Lennox International Inc (LII)
Industrials · Building Products · US stock · S&P 500 component
$378.72
▲ +12.35 (3.37%)
Fair valueFair
$400 +5.5% to fair value
$200fair band $340–$484$599
Day's range
$363.45 – $382.99
52-week range
$340.32 – $587.27
About Lennox International Inc
Lennox International designs and manufactures heating, ventilation, air conditioning and refrigeration equipment for homes and commercial buildings. Its products include furnaces, heat pumps, air conditioners and commercial rooftop units, sold mainly through independent dealers, distributors and its own stores. Revenue comes from equipment sales and replacement parts, and demand is influenced by housing activity, weather, building codes and replacement cycles for existing systems.
Revenue over the last twelve months was $5.3 billion, with growth of 3.3% a year over three years. The operating margin stands at 19.7%. The return on invested capital is shown as 31%. Net debt to EBITDA is 1.3 times. Shareholders receive a dividend yielding 1.4%. Its X-Ray Score is 59 out of 100. These numbers describe past results and current financial position, and they are shown for reference only.
Price chart
52-wk range $340.32 – $587.27Volume 849,924Daily, split-adjusted
Vitals
Market cap$13.3B
52-week range$340.32 – $587.27
Volume (last day)849,924
P/E (TTM)16.8
EBIT / EV yield7.0%
Free-cash-flow yield5.0%
Dividend yield1.4%
Revenue (TTM)$5.3B
Net income (TTM)$794M
Operating margin19.7%
Return on capital31.2%
Debt incl. leases$1.5B
Cash & securities$50M
Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies that hold large long-term investments). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.
Fair value estimate
$400middle half of models $388 – $425
Fair
+5.5% to fair value
Average of the 14 valuation models that pass our checks: multiples, discounted cash flow, dividend discount and earnings power value. A model more than 100% above or 60% below the price is left out as unrealistic. Model uncertainty is High, based on how far apart the models are. Undervalued or Overvalued means the gap to fair value is more than 17.5%.
Price $379
Undervalued < $340Fair $340 – $484Overvalued > $484
P/E multiple
$400
P/B multiple
$651
P/S multiple
$408
EV/EBITDA multiple
$434
EV/EBIT multiple
$471
EV/revenue multiple
$404
10-year DCF, EBITDA exit
$391
5-year DCF, EBITDA exit
$402
10-year DCF, revenue exit
$387
5-year DCF, revenue exit
$393
10-year DCF, growth exit
$330
5-year DCF, growth exit
$325
Dividend discount, stable · not used
$146
Dividend discount, multi-stage
$168
Earnings power value
$431
Growth the price implies
9.8%/yr
A model estimate, not a price target or recommendation. Inputs: risk-free 5.13%, equity risk premium 4.30% (Damodaran). How it works.
What this means
Average business, fairly priced
The price sits inside our fair-value band. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.
Before you invest · decision checklist
Ticked boxes are filled in from our data; the rest are yours to answer.
The five-lens scan
Every score explained in one sentence, ranked against Industrials peers. Open a lens to see the numbers behind it.
Strong: 70 to 100Fair: 50 to 69Weak: under 50No score: not enough data
Valuation
Strong
76/100
Cheap against its sector on earnings and cash flow.
See the numbers →
EBIT / EV yield7.0%
Free-cash-flow yield5.0%
Fair value vs price1.1×
Growth
Weak
50/100
Growing slower than most of its sector.
See the numbers →
Revenue growth (3y)3.3%
EPS growth (3y)18.0%
Growth consistency70%
Profitability
Fair
58/100
Returns on capital are typical for its sector.
See the numbers →
Return on invested capital31.2%
Operating margin19.7%
Gross profitability40.7%
Financial health
Fair
51/100
Balance sheet is in typical shape for its sector.
See the numbers →
Piotroski F-Score5 / 9
Net debt / EBITDA1.3×
Interest cover20.8×
Dividends
Fair
58/100
Dividend is typical for its sector.
See the numbers →
Dividend yield1.4%
Dividends vs free cash flow28%
Dividend growth6.8%
Quarterly results: last 6 quarters
+16.5%
Dec '24
+2.4%
Mar '25
+3.4%
Jun '25
-4.8%
Sep '25
-11.2%
Dec '25
+5.8%
Mar '26
Revenue against the same quarter a year earlier. Latest quarter revenue $1.1B, diluted EPS $3.35.
Compare with peers
AOS Smith A O Corp65 ALLE Allegion plc59 TT Trane Technologies plc56 MAS Masco Corp53Other Building Products companies by X-Ray Score.
SWOT analysis: Lennox International Inc
Strengthsinside the company
- Return on invested capital is 31.2%, against a median of 20.9% for industry peers.
- Earnings per share have compounded at 18.0% a year over three years.
- Operating profit covers interest 21x, so debt costs are a small drag.
Weaknessesinside the company
- No clear weakness in the figures we track.
Opportunitiesvaluation and setting
- Dividends use only 28% of free cash flow, which leaves room to raise them.
- Trades at 16.7x earnings, 30% below the 24.0x median of industry peers.
Threatsvaluation and setting
- Revenue growth slowed to -2.7% last year from 3.3% a year over three years.
- Valuation uncertainty is high: the models give widely different values, so the fair value range is wide.
Written by fixed rules from the figures on this page and the peer table below: filings, our fair value, the sector climate and the price trend. It summarises the data, it is not a forecast or advice.
Compare LII with peers and sector
Medians of 6 Building Products peers and of 80 Industrials stocks in our universe.
Largest peers (X-Ray Score): TT 56, JCI 31, CARR 27, MAS 53, ALLE 59, AOS 65.
| Metric | LII | Peers | Sector |
|---|---|---|---|
| X-Ray Score (out of 100) | 59 | 55 | 50 |
| Valuation | 76 | 44 | 44 |
| Growth | 50 | 46 | 51 |
| Profitability | 58 | 61 | 50 |
| Financial health | 51 | 47 | 49 |
| Dividends | 58 | 51 | 53 |
Sector leaders: highest X-Ray Score in Industrials
LII ranks #18 of 81 in Industrials and #2 of 7 in Building Products by X-Ray Score. A higher score is stronger on our five pillars; it is a ranking of facts, not a forecast.
Green means better than the peer median, red worse (only where a higher or lower figure is clearly better). A dash means too few companies report the figure. P/E, EV/EBITDA and price changes are not graded: a different level is not good or bad by itself.
Factor ratings for LII
Each factor is rated by where LII stands among the 81 Industrials stocks in our universe.
Rating against the sector
Goodthe top third of these stocks
Averagethe middle third of these stocks
Badthe bottom third of these stocks
"Beats" is the share of those stocks it is ahead of.
Against its own history
The last columns set today's figure against the company's own median of its last five financial years:
▲ Betterbetter than its usual level
▼ Worseworse than its usual level
≈ In linewithin its usual range
For valuation factors Good means cheaper than most of the sector and Better means cheaper than usual for this company, which is not the same as a bargain.
In total: 10 Good · 6 Average · 7 Bad of 23
Growth: 1 · 1 · 1
Profitability: 3 · 1 · 1
Financial strength: 1 · 2 · 1
Valuation: 3 · 1 · 1
Cash flow: 1 · 1 · 2
Efficiency: 1 · 0 · 1
| Factor | LII | Rating | Sector median | Own 5-year median | Against own history |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth, 3 years a year | +3.3% | Average beats 37% | +5.6% | – | – |
| Revenue growth, last year | −2.7% | Bad beats 11% | +4.5% | +7.2% | ▼ Worse |
| EPS growth, 3 years a year | +18.0% | Good beats 75% | +5.7% | – | – |
| Profitability | |||||
| Gross margin | 33.2% | Bad beats 29% | 38.0% | 31.1% | ≈ In line |
| Operating margin | 19.7% | Good beats 67% | 17.5% | 15.9% | ▲ Better |
| Net margin | 15.1% | Average beats 66% | 12.8% | 11.9% | ▲ Better |
| Return on invested capital | 31.2% | Good beats 85% | 14.9% | – | – |
| Return on equity | 65.4% | Good beats 93% | 23.7% | 84.3% | ▼ Worse |
| Financial strength | |||||
| Net debt / EBITDA | 1.3x | Average beats 62% | 1.8x | 1.4x | ≈ In line |
| Interest cover | 20.8x | Average beats 48% | 21.4x | 23.6x | ▼ Worse |
| Current ratio | 1.57 | Good beats 67% | 1.25 | 1.55 | ≈ In line |
| Piotroski F-score | 5 / 9 | Bad beats 16% | 6 / 9 | – | – |
| Valuation | |||||
| P/E ratio | 16.7x | Good beats 90% | 28.9x | 26.2x | ▲ Better |
| Price / book | 10.9x | Bad beats 27% | 6.2x | 22.7x | ▲ Better |
| Price / sales | 2.5x | Average beats 65% | 3.5x | 3.2x | ▲ Better |
| EV / EBITDA | 12.8x | Good beats 85% | 18.5x | 19.6x | ▲ Better |
| Free cash flow yield | 5.0% | Good beats 72% | 3.8% | 3.4% | ▲ Better |
| Cash flow | |||||
| Free cash flow margin | 12.6% | Average beats 43% | 13.8% | 9.8% | ▲ Better |
| Cash from operations / net income | 1.02 | Bad beats 6% | 1.39 | 1.11 | ≈ In line |
| Free cash flow growth, 3 years a year | +47.0% | Good beats 93% | +14.5% | – | – |
| Accruals (lower is better) | −0.4% | Bad beats 7% | −3.2% | – | – |
| Efficiency | |||||
| Inventory turnover | 2.9x | Bad beats 26% | 4.0x | 4.2x | ▼ Worse |
| Days sales outstanding | 45 days | Good beats 71% | 57 days | 44 days | ≈ In line |
These ratings compare companies with each other and describe the past; they are not a forecast, a recommendation or part of the X-Ray Score. A factor is left out when its data is missing or meaningless (for example a P/E on negative earnings). A dash in the history columns means fewer than three usable years.
Fundamentals checklist
● 10 Good · ● 4 Average · ● 2 BadCash quality
Earnings backed by cashBad
Free-cash-flow yieldGood
Risk models
Altman Z''Good
Piotroski F-ScoreBad
Growth
EPS growth (3y)Good
Free-cash-flow growth (3y)Good
Revenue growth (3y)Average
Growth consistencyAverage
Balance sheet
Current ratioGood
Net debt / EBITDAAverage
Interest coverAverage
Valuation
Fair value vs priceGood
EBIT / EV yieldGood
Profitability
Return on invested capitalGood
Operating marginGood
Gross profitabilityGood
Each check is graded against the company's sector, not a fixed number. Checklist score 63/100.
Financials
| FY21 | FY22 | FY23 | FY24 | FY25 | |
|---|---|---|---|---|---|
| Revenue | $4.2B | $4.7B | $5.0B | $5.3B | $5.2B |
| Operating income | $590M | $656M | $792M | $1.0B | $1.0B |
| Net income | $464M | $497M | $591M | $811M | $806M |
| Operating cash flow | $516M | $302M | $736M | $946M | $758M |
| Operating margin | 14.1% | 13.9% | 15.9% | 19.5% | 20.0% |
| Free cash flow | $409M | $201M | $486M | $782M | $639M |
| Diluted EPS | $12.39 | $13.88 | $16.58 | $22.66 | $22.79 |
Fiscal years, from SEC filings.
Technical summary
Daily
Bearish
6 bullish · 1 neutral · 9 bearish
Weekly
Strongly bearish
1 bullish · 1 neutral · 10 bearish
Monthly
Strongly bearish
0 bullish · 1 neutral · 7 bearish
Moving averages (daily)
| SMA 10 | 359.3 | Bullish |
| EMA 10 | 363.1 | Bullish |
| SMA 20 | 360.5 | Bullish |
| EMA 20 | 363.3 | Bullish |
| SMA 50 | 374.4 | Bullish |
| EMA 50 | 384.3 | Bearish |
| SMA 100 | 443.9 | Bearish |
| EMA 100 | 419.3 | Bearish |
| SMA 200 | 474.1 | Bearish |
| EMA 200 | 456.5 | Bearish |
Oscillators (daily)
| RSI (14) | 59.12 | Neutral |
| MACD (12, 26) | -3.31 | Bearish |
| Momentum (12) | 3.58 | Bullish |
| Stochastic %K (14) | 89.99 | Bearish |
| Williams %R (14) | -10.01 | Bearish |
| CCI (20) | 207.8 | Bearish |
Pivot points (classic, last session)
S3 347.6 | S2 355.5 | S1 367.1 | Pivot 375.1 | R1 386.7 | R2 394.6 | R3 406.2 |
Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.
Dividends
Paid, last 12 months
5.32 USD
Yield on today's price
1.40%
Frequency
Quarterly
Next ex-dividend date
Not announced
| Ex-dividend date | Amount per share |
|---|---|
| 1.3600 | |
| 1.3600 | |
| 1.3000 | |
| 1.3000 | |
| 1.3000 | |
| 1.3000 | |
| 1.1500 | |
| 1.1500 | |
| 1.1500 | |
| 1.1500 | |
| 1.1000 | |
| 1.1000 |
Ex-dividend dates and amounts from EODHD. Shown as declared, before tax.
ETFs that hold LII
| ETF | Share of the fund |
|---|---|
| XHB SPDR S&P Homebuilders | 3.37% |
| ITB iShares U.S. Home Construction | 3.34% |
| NAIL Direxion Daily Homebuilders & Supplies... | 2.17% |
| RSPN Invesco S&P 500 Equal Weight Industria... | 0.98% |
| VBK Vanguard Small-Cap Growth | 0.50% |
| DON WisdomTree U.S. MidCap Dividend | 0.39% |
| XLI Industrial Select Sector SPDR | 0.31% |
| VIS Vanguard Industrials | 0.22% |
The eight funds with the largest weight in LII among the ETFs we cover, from each fund's latest SEC Form N-PORT (quarter-end positions, so they can be months old). All ETFs.
LII SEC filings
8-KSEC EDGAR
Director or officer change
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations
8-KSEC EDGAR
Director or officer change; Shareholder vote results
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations
DEF 14ASEC EDGAR
Proxy statement
10-KSEC EDGAR
Annual report
Where the numbers come from
Statements SEC EDGAR filings (10-K, 10-Q), quarters derived from year-to-date figures.
Prices end-of-day closes, split-adjusted.
Industry inputs beta, multiples and equity risk premium from Damodaran Online (NYU Stern).
StocksXray is for education only and is not financial advice. Scores and fair values are model estimates from public filings and carry uncertainty.