LENNOX INTERNATIONAL INC (LII) Stock Fundamental Analysis

NYSE:LII • US5261071071

569.94 USD
+25.53 (+4.69%)
At close: Feb 27, 2026
569.94 USD
0 (0%)
After Hours: 2/27/2026, 8:15:38 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to LII. LII was compared to 42 industry peers in the Building Products industry. While LII has a great profitability rating, there are some minor concerns on its financial health. LII is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

9

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.
  • In the past 5 years LII always reported a positive cash flow from operatings.
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B

1.2 Ratios

  • With an excellent Return On Assets value of 19.26%, LII belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
  • With an excellent Return On Equity value of 67.60%, LII belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
  • With an excellent Return On Invested Capital value of 26.39%, LII belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for LII is significantly above the industry average of 11.90%.
  • 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 RankSector 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%
LII Yearly ROA, ROE, ROICLII Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500 -500 -1K -1.5K -2K

1.3 Margins

  • Looking at the Profit Margin, with a value of 15.13%, LII belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
  • In the last couple of years the Profit Margin of LII has grown nicely.
  • With an excellent Operating Margin value of 19.53%, LII belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
  • In the last couple of years the Operating Margin of LII has grown nicely.
  • With a Gross Margin value of 32.89%, LII perfoms like the industry average, outperforming 54.76% 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 19.53%
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%
LII Yearly Profit, Operating, Gross MarginsLII Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

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ROAROEROICOperating and Profit MarginShow most profitable peers

5

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.
  • The number of shares outstanding for LII has been reduced compared to 1 year ago.
  • Compared to 5 years ago, LII has less shares outstanding
  • Compared to 1 year ago, LII has a worse debt to assets ratio.
LII Yearly Shares OutstandingLII Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M 40M
LII Yearly Total Debt VS Total AssetsLII Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

2.2 Solvency

  • LII has an Altman-Z score of 8.06. This indicates that LII is financially healthy and has little risk of bankruptcy at the moment.
  • LII has a better Altman-Z score (8.06) than 92.86% of its industry peers.
  • The Debt to FCF ratio of LII is 2.17, which is a good value as it means it would take LII, 2.17 years of fcf income to pay off all of its debts.
  • LII has a Debt to FCF ratio of 2.17. This is in the better half of the industry: LII outperforms 71.43% 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 83.33% of its industry peers.
  • Although LII does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
Industry RankSector Rank
Debt/Equity 1.18
Debt/FCF 2.17
Altman-Z 8.06
ROIC/WACC2.98
WACC8.86%
LII Yearly LT Debt VS Equity VS FCFLII Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M 1B

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 RankSector Rank
Current Ratio 1.6
Quick Ratio 0.63
LII Yearly Current Assets VS Current LiabilitesLII Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. Growth

3.1 Past

  • The Earnings Per Share has been growing slightly by 0.18% over the past year.
  • LII shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.85% yearly.
  • The Revenue has decreased by -2.73% in the past 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 14.08% on average per year.
  • LII is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.24% yearly.
EPS Next Y7.63%
EPS Next 2Y8.46%
EPS Next 3Y8.35%
EPS Next 5Y14.08%
Revenue Next Year4.28%
Revenue Next 2Y4.98%
Revenue Next 3Y5.21%
Revenue Next 5Y9.24%

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 accelerating.
LII Yearly Revenue VS EstimatesLII Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2B 4B 6B 8B
LII Yearly EPS VS EstimatesLII Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10 20 30 40

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Find the best growth stocksShow best growing peers

2

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 25.20, LII can be considered very expensive at the moment.
  • Compared to the rest of the industry, the Price/Earnings ratio of LII is on the same level as its industry peers.
  • LII is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.10, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 23.41 indicates a rather expensive valuation of LII.
  • LII's Price/Forward Earnings ratio is in line with the industry average.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 28.06, LII is valued at the same level.
Industry RankSector Rank
PE 25.2
Fwd PE 23.41
LII Price Earnings VS Forward Price EarningsLII Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LII indicates a slightly more expensive valuation: LII is more expensive than 64.29% of the companies listed in the same industry.
  • LII's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 31.05
EV/EBITDA 18.59
LII Per share dataLII EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 50 100

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • LII has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.3
PEG (5Y)1.41
EPS Next 2Y8.46%
EPS Next 3Y8.35%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. Dividend

5.1 Amount

  • LII has a yearly dividend return of 0.96%, which is pretty low.
  • LII's Dividend Yield is a higher than the industry average which is at 0.65.
  • With a Dividend Yield of 0.96, LII pays less dividend than the S&P500 average, which is at 1.83.
Industry RankSector Rank
Dividend Yield 0.96%

5.2 History

  • The dividend of LII is nicely growing with an annual growth rate of 9.86%!
  • 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)9.86%
Div Incr Years15
Div Non Decr Years25
LII Yearly Dividends per shareLII Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3 4 5

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, but earnings are growing more, so the dividend growth is sustainable.
DP22%
EPS Next 2Y8.46%
EPS Next 3Y8.35%
LII Yearly Income VS Free CF VS DividendLII Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M
LII Dividend Payout.LII Dividend Payout, showing the Payout Ratio.LII Dividend Payout.PayoutRetained Earnings

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Find the best dividend stocksShow peers with best dividend

LENNOX INTERNATIONAL INC

NYSE:LII (2/27/2026, 8:15:38 PM)

After market: 569.94 0 (0%)

569.94

+25.53 (+4.69%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)01-28
Earnings (Next)04-21
Inst Owners77.38%
Inst Owner Change9.1%
Ins Owners10.24%
Ins Owner Change0.48%
Market Cap19.83B
Revenue(TTM)5.20B
Net Income(TTM)786.20M
Analysts69.17
Price Target569.09 (-0.15%)
Short Float %5.36%
Short Ratio3.5
Dividend
Industry RankSector Rank
Dividend Yield 0.96%
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)-1.1%
PT rev (3m)-1.74%
EPS NQ rev (1m)-7.53%
EPS NQ rev (3m)-10.24%
EPS NY rev (1m)-2.04%
EPS NY rev (3m)-3.42%
Revenue NQ rev (1m)-2.87%
Revenue NQ rev (3m)-2.52%
Revenue NY rev (1m)-2.08%
Revenue NY rev (3m)-3.27%
Valuation
Industry RankSector Rank
PE 25.2
Fwd PE 23.41
P/S 3.82
P/FCF 31.05
P/OCF 26.18
P/B 17.05
P/tB 29.79
EV/EBITDA 18.59
EPS(TTM)22.62
EY3.97%
EPS(NY)24.35
Fwd EY4.27%
FCF(TTM)18.36
FCFY3.22%
OCF(TTM)21.77
OCFY3.82%
SpS149.29
BVpS33.42
TBVpS19.14
PEG (NY)3.3
PEG (5Y)1.41
Graham Number130.42
Profitability
Industry RankSector 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 RankSector 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 8.06
F-Score4
WACC8.86%
ROIC/WACC2.98
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 Y7.63%
EPS Next 2Y8.46%
EPS Next 3Y8.35%
EPS Next 5Y14.08%
Revenue 1Y (TTM)-2.73%
Revenue growth 3Y3.26%
Revenue growth 5Y7.41%
Sales Q2Q%-11.15%
Revenue Next Year4.28%
Revenue Next 2Y4.98%
Revenue Next 3Y5.21%
Revenue Next 5Y9.24%
EBIT growth 1Y-2.53%
EBIT growth 3Y16.92%
EBIT growth 5Y16.38%
EBIT Next Year18.21%
EBIT Next 3Y11.11%
EBIT Next 5Y12.95%
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 25.2 and the Price/Book (PB) ratio is 17.05.


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%.