Stock Analysis
Lennox International Inc.LII
P/E 15.57×· 5Y range 14.67–34.45×· bottom 1% of history
Sector: Industrials · Industry: Air-Cond & Warm Air Heatg Equip & Comm & Indl Refrig Equip
AnalystsHold23 analystsP/E 15.6× sits at the 1st percentile of its 5.086926762491444-year history.
Cash covers 3% of debt · FY 2025.
PMP Verdict
Strong business, attractive price
Strengths
- Profitability90
- Financial Health80
High-quality business at an attractive price.
Bull Case
- ✓Altman Z 6.6 — safe-zone balance sheet
- ✓ROE 68.3% — efficient capital deployment
- ✓Interest coverage 17.3× — debt well covered
- ✓P/E 15.6× at bottom 1% of 5-year history
What's happening with LII
Profile
Strong profitability, valuation and financial health.
How is each axis scored?
- Valuation85/100 · Strong
- P/E vs own history (1th pct)25/25
- FCF yield (6.0%)20/25
- P/S (2.3x)20/25
- EV/EBIT (12.8x)20/25
- Growth64/100 · Moderate
- Revenue CAGR (5.5%)12/25
- Net income CAGR (14.8%)20/25
- EPS CAGR 5Y (16.5%)20/25
- Fwd implied growth (6.1%)12/25
- Profitability90/100 · Strong
- ROIC (36.2%)25/25
- ROE (68.3%)25/25
- Net margin (15.0%)20/25
- Operating margin (19.8%)20/25
- Financial Health80/100 · Strong
- Altman Z (6.60)25/25
- Current ratio (1.60)18/25
- Interest coverage (17.3x)25/25
- Net cash / debt (D/A 28%)12/25
- Quality74/100 · Moderate
- Piotroski F (6/9)15/25
- Beneish M (-2.21)12/25
- FCF conversion (93%)22/25
- Margin stability (σ 3.7%)25/25
- Moat74/100 · Moderate
- ROIC >12% years (10/10 yrs)25/25
- Median gross margin (29.0%)6/25
- FCF-positive years (10/10 yrs)25/25
- Worst-year net margin (worst 7.6%)18/25
About Lennox International Inc.
Lennox manufactures and distributes heating, ventilating, air conditioning, and refrigeration products for the North American replacement (75% of sales) and new construction (25% of sales) markets. Show more
Residential HVAC (home comfort solutions) accounts for 67% of sales and commercial HVAC (building climate solutions) accounts for the remaining 33% of sales. Lennox's commercial exposure is what its peers refer to as residential and light commercial, and lacks the scale and complexity of what is referred to as an applied solution. The company goes to market with multiple brands, but Lennox is its flagship HVAC brand.
Headquarters: RICHARDSON, TX · Employees: 12,900 · Website ↗
Price History
Weekly Candlestick Chart — up to 5Y
Key Metrics
Financial snapshot · Tap any metric for its definition and grade
TTM Snapshot
trailing twelve months · YoYValuation
85AP/E (TTM)15.6xB
Grade B: FairPrice / TTM EPS (own statements) — vs own 5Y history: 14.7x–34.5x · lowest in history
P/FCF15.8xB
Grade B: FairPrice / Free Cash Flow per share (Finnhub). Inverse of FCF yield — negative when FCF is negative
FCF Yield6.0%A
Grade A: ValueTTM (OCF − CapEx) / Market Cap — vs own 5Y history: 1.8%–6.1% · 99th pct
P/S (TTM)2.33xB
Grade B: FairPrice / TTM Revenue (own statements) — vs own 5Y history: 1.6x–4.7x · 25th pct
EV/EBIT12.8xB
Grade B: FairEnterprise value / TTM EBIT (D&A not in our data) — capital-structure neutral — vs own 5Y history: 12.6x–27.1x · lowest in history
EV/Sales2.6xB
Grade B: FairEnterprise Value / TTM Revenue (Finnhub) — capital-structure neutral sales multiple
Forward P/E14.7xA
Grade A: CheapPrice / next-year EPS estimate — shows whether the TTM multiple is rich or just front-loading growth
P/B Ratio10.63xD
Grade D: Very expensivePrice to Book Value. Neg. equity = heavy buybacks
PEG Ratio2.26C
Grade C: ExpensiveFinnhub PEG — their P/E basis ÷ expected EPS growth. Suppressed when their P/E diverges >2× from our TTM P/E (different basis)
Dividend Yield1.47%A
Grade A: PaysTTM dividend yield (Finnhub) — annual dividends / price. None = no dividend; very high yield can signal distress
Payout Ratio22.9%A
Grade A: SafeDividends / Net Income (Finnhub) — share of earnings paid out; >90% or negative = unsustainable
Profitability
90A+ROIC36.2%A
Grade A: MoatNOPAT (EBIT less ~21% tax) / invested capital (equity + debt − cash). Flagship quality metric — durable >15% signals a moat
ROE68.3%A
Grade A: StrongReturn on Equity. Neg. equity = heavy buybacks
ROA19.3%A
Grade A: StrongReturn on Assets (Finnhub) — Net Income / Total Assets; how efficiently assets produce profit
Net Margin15.0%A
Grade A: HighNet Income / Revenue
Operating Margin19.8%C
Grade C: AverageTTM EBIT / TTM Revenue
Gross Margin33.5%C
Grade C: AverageGross Profit / Revenue
FCF Margin13.9%C
Grade C: AverageFCF / Revenue
True FCF Margin13.4%A
Grade A: HighTTM (OCF − CapEx − SBC) / TTM Revenue — SBC treated as a real cost
Growth
64BRevenue CAGR5.5%C
Grade C: OkCompound annual revenue growth (up to 5Y depending on data availability)
Net Income CAGR14.8%C
Grade C: OkCompound annual net income growth (up to 5Y depending on data availability)
EPS CAGR (5Y)16.5%A
Grade A: HighCompound annual EPS growth over up to 5Y of per-share earnings (own statements). Null when either endpoint EPS ≤ 0
Implied EPS Growth6.1%B
Grade B: LowAnalyst forward EPS (normalized basis) vs our GAAP TTM EPS — different bases, so extreme values usually mark cyclically depressed TTM earnings, not real growth
Dilution (5Y)-8.9%A
Grade A: BuybacksShare count change over 5Y
SBC / Net Income3.4%A
Grade A: LowStock-based comp/Net income. >30% = dilution risk
SBC / Revenue0.5%A
Grade A: LowTTM stock-based comp / TTM Revenue
Financial Health
80AAltman Z-Score6.60A
Grade A: SafeBankruptcy risk. >3 Safe, <1.8 Distress
Current Ratio1.60xC
Grade C: OkCurrent Assets/Liabilities
Quick Ratio0.77xC
Grade C: Ok(Current Assets − Inventory) / Current Liabilities (Finnhub) — stricter liquidity test, excludes inventory
Interest Coverage17.3xA
Grade A: StrongEBIT/Interest. >10 Strong
Debt Repayment1.5yA
Grade A: FastYears to repay net debt via FCF
Net Debt/EBIT1.1xA
Grade A: LowLeverage. <2x Low, >4x High
Debt/Equity1.00xA
Grade A: LowDebt / Equity: <1 Conservative, >2 Risky. Not meaningful with non-positive equity; shown as unavailable rather than low debt.
Cash / Debt0.03xD
Grade D: ThinCash covers how much of total debt. >1 = could repay all debt from cash
Quality
74B+Piotroski F-Score6/9C
Grade C: AverageFinancial strength 0–9. >7 Strong
Beneish M-Score-2.21C
Grade C: Gray zoneEarnings manipulation risk. < -2.22 Safe
FCF Conversion93.0%A
Grade A: StrongFCF / Net Income
Margin Stability3.7%A
Grade A: StableEBIT margin std deviation. Lower = stable
Capex / Revenue2.9%A
Grade A: Asset-lightTTM CapEx / TTM Revenue — high % = capital-hungry business
Asset Turnover1.29xA
Grade A: HighRevenue / Total Assets (Finnhub) — how efficiently the asset base generates sales
Insider Transactions
SEC Form 4 · 8 recordsP/S codes are the directional signal; grants, option exercises and tax withholding carry none. Form 4 doesn't flag 10b5-1 plans — scheduled sales may appear within open-market sells.
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
NORRIS JOHN W III Filed | NORRIS JOHN W III | Gift | -8988 | |
NORRIS JOHN W III Filed | NORRIS JOHN W III | Gift | -990 | |
Somasundaram Sivasankaran Filed | Somasundaram Sivasankaran | SellDisposition | -343 | |
Buck Sherry Filed | Buck Sherry | Grant / award | +343 | |
Quintos Karen H Filed | Quintos Karen H | Grant / award | +343 |
Show 3 more filingsShow fewer filings
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
TESKE TODD J Filed | TESKE TODD J | Grant / award | +343 | |
Vander Ark Jon Filed | Vander Ark Jon | Grant / award | +343 | |
Wall Shane D Filed | Wall Shane D | Grant / award | +343 |
More metrics — Moat, Per Share, Balance Sheet, MarketHide additional metrics
Moat
74B+ROIC >12% Years10/10 yrsA
Grade A: DurableShare of completed fiscal years with ROIC > 12% — measures multi-year capital-return durability
Gross Margin (Med.)29.0%D
Grade D: WeakMedian annual gross margin across available fiscal years — pricing-power durability
FCF-Positive Years10/10 yrsA
Grade A: DurableShare of completed fiscal years with positive free cash flow
Net Margin Floor7.6%A
Grade A: DurableWeakest annual net margin across completed fiscal years — recession/downcycle resilience
Per Share
EPS (TTM)$22.98
Own TTM net income / shares — same earnings basis as P/E
Cash / Share$1.51
Cash & short-term investments per share (Finnhub)
Book Value / Share$37.54
Shareholders' equity per share (Finnhub). Negative = accumulated losses / heavy buybacks
Balance Sheet
Total Debt$1.16B
Total debt obligations (short + long term)
Cash & Equiv.$34.70M
Cash and short-term investments
Net Debt$1.13B
Total Debt minus Cash. Negative = Net Cash position
Total Equity$1.16B
Shareholders' equity (book value)
Asset / Liability1.40xC
Grade C: AdequateTotal Assets / Total Liabilities
Market
Market Cap$12.36B
Current Market Capitalization
Beta1.20C
Grade C: VolatilePrice sensitivity vs the market (Finnhub) — 1.0 moves with market, >1.2 amplifies swings
How grades work: each metric is graded A–D against fixed thresholds (tap a row for the meaning). Card grades map the pillar score to A+–E — a card grade is that pillar's own score, not an average of the rows shown.
Financials as of Jun 2026 · Ratio snapshot Oct 17, 2026
Key Insights: Lennox International Inc. (LII)
Piotroski F-Score of 6/9 indicates mixed fundamentals for Lennox International Inc.. Altman Z-Score of 6.60 sits comfortably in the safe zone (≥ 2.99), indicating low bankruptcy risk. Takes ~1.5 years to repay net debt from free cash flow.
- At a valuation score of 85/100, LII trades near the cheapest end of its own historical range (P/E 15.6).
- Return on equity of 68.3% is well above the market average.
See how LII ranks on the Capex Tracker — top 50 capital spenders compared.
No significant market moves for LII in the last 30 days.
See LII move history →Frequently Asked Questions about LII
What is the current Lennox International Inc. (LII) stock price?
LII is trading at $357.73 at the last market close, down 0.21% on the session. PreMarketPrice tracks LII pre-market, intraday and after-hours prices.
Is LII stock a buy right now?
PreMarketPrice's quantitative model rates Lennox International Inc.'s financial health at 80/100. This is a data-driven snapshot of fundamentals, not investment advice.
Is LII stock overvalued?
Lennox International Inc. trades at a trailing P/E of 15.6 and our valuation score rates it 85/100 (higher = cheaper vs. its own history). See the Valuation History and Key Metrics sections for forward P/E, EV/EBITDA and PEG context.
When does Lennox International Inc. report earnings?
No confirmed earnings date is currently scheduled for LII. The Earnings section lists recent reports and updates as dates are announced.
What sector does Lennox International Inc. operate in?
Lennox International Inc. operates in the Industrials sector, within the Air-Cond & Warm Air Heatg Equip & Comm & Indl Refrig Equip industry. The Related Stocks section lists sector peers for comparison.
What does Lennox International Inc. do?
Lennox manufactures and distributes heating, ventilating, air conditioning, and refrigeration products for the North American replacement (75% of sales) and new construction (25% of sales) markets.
About Lennox International Inc. (LII) Stock
Lennox International Inc. (LII) is a US-listed stock operating in the Industrials sector, specifically the Air-Cond & Warm Air Heatg Equip & Comm & Indl Refrig Equip industry. As of the latest update, Lennox International Inc. is trading at $357.73, down 0.21% on the day with a market capitalization of $12.4 billion. The financial health score for LII is 80/100, which indicates excellent financial strength based on profitability, leverage, liquidity, and growth metrics. This page provides real-time pre-market pricing, earnings calendar, financial health analysis, and valuation metrics for LII stock.
LII Stock Analysis & Key Metrics
On PreMarketPrice, you can track Lennox International Inc. (LII) across multiple dimensions:
- Pre-market price & movement: Real-time LII stock price with percentage change, updated continuously during pre-market and regular trading hours.
- Valuation & P/E history: Historical P/E, P/S, and P/B ratios for LII with trend analysis and normalized valuation multiples.
- Financial statements: Revenue, net income, assets, liabilities, and equity for Lennox International Inc. across multiple reporting periods.
- Financial health score: A composite score of 80/100 based on Altman Z-Score, Piotroski F-Score, profitability, and leverage metrics for LII.
- Sector peers: Compare LII against 6 other industrials stocks on key financial metrics.
Is LII a Good Stock to Buy?
This page provides data-driven analysis to help you evaluate Lennox International Inc. (LII) as an investment. The financial health score of 80/100 suggests excellent financial fundamentals. Valuation metrics show whether the stock is trading above or below its historical average.However, this is not financial advice — always do your own research before investing.
Data on this page is sourced from real-time market feeds, Polygon.io, and Finnhub.Lennox International Inc. (LII) trades on NYSE/NASDAQ. Pre-market trading occurs 4:00 AM – 9:30 AM ET. Regular market hours are 9:30 AM – 4:00 PM ET.