LENNOX INTERNATIONAL INC (LII) Stock Fundamental Analysis
USA - NYSE:LII - US5261071071 - Common Stock
475.165 USD
-1.5 (-0.31%)
We assign a fundamental rating of 7 out of 10 to LII. LII was compared to 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. LII is valied quite expensively at the moment, while it does show a decent growth rate. With these ratings, LII could be worth investigating further for quality investing!.
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.
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.
1.2 Ratios
LII has a Return On Assets of 23.87%. This is amongst the best in the industry. LII outperforms 100.00% of its industry peers.
With an excellent Return On Equity value of 78.63%, LII belongs to the best of the industry, outperforming 97.56% of the companies in the same industry.
LII's Return On Invested Capital of 33.53% is amongst the best of the industry. LII outperforms 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 12.54%.
The 3 year average ROIC (42.17%) for LII is well above the current ROIC(33.53%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.87% | ||
| ROE | 78.63% | ||
| ROIC | 33.53% |
ROA(3y)21.23%
ROA(5y)20.52%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)42.17%
ROIC(5y)38.23%
1.3 Margins
LII's Profit Margin of 15.74% is amongst the best of the industry. LII outperforms 85.37% of its industry peers.
In the last couple of years the Profit Margin of LII has grown nicely.
The Operating Margin of LII (19.86%) is better than 82.93% of its industry peers.
LII's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 33.20%, LII perfoms like the industry average, outperforming 53.66% of the companies in the same industry.
LII's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.86% | ||
| PM (TTM) | 15.74% | ||
| GM | 33.2% |
OM growth 3Y11.75%
OM growth 5Y8.73%
PM growth 3Y10.94%
PM growth 5Y7.07%
GM growth 3Y5.4%
GM growth 5Y3.18%
2. Health
2.1 Basic Checks
LII has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
LII has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for LII has been reduced compared to 5 years ago.
Compared to 1 year ago, LII has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 8.72 indicates that LII is not in any danger for bankruptcy at the moment.
The Altman-Z score of LII (8.72) is better than 97.56% of its industry peers.
LII has a debt to FCF ratio of 1.89. This is a very positive value and a sign of high solvency as it would only need 1.89 years to pay back of all of its debts.
LII's Debt to FCF ratio of 1.89 is fine compared to the rest of the industry. LII outperforms 73.17% of its industry peers.
A Debt/Equity ratio of 0.93 indicates that LII is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.93, LII is doing worse than 68.29% of the companies in the same industry.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 1.89 | ||
| Altman-Z | 8.72 |
ROIC/WACC3.53
WACC9.5%
2.3 Liquidity
A Current Ratio of 1.68 indicates that LII should not have too much problems paying its short term obligations.
The Current ratio of LII (1.68) is worse than 68.29% of its industry peers.
A Quick Ratio of 0.80 indicates that LII may have some problems paying its short term obligations.
With a Quick ratio value of 0.80, LII is not doing good in the industry: 80.49% of the companies in the same industry are doing better.
LII does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
LII shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.33%, which is quite good.
LII shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.03% yearly.
The Revenue has been growing slightly by 3.77% in the past year.
The Revenue has been growing slightly by 7.01% on average over the past years.
EPS 1Y (TTM)15.33%
EPS 3Y21.5%
EPS 5Y15.03%
EPS Q2Q%4.49%
Revenue 1Y (TTM)3.77%
Revenue growth 3Y8.39%
Revenue growth 5Y7.01%
Sales Q2Q%-4.76%
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 10.73% yearly.
Based on estimates for the next years, LII will show a quite strong growth in Revenue. The Revenue will grow by 8.49% on average per year.
EPS Next Y2.77%
EPS Next 2Y5.66%
EPS Next 3Y7.33%
EPS Next 5Y10.73%
Revenue Next Year0.93%
Revenue Next 2Y4.21%
Revenue Next 3Y4.67%
Revenue Next 5Y8.49%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 19.99, the valuation of LII can be described as rather expensive.
LII's Price/Earnings ratio is in line with the industry average.
LII's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.91.
With a Price/Forward Earnings ratio of 18.85, LII is valued on the expensive side.
LII's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.57, LII is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.99 | ||
| Fwd PE | 18.85 |
4.2 Price Multiples
LII's Enterprise Value to EBITDA ratio is in line with the industry average.
LII's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.23 | ||
| EV/EBITDA | 15.03 |
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.
The excellent profitability rating of LII may justify a higher PE ratio.
PEG (NY)7.21
PEG (5Y)1.33
EPS Next 2Y5.66%
EPS Next 3Y7.33%
5. Dividend
5.1 Amount
LII has a Yearly Dividend Yield of 1.06%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.33, LII pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.06, LII pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.06% |
5.2 History
On average, the dividend of LII grows each year by 9.85%, which is quite nice.
LII has paid a dividend for at least 10 years, which is a reliable track record.
LII has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)9.85%
Div Incr Years15
Div Non Decr Years25
5.3 Sustainability
20.01% of the earnings are spent on dividend by LII. This is a low number and sustainable payout ratio.
LII's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP20.01%
EPS Next 2Y5.66%
EPS Next 3Y7.33%
NYSE:LII (11/14/2025, 11:25:47 AM)
475.165
-1.5 (-0.31%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners77.77%
Inst Owner Change-0.12%
Ins Owners10.23%
Ins Owner Change-4.71%
Market Cap16.69B
Revenue(TTM)5.35B
Net Income(TTM)841.40M
Analysts67.2
Price Target580.95 (22.26%)
Short Float %4.73%
Short Ratio3.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.06% |
Yearly Dividend4.5
Dividend Growth(5Y)9.85%
DP20.01%
Div Incr Years15
Div Non Decr Years25
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.2%
Min EPS beat(2)1.48%
Max EPS beat(2)12.93%
EPS beat(4)4
Avg EPS beat(4)11.85%
Min EPS beat(4)1.48%
Max EPS beat(4)31%
EPS beat(8)8
Avg EPS beat(8)9.15%
EPS beat(12)12
Avg EPS beat(12)9.95%
EPS beat(16)15
Avg EPS beat(16)9.52%
Revenue beat(2)1
Avg Revenue beat(2)-2.27%
Min Revenue beat(2)-5.2%
Max Revenue beat(2)0.66%
Revenue beat(4)3
Avg Revenue beat(4)1.73%
Min Revenue beat(4)-5.2%
Max Revenue beat(4)7.51%
Revenue beat(8)5
Avg Revenue beat(8)1.07%
Revenue beat(12)8
Avg Revenue beat(12)1.21%
Revenue beat(16)11
Avg Revenue beat(16)1.19%
PT rev (1m)-11.1%
PT rev (3m)-13.89%
EPS NQ rev (1m)-11.32%
EPS NQ rev (3m)-12.58%
EPS NY rev (1m)-3.71%
EPS NY rev (3m)0.13%
Revenue NQ rev (1m)-4.01%
Revenue NQ rev (3m)-4.72%
Revenue NY rev (1m)-2.65%
Revenue NY rev (3m)-3.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.99 | ||
| Fwd PE | 18.85 | ||
| P/S | 3.12 | ||
| P/FCF | 31.23 | ||
| P/OCF | 24.39 | ||
| P/B | 15.59 | ||
| P/tB | 19.63 | ||
| EV/EBITDA | 15.03 |
EPS(TTM)23.77
EY5%
EPS(NY)25.21
Fwd EY5.31%
FCF(TTM)15.21
FCFY3.2%
OCF(TTM)19.48
OCFY4.1%
SpS152.2
BVpS30.47
TBVpS24.21
PEG (NY)7.21
PEG (5Y)1.33
Graham Number127.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.87% | ||
| ROE | 78.63% | ||
| ROCE | 44.33% | ||
| ROIC | 33.53% | ||
| ROICexc | 34.33% | ||
| ROICexgc | 37.65% | ||
| OM | 19.86% | ||
| PM (TTM) | 15.74% | ||
| GM | 33.2% | ||
| FCFM | 10% |
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%
ROICexgc growth 3Y9.55%
ROICexgc 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 Turnover1.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 1.89 | ||
| Debt/EBITDA | 0.85 | ||
| Cap/Depr | 142.8% | ||
| Cap/Sales | 2.8% | ||
| Interest Coverage | 26.41 | ||
| Cash Conversion | 58.65% | ||
| Profit Quality | 63.5% | ||
| Current Ratio | 1.68 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 8.72 |
F-Score7
WACC9.5%
ROIC/WACC3.53
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)15.33%
EPS 3Y21.5%
EPS 5Y15.03%
EPS Q2Q%4.49%
EPS Next Y2.77%
EPS Next 2Y5.66%
EPS Next 3Y7.33%
EPS Next 5Y10.73%
Revenue 1Y (TTM)3.77%
Revenue growth 3Y8.39%
Revenue growth 5Y7.01%
Sales Q2Q%-4.76%
Revenue Next Year0.93%
Revenue Next 2Y4.21%
Revenue Next 3Y4.67%
Revenue Next 5Y8.49%
EBIT growth 1Y9.24%
EBIT growth 3Y21.13%
EBIT growth 5Y16.35%
EBIT Next Year20.54%
EBIT Next 3Y12.58%
EBIT Next 5Y11.18%
FCF growth 1Y35.13%
FCF growth 3Y24.15%
FCF growth 5Y21.91%
OCF growth 1Y23.37%
OCF growth 3Y22.42%
OCF growth 5Y19.01%
LENNOX INTERNATIONAL INC / LII FAQ
Can you provide the ChartMill fundamental rating for LENNOX INTERNATIONAL INC?
ChartMill assigns a fundamental rating of 7 / 10 to LII.
What is the valuation status of LENNOX INTERNATIONAL INC (LII) stock?
ChartMill assigns a valuation rating of 3 / 10 to LENNOX INTERNATIONAL INC (LII). This can be considered as Overvalued.
Can you provide the profitability details for LENNOX INTERNATIONAL INC?
LENNOX INTERNATIONAL INC (LII) has a profitability rating of 9 / 10.
How financially healthy is LENNOX INTERNATIONAL INC?
The financial health rating of LENNOX INTERNATIONAL INC (LII) is 7 / 10.
What is the expected EPS growth for LENNOX INTERNATIONAL INC (LII) stock?
The Earnings per Share (EPS) of LENNOX INTERNATIONAL INC (LII) is expected to grow by 2.77% in the next year.