NYSE:LII

Stock Analysis Report

Executive Summary

Lennox International Inc., through its subsidiaries, provides climate control solutions in North America, Europe, Russia, Turkey, the Middle East, and internationally.

Snowflake

Fundamentals

Solid track record average dividend payer.


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


Market Performance


7 Day Return

-4.6%

NYSE:LII

0.7%

US Building

0.1%

US Market


1 Year Return

30.1%

NYSE:LII

-1.4%

US Building

1.2%

US Market

LII outperformed the Building industry which returned -0.9% over the past year.

LII outperformed the Market in United States of America which returned 0.7% over the past year.


Share holder returns

LIIIndustryMarket
7 Day-4.6%0.7%0.1%
30 Day-1.5%2.7%0.6%
90 Day7.7%7.4%0.9%
1 Year31.6%30.1%0.1%-1.4%3.4%1.2%
3 Year102.9%96.2%19.7%9.8%46.5%36.7%
5 Year223.6%205.2%32.3%15.9%55.1%37.9%

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 based on future cash flows and its price relative to the stock market?

27.9x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Lennox International's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Lennox International's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

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

Lennox International is poor value based on expected growth next year.


Price Based on Value of Assets

Lennox International has negative assets, we can't compare the value of its assets to the US Building industry average.


Next Steps

Future Growth

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

1.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Lennox International's revenue is expected to grow by 3.3% yearly, however this is not considered high growth (20% yearly).

Lennox International's earnings are expected to grow by 1% yearly, however this is not considered high growth (20% yearly).

Lennox International's revenue growth is positive but not above the United States of America market average.

Lennox International's earnings growth is positive but not above the United States of America market average.

Lennox International's earnings growth is positive but not above the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Lennox International is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).


Next Steps

Past Performance

How has Lennox International performed over the past 5 years?

14.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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 (30% vs 14.9%)

Lennox International's earnings growth has exceeded the US Building industry average in the past year (30% vs 24.6%).


Return on Equity

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.


Return on Assets

Lennox International used its assets more efficiently than the US Building industry average last year based on Return on Assets.


Return on Capital Employed

Lennox International has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Lennox International's financial position?


Financial Position Analysis

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 long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

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 (33.8%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 11.9x coverage).


Balance Sheet

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.


Next Steps

Dividend

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

1.04%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Lennox International before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Lennox International's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.46%).

Lennox International's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).

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

Dividends paid are well covered by earnings (3.8x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (4.1x coverage).


Next Steps

Management

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

10.7yrs

Average management tenure


CEO

Todd Bluedorn (54yo)

12.2yrs

Tenure

US$7,541,297

Compensation

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- ...


CEO Compensation Analysis

Todd's remuneration is lower than average for companies of similar size in United States of America.

Todd's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

10.7yrs

Average Tenure

53yo

Average Age

The average tenure for the Lennox International management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

7.8yrs

Average Tenure

57yo

Average Age

The tenure for the Lennox International board of directors is about average.


Insider Trading

Lennox International insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$829,61520 May 19
Prakash Bedapudi
EntityIndividual
Role
Executive VP & CTO
Shares2,995
Max PriceUS$277.00
SellUS$446,53526 Feb 19
Prakash Bedapudi
EntityIndividual
Role
Executive VP & CTO
Shares1,786
Max PriceUS$250.05
SellUS$302,18308 Nov 18
John Norris
EntityIndividual
Role
Member of the Board of Directors
Shares1,400
Max PriceUS$215.94
SellUS$106,03206 Nov 18
Paul Schmidt
EntityIndividual
Role
Member of the Board of Directors
Shares500
Max PriceUS$212.06
SellUS$2,070,00031 Oct 18
Prakash Bedapudi
EntityIndividual
Role
Executive VP & CTO
Shares10,000
Max PriceUS$207.00
SellUS$408,89229 Oct 18
John Major
EntityIndividual
Role
Member of the Board of Directors
Shares2,000
Max PriceUS$204.45

Ownership Breakdown


Management Team

  • Chris Kosel (51yo)

    VP, Chief Accounting Officer & Controller

    • Tenure: 2.1yrs
  • Daniel Sessa (53yo)

    Executive VP & Chief HR Officer

    • Tenure: 12.0yrs
    • Compensation: $1.90m
  • Terry Johnston (60yo)

    Executive VP and President & COO of LII North America Commercial Heating & Cooling

    • Tenure: 6.4yrs
  • Prakash Bedapudi (51yo)

    Executive VP & CTO

    • Tenure: 10.9yrs
  • Gary Bedard (53yo)

    Executive VP and President & COO of Worldwide Refrigeration Business Segment

    • Tenure: 1.7yrs
  • Todd Bluedorn (54yo)

    Chairman & CEO

    • Tenure: 12.2yrs
    • Compensation: $7.54m
  • Steve Harrison

    Vice President of Investor Relations

    • Tenure: 11.0yrs
  • John Torres (59yo)

    Executive VP

    • Tenure: 10.5yrs
    • Compensation: $2.01m
  • Joe Reitmeier (53yo)

    Executive VP & CFO

    • Tenure: 6.9yrs
    • Compensation: $2.15m
  • Doug Young (55yo)

    Executive VP and President & COO of LII Residential Heating & Cooling

    • Tenure: 12.7yrs
    • Compensation: $2.20m

Board Members

  • Max Mitchell (54yo)

    Director

    • Tenure: 2.8yrs
    • Compensation: $219.60k
  • Greg Swienton (68yo)

    Director

    • Tenure: 8.5yrs
    • Compensation: $239.60k
  • Todd Bluedorn (54yo)

    Chairman & CEO

    • Tenure: 7.1yrs
    • Compensation: $7.54m
  • Karen Quintos (54yo)

    Director

    • Tenure: 4.8yrs
    • Compensation: $219.60k
  • John Major (72yo)

    Independent Director

    • Tenure: 26.4yrs
    • Compensation: $234.60k
  • Kim K. Rucker (51yo)

    Director

    • Tenure: 4.0yrs
    • Compensation: $219.60k
  • Janet Katherine Cooper (64yo)

    Director

    • Tenure: 20.2yrs
    • Compensation: $219.60k
  • Paul Schmidt (73yo)

    Director

    • Tenure: 14.4yrs
    • Compensation: $219.60k
  • John Norris (60yo)

    Director

    • Tenure: 18.4yrs
    • Compensation: $229.60k
  • Todd Teske (53yo)

    Lead Director

    • Tenure: 4.1yrs
    • Compensation: $259.60k

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$10.678b
  • Shares outstanding: 39.22m
  • Website: Click here

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 StockUSUSDJan 1970
LXIDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1970
LII *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1970

Biography

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/06/17 23:39
End of Day Share Price2019/06/17 00:00
Earnings2019/03/31
Annual Earnings2018/12/31


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.