LENNOX INTERNATIONAL INC (LII)

US5261071071 - Common Stock

488.76  +2.08 (+0.43%)

After market: 488.76 0 (0%)

Fundamental Rating

5

Taking everything into account, LII scores 5 out of 10 in our fundamental rating. LII was compared to 45 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.



9

1. Profitability

1.1 Basic Checks

In the past year LII was profitable.
In the past year LII had a positive cash flow from operations.
LII had positive earnings in each of the past 5 years.
Each year in the past 5 years LII had a positive operating cash flow.

1.2 Ratios

LII has a better Return On Assets (21.09%) than 97.78% of its industry peers.
With an excellent Return On Equity value of 206.83%, LII belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Invested Capital of LII (33.52%) is better than 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LII is significantly above the industry average of 14.01%.
The last Return On Invested Capital (33.52%) for LII is well below the 3 year average (40.80%), which needs to be investigated, but indicates that LII had better years and this may not be a problem.
Industry RankSector Rank
ROA 21.09%
ROE 206.83%
ROIC 33.52%
ROA(3y)20.6%
ROA(5y)19.89%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)40.8%
ROIC(5y)37.97%

1.3 Margins

LII has a better Profit Margin (11.84%) than 73.33% of its industry peers.
LII's Profit Margin has improved in the last couple of years.
LII's Operating Margin of 16.19% is fine compared to the rest of the industry. LII outperforms 66.67% of its industry peers.
In the last couple of years the Operating Margin of LII has grown nicely.
LII has a Gross Margin of 31.07%. This is comparable to the rest of the industry: LII outperforms 48.89% of its industry peers.
LII's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 16.19%
PM (TTM) 11.84%
GM 31.07%
OM growth 3Y6.44%
OM growth 5Y4.73%
PM growth 3Y6.51%
PM growth 5Y5.09%
GM growth 3Y2.77%
GM growth 5Y1.66%

4

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), LII is creating value.
LII has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, LII has less shares outstanding
The debt/assets ratio for LII is higher compared to a year ago.

2.2 Solvency

LII has an Altman-Z score of 8.82. This indicates that LII is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 8.82, LII belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
The Debt to FCF ratio of LII is 2.69, which is a good value as it means it would take LII, 2.69 years of fcf income to pay off all of its debts.
LII has a Debt to FCF ratio (2.69) which is in line with its industry peers.
A Debt/Equity ratio of 4.53 is on the high side and indicates that LII has dependencies on debt financing.
LII has a Debt to Equity ratio of 4.53. This is amonst the worse of the industry: LII underperforms 88.89% of its industry peers.
Industry RankSector Rank
Debt/Equity 4.53
Debt/FCF 2.69
Altman-Z 8.82
ROIC/WACC2.88
WACC11.62%

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: 82.22% of the companies in the same industry are doing better.
A Quick Ratio of 0.72 indicates that LII may have some problems paying its short term obligations.
LII has a worse Quick ratio (0.72) than 86.67% of its industry peers.
Industry RankSector Rank
Current Ratio 1.41
Quick Ratio 0.72

4

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 27.61% over the past year.
The Earnings Per Share has been growing by 13.73% 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 5.58% in the last year.
The Revenue has been growing slightly by 5.11% on average over the past years.
EPS 1Y (TTM)27.61%
EPS 3Y21.8%
EPS 5Y13.73%
EPS growth Q2Q38.02%
Revenue 1Y (TTM)5.58%
Revenue growth 3Y11.09%
Revenue growth 5Y5.11%
Revenue growth Q2Q5.58%

3.2 Future

LII is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.45% yearly.
Based on estimates for the next years, LII will show a small growth in Revenue. The Revenue will grow by 5.23% on average per year.
EPS Next Y10.73%
EPS Next 2Y11.59%
EPS Next 3Y11.55%
EPS Next 5Y6.45%
Revenue Next Year4.53%
Revenue Next 2Y5.99%
Revenue Next 3Y6.45%
Revenue Next 5Y5.23%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.

1

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 27.18, LII can be considered very expensive at the moment.
Based on the Price/Earnings ratio, LII is valued a bit more expensive than 60.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.48. LII is around the same levels.
LII is valuated rather expensively with a Price/Forward Earnings ratio of 24.55.
LII's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. LII is more expensive than 60.00% of the companies in the same industry.
LII's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.79.
Industry RankSector Rank
PE 27.18
Fwd PE 24.55

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 66.67% of the companies in the same industry.
LII's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. LII is more expensive than 73.33% of the companies in the same industry.
Industry RankSector Rank
P/FCF 35.79
EV/EBITDA 20.7

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)2.53
PEG (5Y)1.98
EPS Next 2Y11.59%
EPS Next 3Y11.55%

5

5. Dividend

5.1 Amount

With a yearly dividend of 0.88%, LII is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.40, LII pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.88, LII pays less dividend than the S&P500 average, which is at 2.34.
Industry RankSector Rank
Dividend Yield 0.88%

5.2 History

The dividend of LII is nicely growing with an annual growth rate of 13.43%!
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)13.43%
Div Incr Years14
Div Non Decr Years19

5.3 Sustainability

26.00% 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.
DP26%
EPS Next 2Y11.59%
EPS Next 3Y11.55%

LENNOX INTERNATIONAL INC

NYSE:LII (3/28/2024, 8:21:58 PM)

After market: 488.76 0 (0%)

488.76

+2.08 (+0.43%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap17.39B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 0.88%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 27.18
Fwd PE 24.55
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.53
PEG (5Y)1.98
Profitability
Industry RankSector Rank
ROA 21.09%
ROE 206.83%
ROCE
ROIC
ROICexc
ROICexgc
OM 16.19%
PM (TTM) 11.84%
GM 31.07%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.78
Health
Industry RankSector Rank
Debt/Equity 4.53
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.41
Quick Ratio 0.72
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)27.61%
EPS 3Y21.8%
EPS 5Y
EPS growth Q2Q
EPS Next Y10.73%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.58%
Revenue growth 3Y11.09%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y