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Lennox International Inc LII

Morningstar Rating
$503.42 +11.60 (2.36%)
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Company Report

Lennox Earnings: Higher Commercial Profitability Persists; Full-Year Midpoint EPS Guidance Raised

Lennox picked up where it left off last year as first-quarter revenue and profit margin both increased from the prior-year period thanks to continued strength in building climate solutions (previously commercial heating and cooling). Core revenue, which excludes the divested European businesses, grew 6% year over year to over $1.0 billion. Core adjusted segment profit margin expanded 150 basis points to 15.9% on favorable price and mix.

Price vs Fair Value

LII is trading at a 395% premium.
Price
$503.42
Fair Value
$213.00
Uncertainty
Medium
1-Star Price
$466.49
5-Star Price
$632.30
Economic Moat
Sgtts
Capital Allocation
Bzcnstghs

Bulls Say, Bears Say

Bulls

Lennox is well positioned to benefit from elevated demand for more energy-efficient residential and commercial HVAC systems.

Bears

Considering high unit and installation costs and economic uncertainty, more consumers may choose to repair HVAC units rather than replace them.

Is it the right time to buy, sell, or hold?
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News

Trading Information

Previous Close Price
$491.82
Day Range
$488.06503.55
52-Week Range
$272.73506.41
Bid/Ask
$502.35 / $504.66
Market Cap
$17.93 Bil
Volume/Avg
173,750 / 251,699

Key Statistics

Price/Earnings (Normalized)
26.77
Price/Sales
3.58
Dividend Yield (Trailing)
0.87%
Dividend Yield (Forward)
0.91%
Total Yield
0.99%

Company Profile

Lennox International manufactures and distributes heating, ventilating, air conditioning, and refrigeration products to replacement (75% of sales) and new construction (25% of sales) markets. In fiscal 2023, residential HVAC was 68% of sales and commercial HVAC and Heatcraft refrigeration was 32% of sales. The company goes to market with multiple brands, but Lennox is the company’s flagship HVAC brand. The Texas-based company is focused on North America after the sale of its European HVAC and refrigeration businesses in late 2023.
Sector
Industrials
Industry
Building Products & Equipment
Stock Style Box
Mid Growth
Total Number of Employees
12,600

Competitors

Valuation

Metric
LII
CARR
TT
Price/Earnings (Normalized)
26.7722.7335.29
Price/Book Value
48.145.0111.12
Price/Sales
3.582.434.27
Price/Cash Flow
23.5925.9429.33
Price/Earnings
LII
CARR
TT

Financial Strength

Metric
LII
CARR
TT
Quick Ratio
0.610.550.62
Current Ratio
1.431.361.13
Interest Coverage
15.224.7612.55
Quick Ratio
LII
CARR
TT

Profitability

Metric
LII
CARR
TT
Return on Assets (Normalized)
23.03%8.02%11.89%
Return on Equity (Normalized)
442.69%27.54%34.17%
Return on Invested Capital (Normalized)
37.71%12.64%21.14%
Return on Assets
LII
CARR
TT
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