NYSE:LII

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Executive Summary

Lennox International Inc., through its subsidiaries, designs, manufactures, and markets a range of products for the heating, ventilation, air conditioning, and refrigeration markets in the United States, Canada, and Europe. More Details


Snowflake Analysis

Average dividend payer with acceptable track record.


Similar Companies

Share Price & News

How has Lennox International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LII is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: LII's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-2.8%

LII

-2.3%

US Building

0.7%

US Market


1 Year Return

10.5%

LII

15.1%

US Building

22.2%

US Market

Return vs Industry: LII underperformed the US Building industry which returned 17.4% over the past year.

Return vs Market: LII underperformed the US Market which returned 22.7% over the past year.


Shareholder returns

LIIIndustryMarket
7 Day-2.8%-2.3%0.7%
30 Day-0.9%4.5%11.8%
90 Day0.8%11.7%8.6%
1 Year12.0%10.5%22.8%15.1%25.0%22.2%
3 Year41.8%36.7%41.0%29.4%49.4%39.5%
5 Year122.6%109.9%98.6%70.9%100.2%78.1%

Long-Term Price Volatility Vs. Market

How volatile is Lennox International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Lennox International undervalued compared to its fair value and its price relative to the market?

30.08x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LII ($280.99) is trading above our estimate of fair value ($169.68)

Significantly Below Fair Value: LII is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LII is poor value based on its PE Ratio (30.1x) compared to the US Building industry average (23.4x).

PE vs Market: LII is poor value based on its PE Ratio (30.1x) compared to the US market (19.4x).


Price to Earnings Growth Ratio

PEG Ratio: LII is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: LII has negative assets, so we can't compare its PB Ratio to the US Building industry average.


Next Steps

Future Growth

How is Lennox International forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

11.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LII's forecast earnings growth (11.9% per year) is above the savings rate (2.2%).

Earnings vs Market: LII's earnings (11.9% per year) are forecast to grow slower than the US market (21.8% per year).

High Growth Earnings: LII's earnings are forecast to grow, but not significantly.

Revenue vs Market: LII's revenue (5.4% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: LII's revenue (5.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LII's Return on Equity is forecast to be very high in 3 years time (301.7%).


Next Steps

Past Performance

How has Lennox International performed over the past 5 years?

11.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LII has high quality earnings.

Growing Profit Margin: LII's current net profit margins (9.9%) are higher than last year (9.8%).


Past Earnings Growth Analysis

Earnings Trend: LII's earnings have grown by 11.8% per year over the past 5 years.

Accelerating Growth: LII's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: LII had negative earnings growth (-3.2%) over the past year, making it difficult to compare to the Building industry average (11.8%).


Return on Equity

High ROE: LII's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is Lennox International's financial position?


Financial Position Analysis

Short Term Liabilities: LII has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: LII has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: LII has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: LII's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: LII's debt is well covered by operating cash flow (73.4%).

Interest Coverage: LII's interest payments on its debt are well covered by EBIT (13.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Lennox International current dividend yield, its reliability and sustainability?

1.10%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LII's dividend (1.1%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.48%).

High Dividend: LII's dividend (1.1%) is low compared to the top 25% of dividend payers in the US market (4.14%).


Stability and Growth of Payments

Stable Dividend: LII's dividends per share have been stable in the past 10 years.

Growing Dividend: LII's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (33%), LII's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LII's dividends in 3 years are forecast to be well covered by earnings (28% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

12.0yrs

Average management tenure


CEO

Todd Bluedorn (56 yo)

13.67yrs

Tenure

US$13,218,783

Compensation

Mr. Todd M. Bluedorn served as an Independent Director of Eaton Corporation PLC since January 2010 until April 22, 2020. He has been the Chief Executive Officer of Lennox International, Inc. since April 2,...


CEO Compensation Analysis

Compensation vs Market: Todd's total compensation ($USD13.22M) is about average for companies of similar size in the US market ($USD10.98M).

Compensation vs Earnings: Todd's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Todd Bluedorn
Chairman & CEO13.67yrsUS$13.22m0.22%
$ 23.9m
Joseph Reitmeier
Executive VP & CFO8.42yrsUS$2.87m0.046%
$ 4.9m
John Torres
Executive VP12yrsUS$3.27m0.019%
$ 2.0m
Daniel Sessa
Executive VP & Chief HR Officer13.5yrsUS$3.50m0.12%
$ 12.4m
Douglas Young
Executive VP and COO of Residential Heating & Cooling14.17yrsUS$3.73m0.17%
$ 18.2m
Chris Kosel
VP, Chief Accounting Officer & Controller3.58yrsno data0.0031%
$ 330.3k
Prakash Bedapudi
Executive VP & CTO12.42yrsno data0.030%
$ 3.2m
Steve Harrison
Vice President of Investor Relations12.5yrsno datano data
Gary Bedard
Executive VP3.17yrsno data0.048%
$ 5.2m
Elliot Zimmer
Executive VP1.08yrsno data0.0040%
$ 430.4k
Richard Pelini
VP & Treasurer11.83yrsno datano data
James Markey
Assistant Secretaryno datano datano data

12.0yrs

Average Tenure

55yo

Average Age

Experienced Management: LII's management team is seasoned and experienced (12 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Todd Bluedorn
Chairman & CEO13.67yrsUS$13.22m0.22%
$ 23.9m
Gregory Swienton
Independent Director10yrsUS$246.40k0.032%
$ 3.4m
Todd Teske
Independent Lead Director5.58yrsUS$266.40k0.029%
$ 3.2m
John Norris
Independent Director21.92yrsUS$236.40k0.90%
$ 97.1m
John Major
Independent Director27.92yrsUS$275.21k0.038%
$ 4.1m
Janet Katherine Cooper
Independent Director21.67yrsUS$226.40k0.048%
$ 5.1m
Paul Schmidt
Independent Director15.92yrsUS$226.40k0.029%
$ 3.2m
Shane Wall
Director0.42yrno data0.00013%
$ 14.0k
Max Mitchell
Independent Director4.25yrsUS$226.40k0.0087%
$ 938.2k
Kim K. Rucker
Independent Director5.5yrsUS$237.65k0.0099%
$ 1.1m
Karen Quintos
Independent Director6.25yrsUS$226.40k0.019%
$ 2.1m
Sherry Buck
Independent Director1.42yrsUS$171.40k0.0015%
$ 160.3k

7.4yrs

Average Tenure

56yo

Average Age

Experienced Board: LII's board of directors are considered experienced (7.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: LII insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Lennox International Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lennox International Inc.
  • Ticker: LII
  • Exchange: NYSE
  • Founded: 1895
  • Industry: Building Products
  • Sector: Capital Goods
  • Market Cap: US$10.759b
  • Shares outstanding: 38.29m
  • Website: https://www.lennoxinternational.com

Number of Employees


Location

  • Lennox International Inc.
  • 2140 Lake Park Boulevard
  • Richardson
  • Texas
  • 75080
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LIINYSE (New York Stock Exchange)YesCommon StockUSUSDJul 1999
LXIDB (Deutsche Boerse AG)YesCommon StockDEEURJul 1999
LII *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJul 1999

Biography

Lennox International Inc., through its subsidiaries, designs, manufactures, and markets a range of products for the heating, ventilation, air conditioning, and refrigeration markets in the United States, C...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/02 23:21
End of Day Share Price2020/12/02 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.