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. LII has an excellent profitability rating, but there are some minor concerns on its financial health. LII is valied quite expensively at the moment, while 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.
  • 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B

1.2 Ratios

  • LII has a Return On Assets of 19.26%. This is amongst the best in the industry. LII outperforms 100.00% of its industry peers.
  • LII has a Return On Equity of 67.60%. This is amongst the best in the industry. LII outperforms 100.00% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 26.39%, LII belongs to the top 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 3 year average ROIC (32.47%) for LII is well above the current ROIC(26.39%). The reason for the recent decline needs to be investigated.
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

  • With an excellent Profit Margin value of 15.13%, LII belongs to the best 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.
  • LII's Operating Margin of 19.53% is amongst the best of the industry. LII outperforms 85.71% of its industry peers.
  • LII's Operating Margin has improved in the last couple of years.
  • LII has a Gross Margin (32.89%) which is comparable to the rest of the 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

  • 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.
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

  • An Altman-Z score of 7.87 indicates that LII is not in any danger for bankruptcy at the moment.
  • The Altman-Z score of LII (7.87) is better than 92.86% 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.
  • With a decent Debt to FCF ratio value of 2.17, LII is doing good in the industry, outperforming 71.43% of the companies in the same industry.
  • A Debt/Equity ratio of 1.18 is on the high side and indicates that LII has dependencies on debt financing.
  • LII's Debt to Equity ratio of 1.18 is on the low side compared to the rest of the industry. LII is outperformed by 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 RankSector Rank
Debt/Equity 1.18
Debt/FCF 2.17
Altman-Z 7.87
ROIC/WACC2.96
WACC8.9%
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 has a Current ratio of 1.60. This is in the lower half of the industry: LII underperforms 71.43% of its industry peers.
  • A Quick Ratio of 0.63 indicates that LII may have some problems paying its short term obligations.
  • LII's Quick ratio of 0.63 is on the low side compared to the rest of the industry. LII is outperformed by 92.86% of its industry peers.
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

  • The Earnings Per Share is expected to grow by 14.08% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 9.24% on average over the next years. This is quite good.
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

  • 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 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

3

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 25.20, which means the current valuation is very expensive for LII.
  • Compared to the rest of the industry, the Price/Earnings ratio of LII is on the same level as its industry peers.
  • Compared to an average S&P500 Price/Earnings ratio of 27.10, LII is valued at the same level.
  • A Price/Forward Earnings ratio of 23.41 indicates a rather expensive valuation of LII.
  • LII's Price/Forward Earnings is on the same level as 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

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as LII.
  • LII's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 31.05
EV/EBITDA 17.8
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 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)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

  • With a yearly dividend of 0.94%, LII is not a good candidate for dividend investing.
  • LII's Dividend Yield is a higher than the industry average which is at 0.65.
  • Compared to an average S&P500 Dividend Yield of 1.80, LII's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.94%

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 their dividend for at least 10 years, which is a reliable track record.
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

  • 22.00% of the earnings are spent on dividend by LII. This is a low number and 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 0.94%
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 17.8
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 7.87
F-Score4
WACC8.9%
ROIC/WACC2.96
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 Year18.34%
EBIT Next 3Y15.74%
EBIT Next 5Y12.89%
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%.