even though the debt/equity ratio score it not favorable for LII, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 2.17 | ||
| Altman-Z | 7.55 |
ROIC/WACC2.92
WACC9.03%
2.3 Liquidity
- A Current Ratio of 1.60 indicates that LII should not have too much problems paying its short term obligations.
- LII's Current ratio of 1.60 is on the low side compared to the rest of the industry. LII is outperformed by 71.43% of its industry peers.
- LII has a Quick Ratio of 1.60. This is a bad value and indicates that LII is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.63, LII is doing worse than 92.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.6 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
- LII shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.18%.
- The Earnings Per Share has been growing by 17.85% on average over the past years. This is quite good.
- Looking at the last year, LII shows a decrease in Revenue. The Revenue has decreased by -2.73% in the last year.
- LII shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.41% yearly.
EPS 1Y (TTM)0.18%
EPS 3Y17.09%
EPS 5Y17.85%
EPS Q2Q%-20.54%
Revenue 1Y (TTM)-2.73%
Revenue growth 3Y3.26%
Revenue growth 5Y7.41%
Sales Q2Q%-11.15%
3.2 Future
- Based on estimates for the next years, LII will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.58% on average per year.
- LII is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.19% yearly.
EPS Next Y9.88%
EPS Next 2Y9.41%
EPS Next 3Y8.74%
EPS Next 5Y11.58%
Revenue Next Year6.42%
Revenue Next 2Y5.96%
Revenue Next 3Y5.64%
Revenue Next 5Y8.19%
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 22.48, which indicates a rather expensive current valuation of LII.
- Compared to the rest of the industry, the Price/Earnings ratio of LII is on the same level as its industry peers.
- When comparing the Price/Earnings ratio of LII to the average of the S&P500 Index (28.41), we can say LII is valued slightly cheaper.
- LII is valuated rather expensively with a Price/Forward Earnings ratio of 20.46.
- LII's Price/Forward Earnings is on the same level as the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 25.64. LII is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.48 | ||
| Fwd PE | 20.46 |
4.2 Price Multiples
- LII's Enterprise Value to EBITDA is on the same level as the industry average.
- LII's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.92 | ||
| EV/EBITDA | 16.41 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates LII does not grow enough to justify the current Price/Earnings ratio.
- LII has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.28
PEG (5Y)1.26
EPS Next 2Y9.41%
EPS Next 3Y8.74%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.05%, LII has a reasonable but not impressive dividend return.
- LII's Dividend Yield is a higher than the industry average which is at 0.68.
- With a Dividend Yield of 1.05, LII pays less dividend than the S&P500 average, which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
5.2 History
- The dividend of LII is nicely growing with an annual growth rate of 9.86%!
- LII has been paying a dividend for at least 10 years, so it has a reliable track record.
- LII has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)9.86%
Div Incr Years15
Div Non Decr Years25
5.3 Sustainability
- LII pays out 22.00% of its income as dividend. This is a sustainable payout ratio.
- The dividend of LII is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP22%
EPS Next 2Y9.41%
EPS Next 3Y8.74%
508.49
+13.2 (+2.67%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)01-28 2026-01-28/bmo
Earnings (Next)04-21 2026-04-21/bmo
Inst Owners77.38%
Inst Owner Change6.18%
Ins Owners10.24%
Ins Owner Change-0.91%
Market Cap17.83B
Revenue(TTM)5.20B
Net Income(TTM)786.20M
Analysts69.17
Price Target575.39 (13.16%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
Yearly Dividend4.92
Dividend Growth(5Y)9.86%
DP22%
Div Incr Years15
Div Non Decr Years25
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.88%
Min EPS beat(2)-7.23%
Max EPS beat(2)1.48%
EPS beat(4)3
Avg EPS beat(4)2.29%
Min EPS beat(4)-7.23%
Max EPS beat(4)12.93%
EPS beat(8)7
Avg EPS beat(8)7.76%
EPS beat(12)11
Avg EPS beat(12)9.18%
EPS beat(16)14
Avg EPS beat(16)8%
Revenue beat(2)0
Avg Revenue beat(2)-6.03%
Min Revenue beat(2)-6.86%
Max Revenue beat(2)-5.2%
Revenue beat(4)2
Avg Revenue beat(4)-1.86%
Min Revenue beat(4)-6.86%
Max Revenue beat(4)3.93%
Revenue beat(8)4
Avg Revenue beat(8)0.1%
Revenue beat(12)8
Avg Revenue beat(12)0.82%
Revenue beat(16)11
Avg Revenue beat(16)0.78%
PT rev (1m)0.04%
PT rev (3m)-0.96%
EPS NQ rev (1m)-1.2%
EPS NQ rev (3m)-2.21%
EPS NY rev (1m)-0.12%
EPS NY rev (3m)-1.54%
Revenue NQ rev (1m)-0.62%
Revenue NQ rev (3m)-0.54%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-1.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.48 | ||
| Fwd PE | 20.46 | ||
| P/S | 3.43 | ||
| P/FCF | 27.92 | ||
| P/OCF | 23.54 | ||
| P/B | 15.33 | ||
| P/tB | 26.78 | ||
| EV/EBITDA | 16.41 |
EPS(TTM)22.62
EY4.45%
EPS(NY)24.85
Fwd EY4.89%
FCF(TTM)18.22
FCFY3.58%
OCF(TTM)21.6
OCFY4.25%
SpS148.14
BVpS33.17
TBVpS18.99
PEG (NY)2.28
PEG (5Y)1.26
Graham Number129.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.26% | ||
| ROE | 67.6% | ||
| ROCE | 35.12% | ||
| ROIC | 26.39% | ||
| ROICexc | 26.68% | ||
| ROICexgc | 31.82% | ||
| OM | 19.53% | ||
| PM (TTM) | 15.13% | ||
| GM | 32.89% | ||
| FCFM | 12.3% |
ROA(3y)21.04%
ROA(5y)20.77%
ROE(3y)120%
ROE(5y)N/A
ROIC(3y)32.47%
ROIC(5y)37.4%
ROICexc(3y)35.72%
ROICexc(5y)40.28%
ROICexgc(3y)41.03%
ROICexgc(5y)47.65%
ROCE(3y)42.12%
ROCE(5y)47.39%
ROICexgc growth 3Y-23.48%
ROICexgc growth 5Y-3.45%
ROICexc growth 3Y-22.12%
ROICexc growth 5Y-3.59%
OM growth 3Y13.22%
OM growth 5Y8.35%
PM growth 3Y13.76%
PM growth 5Y9.61%
GM growth 3Y7.04%
GM growth 5Y3.13%
F-Score4
Asset Turnover1.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 2.17 | ||
| Debt/EBITDA | 1.22 | ||
| Cap/Depr | 105.6% | ||
| Cap/Sales | 2.29% | ||
| Interest Coverage | 21.83 | ||
| Cash Conversion | 67.2% | ||
| Profit Quality | 81.25% | ||
| Current Ratio | 1.6 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 7.55 |
F-Score4
WACC9.03%
ROIC/WACC2.92
Cap/Depr(3y)189.52%
Cap/Depr(5y)169.17%
Cap/Sales(3y)3.46%
Cap/Sales(5y)3.01%
Profit Quality(3y)86.19%
Profit Quality(5y)77.42%
High Growth Momentum
Growth
EPS 1Y (TTM)0.18%
EPS 3Y17.09%
EPS 5Y17.85%
EPS Q2Q%-20.54%
EPS Next Y9.88%
EPS Next 2Y9.41%
EPS Next 3Y8.74%
EPS Next 5Y11.58%
Revenue 1Y (TTM)-2.73%
Revenue growth 3Y3.26%
Revenue growth 5Y7.41%
Sales Q2Q%-11.15%
Revenue Next Year6.42%
Revenue Next 2Y5.96%
Revenue Next 3Y5.64%
Revenue Next 5Y8.19%
EBIT growth 1Y-2.53%
EBIT growth 3Y16.92%
EBIT growth 5Y16.38%
EBIT Next Year18.34%
EBIT Next 3Y15.74%
EBIT Next 5Y12.52%
FCF growth 1Y-18.32%
FCF growth 3Y46.98%
FCF growth 5Y3.65%
OCF growth 1Y-19.89%
OCF growth 3Y35.83%
OCF growth 5Y4.35%
LENNOX INTERNATIONAL INC / LII FAQ
Can you provide the ChartMill fundamental rating for LENNOX INTERNATIONAL INC?
ChartMill assigns a fundamental rating of 6 / 10 to LII.
Can you provide the valuation status for LENNOX INTERNATIONAL INC?
ChartMill assigns a valuation rating of 3 / 10 to LENNOX INTERNATIONAL INC (LII). This can be considered as Overvalued.
How profitable is LENNOX INTERNATIONAL INC (LII) stock?
LENNOX INTERNATIONAL INC (LII) has a profitability rating of 9 / 10.
What are the PE and PB ratios of LENNOX INTERNATIONAL INC (LII) stock?
The Price/Earnings (PE) ratio for LENNOX INTERNATIONAL INC (LII) is 22.48 and the Price/Book (PB) ratio is 15.33.
Is the dividend of LENNOX INTERNATIONAL INC sustainable?
The dividend rating of LENNOX INTERNATIONAL INC (LII) is 6 / 10 and the dividend payout ratio is 22%.