# Lennox International Inc. (LII) fundamentals

Data as of 2026-09-08. NYSE, United States. Sector: Industrials / Machinery. Price $390.53, market value $13.5 billion.

## Valuation
- **P/E (trailing): 17.4×** (5-yr avg 23.1×, 3-yr avg 24.7×). Lennox International Inc. trades at 17.4× trailing earnings, well below its own five-year average of 23.1×: cheap by its own standards. The Industrials median in the September 2026 study was 25.7×. Forward P/E is 14.9×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 2.5×**. Each dollar of revenue is priced at 2.5×.
- **Price / book: 10.4×**. The shares trade at 10.4× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 11.6×**. Enterprise value is 11.6× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 5.5%** (5-yr avg 3.3%). Free cash flow equals 5.5% of the market value, above its five-year average of 3.3%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 5.8%**. The inverse of the P/E: 5.8% of the price is earned each year.

## Profitability
- **Gross margin: 33.2%**. Lennox International Inc. keeps 33.2% of revenue after the direct cost of what it sells.
- **Operating margin: 19.6%**. 19.6% of revenue is left after running the business, a healthy level in most sectors.
- **Net margin: 15.5%**. 15.5% of each dollar of sales reaches the bottom line.
- **Return on equity: 69.3%**. A 69.3% return on equity is extremely high; check whether buybacks or debt have shrunk the equity base, which flatters the ratio.
- **Return on invested capital: 71.6%**. Return on all capital, debt included, is 71.6%: comfortably above what that capital costs.
- **Return on assets: 19.2%**. Each dollar of assets produces 19.2% of profit.

## Growth
- **Revenue growth (1 yr): -2.7%** (3-yr 3.3%/yr, 5-yr 7.4%/yr). Revenue fell 2.7% over the last year, against 7.4% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 0.6%** (3-yr 18.0%/yr, 5-yr 19.8%/yr). Earnings per share rose 0.6%, roughly in step with revenue.
- **Free-cash-flow growth (3 yr): 47.0%/yr**. Free cash flow has compounded at 47.0% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.02**. Debt is 0.02 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. Lennox International Inc. holds more cash than debt.
- **Altman Z-score: 5.29**. A Z-score of 5.29 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 4/9**. 4 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 1.39%** ($5.26 per share, trailing). Lennox International Inc. yields 1.39%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 21%** (25% of free cash flow). 21% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 26**. 26 straight years of increases (the data covers 26 years, so this may be longer): a record very few companies hold.
- **Dividend growth (5 yr): 10.4%/yr** (1-yr 11.0%). The dividend has compounded at 10.4% a year over five years, doubling roughly every 7 years at that pace.

## Analyst view
- **Analyst consensus: buy** (13 analysts). 13 analysts cover Lennox International Inc.; the consensus is buy, with an average price target of $505.38 (+29% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -29.7%** (YTD -19.1%, 3-mo -23.0%). The shares are down 29.7% over twelve months including dividends.
- **From 52-week high: -33.5%** (5.1% above the low). Trading 34% below its 52-week high, deep in a drawdown.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 36**. An RSI of 36 is neutral.
- **Beta (1 yr): 1.39** (volatility 41%). Beta of 1.39 against the S&P 500: the shares move much more than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=LII · Page: https://foliofundamentals.com/stocks/lii

Not investment advice.