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LII

Lennox International NYSE:LII Stock Report

Last Price

US$244.07

Market Cap

US$8.8b

7D

1.9%

1Y

-26.9%

Updated

06 Aug, 2022

Data

Company Financials +
LII fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance1/6
Financial Health2/6
Dividends5/6

LII Stock Overview

Lennox International Inc., together with 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.

Lennox International Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Lennox International
Historical stock prices
Current Share PriceUS$244.07
52 Week HighUS$345.65
52 Week LowUS$182.85
Beta0.95
1 Month Change11.88%
3 Month Change14.73%
1 Year Change-26.88%
3 Year Change-5.33%
5 Year Change45.83%
Change since IPO1,201.71%

Recent News & Updates

Jul 27

Lennox Q2 2022 Earnings Preview

Lennox (NYSE:LII) is scheduled to announce Q2 earnings results on Thursday, July 28th, before market open. The consensus EPS Estimate is $4.75 (+3.9% Y/Y) and the consensus Revenue Estimate is $1.34B (+8.9% Y/Y). Over the last 2 years, LII has beaten EPS estimates 88% of the time and has beaten revenue estimates 75% of the time. Over the last 3 months, EPS estimates have seen 5 upward revisions and 8 downward. Revenue estimates have seen 10 upward revisions and 0 downward.

Shareholder Returns

LIIUS BuildingUS Market
7D1.9%1.5%1.0%
1Y-26.9%-18.3%-12.9%

Return vs Industry: LII underperformed the US Building industry which returned -18.3% over the past year.

Return vs Market: LII underperformed the US Market which returned -12.8% over the past year.

Price Volatility

Is LII's price volatile compared to industry and market?
LII volatility
LII Average Weekly Movement4.7%
Building Industry Average Movement6.4%
Market Average Movement7.9%
10% most volatile stocks in US Market17.1%
10% least volatile stocks in US Market3.2%

Stable Share Price: LII is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: LII's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
189511,000Alok Maskarahttps://www.lennoxinternational.com

Lennox International Inc., together with 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. It operates through three segments: Residential Heating & Cooling, Commercial Heating & Cooling, and Refrigeration. The Residential Heating & Cooling segment provides furnaces, air conditioners, heat pumps, packaged heating and cooling systems, indoor air quality equipment and accessories, comfort control products, and replacement parts and supplies for residential replacement and new construction markets.

Lennox International Fundamentals Summary

How do Lennox International's earnings and revenue compare to its market cap?
LII fundamental statistics
Market CapUS$8.76b
Earnings (TTM)US$470.60m
Revenue (TTM)US$4.40b

18.6x

P/E Ratio

2.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LII income statement (TTM)
RevenueUS$4.40b
Cost of RevenueUS$3.19b
Gross ProfitUS$1.21b
Other ExpensesUS$743.40m
EarningsUS$470.60m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)13.11
Gross Margin27.56%
Net Profit Margin10.68%
Debt/Equity Ratio-411.3%

How did LII perform over the long term?

See historical performance and comparison

Dividends

1.7%

Current Dividend Yield

30%

Payout Ratio

Does LII pay a reliable dividends?

See LII dividend history and benchmarks
When do you need to buy LII by to receive an upcoming dividend?
Lennox International dividend dates
Ex Dividend DateAug 30 2022
Dividend Pay DateSep 15 2022
Days until Ex dividend22 days
Days until Dividend pay date38 days

Does LII pay a reliable dividends?

See LII dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is LII undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LII?

Other financial metrics that can be useful for relative valuation.

LII key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.4x
Enterprise Value/EBITDA15.7x
PEG Ratio2.1x

Price to Earnings Ratio vs Peers

How does LII's PE Ratio compare to its peers?

LII PE Ratio vs Peers
The above table shows the PE ratio for LII vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average14.1x
ALLE Allegion
19.3x13.2%US$9.0b
AOS A. O. Smith
18.1x4.8%US$9.4b
OC Owens Corning
7.3x2.0%US$8.3b
FBHS Fortune Brands Home & Security
11.6x4.0%US$8.7b
LII Lennox International
18.6x8.9%US$8.8b

Price-To-Earnings vs Peers: LII is expensive based on its Price-To-Earnings Ratio (18.6x) compared to the peer average (14.1x).


Price to Earnings Ratio vs Industry

How does LII's PE Ratio compare vs other companies in the US Building Industry?

Price-To-Earnings vs Industry: LII is expensive based on its Price-To-Earnings Ratio (18.6x) compared to the US Building industry average (17.6x)


Price to Earnings Ratio vs Fair Ratio

What is LII's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

LII PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio18.6x
Fair PE Ratio19.6x

Price-To-Earnings vs Fair Ratio: LII is good value based on its Price-To-Earnings Ratio (18.6x) compared to the estimated Fair Price-To-Earnings Ratio (19.6x).


Share Price vs Fair Value

What is the Fair Price of LII when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LII ($244.07) is trading below our estimate of fair value ($377.42)

Significantly Below Fair Value: LII is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

How is Lennox International forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


8.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LII's forecast earnings growth (8.9% per year) is above the savings rate (1.9%).

Earnings vs Market: LII's earnings (8.9% per year) are forecast to grow slower than the US market (12.8% 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 (7.9% 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: LII's Return on Equity is forecast to be very high in 3 years time (316.4%).


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Past Performance

How has Lennox International performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


9.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: LII has a high level of non-cash earnings.

Growing Profit Margin: LII's current net profit margins (10.7%) are lower than last year (12%).


Past Earnings Growth Analysis

Earnings Trend: LII's earnings have grown by 9.7% 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 (-5.5%) over the past year, making it difficult to compare to the Building industry average (19.9%).


Return on Equity

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


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Financial Health

How is Lennox International's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

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 (20.6%).

Interest Coverage: LII's interest payments on its debt are well covered by EBIT (21.3x coverage).


Balance Sheet


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Dividend

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

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.74%

Current Dividend Yield

Upcoming Dividend Payment

TodayAug 07 2022Ex Dividend DateAug 30 2022Dividend Pay DateSep 15 202216 days from Ex DividendBuy in the next 22 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: LII's dividend (1.74%) is higher than the bottom 25% of dividend payers in the US market (1.52%).

High Dividend: LII's dividend (1.74%) is low compared to the top 25% of dividend payers in the US market (4.09%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (29.5%), LII's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (65.6%), LII's dividend payments are covered by cash flows.


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Management

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

13.5yrs

Average management tenure


CEO

Alok Maskara (51 yo)

0.25

Tenure

Mr. Alok Maskara has been the Director of Franklin Electric Co., Inc. since 2021. He is Chief Executive Officer of Lennox International Inc since May 09, 2022 and serves as its Director since May 2022. Mr....


Leadership Team

Experienced Management: LII's management team is seasoned and experienced (13.5 years average tenure).


Board Members

Experienced Board: LII's board of directors are considered experienced (7.5 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 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
  • Implied Market Cap: US$8.764b
  • Shares outstanding: 35.91m
  • Website: https://www.lennoxinternational.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/06 00:00
End of Day Share Price2022/08/05 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.