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LENNOX INTERNATIONAL INC (LII) Stock Fundamental Analysis

USA - NYSE:LII - US5261071071 - Common Stock

548.99 USD
+14.24 (+2.66%)
Last: 10/21/2025, 8:04:00 PM
548.94 USD
-0.05 (-0.01%)
After Hours: 10/21/2025, 8:04:00 PM
Fundamental Rating

7

Taking everything into account, LII scores 7 out of 10 in our fundamental rating. LII was compared to 41 industry peers in the Building Products industry. Both the health and profitability get an excellent rating, making LII a very profitable company, without any liquidiy or solvency issues. 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!.


Dividend Valuation Growth Profitability Health

9

1. Profitability

1.1 Basic Checks

LII had positive earnings in the past year.
LII had a positive operating cash flow in the past year.
In the past 5 years LII has always been profitable.
LII had a positive operating cash flow in each of the past 5 years.
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

LII has a better Return On Assets (22.85%) than 100.00% of its industry peers.
LII has a better Return On Equity (92.68%) than 97.56% of its industry peers.
LII has a Return On Invested Capital of 37.71%. This is amongst the best in the industry. LII outperforms 100.00% of its industry peers.
LII had an Average Return On Invested Capital over the past 3 years of 42.17%. This is significantly above the industry average of 12.70%.
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

Looking at the Profit Margin, with a value of 15.41%, LII belongs to the top of the industry, outperforming 82.93% of the companies in the same industry.
LII's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 19.55%, LII is doing good in the industry, outperforming 78.05% 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 33.13%, 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 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

7

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 about the same amount of shares outstanding.
Compared to 5 years ago, LII has less shares outstanding
The debt/assets ratio for LII has been reduced compared to a year ago.
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

An Altman-Z score of 8.44 indicates that LII is not in any danger for bankruptcy at the moment.
LII has a better Altman-Z score (8.44) than 92.68% of its industry peers.
The Debt to FCF ratio of LII is 1.74, which is an excellent value as it means it would take LII, only 1.74 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.74, LII is in the better half of the industry, outperforming 78.05% 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 73.17% 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 0.96
Debt/FCF 1.74
Altman-Z 8.44
ROIC/WACC3.91
WACC9.65%
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

A Current Ratio of 1.41 indicates that LII should not have too much problems paying its short term obligations.
With a Current ratio value of 1.41, LII is not doing good in the industry: 73.17% of the companies in the same industry are doing better.
LII has a Quick Ratio of 1.41. 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 0.71, LII is doing worse than 87.80% of the companies in the same industry.
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 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

6

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.
LII shows a small growth in Revenue. In the last year, the Revenue has grown by 7.92%.
Measured over the past years, LII shows a small growth in Revenue. The Revenue has been growing by 7.01% on average per year.
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

Based on estimates for the next years, LII will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.73% on average per year.
LII is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.49% yearly.
EPS Next Y6.73%
EPS Next 2Y8.18%
EPS Next 3Y8.97%
EPS Next 5Y10.73%
Revenue Next Year3.67%
Revenue Next 2Y5.02%
Revenue Next 3Y5.36%
Revenue Next 5Y8.49%

3.3 Evolution

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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 2030 10 20 30

2

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 23.39 indicates a rather expensive valuation of LII.
LII's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.77, LII is valued at the same level.
With a Price/Forward Earnings ratio of 20.77, LII is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LII is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of LII to the average of the S&P500 Index (23.23), we can say LII is valued inline with the index average.
Industry RankSector Rank
PE 23.39
Fwd PE 20.77
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

LII's Enterprise Value to EBITDA 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.
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 28.35
EV/EBITDA 17.17
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)3.48
PEG (5Y)1.56
EPS Next 2Y8.18%
EPS Next 3Y8.97%

6

5. Dividend

5.1 Amount

With a yearly dividend of 0.99%, LII is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.25, LII pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, LII's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.99%

5.2 History

The dividend of LII is nicely growing with an annual growth rate of 9.85%!
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)9.85%
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 around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP19.61%
EPS Next 2Y8.18%
EPS Next 3Y8.97%
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 (10/21/2025, 8:04:00 PM)

After market: 548.94 -0.05 (-0.01%)

548.99

+14.24 (+2.66%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)07-23 2025-07-23/bmo
Earnings (Next)10-22 2025-10-22/bmo
Inst Owners77.77%
Inst Owner Change-0.04%
Ins Owners10.23%
Ins Owner Change-4.68%
Market Cap19.28B
Analysts64.8
Price Target653.52 (19.04%)
Short Float %5.26%
Short Ratio4.19
Dividend
Industry RankSector Rank
Dividend Yield 0.99%
Yearly Dividend4.5
Dividend Growth(5Y)9.85%
DP19.61%
Div Incr Years15
Div Non Decr Years25
Ex-Date09-30 2025-09-30 (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)-2.54%
PT rev (3m)11.13%
EPS NQ rev (1m)-3.17%
EPS NQ rev (3m)-0.67%
EPS NY rev (1m)-0.95%
EPS NY rev (3m)3.99%
Revenue NQ rev (1m)-1.47%
Revenue NQ rev (3m)-2.77%
Revenue NY rev (1m)-0.76%
Revenue NY rev (3m)-0.81%
Valuation
Industry RankSector Rank
PE 23.39
Fwd PE 20.77
P/S 3.56
P/FCF 28.35
P/OCF 23.08
P/B 21.41
P/tB 28.33
EV/EBITDA 17.17
EPS(TTM)23.47
EY4.28%
EPS(NY)26.43
Fwd EY4.81%
FCF(TTM)19.36
FCFY3.53%
OCF(TTM)23.79
OCFY4.33%
SpS154.23
BVpS25.64
TBVpS19.38
PEG (NY)3.48
PEG (5Y)1.56
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 8.44
F-Score7
WACC9.65%
ROIC/WACC3.91
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 Y6.73%
EPS Next 2Y8.18%
EPS Next 3Y8.97%
EPS Next 5Y10.73%
Revenue 1Y (TTM)7.92%
Revenue growth 3Y8.39%
Revenue growth 5Y7.01%
Sales Q2Q%3.43%
Revenue Next Year3.67%
Revenue Next 2Y5.02%
Revenue Next 3Y5.36%
Revenue Next 5Y8.49%
EBIT growth 1Y20.68%
EBIT growth 3Y21.13%
EBIT growth 5Y16.35%
EBIT Next Year20.54%
EBIT Next 3Y12.58%
EBIT Next 5Y11.18%
FCF growth 1Y142.81%
FCF growth 3Y24.15%
FCF growth 5Y21.91%
OCF growth 1Y99.02%
OCF growth 3Y22.42%
OCF growth 5Y19.01%