LII

Lennox InternationalNYSE:LII Stock Report

Market Cap

US$11.6b

7D

-4.1%

1Y

13.8%

Updated

16 Sep, 2021

Data

Company Financials +
LII fundamental analysis
Snowflake Score
Valuation0/6
Future Growth1/6
Past Performance4/6
Financial Health2/6
Dividends4/6

LII Overview

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 internationally.

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 not significantly more volatile than the rest 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

-4.1%

LII

-1.7%

US Building

-0.6%

US Market


1 Year Return

13.8%

LII

52.3%

US Building

33.7%

US Market

Return vs Industry: LII underperformed the US Building industry which returned 52.9% over the past year.

Return vs Market: LII underperformed the US Market which returned 30.7% over the past year.


Shareholder returns

LIIIndustryMarket
7 Day-4.1%-1.7%-0.6%
30 Day-6.5%-0.6%1.4%
90 Day-2.7%9.5%5.4%
1 Year15.0%13.8%54.0%52.3%35.7%33.7%
3 Year47.2%42.0%92.0%75.5%61.2%51.2%
5 Year108.5%96.7%136.0%104.3%123.8%99.4%

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

Lennox International Fundamentals Summary

How do Lennox International's earnings and revenue compare to its market cap?
LII fundamental statistics
Market CapUS$11.61b
Earnings (TTM)US$498.20m
Revenue (TTM)US$4.14b

23.3x

P/E Ratio

2.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LII income statement (TTM)
RevenueUS$4.14b
Cost of RevenueUS$2.90b
Gross ProfitUS$1.24b
ExpensesUS$740.20m
EarningsUS$498.20m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)13.11
Gross Margin29.92%
Net Profit Margin12.04%
Debt/Equity Ratio-563.5%

How did LII perform over the long term?

See historical performance and comparison

Dividends

1.2%

Current Dividend Yield

25%

Payout Ratio

Valuation

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

23.31x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LII ($312.42) is trading above our estimate of fair value ($212.77)

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 (23.3x) compared to the US Building industry average (18.9x).

PE vs Market: LII is poor value based on its PE Ratio (23.3x) compared to the US market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: LII is poor value based on its PEG Ratio (4x)


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.


Future Growth

How is Lennox International forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

5.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LII's forecast earnings growth (5.9% per year) is above the savings rate (2%).

Earnings vs Market: LII's earnings (5.9% per year) are forecast to grow slower than the US market (14.8% per year).

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

Revenue vs Market: LII's revenue (1.9% per year) is forecast to grow slower than the US market (9.5% per year).

High Growth Revenue: LII's revenue (1.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if LII's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Lennox International performed over the past 5 years?

10.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LII has high quality earnings.

Growing Profit Margin: LII's current net profit margins (12%) are higher than last year (9.5%).


Past Earnings Growth Analysis

Earnings Trend: LII's earnings have grown by 10.1% per year over the past 5 years.

Accelerating Growth: LII's earnings growth over the past year (45.9%) exceeds its 5-year average (10.1% per year).

Earnings vs Industry: LII earnings growth over the past year (45.9%) underperformed the Building industry 66.4%.


Return on Equity

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


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 (64.9%).

Interest Coverage: LII's interest payments on its debt are well covered by EBIT (25.4x coverage).


Balance Sheet


Dividend

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

1.18%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LII's dividend (1.18%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.36%).

High Dividend: LII's dividend (1.18%) is low compared to the top 25% of dividend payers in the US market (3.6%).


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 low payout ratio (24.6%), 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 (27.5% payout ratio).


Next Steps

Management

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

12.8yrs

Average management tenure


CEO

Todd Bluedorn (57 yo)

14.42yrs

Tenure

US$14,475,348

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Todd's total compensation ($USD14.48M) is about average for companies of similar size in the US market ($USD11.26M).

Compensation vs Earnings: Todd's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: LII's management team is seasoned and experienced (12.8 years average tenure).


Board Members

Experienced Board: LII's board of directors are considered experienced (6.7 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$11.612b
  • Shares outstanding: 37.17m
  • Website: https://www.lennoxinternational.com

Number of Employees


Location

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

Listings


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 Analysis2021/09/16 05:05
End of Day Share Price2021/09/15 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.