(LII) Lennox International - Overview
Stock: Furnaces, Air Conditioners, Heat Pumps, Refrigeration Systems, HVAC Controls
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 0.96% |
| Yield on Cost 5y | 1.89% |
| Yield CAGR 5y | 9.37% |
| Payout Consistency | 99.3% |
| Payout Ratio | 22.3% |
| Risk 5d forecast | |
|---|---|
| Volatility | 33.5% |
| Relative Tail Risk | 1.80% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | -0.19 |
| Alpha | -24.02 |
| Character TTM | |
|---|---|
| Beta | 0.986 |
| Beta Downside | 0.696 |
| Drawdowns 3y | |
|---|---|
| Max DD | 33.94% |
| CAGR/Max DD | 0.84 |
Description: LII Lennox International December 19, 2025
Lennox International Inc. (NYSE:LII) designs, manufactures, and markets heating, ventilation, air-conditioning, and refrigeration (HVAC-R) products across residential and commercial segments in North America and globally. Its Home Comfort Solutions division covers furnaces, air conditioners, heat pumps, indoor-air-quality equipment, and related parts under brands such as Lennox, Dave Lennox Signature Collection, and Armstrong Air. The Building Climate Solutions division serves commercial customers with unitary HVAC systems, variable-refrigerant-flow (VRF) solutions, chillers, condensers, and industrial process cooling equipment, distributed through direct sales, distributors, and company-owned stores.
Key recent metrics: LII reported FY 2024 revenue of roughly $2.1 billion, with an adjusted EBITDA margin of ~14% and a 12-month trailing EPS of $2.10, reflecting a strong aftermarket parts business that contributes about 30% of total sales. The residential HVAC market is projected to grow ~4% CAGR through 2028, driven by new-home construction, retrofits for energy efficiency, and tightening building-code standards. On the commercial side, demand for VRF and high-efficiency chillers is accelerating as firms seek to reduce carbon footprints and comply with ESG-related regulations.
For a deeper dive into LII’s valuation metrics and scenario analysis, explore ValueRay’s research platform.
Piotroski VR‑10 (Strict, 0-10) 5.5
| Net Income: 786.2m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.15 > 0.02 and ΔFCF/TA -7.17 > 1.0 |
| NWC/Revenue: 13.70% < 20% (prev 10.69%; Δ 3.02% < -1%) |
| CFO/TA 0.18 > 3% & CFO 745.5m > Net Income 786.2m |
| Net Debt (2.03b) to EBITDA (1.12b): 1.82 < 3 |
| Current Ratio: 1.60 > 1.5 & < 3 |
| Outstanding Shares: last quarter (35.1m) vs 12m ago -1.96% < -2% |
| Gross Margin: 33.02% > 18% (prev 0.33%; Δ 3268 % > 0.5%) |
| Asset Turnover: 137.6% > 50% (prev 153.8%; Δ -16.29% > 0%) |
| Interest Coverage Ratio: 19.98 > 6 (EBITDA TTM 1.12b / Interest Expense TTM 40.9m) |
Altman Z'' 8.25
| A: 0.17 (Total Current Assets 1.90b - Total Current Liabilities 1.19b) / Total Assets 4.08b |
| B: 1.20 (Retained Earnings 4.89b / Total Assets 4.08b) |
| C: 0.22 (EBIT TTM 817.2m / Avg Total Assets 3.78b) |
| D: 1.66 (Book Value of Equity 4.84b / Total Liabilities 2.92b) |
| Altman-Z'' Score: 8.25 = AAA |
Beneish M -2.68
| DSRI: 0.90 (Receivables 578.8m/661.1m, Revenue 5.20b/5.34b) |
| GMI: 1.00 (GM 33.02% / 33.17%) |
| AQI: 1.73 (AQ_t 0.23 / AQ_t-1 0.13) |
| SGI: 0.97 (Revenue 5.20b / 5.34b) |
| TATA: 0.01 (NI 786.2m - CFO 745.5m) / TA 4.08b) |
| Beneish M-Score: -2.68 (Cap -4..+1) = A |
What is the price of LII shares?
Over the past week, the price has changed by +7.05%, over one month by +1.95%, over three months by +8.22% and over the past year by -8.59%.
Is LII a buy, sell or hold?
- StrongBuy: 4
- Buy: 2
- Hold: 8
- Sell: 3
- StrongSell: 4
What are the forecasts/targets for the LII price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 555.4 | 4.8% |
| Analysts Target Price | 555.4 | 4.8% |
| ValueRay Target Price | 621.7 | 17.3% |
LII Fundamental Data Overview February 04, 2026
P/E Forward = 19.7239
P/S = 3.3436
P/B = 14.8111
P/EG = 1.5474
Revenue TTM = 5.20b USD
EBIT TTM = 817.2m USD
EBITDA TTM = 1.12b USD
Long Term Debt = 1.14b USD (from longTermDebt, last quarter)
Short Term Debt = 333.2m USD (from shortTermDebt, last quarter)
Debt = 2.06b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 2.03b USD (from netDebt column, last quarter)
Enterprise Value = 19.40b USD (17.37b + Debt 2.06b - CCE 34.2m)
Interest Coverage Ratio = 19.98 (Ebit TTM 817.2m / Interest Expense TTM 40.9m)
EV/FCF = 30.96x (Enterprise Value 19.40b / FCF TTM 626.7m)
FCF Yield = 3.23% (FCF TTM 626.7m / Enterprise Value 19.40b)
FCF Margin = 12.06% (FCF TTM 626.7m / Revenue TTM 5.20b)
Net Margin = 15.13% (Net Income TTM 786.2m / Revenue TTM 5.20b)
Gross Margin = 33.02% ((Revenue TTM 5.20b - Cost of Revenue TTM 3.48b) / Revenue TTM)
Gross Margin QoQ = 32.58% (prev 33.29%)
Tobins Q-Ratio = 4.75 (Enterprise Value 19.40b / Total Assets 4.08b)
Interest Expense / Debt = 0.77% (Interest Expense 15.9m / Debt 2.06b)
Taxrate = 20.26% (36.2m / 178.7m)
NOPAT = 651.7m (EBIT 817.2m * (1 - 20.26%))
Current Ratio = 1.60 (Total Current Assets 1.90b / Total Current Liabilities 1.19b)
Debt / Equity = 1.77 (Debt 2.06b / totalStockholderEquity, last quarter 1.16b)
Debt / EBITDA = 1.82 (Net Debt 2.03b / EBITDA 1.12b)
Debt / FCF = 3.24 (Net Debt 2.03b / FCF TTM 626.7m)
Total Stockholder Equity = 996.5m (last 4 quarters mean from totalStockholderEquity)
RoA = 20.82% (Net Income 786.2m / Total Assets 4.08b)
RoE = 78.89% (Net Income TTM 786.2m / Total Stockholder Equity 996.5m)
RoCE = 38.18% (EBIT 817.2m / Capital Employed (Equity 996.5m + L.T.Debt 1.14b))
RoIC = 32.64% (NOPAT 651.7m / Invested Capital 2.00b)
WACC = 8.60% (E(17.37b)/V(19.44b) * Re(9.55%) + D(2.06b)/V(19.44b) * Rd(0.77%) * (1-Tc(0.20)))
Discount Rate = 9.55% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -81.65 | Cagr: -0.98%
[DCF Debug] Terminal Value 79.33% ; FCFF base≈688.9m ; Y1≈849.8m ; Y5≈1.45b
Fair Price DCF = 568.1 (EV 21.80b - Net Debt 2.03b = Equity 19.77b / Shares 34.8m; r=8.60% [WACC]; 5y FCF grow 25.0% → 2.90% )
EPS Correlation: 54.68 | EPS CAGR: 18.43% | SUE: -0.72 | # QB: 0
Revenue Correlation: 34.97 | Revenue CAGR: 4.49% | SUE: -1.22 | # QB: 0
EPS next Quarter (2026-03-31): EPS=3.16 | Chg30d=-0.408 | Revisions Net=-6 | Analysts=14
EPS current Year (2026-12-31): EPS=24.11 | Chg30d=-0.669 | Revisions Net=-7 | Growth EPS=+4.1% | Growth Revenue=+5.7%
EPS next Year (2027-12-31): EPS=26.33 | Chg30d=-0.860 | Revisions Net=-5 | Growth EPS=+9.2% | Growth Revenue=+5.1%