Stock · LII · Industrials

Lennox International Inc

United States · Large Cap · listed since 1999 · Revenue 12 mo. $5.3B

Price as of 11/06/2026

StockScorer score
7.3
of 10 8 of 11 points High Match To the score
Price
$341.97
1 Y −40.0%
Market cap
$11.4B
Phase
Payout
core business profitable, at least half of operating cash flow goes to shareholders
Revenue +3.3% a year (3 years)EBIT margin 20.0%Payout 89.6% of operating cash flow

Lennox International Inc., together with its subsidiaries, designs, manufactures, and markets products for the heating, ventilation, air conditioning, and refrigeration markets in the United States, Canada, and internationally.

moreless

Lennox International Inc., together with its subsidiaries, designs, manufactures, and markets products for the heating, ventilation, air conditioning, and refrigeration markets in the United States, Canada, and internationally. The Home Comfort Solutions segment provides furnaces, air conditioners, heat pumps, packaged heating and cooling systems, indoor air quality equipment, comfort control products, and replacement parts and supplies; residential heating, ventilation, cooling equipment, and air conditioning; and evaporator coils, air handlers, and unit heaters under the Lennox, Dave Lennox Signature Collection, Armstrong Air, Ducane, AirEase, Concord, MagicPak, Advanced Distributor Products, Allied, Elite Series, Supco, Linebacker, Elite series, Merit Series, Comfort Sync, Healthy Climate, Healthy Climate Solutions, iComfort, ComfortSense, and Lennox Stores names. The Building Climate Solutions segment offers unitary heating and air conditioning equipment, controls, installation and service of commercial heating and cooling equipment, variable refrigerant flow commercial, curb, curb adapters, drop box diffusers, HVAC recycling, and salvage service. This segment also provides condensing units, unit coolers, fluid coolers, air cooled condensers, process chillers, compressorized racks, and replacement parts and supplies under the Lennox, Model L, CORE, Enlight, Xion, Energence, Prodigy, Strategos, Raider, Lennox VRF, Lennox National Account Services, Allied Commercial, Duro Dyne, Dyne-Tite, Durozone, Elite, AES Industries, Mechanical, Heatcraft Worldwide Refrigeration, Bohn, MAGNA, Larkin, Climate Control, Chandler Refrigeration, IntelliGen, and Interlink brands. The company also offers small package units, rooftop units, chillers, air handlers, and fan coils. It sells its products and services through direct sales, distributors, and company-owned parts and supplies stores. The company was founded in 1895 and is headquartered in Richardson, Texas.

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Summary

Lennox International Inc is around the middle of the Industrials sector overall

44.5 of 100

Mean of the six area values. Each area value is the mean of the stock's ranks among the companies in its sector. 50 is the middle of the sector, not a share of companies beaten.

Analysis

What the price requires

The price requires 6.6% FCF growth a year, less than achieved over the last 5 and 10 years.

If free cash flow stays at €573.3M (2025), it supports €6.4B. The remaining €3.8B of the market value assume it grows 6.6% a year for 10 years and not at all afterwards.

Required FCF growth per year

6.6%

no growth afterwards

Market value breakdown€10.2B market value, price as of 11/06/2026

€6.4B without growth
€3.8B priced-in growth
  • 5 yrs achieved 18.6%
  • 10 yrs achieved 12.2%
  • priced in 6.6%

Valuation against its own history

Price to operating cash flow 13.3×, below its usual range.

Middle half of 20 quarters: 21.7× to 25.2×, median 23.1×.

Measures only against its own past, not against what the company is worth. Price as of 11/06/2026.

3 signs support the expectation, 1 speaks against it.

What supports it

with respect to the priced-in expectation

  • Expectation below the company's own record priced in 6.6%, achieved at least 12.2%
  • High return on capital every year ROCE at least 36.0% (10 years)
  • Low capital needs capex median 2.5% of revenue (10 years)

What speaks against it

with respect to the priced-in expectation

  • EBIT margin falling for three quarters −0.5 pp over the last four reports

Since the last quarter

Q1 → Q2 2026

Mostly better than the previous quarter: 2 of 3 changes for the better.

  • FCF, 12 mo.$660.7M → $738.7M+11.8%better
  • FCF margin12.6% → 13.9%+1.4 ppbetter
  • Return on equity64.5% → 59.7%−4.8 ppworse

5 more unchanged: Revenue, 12 mo., Gross margin, EBIT margin, Net debt, Shares outstanding

Derivation

How the sector comparison is derived

Each area value is the average of its metrics' ranks within the sector (0 to 100, 50 is the middle). For metrics where lower is better, the rank is mirrored. The overall value is the average of the area values.

Price as of 11/06/2026.

Profitability79.0above the middleEarns more than the sector: Return on equity 69.28%, sector 13.10%.
MetricStockSector medianPosition in sector
Return on equity69.28%13.10%Rank 97
Return on capital (Greenblatt)53.26%19.33%Rank 82
EBIT margin20.05%11.28%Rank 82
FCF margin12.30%8.50%Rank 72
Gross margin33.39%28.98%Rank 61
Growth45.0around the middleGrows about as fast as the sector.
MetricStockSector medianPosition in sector
Revenue growth, 1 year−2.73%5.15%Rank 13
Earnings growth, 3 years per year18.25%8.01%Rank 70
Earnings growth, 5 years per year19.99%12.89%Rank 71
Sustainable growth (ROE × retained earnings)2.29%4.02%Rank 27
Valuation66.9above the middleValued lower than the sector: EV/EBIT 12.88, sector 19.47.
MetricStockSector medianPosition in sector
Earnings yield6.71%4.42%Rank 75
FCF yield5.61%3.98%Rank 72
EV/saleslower is better2.582.08Rank 43
EV/EBITlower is better12.8819.47Rank 78
Momentum8.8below the middleShare price doing worse than the sector: Share price, 1 year −39.96%, sector −0.01%.
MetricStockSector medianPosition in sector
Share price, 1 year−39.96%−0.01%Rank 3
Share price, 6 months−33.91%−1.43%Rank 7
Share price, 3 months−17.11%0.53%Rank 14
Distance from 52-week high−40.31%−16.36%Rank 11
Quality42.5around the middleQuality about like the sector.
MetricStockSector medianPosition in sector
Accruals (Sloan)lower is better18.63%1.39%Rank 1
Change in share countlower is better−1.96%−0.44%Rank 72
Dividend streak in years265Rank 95
Price reaction to results, market-adjusted−10.82%0.27%Rank 2
Balance sheet & risk25.0below the middleMore risk than the sector: Debt to equity 1.77, sector 0.61.
MetricStockSector medianPosition in sector
Equity ratio28.49%39.65%Rank 25
Net debt/EBITDAlower is better1.761.38Rank 39
Debt to equitylower is better1.770.61Rank 13
Volatility, 1 yearlower is better41.07%32.95%Rank 23

Ten years in figures

Revenue from $3.6B (2016) to $5.2B (2025), 4.0% a year.

Fiscal years, amounts in USD
YearRevenue, $BEBIT marginFCF, $MSharesNet debt
20163.611.8%270.244.0M$818.0M
20173.812.9%226.842.8M$935.8M
20183.913.1%400.341.1M$995.0M
20193.817.3%290.539.4M$1.3B
20203.613.2%533.938.6M$1.1B
20214.214.1%408.737.5M$1.4B
20224.713.9%201.235.8M$1.7B
20235.015.9%486.035.7M$1.5B
20245.319.4%782.135.8M$1.1B
20255.220.1%638.835.1M$2.0B
7.3 / 10High MatchStockScorer score8 of 11 points

5 of 7 StockScorer Score rules met · How the score is built

Lennox International Inc mainly meets criteria in the Profitability category. Result from 18 strategies checked.

This stock · Profitability: 100%This stock · Growth: 50%This stock · Valuation: 100%This stock · Momentum: 0%Median of all stocks · Profitability: 33%Median of all stocks · Growth: 0%Median of all stocks · Valuation: 0%Median of all stocks · Momentum: 0%50%100%ProfitabilityGrowthValuationMomentumThis stockMedian of all stocks

How Lennox International Inc's score is built

Lennox International Inc is rated here with the StockScorer Score strategy, the flagship rule set. It compares return and cash-flow metrics with the median of the company's own sector and checks growth and price trend.

5 of 7 rules met

8 of 11 points

  1. Free cash flow yield above the sector medianmet2 of 2 points
  2. Return on capital (Greenblatt ROC) above the sector medianmet2 of 2 points
  3. Return on equity above the sector medianmet1 of 1 point
  4. Free cash flow margin above the sector medianmet2 of 2 points
  5. Revenue growth above 15%not met0 of 2 points
  6. 3-year earnings growth above 12% p.a.met1 of 1 point
  7. 12-month share price more than 20 percentage points ahead of the marketnot met0 of 1 point
  8. Exclusion: financial and real estate stocksdoes not apply

Detail data

How does Lennox International Inc stock perform across 18 strategies?

Excerpt from 18 strategies checked. The full evaluation is visible after a free sign-up.

12 more strategies locked

With a free account, you can see the match across all strategies checked in one complete overview.

  • Altman Z-Score: Stress Test
  • Earnings Quality: Accrual Check (Sloan)
  • Magic Formula: Value + Quality
  • Undervalued Stocks: Multi-Factor Check
  • Dividend Aristocrats & Continuity
  • PEG Strategy (inspired by Peter Lynch)
  • Acquirer's Multiple: EV/EBIT Deep Value
  • Defensive: Low Volatility
  • High-Growth / Rule of 40
  • Levermann Strategy (13 Criteria)
  • Trending Value: Value + Momentum
  • Growth Momentum (CAN SLIM principle)

Lennox International Inc key metrics: P/E, P/B and equity ratio

Selected fundamental metrics for Lennox International Inc.

MetricStockSector
P/E ratio14.922.5
P/B ratio10.32.9
Return on equity (ROE)69.3%13.1%
Equity ratio28.5%39.7%
Debt-to-equity (D/E)1.770.61
Dividend yield1.6%2.0%

Similar stocks in Industrials

How comparable stocks in the same sector score in the StockScorer model.

SymbolCompanyRating
LIILennox International Incthis page
MAIRMadison Air Solutions Corporationlocked
CSLCarlisle Companies Incorporatedlocked
MASMasco CorporationHigh7.3
CARRCarrier Global Corplocked
BEAN.SWBelimo Holdinglocked

Frequently asked questions about Lennox International Inc stock

How does Lennox International Inc stock (LII) score in the StockScorer model?
Lennox International Inc stock reaches a StockScorer score of 7.3 out of 10, which is a high match with the rule-based strategies. 5 out of 7 flagship profile rules are met.
What is Lennox International Inc's P/E ratio?
Lennox International Inc's P/E ratio is 14.9. The Industrials sector median is 22.5.
What sector is Lennox International Inc in?
Lennox International Inc is assigned to the Industrials sector. Its rank within the sector is 44.5 out of 100: 100 means the stock leads its peer group of large and mid-cap sector stocks in every measured area.

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