Skip to content

LII

S&P 500
Neutral · 51/100

Lennox International

Industrials
Building Products

$536.04

0.7%

Updated Today 7:15 PM ET

Price — Past Year

▼ Down 2.8% over the last 12 months

Price 50-day average 200-day averageSource: Yahoo Finance · refreshed daily
Key Metrics

Market Cap

$18.53B

P/E

23.12x

Forward P/E (est.)

22.78x

ROE

73.9%

Revenue Growth

-2.0%

EPS Growth

1.5%

Profit Margin

15.3%

FCF Yield

3.3%

Debt / Equity

1.19x

ROIC

68.0%

Interest Coverage

25.46x

Current Ratio

1.57x

Dividend Yield

1.0%

Implied Growth (rev. DCF)

5.4%

Rating Score

51/100

Technical Analysis (Educational)
Research

Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what LII's chart says today, with each tool explained.

Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. LII trades near $536.04, above its 50-day average ($506.48) and 200-day average ($510.29). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.

Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 57 it is in neutral territory — neither stretched nor washed out.

MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.

Volatility — ATR. Average True Range is the typical daily move. LII's is $20.56 (~3.8% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.

Support & resistance. Over the last month LII found buyers near $475.22 (support) and sellers near $542.19 (resistance); its 52-week range is $434.06–$689.44. A decisive break beyond either edge often marks the next move.

Volume. The latest session traded 0.9× the 20-day average — about normal. Rising volume on up-days suggests real buying; on down-days, real selling.

Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.

Business Overview
Research

Lennox International (LII) is a large-cap company in the Building Products industry, part of the Industrials sector of the S&P 500, with a market value around $18.53B.

In its latest reported year it generated about $5.20B in revenue and $805.80M in net profit.

Our model rates LII Neutral (51/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.

Revenue Growth
Research

4Y CAGR

5.5%

Revenue moved from $4.19B in 2021 to $5.20B in 2025, a 5.5% compound annual growth rate. The most recent year declined 2.0% year over year. Shrinking revenue is worth a closer look — is it cyclical or structural?

Profitability
Research

Gross Margin

33.4%

Operating Margin

20.0%

Net Margin

15.5%

ROE

73.9%

Lennox International keeps about 15.3% of each sales dollar as net profit, with a 33.4% gross margin and 20.0% operating margin. Return on equity is 73.9% and return on invested capital about 68.0%. Margins this wide usually signal pricing power or a cost advantage.

Debt Analysis
Research

Total Debt

$18.30M

Net Debt

-$29.90M

Net cash position

Net Debt / EBITDA

-0.03x

Debt / Equity

1.19x

Leverage: debt-to-equity is 1.2x, and operating profit covers interest about 25.5x, with a current ratio of 1.6x. That is a moderate, manageable debt load for most businesses. It carries roughly $18.30M of total debt against $48.20M of cash.

Cash Flow Analysis
Research

Operating CF

$757.60M

Free Cash Flow

$638.80M

FCF Margin

12.3%

In the latest year Lennox International produced about $757.60M of operating cash flow and $638.80M of free cash flow after capital spending. That is a free-cash-flow yield of about 3.3% on today's price. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.

Valuation Analysis
Research

P/E

23.12x

P/S

3.54x

P/B

14.76x

EV / EBITDA

15.89x

LII trades at 23.1x trailing earnings (about 22.8x on estimated forward earnings), 3.5x sales, and 14.8x book value. Reverse-engineering today's price implies the market expects roughly 5.4% long-term free-cash-flow growth. That is a fairly typical valuation for a profitable company.

Metrics vs. Typical Range

Where this stock sits versus what most companies trade at.

TTM P/E
23.1xFair
Forward P/E
22.8xFair
P/S ratio
3.5xExpensive
Revenue growth
-2.0%Weak
EPS growth
1.5%Weak
Gross margin
33.4%Weak
Net margin
15.3%Strong
ROE
73.9%Strong

Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. Context only — not investment advice.

Sector Peer Comparison

How LII stacks up against its Industrials peers — valuation, profitability, and growth versus the sector median.

In the Industrials sector (80 S&P 500 companies), LII ranks #44 of 80 by our overall rating. It trades at a discount versus the sector on earnings (23.1x P/E vs. 30x median) with a higher return on equity (73.9% vs. 24.7%) and slower revenue growth (-2.0% vs. 5.0%).

P/E vs sector

23.1x

median 30x

ROE vs sector

73.9%

median 24.7%

Growth vs sector

-2.0%

median 5.0%

Sector rank

#44

of 80 by rating

CompanyP/ERev Gr.Rating
LIIThis stock23.1x-2.0%Neutral· 51
MAS17.9x-0.3%Neutral· 50
ALLE18.2x8.9%Favorable· 62
BLDR29.6x-8.3%Weak· 30
AOS15.3x0.2%Favorable· 59
CARR45.5x-5.1%Weak· 23
JCI25x-3.4%Neutral· 55
TT36.7x6.4%Neutral· 53
Industrials median30x5.0%52/100

Valuation vs. quality map

sector medianMASALLEBLDRAOSCARRJCITTLIIP/E — cheaper ←→ pricierROE — more profitable ↑

The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.

Compare side by side

Peers are the closest Industrials companies by sub-industry and size. Sector median is across all 80 S&P 500 names in the sector. Educational, not a recommendation.

5-Year Projection Model

Project revenue → earnings → price. Edit the assumptions to build your own case.

2030 price target (Base Case)

$387.67$636.89

vs. $536.04 today · expected CAGR -6%4%

Metric20262027202820292030
Revenue$5.35B$5.51B$5.68B$5.85B$6.02B
Net income$856.19M$881.87M$908.33M$935.58M$963.64M
EPS$24.60$25.34$26.10$26.88$27.69
Share price (low)$344.44$354.78$365.42$376.38$387.67
Share price (high)$565.87$582.85$600.33$618.34$636.89
CAGR (low–high)-36% / 6%-19% / 4%-12% / 4%-8% / 4%-6% / 4%

Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.

Bull Case

The case for LII:

  • High net margins (15.3%) point to pricing power or efficiency.
  • Strong return on equity (73.9%) shows capital is put to work well.
Bear Case

The case against LII:

  • Revenue growth is slow/negative (-2.0%), limiting the upside engine.
  • Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Key Risks
Research

Balance-sheet risk — debt/equity of 1.2x magnifies the impact of higher rates or weaker earnings.

Growth risk — sluggish revenue (-2.0%) leaves little margin for execution missteps.

Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.

Investment Thesis
Research

On balance, the picture is mixed: Lennox International is a large-cap industrials business with shrinking revenue, with solid profitability, and a heavier debt load to watch. It trades at 23.1x earnings, which our model scores Neutral (51/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.

Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.

Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.