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LENNOX INTERNATIONAL INC (LII) Stock Fundamental Analysis

NYSE:LII - New York Stock Exchange, Inc. - US5261071071 - Common Stock - Currency: USD

591.66  -7.5 (-1.25%)

After market: 591.66 0 (0%)

Fundamental Rating

7

Overall LII gets a fundamental rating of 7 out of 10. We evaluated LII against 41 industry peers in the Building Products industry. LII has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. While showing a medium growth rate, LII is valued expensive at the moment. These ratings could make LII a good candidate for quality investing.


Dividend Valuation Growth Profitability Health

9

1. Profitability

1.1 Basic Checks

In the past year LII was profitable.
LII had a positive operating cash flow in the past year.
Each year in the past 5 years LII has been profitable.
Each year in the past 5 years LII had a positive operating cash flow.
LII Yearly Net Income VS EBIT VS OCF VS FCFLII Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

1.2 Ratios

The Return On Assets of LII (22.85%) is better than 100.00% of its industry peers.
The Return On Equity of LII (92.68%) is better than 97.56% of its industry peers.
LII has a better Return On Invested Capital (37.71%) than 100.00% 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 13.01%.
The last Return On Invested Capital (37.71%) for LII is well below the 3 year average (42.17%), which needs to be investigated, but indicates that LII had better years and this may not be a problem.
Industry RankSector Rank
ROA 22.85%
ROE 92.68%
ROIC 37.71%
ROA(3y)21.23%
ROA(5y)20.52%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)42.17%
ROIC(5y)38.23%
LII Yearly ROA, ROE, ROICLII Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500 -500 -1K -1.5K -2K

1.3 Margins

The Profit Margin of LII (15.41%) is better than 78.05% of its industry peers.
LII's Profit Margin has improved in the last couple of years.
LII has a Operating Margin of 19.55%. This is in the better half of the industry: LII outperforms 78.05% of its industry peers.
In the last couple of years the Operating Margin of LII has grown nicely.
With a Gross Margin value of 33.13%, LII perfoms like the industry average, outperforming 53.66% of the companies in the same industry.
In the last couple of years the Gross Margin of LII has grown nicely.
Industry RankSector Rank
OM 19.55%
PM (TTM) 15.41%
GM 33.13%
OM growth 3Y11.75%
OM growth 5Y8.73%
PM growth 3Y10.94%
PM growth 5Y7.07%
GM growth 3Y5.4%
GM growth 5Y3.18%
LII Yearly Profit, Operating, Gross MarginsLII Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

8

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so LII is creating value.
LII has about the same amout of shares outstanding than it did 1 year ago.
LII has less shares outstanding than it did 5 years ago.
LII has a better debt/assets ratio than last year.
LII Yearly Shares OutstandingLII Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M 40M
LII Yearly Total Debt VS Total AssetsLII Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

2.2 Solvency

LII has an Altman-Z score of 8.87. This indicates that LII is financially healthy and has little risk of bankruptcy at the moment.
LII has a Altman-Z score of 8.87. This is amongst the best in the industry. LII outperforms 92.68% of its industry peers.
LII has a debt to FCF ratio of 1.74. This is a very positive value and a sign of high solvency as it would only need 1.74 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.74, LII belongs to the best of the industry, outperforming 80.49% of the companies in the same industry.
LII has a Debt/Equity ratio of 0.96. This is a neutral value indicating LII is somewhat dependend on debt financing.
The Debt to Equity ratio of LII (0.96) is worse than 75.61% 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 RankSector Rank
Debt/Equity 0.96
Debt/FCF 1.74
Altman-Z 8.87
ROIC/WACC3.69
WACC10.22%
LII Yearly LT Debt VS Equity VS FCFLII Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B

2.3 Liquidity

LII has a Current Ratio of 1.41. This is a normal value and indicates that LII is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.41, LII is not doing good in the industry: 78.05% of the companies in the same industry are doing better.
A Quick Ratio of 0.71 indicates that LII may have some problems paying its short term obligations.
LII has a Quick ratio of 0.71. This is amonst the worse of the industry: LII underperforms 90.24% of its industry peers.
The current and quick ratio evaluation for LII is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
Industry RankSector Rank
Current Ratio 1.41
Quick Ratio 0.71
LII Yearly Current Assets VS Current LiabilitesLII Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

5

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 21.61% over the past year.
The Earnings Per Share has been growing by 15.03% on average over the past years. This is quite good.
Looking at the last year, LII shows a small growth in Revenue. The Revenue has grown by 7.92% in the last year.
LII shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.01% yearly.
EPS 1Y (TTM)21.61%
EPS 3Y21.5%
EPS 5Y15.03%
EPS Q2Q%14.49%
Revenue 1Y (TTM)7.92%
Revenue growth 3Y8.39%
Revenue growth 5Y7.01%
Sales Q2Q%3.43%

3.2 Future

LII is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.46% yearly.
LII is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.31% yearly.
EPS Next Y2.64%
EPS Next 2Y6.19%
EPS Next 3Y7.51%
EPS Next 5Y9.46%
Revenue Next Year4.52%
Revenue Next 2Y5.23%
Revenue Next 3Y5.37%
Revenue Next 5Y7.31%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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.
LII Yearly Revenue VS EstimatesLII Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2B 4B 6B 8B
LII Yearly EPS VS EstimatesLII Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 10 20 30

2

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 25.21, which means the current valuation is very expensive for LII.
LII's Price/Earnings ratio is a bit more expensive when compared to the industry. LII is more expensive than 60.98% of the companies in the same industry.
LII is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.84, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 23.24, the valuation of LII can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as LII.
LII is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.29, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 25.21
Fwd PE 23.24
LII Price Earnings VS Forward Price EarningsLII Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

65.85% of the companies in the same industry are cheaper than LII, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LII is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 30.55
EV/EBITDA 18.9
LII Per share dataLII EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 50 100 150

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of LII may justify a higher PE ratio.
PEG (NY)9.57
PEG (5Y)1.68
EPS Next 2Y6.19%
EPS Next 3Y7.51%

5

5. Dividend

5.1 Amount

With a yearly dividend of 0.87%, LII is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.11, LII pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.87, LII pays less dividend than the S&P500 average, which is at 2.36.
Industry RankSector Rank
Dividend Yield 0.87%

5.2 History

The dividend of LII is nicely growing with an annual growth rate of 9.85%!
LII has paid a dividend for at least 10 years, which is 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)9.85%
Div Incr Years15
Div Non Decr Years25
LII Yearly Dividends per shareLII Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3 4

5.3 Sustainability

19.61% of the earnings are spent on dividend by LII. This is a low number and sustainable payout ratio.
LII's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP19.61%
EPS Next 2Y6.19%
EPS Next 3Y7.51%
LII Yearly Income VS Free CF VS DividendLII Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M
LII Dividend Payout.LII Dividend Payout, showing the Payout Ratio.LII Dividend Payout.PayoutRetained Earnings

LENNOX INTERNATIONAL INC

NYSE:LII (8/15/2025, 8:04:00 PM)

After market: 591.66 0 (0%)

591.66

-7.5 (-1.25%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)07-23 2025-07-23/bmo
Earnings (Next)10-21 2025-10-21/bmo
Inst Owners82.34%
Inst Owner Change-1.11%
Ins Owners10.24%
Ins Owner Change-1.56%
Market Cap20.78B
Analysts64.8
Price Target674.64 (14.02%)
Short Float %5.88%
Short Ratio4.97
Dividend
Industry RankSector Rank
Dividend Yield 0.87%
Yearly Dividend4.5
Dividend Growth(5Y)9.85%
DP19.61%
Div Incr Years15
Div Non Decr Years25
Ex-Date06-30 2025-06-30 (1.3)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.46%
Min EPS beat(2)2%
Max EPS beat(2)12.93%
EPS beat(4)4
Avg EPS beat(4)14.05%
Min EPS beat(4)2%
Max EPS beat(4)31%
EPS beat(8)8
Avg EPS beat(8)10.38%
EPS beat(12)11
Avg EPS beat(12)9.74%
EPS beat(16)14
Avg EPS beat(16)9.01%
Revenue beat(2)2
Avg Revenue beat(2)2.3%
Min Revenue beat(2)0.66%
Max Revenue beat(2)3.93%
Revenue beat(4)4
Avg Revenue beat(4)4.22%
Min Revenue beat(4)0.66%
Max Revenue beat(4)7.51%
Revenue beat(8)6
Avg Revenue beat(8)2.39%
Revenue beat(12)9
Avg Revenue beat(12)1.69%
Revenue beat(16)11
Avg Revenue beat(16)1.1%
PT rev (1m)17.08%
PT rev (3m)18.08%
EPS NQ rev (1m)2.23%
EPS NQ rev (3m)1.21%
EPS NY rev (1m)0%
EPS NY rev (3m)0.23%
Revenue NQ rev (1m)-0.94%
Revenue NQ rev (3m)-2.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.13%
Valuation
Industry RankSector Rank
PE 25.21
Fwd PE 23.24
P/S 3.84
P/FCF 30.55
P/OCF 24.87
P/B 23.08
P/tB 30.54
EV/EBITDA 18.9
EPS(TTM)23.47
EY3.97%
EPS(NY)25.46
Fwd EY4.3%
FCF(TTM)19.36
FCFY3.27%
OCF(TTM)23.79
OCFY4.02%
SpS154.23
BVpS25.64
TBVpS19.38
PEG (NY)9.57
PEG (5Y)1.68
Profitability
Industry RankSector Rank
ROA 22.85%
ROE 92.68%
ROCE 47.39%
ROIC 37.71%
ROICexc 38.65%
ROICexgc 42.93%
OM 19.55%
PM (TTM) 15.41%
GM 33.13%
FCFM 12.56%
ROA(3y)21.23%
ROA(5y)20.52%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)42.17%
ROIC(5y)38.23%
ROICexc(3y)46.95%
ROICexc(5y)41.92%
ROICexgc(3y)55.8%
ROICexgc(5y)49.64%
ROCE(3y)53.49%
ROCE(5y)48.13%
ROICexcg growth 3Y9.55%
ROICexcg growth 5Y2.53%
ROICexc growth 3Y10.23%
ROICexc growth 5Y4.03%
OM growth 3Y11.75%
OM growth 5Y8.73%
PM growth 3Y10.94%
PM growth 5Y7.07%
GM growth 3Y5.4%
GM growth 5Y3.18%
F-Score7
Asset Turnover1.48
Health
Industry RankSector Rank
Debt/Equity 0.96
Debt/FCF 1.74
Debt/EBITDA 0.75
Cap/Depr 158.09%
Cap/Sales 2.87%
Interest Coverage 27.02
Cash Conversion 72.19%
Profit Quality 81.49%
Current Ratio 1.41
Quick Ratio 0.71
Altman-Z 8.87
F-Score7
WACC10.22%
ROIC/WACC3.69
Cap/Depr(3y)197.58%
Cap/Depr(5y)169.68%
Cap/Sales(3y)3.41%
Cap/Sales(5y)2.99%
Profit Quality(3y)73.25%
Profit Quality(5y)91.54%
High Growth Momentum
Growth
EPS 1Y (TTM)21.61%
EPS 3Y21.5%
EPS 5Y15.03%
EPS Q2Q%14.49%
EPS Next Y2.64%
EPS Next 2Y6.19%
EPS Next 3Y7.51%
EPS Next 5Y9.46%
Revenue 1Y (TTM)7.92%
Revenue growth 3Y8.39%
Revenue growth 5Y7.01%
Sales Q2Q%3.43%
Revenue Next Year4.52%
Revenue Next 2Y5.23%
Revenue Next 3Y5.37%
Revenue Next 5Y7.31%
EBIT growth 1Y20.68%
EBIT growth 3Y21.13%
EBIT growth 5Y16.35%
EBIT Next Year20.64%
EBIT Next 3Y12.34%
EBIT Next 5Y9.79%
FCF growth 1Y142.81%
FCF growth 3Y24.15%
FCF growth 5Y21.91%
OCF growth 1Y99.02%
OCF growth 3Y22.42%
OCF growth 5Y19.01%