Lennox International Inc.

Air-Cond & Warm Air Heatg Equip & Comm & Indl Refrig Equip

LIIMixed9 of 11 basics passed

$356.44

-1.41%

Market cap $12.3B

$356.44

-1.41%

Market cap $12.3B

Lennox manufactures and distributes heating, ventilating, air conditioning, and refrigeration products for the North American replacement (75% of sales) and new construction (25% of sales) markets.

It is a $12.3B industrial company. Revenue shrank 2.1% over the last year, it keeps 15¢ of every dollar of sales as profit, and its net debt equals ~1.5 years of free cash flow. It trades at 15.5× earnings — near the lowest of its own history.

Website: lennox.com
Location: Richardson, TX
Employees: 12 900
Sector: Industrials
Founded: 1895

Share price · 3 years

$382.01 → $356.44-6.7%

price only — dividends excluded

Key facts · TTM

Revenue: total sales; $5.30B
Profit: keeps 15¢ of every $1 sold; $794M
Free cash flow: cash left after running the business; $739M
Net debt: debt minus cash on hand; $1.13B
P/E: years of profit in the price; 15.5
EPS: earnings per share, TTM; $22.43
Dividend: pays out 23% of profit · 25% of FCF; 1.48%
Shares: down 20% since 2016 — buybacks; 35.4M
Volatility: beta vs the market — under 1 swings less; 1.20

Revenue, last 10 years

52-week range

Low $355.02$356.44High $572.95

Today's price is 1% of the way from the year's low to its high.

P/E vs its history5y

15.5×median 23.1×

Higher than 0% of past days — near the lowest of its own history.

Valuation vs own history

P/E

15.5×

100%

P/S

2.3×

75%

EV/EBITDA

13.6×

100%

P/B

9.5×

100%

FCF yield

6.0%

100%

Share of the last ~5 years that was pricier than today (unusually cheap vs its own history). Based on the daily valuation record.

Standing in Industrials

Size$12.3Btop 72%
Revenue growth+3%top 52%
Net margin15%top 21%
Return on equity67%top 6%
P/E15.5×top 15%
Dividend yield1.48%top 37%

Ranked against 130 Industrials companies with a full CV — for P/E, lower ranks higher.

Skills

Six independent scores, 0–100, built from reported numbers and valuation history. Click a row to see how it was scored.

Strong valuation and profitability.

Valuation85

P/E vs own history0th pct · 25/25
FCF yield6.0% · 20/25
P/S2.3x · 20/25
EV/EBITDA11.8x · 20/25

Growth64

Revenue CAGR5.5% · 12/25
Net income CAGR14.8% · 20/25
EPS CAGR ~5Y19.8% · 20/25
Fwd implied growth5.7% · 12/25

Profitability90

ROIC36.6% · 25/25
ROE67.0% · 25/25
Net margin15.0% · 20/25
Operating margin19.8% · 20/25

Health55

Altman Zn/a · 0/25
Current ratio1.57 · 18/25
Interest coverage41.2x · 25/25
Net cash / debtD/A 28% · 12/25

Quality74

Piotroski F6/9 · 15/25
Beneish M-2.21 · 12/25
FCF conversion93% · 22/25
Margin stabilityσ 3.7% · 25/25

Moat74

ROIC >12% years10/10 yrs · 25/25
Median gross margin29.0% · 6/25
FCF-positive years10/10 yrs · 25/25
Worst-year net marginworst 7.6% · 18/25

How the scores work →

Experience

The company's career so far — founding, the IPO, landmark products and acquisitions, plus revenue milestones and insider buying.

FY2024Financial
Best year on record
$807M net income
2023Acquisition
The company acquired AES
FY2016Financial
Profitable every year on record
10 consecutive profitable years in our data
FY2016Financial
Revenue already above $1B
$3.64B in first reported year
FY2016Financial
Positive free cash flow every year since
10-year streak
2010Acquisition
The company acquired Kysor/Warren from The Manitowoc Company for $138 million
1999IPO
The company became a public company via an initial public offering
1998Acquisition
The company acquired Pyro Industries, a manufacturer of pellet stoves
1973Acquisition
Lennox acquired Heatcraft, including the Larkin, Bohn, Chandler
1904Acquisition
Norris, III, a descendant of DW Norris, who acquired the company in 1904
1895Founded
The company was founded in 1895, in Marshalltown, Iowa, by Dave Lennox, the owner of a machine repair business for…

Achievements

Verifiable track record, straight from the reported numbers.

$10 000 invested in 2021 would be worth ~$11 377 today — price return only

$5.2B revenue in FY2025

Profitable 10 years in a row

Positive free cash flow 10 years in a row

12 900 employees

ROIC of 36.6%

Strengths & watch-outs

What a bull and a bear would each point to. Both lists come from the reported numbers, not opinions.

Strengths

Interest covered 41.2× by operating earnings
High returns on invested capital (ROIC 36.6%)

Watch-outs

Revenue shrinking 2.1% year over year

Qualifications

The basics a company should meet before you research it further. Each check uses the reported numbers.

9 of 11 checks passed

Revenue growing — the company sells more than a year ago-2.1% YoY
Profitable — makes more than it spends$794M TTM
Profit growing — earnings are higher than last year+17.9% YoY
Generates cash — cash left after running and investing$739M TTM
Debt under control — could handle its obligations~1.5y of cash flow to repay
Established company — not a micro-cap — lower blow-up risk$12.3B market cap
Not printing shares — share count not ballooning — you keep your slice-8.3% shares over ~5y
Proven track record — years of profitability behind it10/10 profitable years
Financially stable — balance sheet not near distresshealth score 43/100
Pays a dividend — returns cash to shareholdersyield 1.48%
Valuation not extreme — price not wildly above earningsP/E 15.5

Peer comparisonLennox International Inc. vs 6 largest industrials peers — cap, P/E, growth and margin side by sideOpen ▾

Company	Market cap	P/E	Revenue growth	Net margin	Profile
LII this company	$12.3B	15.5	-2.1%	15.0%	Mixed
LRCX Lam Research Corp	$399.2B	54.9	+26.0%	31.3%	Strong
CAT Caterpillar Inc.	$368.0B	33.9	+18.4%	14.5%	Solid
RTX RTX Corporation	$251.3B	32.4	+11.8%	8.3%	Strained
DE Deere & Company	$167.7B	34.4	+8.3%	10.2%	Solid
ETN Eaton Corporation, plc	$167.2B	43.6	+15.5%	12.8%	Mixed
UNP Union Pacific Corp.	$166.8B	22.6	+4.2%	28.8%	Strained

Head-to-head: LII vs LRCX · LII vs CAT · LII vs RTX

References

What covering analysts publish about the company — information only, not a recommendation.

Strong buy 4Buy 5Hold 12Sell 2

Appendix · Financial records

The full statements behind this CV, FY2016–FY2025. For readers who want to check the numbers.

Profit & lossRevenue $5.30B · net income $794M (TTM)Open ▾

Profit & loss

Revenue and profit over the company's career — the income statement, visualised.

How FY2025 revenue flows to profit

RevenueNet income

Revenue (TTM)

$5.30B

YoY -2.1%

Net income (TTM)

$794M

Margin 15.0%

Gross margin

33.5%

Operating margin

19.8%

P/E ratio

15.5

Dividend yield

1.48%

Income statement — full detail

Figures in USD billions · EPS in USD

	2020	2021	2022	2023	2024	2025
Revenue	3.6	4.2	4.7	5.0	5.3	5.2
Gross profit	1.0	1.2	1.3	1.5	1.8	1.7
Operating income (EBIT)	0.5	0.6	0.7	0.8	1.0	1.0
Net income	0.4	0.5	0.5	0.6	0.8	0.8
EPS (diluted)	9.23	12.37	13.89	16.53	22.54	22.76

Cash flowFree cash flow $739M · operating cash flow $895M (TTM)Open ▾

Cash flow statement

Cash generated by the business and what is left after investment — year by year.

Operating cash flowFree cash flow

Free cash flow (TTM)

$739M

Margin 13.9%

Operating cash flow (TTM)

$895M

FCF margin

13.9%

Cash flow statement — full detail

Figures in USD billions

	2020	2021	2022	2023	2024	2025
Operating cash flow	0.6	0.5	0.3	0.7	0.9	0.8
Capital expenditure	-0.1	-0.1	-0.1	-0.3	-0.2	-0.1
Free cash flow	0.5	0.4	0.2	0.5	0.8	0.6
FCF margin	14.7%	9.7%	4.3%	9.8%	14.6%	12.3%

Balance sheetAssets $4.08B · net debt $1.13B (FY2025)Open ▾

Balance sheet

How the balance sheet is built — what it owns versus how it is financed.

How $4.08B of assets is financed

72%

28%

Liabilities $2.92B — borrowed moneyEquity $1.16B — owners' stake

Cash vs debt

Total debt $1.16B − cash $34.7M = net debt $1.13B

Cash on hand covers 3% of debt.

Debt repayment

0.0 yrs

Years of free cash flow to clear net debt

Interest coverage

41.2x

EBIT ÷ interest expense

ROE

67.0%

Profit per $1 of equity

Balance sheet — full detail

Figures in USD billions

	2020	2021	2022	2023	2024	2025
Cash & equivalents	0.1	0.0	0.1	0.1	0.4	0.0
Total assets	2.0	2.2	2.6	2.8	3.5	4.1
Total liabilities	2.0	2.4	2.8	2.5	2.6	2.9
Total debt	1.0	1.2	1.5	1.2	1.1	1.2
Equity	-0.0	-0.3	-0.2	0.3	0.9	1.2
Net debt	0.9	1.2	1.5	1.1	0.7	1.1

Want the live picture — intraday moves, valuation history and full analysis?

Deeper analysis of LII on PreMarketPrice

Figures are derived from company filings (quarterly values normalised from as-filed year-to-date data where applicable) and may be delayed, restated or incomplete. This page is information, not investment advice. Latest price $356.44 · market cap $12.3B.