LENNOX INTERNATIONAL INC (LXI.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:LXI - US5261071071 - Common Stock
430.3 EUR
+0.2 (+0.05%)
LXI gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 23 industry peers in the Building Products industry. LXI has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. LXI is quite expensive at the moment. It does show a decent growth rate. With these ratings, LXI could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
- In the past year LXI was profitable.
- In the past year LXI had a positive cash flow from operations.
- In the past 5 years LXI has always been profitable.
- LXI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of LXI (23.87%) is better than 95.65% of its industry peers.
- LXI's Return On Equity of 78.63% is amongst the best of the industry. LXI outperforms 100.00% of its industry peers.
- The Return On Invested Capital of LXI (33.53%) is better than 95.65% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for LXI is significantly above the industry average of 10.08%.
- The last Return On Invested Capital (33.53%) for LXI is well below the 3 year average (42.17%), which needs to be investigated, but indicates that LXI had better years and this may not be a problem.
| 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
- LXI has a Profit Margin of 15.74%. This is amongst the best in the industry. LXI outperforms 82.61% of its industry peers.
- LXI's Profit Margin has improved in the last couple of years.
- With an excellent Operating Margin value of 19.86%, LXI belongs to the best of the industry, outperforming 91.30% of the companies in the same industry.
- In the last couple of years the Operating Margin of LXI has grown nicely.
- With a Gross Margin value of 33.20%, LXI is not doing good in the industry: 60.87% of the companies in the same industry are doing better.
- LXI'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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so LXI is creating value.
- Compared to 1 year ago, LXI has about the same amount of shares outstanding.
- Compared to 5 years ago, LXI has less shares outstanding
- Compared to 1 year ago, LXI has an improved debt to assets ratio.
2.2 Solvency
- LXI has an Altman-Z score of 8.94. This indicates that LXI is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 8.94, LXI belongs to the top of the industry, outperforming 95.65% of the companies in the same industry.
- LXI 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.
- The Debt to FCF ratio of LXI (1.89) is better than 86.96% of its industry peers.
- A Debt/Equity ratio of 0.93 indicates that LXI is somewhat dependend on debt financing.
- LXI has a worse Debt to Equity ratio (0.93) than 69.57% of its industry peers.
- Even though the debt/equity ratio score it not favorable for LXI, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 1.89 | ||
| Altman-Z | 8.94 |
ROIC/WACC3.74
WACC8.97%
2.3 Liquidity
- A Current Ratio of 1.68 indicates that LXI should not have too much problems paying its short term obligations.
- LXI has a better Current ratio (1.68) than 73.91% of its industry peers.
- LXI has a Quick Ratio of 1.68. This is a bad value and indicates that LXI is not financially healthy enough and could expect problems in meeting its short term obligations.
- LXI has a worse Quick ratio (0.80) than 60.87% of its industry peers.
- The current and quick ratio evaluation for LXI is rather negative, while it does have 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
- LXI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.33%, which is quite good.
- LXI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.03% yearly.
- LXI shows a small growth in Revenue. In the last year, the Revenue has grown by 3.77%.
- LXI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.01% yearly.
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
- The Earnings Per Share is expected to grow by 10.73% on average over the next years. This is quite good.
- LXI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.49% yearly.
EPS Next Y2.7%
EPS Next 2Y5.12%
EPS Next 3Y6.45%
EPS Next 5Y10.73%
Revenue Next Year0.81%
Revenue Next 2Y3.56%
Revenue Next 3Y4.22%
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.
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- LXI is valuated rather expensively with a Price/Earnings ratio of 21.19.
- LXI's Price/Earnings ratio is in line with the industry average.
- When comparing the Price/Earnings ratio of LXI to the average of the S&P500 Index (27.21), we can say LXI is valued slightly cheaper.
- With a Price/Forward Earnings ratio of 20.19, LXI is valued on the expensive side.
- 60.87% of the companies in the same industry are cheaper than LXI, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of LXI to the average of the S&P500 Index (24.26), we can say LXI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.19 | ||
| Fwd PE | 20.19 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, LXI is valued a bit more expensive than 73.91% of the companies in the same industry.
- The rest of the industry has a similar Price/Free Cash Flow ratio as LXI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.06 | ||
| EV/EBITDA | 15.81 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates LXI does not grow enough to justify the current Price/Earnings ratio.
- The excellent profitability rating of LXI may justify a higher PE ratio.
PEG (NY)7.84
PEG (5Y)1.41
EPS Next 2Y5.12%
EPS Next 3Y6.45%
5. Dividend
5.1 Amount
- LXI has a Yearly Dividend Yield of 1.02%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 3.28, LXI is paying slightly less dividend.
- Compared to an average S&P500 Dividend Yield of 1.81, LXI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
5.2 History
- On average, the dividend of LXI grows each year by 9.85%, which is quite nice.
Dividend Growth(5Y)9.85%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
- 20.01% of the earnings are spent on dividend by LXI. This is a low number and sustainable payout ratio.
- The dividend of LXI is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP20.01%
EPS Next 2Y5.12%
EPS Next 3Y6.45%
LENNOX INTERNATIONAL INC / LXI.DE FAQ
What is the ChartMill fundamental rating of LENNOX INTERNATIONAL INC (LXI.DE) stock?
ChartMill assigns a fundamental rating of 7 / 10 to LXI.DE.
Can you provide the valuation status for LENNOX INTERNATIONAL INC?
ChartMill assigns a valuation rating of 2 / 10 to LENNOX INTERNATIONAL INC (LXI.DE). This can be considered as Overvalued.
How profitable is LENNOX INTERNATIONAL INC (LXI.DE) stock?
LENNOX INTERNATIONAL INC (LXI.DE) has a profitability rating of 9 / 10.
What are the PE and PB ratios of LENNOX INTERNATIONAL INC (LXI.DE) stock?
The Price/Earnings (PE) ratio for LENNOX INTERNATIONAL INC (LXI.DE) is 21.19 and the Price/Book (PB) ratio is 16.51.
Can you provide the expected EPS growth for LXI stock?
The Earnings per Share (EPS) of LENNOX INTERNATIONAL INC (LXI.DE) is expected to grow by 2.7% in the next year.