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Lennox International

NYSE:LII
Snowflake Description

Adequate balance sheet with proven track record and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
LII
NYSE
$10B
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company description

Lennox International Inc., through its subsidiaries, provides climate control solutions in North America, Europe, Russia, Turkey, the Middle East, and internationally. The last earnings update was 2 days ago. More info.


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LII Share Price and Events
7 Day Returns
1.9%
NYSE:LII
0.7%
US Building
1.4%
US Market
1 Year Returns
20.8%
NYSE:LII
-10.4%
US Building
2.3%
US Market
LII Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Lennox International (LII) 1.9% 11.1% 17.5% 20.8% 93.5% 172.4%
US Building 0.7% 8.3% 7.4% -10.4% 23.2% 5%
US Market 1.4% 5.6% 5.7% 2.3% 44.2% 40.9%
1 Year Return vs Industry and Market
  • LII outperformed the Building industry which returned -10.4% over the past year.
  • LII outperformed the Market in United States of America which returned 2.3% over the past year.
Price Volatility
LII
Industry
5yr Volatility vs Market

Value

 Is Lennox International undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Lennox International to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data    Our calculation method for this is changing soon.

Below are the data sources, inputs and calculation used to determine the intrinsic value for Lennox International.

NYSE:LII Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 15 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 12%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:LII
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 7.3%
Building Unlevered Beta Simply Wall St/ S&P Global 1.17
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.174 (1 + (1- 21%) (10.51%))
1.271
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.27
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.271 * 7.27%)
11.97%

Discounted Cash Flow Calculation for NYSE:LII using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Lennox International is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:LII DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (USD, Millions) 443.86 478.78 478.50 499.94 522.33
Source Analyst x9 Analyst x8 Analyst x2 Est @ 4.48% Est @ 4.48%
Present Value
Discounted (@ 11.97%)
396.40 381.86 340.83 318.03 296.74
Present value of next 5 years cash flows $1,733.86
NYSE:LII DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= $522.33 × (1 + 2.73%) ÷ (11.97% – 2.73%)
$5,805.41
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $5,805.41 ÷ (1 + 11.97%)5
$3,298.13
NYSE:LII Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $1,733.86 + $3,298.13
$5,031.99
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $5,031.99 / 39.87
$126.2
NYSE:LII Discount to Share Price
Calculation Result
Value per share (USD) From above. $126.20
Current discount Discount to share price of $248.93
= -1 x ($248.93 - $126.20) / $126.20
-97.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Lennox International is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Lennox International's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Lennox International's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:LII PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $8.87
NYSE:LII Share Price ** NYSE (2019-02-21) in USD $248.93
United States of America Building Industry PE Ratio Median Figure of 28 Publicly-Listed Building Companies 17.01x
United States of America Market PE Ratio Median Figure of 3,045 Publicly-Listed Companies 17.39x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Lennox International.

NYSE:LII PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:LII Share Price ÷ EPS (both in USD)

= 248.93 ÷ 8.87

28.05x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Lennox International is overvalued based on earnings compared to the US Building industry average.
  • Lennox International is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Lennox International's expected growth come at a high price?
Raw Data
NYSE:LII PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 28.05x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts
11.7%per year
United States of America Building Industry PEG Ratio Median Figure of 26 Publicly-Listed Building Companies 1.48x
United States of America Market PEG Ratio Median Figure of 2,118 Publicly-Listed Companies 1.44x

*Line of best fit is calculated by linear regression .

NYSE:LII PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 28.05x ÷ 11.7%

2.41x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Lennox International is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Lennox International's assets?
Raw Data
NYSE:LII PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $-3.75
NYSE:LII Share Price * NYSE (2019-02-21) in USD $248.93
United States of America Building Industry PB Ratio Median Figure of 38 Publicly-Listed Building Companies 2.39x
United States of America Market PB Ratio Median Figure of 5,129 Publicly-Listed Companies 1.87x
NYSE:LII PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:LII Share Price ÷ Book Value per Share (both in USD)

= 248.93 ÷ -3.75

-66.32x

* Primary Listing of Lennox International.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Lennox International has negative assets, we can't compare the value of its assets to the US Building industry average.
X
Value checks
We assess Lennox International's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Building industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Building industry average (and greater than 0)? (1 check)
  5. Lennox International has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
11.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Lennox International expected to grow at an attractive rate?
  • Lennox International's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Lennox International's earnings growth is positive but not above the United States of America market average.
  • Lennox International's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:LII Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:LII Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts 11.7%
NYSE:LII Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 15 Analysts 2.4%
United States of America Building Industry Earnings Growth Rate Market Cap Weighted Average 10.2%
United States of America Building Industry Revenue Growth Rate Market Cap Weighted Average 4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 12.7%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:LII Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:LII Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 4,083 537 513 4
2020-12-31 4,120 593 498 13
2019-12-31 3,904 574 537 13
NYSE:LII Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 3,884 496 360
2018-09-30 3,932 427 328
2018-06-30 3,954 338 324
2018-03-31 3,881 349 302
2017-12-31 3,840 325 307
2017-09-30 3,845 376 305
2017-06-30 3,803 351 302
2017-03-31 3,720 368 297
2016-12-31 3,642 374 279
2016-09-30 3,579 351 249
2016-06-30 3,524 358 228
2016-03-31 3,497 352 198

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Lennox International's earnings are expected to grow by 11.7% yearly, however this is not considered high growth (20% yearly).
  • Lennox International's revenue is expected to grow by 2.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:LII Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below

All data from Lennox International Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:LII Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 13.46 14.90 12.01 2.00
2020-12-31 12.85 13.25 11.50 11.00
2019-12-31 13.42 14.67 12.15 10.00
NYSE:LII Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 8.87
2018-09-30 7.99
2018-06-30 7.82
2018-03-31 7.20
2017-12-31 7.28
2017-09-30 7.18
2017-06-30 7.07
2017-03-31 6.90
2016-12-31 6.42
2016-09-30 5.68
2016-06-30 5.13
2016-03-31 4.43

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Lennox International is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess Lennox International's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Lennox International has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Lennox International performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Lennox International's growth in the last year to its industry (Building).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Lennox International's year on year earnings growth rate has been positive over the past 5 years.
  • Lennox International's 1-year earnings growth exceeds its 5-year average (17.3% vs 14.1%)
  • Lennox International's earnings growth has not exceeded the US Building industry average in the past year (17.3% vs 39.8%).
Earnings and Revenue History
Lennox International's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Lennox International Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:LII Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 3,883.90 360.30 611.70
2018-09-30 3,932.10 328.30 627.10
2018-06-30 3,954.20 324.30 633.40
2018-03-31 3,881.00 301.50 641.10
2017-12-31 3,839.60 307.10 638.00
2017-09-30 3,845.10 304.60 644.00
2017-06-30 3,802.80 302.40 642.20
2017-03-31 3,719.80 297.20 630.80
2016-12-31 3,641.60 278.60 654.30
2016-09-30 3,578.50 249.30 606.70
2016-06-30 3,523.50 227.70 594.00
2016-03-31 3,496.80 198.10 587.50
2015-12-31 3,467.40 187.20 580.50
2015-09-30 3,446.10 221.90 578.20
2015-06-30 3,389.60 209.20 575.40
2015-03-31 3,357.80 202.20 571.50
2014-12-31 3,367.40 208.10 573.70
2014-09-30 3,304.20 196.00 571.60
2014-06-30 3,273.70 194.30 567.60
2014-03-31 3,226.10 184.00 570.10
2013-12-31 3,199.10 179.90 570.10
2013-09-30 3,134.40 172.40 551.20
2013-06-30 3,076.10 156.30 540.10
2013-03-31 3,003.40 141.50 519.40
2012-12-31 2,949.40 135.00 507.00
2012-09-30 2,913.00 137.30 483.80
2012-06-30 2,904.50 122.50 480.30
2012-03-31 2,785.90 124.30 432.80

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Lennox International has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.
  • Lennox International used its assets more efficiently than the US Building industry average last year based on Return on Assets.
  • Lennox International has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Lennox International's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Building industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Lennox International has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Lennox International's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Lennox International's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Lennox International is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Lennox International's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Lennox International's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Lennox International has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Lennox International Company Filings, last reported 1 month ago.

NYSE:LII Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 -149.60 1,041.30 46.30
2018-09-30 -86.80 1,125.90 46.10
2018-06-30 -180.20 1,352.60 39.40
2018-03-31 -102.60 1,289.10 57.10
2017-12-31 50.10 1,004.00 68.20
2017-09-30 32.50 1,124.10 60.70
2017-06-30 10.60 1,188.90 61.30
2017-03-31 -1.00 1,103.10 48.80
2016-12-31 38.00 868.20 50.20
2016-09-30 24.20 1,055.90 47.80
2016-06-30 31.40 1,075.20 54.70
2016-03-31 -73.30 1,099.40 40.60
2015-12-31 101.60 741.10 38.90
2015-09-30 97.50 918.00 35.10
2015-06-30 56.30 1,055.60 47.50
2015-03-31 -16.20 1,085.80 36.70
2014-12-31 9.00 925.60 37.50
2014-09-30 501.70 596.00 48.10
2014-06-30 518.00 606.70 49.60
2014-03-31 491.60 564.20 39.00
2013-12-31 485.70 400.40 38.00
2013-09-30 482.20 434.90 37.80
2013-06-30 447.20 537.10 45.30
2013-03-31 452.00 516.40 34.90
2012-12-31 498.30 386.60 51.80
2012-09-30 509.40 481.10 48.80
2012-06-30 492.50 529.60 69.10
2012-03-31 477.80 524.80 54.70
  • Lennox International has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.
  • Irrelevant to check if Lennox International's debt level has increased considering it has negative shareholder equity.
  • Debt is well covered by operating cash flow (47.6%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 12.9x coverage).
X
Financial health checks
We assess Lennox International's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Lennox International has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.03%
Current annual income from Lennox International dividends. Estimated to be 1.09% next year.
If you bought $2,000 of Lennox International shares you are expected to receive $21 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Lennox International's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.4%).
  • Lennox International's dividend is below the markets top 25% of dividend payers in United States of America (3.54%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:LII Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
United States of America Building Industry Average Dividend Yield Market Cap Weighted Average of 15 Stocks 2.1%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2001 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:LII Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 2.79 3.00
2020-12-31 2.79 8.00
2019-12-31 2.65 10.00
NYSE:LII Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-12-07 2.560 1.147
2018-09-13 2.560 1.206
2018-05-15 2.560 1.207
2018-03-16 2.040 1.013
2017-12-08 2.040 0.981
2017-09-14 2.040 1.091
2017-05-17 2.040 1.164
2017-03-17 1.720 1.024
2016-12-09 1.720 1.081
2016-09-15 1.720 1.128
2016-05-11 1.720 1.168
2016-03-11 1.440 1.058
2015-12-11 1.440 1.178
2015-09-17 1.440 1.133
2015-05-13 1.440 1.250
2015-03-13 1.200 1.097
2014-12-12 1.200 1.202
2014-09-18 1.200 1.404
2014-05-20 1.200 1.395
2014-03-14 0.960 1.099
2013-12-13 0.960 1.098
2013-09-19 0.960 1.235
2013-05-15 0.960 1.419
2013-03-15 0.800 1.279
2012-12-07 0.800 1.418
2012-09-20 0.800 1.608
2012-05-09 0.720 1.613
2012-03-09 0.720 1.776
2011-12-09 0.720 1.947
2011-09-16 0.720 2.370
2011-05-11 0.720 1.917
2011-03-11 0.720 1.413
2010-12-13 0.600 1.220
2010-09-17 0.600 1.414
2010-05-12 0.600 1.379
2010-03-12 0.600 1.315
2009-12-11 0.560 1.374
2009-09-18 0.560 1.531
2009-04-21 0.560 1.686
2009-03-13 0.560 2.051
2009-02-23 0.560 2.213

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Lennox International's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (4.6x coverage).
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Income/ dividend checks
We assess Lennox International's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Lennox International afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Lennox International has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Lennox International's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Todd Bluedorn
COMPENSATION $11,454,560
AGE 54
TENURE AS CEO 11.8 years
CEO Bio

Mr. Todd M. Bluedorn has been the Chief Executive Officer of Lennox International, Inc. since April 2, 2007 and has been its Chairman since May 10, 2012. Mr. Bluedorn serves as a Vice President of The Air-Conditioning, Heating, and & Refrigeration Institute. He served as the President of Otis North and South America Area for Otis Elevator Company since 2004. After beginning his career with McKinsey & Company in 1992, he accepted a position with United Technologies Corporation in 1995 as Director of Strategic Planning and also served as its President of Americas — Otis Elevator Company, President of North America Commercial Carrier. Mr. Bluedorn served as Vice President of North American Truck and Trailer of Carrier Corporation since 1996 and served as its Vice President of Southeast Asia Region since 1998. Since 2000, he served as President of Hamilton Sundstrand Industrial and became President, North America - Commercial Heating, Ventilation and Air Conditioning for Carrier Corporation in 2001. While serving in the United States Army from 1985 to 1990, Mr. Bluedorn was a combat engineer officer and United States Army Ranger. He has been an Independent Director of Eaton Corporation PLC since January 2010. He has been an Executive Director of Lennox International Inc. since April 2, 2007. He has been Director of Texas Instruments Incorporated since March 1, 2017. He serves as Director of National Elevator Industry, Inc. and Director of The Air-Conditioning, Heating and Refrigeration Institute. He is a trustee of Washington University in St. Louis. He graduated with distinction from the United States Military Academy, West Point in 1985 with a BS in Electrical Engineering. Mr. Bluedorn earned an MBA with distinction from Harvard University in 1992. Mr. Bluedorn has executive leadership experience in original equipment and aftermarket business and distributor/dealer-based commercial channels.

CEO Compensation
  • Todd's compensation has been consistent with company performance over the past year.
  • Todd's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Lennox International management team in years:

10.4
Average Tenure
53
Average Age
  • The average tenure for the Lennox International management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Todd Bluedorn

TITLE
Chairman & CEO
COMPENSATION
$11M
AGE
54
TENURE
11.8 yrs

Joe Reitmeier

TITLE
Executive VP & CFO
COMPENSATION
$3M
AGE
53
TENURE
6.6 yrs

John Torres

TITLE
Executive VP
COMPENSATION
$3M
AGE
59
TENURE
10.2 yrs

Daniel Sessa

TITLE
Executive VP & Chief HR Officer
COMPENSATION
$3M
AGE
53
TENURE
11.7 yrs

Doug Young

TITLE
Executive VP and President & COO of LII Residential Heating & Cooling
COMPENSATION
$4M
AGE
55
TENURE
12.3 yrs

Chris Kosel

TITLE
VP, Chief Accounting Officer & Controller
AGE
51
TENURE
1.8 yrs

Prakash Bedapudi

TITLE
Executive VP & CTO
AGE
51
TENURE
10.6 yrs

Steve Harrison

TITLE
Vice President of Investor Relations
TENURE
10.7 yrs

Terry Johnston

TITLE
Executive VP and President & COO of LII North America Commercial Heating & Cooling
AGE
60
TENURE
6.1 yrs

Gary Bedard

TITLE
Executive VP and President & COO of Worldwide Refrigeration Business Segment
AGE
53
TENURE
1.3 yrs
Board of Directors Tenure

Average tenure and age of the Lennox International board of directors in years:

7.5
Average Tenure
57
Average Age
  • The tenure for the Lennox International board of directors is about average.
Board of Directors

Todd Bluedorn

TITLE
Chairman & CEO
COMPENSATION
$11M
AGE
54
TENURE
6.8 yrs

John Norris

TITLE
Director
COMPENSATION
$228K
AGE
60
TENURE
18.1 yrs

John Major

TITLE
Independent Director
COMPENSATION
$233K
AGE
72
TENURE
26.1 yrs

Greg Swienton

TITLE
Director
COMPENSATION
$238K
AGE
68
TENURE
8.2 yrs

Todd Teske

TITLE
Lead Director
COMPENSATION
$258K
AGE
53
TENURE
3.8 yrs

Janet Katherine Cooper

TITLE
Director
COMPENSATION
$218K
AGE
64
TENURE
19.8 yrs

Paul Schmidt

TITLE
Director
COMPENSATION
$218K
AGE
73
TENURE
14.1 yrs

Karen Quintos

TITLE
Director
COMPENSATION
$218K
AGE
54
TENURE
4.4 yrs

Kim K. Rucker

TITLE
Director
COMPENSATION
$218K
AGE
51
TENURE
3.7 yrs

Max Mitchell

TITLE
Director
COMPENSATION
$218K
AGE
54
TENURE
2.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
08. Nov 18 Sell John Norris Individual 07. Nov 18 07. Nov 18 -1,400 $215.94 $-302,183
06. Nov 18 Sell Paul Schmidt Individual 02. Nov 18 02. Nov 18 -500 $212.06 $-106,032
31. Oct 18 Sell Prakash Bedapudi Individual 30. Oct 18 30. Oct 18 -10,000 $207.00 $-2,070,000
29. Oct 18 Sell John Major Individual 25. Oct 18 25. Oct 18 -2,000 $204.45 $-408,892
31. May 18 Sell Prakash Bedapudi Individual 30. May 18 30. May 18 -5,011 $208.15 $-1,043,040
08. May 18 Sell John Major Individual 04. May 18 04. May 18 -1,000 $200.00 $-200,000
22. Feb 18 Sell Paul Schmidt Individual 21. Feb 18 21. Feb 18 -1,000 $204.00 $-204,000
X
Management checks
We assess Lennox International's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Lennox International has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Should You Worry About Lennox International Inc.'s (NYSE:LII) CEO Salary Level?

In 2007 Todd Bluedorn was appointed CEO of Lennox International Inc. … View our latest analysis for Lennox International … How Does Todd Bluedorn's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Lennox International Inc. (NYSE:LII) Earns Among The Best Returns In Its Industry

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Understanding Return On Capital Employed (ROCE). … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Need To Know: Lennox International Inc. (NYSE:LII) Insiders Have Been Selling Shares

We often see insiders buying up shares in companies that perform well over the long term. … So we'll take a look at whether insiders have been buying or selling shares in Lennox International Inc. … But logic dictates you should pay some attention to whether insiders are buying or selling shares.

Simply Wall St -

What Kind Of Investor Owns Most Of Lennox International Inc. (NYSE:LII)?

The big shareholder groups in Lennox International Inc. … Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … Companies of this size are usually well known to retail investors, too.

Simply Wall St -

What Should You Know About The Future Of Lennox International Inc.'s (NYSE:LII)?

After Lennox International Inc.'s (NYSE:LII) earnings announcement in September 2018,. … as a 49% increase in profits is expected in the upcoming year, … the past 5-year average growth rate of 14%

Simply Wall St -

Is It Time To Consider Buying Lennox International Inc (NYSE:LII)?

As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … However, could the stock still be trading at a relatively cheap price. … Let’s take a look at Lennox International’s outlook and value based on the most recent financial data to see if the opportunity still exists

Simply Wall St -

Does The Hype Around Lennox International Inc's (NYSE:LII) Growth Justify Its November Share Price?

Growth expectations for Lennox International Inc (NYSE:LII) are high, but many investors are starting to ask whether its last close at $215.86 can still be rationalized by the future potential. … View our latest analysis for Lennox International? … Lennox International's growth potential is very attractive

Simply Wall St -

What Should You Know About Lennox International Inc's (NYSE:LII) Return On Capital?

and want to better understand how you can grow your money by investing in Lennox International Inc (NYSE:LII). … Your equity share is granted in return for the capital provided to the business to operate, and in order for an investment to be successful the business has to create earnings from the funds that make up this capital. … Thus, to understand how your money can grow by investing in Lennox International, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE)

Simply Wall St -

Is Lennox International Inc's (NYSE:LII) CEO Paid At A Competitive Rate?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … At the time of writing our data says that Lennox International Inc has a market cap of US$7.8b, and is paying total annual CEO compensation of US$11m. … Thus we can conclude that Todd Bluedorn receives more in total compensation than the median of a group of companies in the same market, and of similar size to Lennox International Inc

Simply Wall St -

Does Lennox International Inc's (NYSE:LII) PE Ratio Signal A Selling Opportunity?

This analysis is intended to introduce important early concepts to people who are starting to invest. … While this might not seem positive, it is important to understand the assumptions behind the P/E ratio before you make any investment decisions. … See our latest analysis for Lennox International

Simply Wall St -

Company Info

Map
Description

Lennox International Inc., through its subsidiaries, provides climate control solutions in North America, Europe, Russia, Turkey, the Middle East, and internationally. It designs, manufactures, and markets a range of products for the heating, ventilation, air conditioning, and refrigeration markets. The company operates in 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. The Commercial Heating & Cooling segment offers rooftop units, split system/air handler combinations, small package units, chillers, and fan coils for commercial buildings, shopping malls, other retail and entertainment buildings, institutional, and other field-engineered applications; and variable refrigerant flow commercial products. This segment also engages in the installation, service, and maintenance of commercial heating, ventilation, and air conditioning products. The Refrigeration segment offers condensing units, unit coolers, fluid coolers, air cooled condensers, air handlers, display cases, and refrigeration rack systems that helps in preserving food and other perishables in supermarkets, convenience stores, restaurants, warehouses, and distribution centers, as well as for data centers, machine tooling, and other cooling applications; and compressor racks and industrial process chillers. The company sells its products and services through direct sales, distributors, and company-owned parts and supplies stores. Lennox International Inc. was founded in 1895 and is headquartered in Richardson, Texas.

Details
Name: Lennox International Inc.
LII
Exchange: NYSE
Founded: 1895
$9,909,787,377
39,872,002
Website: http://www.lennoxinternational.com
Address: Lennox International Inc.
2140 Lake Park Boulevard,
Richardson,
Texas, 75080,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE LII Common Stock New York Stock Exchange US USD 29. Jul 1999
DB LXI Common Stock Deutsche Boerse AG DE EUR 29. Jul 1999
BMV LII * Common Stock Bolsa Mexicana de Valores MX MXN 29. Jul 1999
Number of employees
Current staff
Staff numbers
11,350
Lennox International employees.
Industry
Building Products
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/02/21 23:41
End of day share price update: 2019/02/21 00:00
Last estimates confirmation: 2019/02/19
Last earnings filing: 2019/02/19
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.