LENNOX INTERNATIONAL INC (LXI.DE) Stock Fundamental Analysis
Europe - FRA:LXI - US5261071071 - Common Stock
473.3 EUR
+20 (+4.41%)
LXI gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 23 industry peers in the Building Products industry. Both the health and profitability get an excellent rating, making LXI a very profitable company, without any liquidiy or solvency issues. 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.
LXI had a positive operating cash flow in the past year.
LXI had positive earnings in each of the past 5 years.
Each year in the past 5 years LXI had a positive operating cash flow.
1.2 Ratios
LXI's Return On Assets of 22.85% is amongst the best of the industry. LXI outperforms 95.65% of its industry peers.
LXI's Return On Equity of 92.68% is amongst the best of the industry. LXI outperforms 100.00% of its industry peers.
With an excellent Return On Invested Capital value of 37.71%, LXI belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for LXI is significantly above the industry average of 10.74%.
The 3 year average ROIC (42.17%) for LXI is well above the current ROIC(37.71%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector 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%
1.3 Margins
Looking at the Profit Margin, with a value of 15.41%, LXI belongs to the top of the industry, outperforming 86.96% of the companies in the same industry.
In the last couple of years the Profit Margin of LXI has grown nicely.
LXI's Operating Margin of 19.55% is amongst the best of the industry. LXI outperforms 91.30% of its industry peers.
In the last couple of years the Operating Margin of LXI has grown nicely.
With a Gross Margin value of 33.13%, LXI perfoms like the industry average, outperforming 47.83% of the companies in the same industry.
In the last couple of years the Gross Margin of LXI has grown nicely.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), LXI is creating value.
The number of shares outstanding for LXI remains at a similar level compared to 1 year ago.
LXI has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, LXI has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 8.41 indicates that LXI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 8.41, LXI belongs to the top of the industry, outperforming 91.30% of the companies in the same industry.
LXI has a debt to FCF ratio of 1.74. This is a very positive value and a sign of high solvency as it would only need 1.74 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.74, LXI belongs to the best of the industry, outperforming 91.30% of the companies in the same industry.
A Debt/Equity ratio of 0.96 indicates that LXI is somewhat dependend on debt financing.
The Debt to Equity ratio of LXI (0.96) is worse than 65.22% of its industry peers.
Although LXI 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 | 0.96 | ||
| Debt/FCF | 1.74 | ||
| Altman-Z | 8.41 |
ROIC/WACC3.82
WACC9.86%
2.3 Liquidity
A Current Ratio of 1.41 indicates that LXI should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.41, LXI is in line with its industry, outperforming 43.48% of the companies in the same industry.
LXI has a Quick Ratio of 1.41. This is a bad value and indicates that LXI is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.71, LXI is not doing good in the industry: 73.91% of the companies in the same industry are doing better.
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 | 1.41 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
LXI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.61%, which is quite impressive.
LXI 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 7.92% in the past year.
Measured over the past years, LXI 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
The Earnings Per Share is expected to grow by 10.73% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.49% on average over the next years. This is quite good.
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
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
Based on the Price/Earnings ratio of 23.66, the valuation of LXI can be described as rather expensive.
Based on the Price/Earnings ratio, LXI is valued a bit cheaper than 60.87% of the companies in the same industry.
LXI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.90, which is the current average of the S&P500 Index.
LXI is valuated rather expensively with a Price/Forward Earnings ratio of 21.02.
The rest of the industry has a similar Price/Forward Earnings ratio as LXI.
The average S&P500 Price/Forward Earnings ratio is at 23.36. LXI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.67 | ||
| Fwd PE | 21.02 |
4.2 Price Multiples
LXI's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. LXI is more expensive than 78.26% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LXI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.68 | ||
| EV/EBITDA | 17.08 |
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)3.52
PEG (5Y)1.57
EPS Next 2Y8.18%
EPS Next 3Y8.97%
5. Dividend
5.1 Amount
With a yearly dividend of 0.95%, LXI is not a good candidate for dividend investing.
LXI's Dividend Yield is slightly below the industry average, which is at 3.85.
With a Dividend Yield of 0.95, LXI pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
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
LXI pays out 19.61% of its income as dividend. This is a sustainable payout ratio.
LXI'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%
FRA:LXI (10/6/2025, 7:00:00 PM)
473.3
+20 (+4.41%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners77.77%
Inst Owner ChangeN/A
Ins Owners10.23%
Ins Owner ChangeN/A
Market Cap16.62B
Analysts64.8
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
Yearly Dividend3.84
Dividend Growth(5Y)9.85%
DP19.61%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
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)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.67 | ||
| Fwd PE | 21.02 | ||
| P/S | 3.6 | ||
| P/FCF | 28.68 | ||
| P/OCF | 23.34 | ||
| P/B | 21.66 | ||
| P/tB | 28.66 | ||
| EV/EBITDA | 17.08 |
EPS(TTM)20
EY4.23%
EPS(NY)22.52
Fwd EY4.76%
FCF(TTM)16.5
FCFY3.49%
OCF(TTM)20.27
OCFY4.28%
SpS131.44
BVpS21.85
TBVpS16.51
PEG (NY)3.52
PEG (5Y)1.57
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 8.41 |
F-Score7
WACC9.86%
ROIC/WACC3.82
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%