LIILennox International Inc. (LII) demonstrates strong financial health and consistent profitability, benefiting from positive trends in the HVAC market. While valuation metrics are somewhat elevated, the company's solid fundamentals and dividend history support a 'Buy' rating, with technicals indicating a bullish trend but caution due for short-term overbought conditions.
Lennox International is positioned to benefit from several macro-economic and industry-specific themes, including home improvement, energy efficiency, and infrastructure upgrades.
Lennox International exhibits strong profitability, robust cash flow generation, and a healthy balance sheet. Revenue and earnings have shown consistent growth, and the company offers a reliable dividend.
Lennox International (LII) is exhibiting a strong uptrend, trading above key moving averages. However, some indicators suggest it may be approaching overbought territory, warranting a cautious approach for new entries.
| Factor | Score |
|---|---|
| Residential & Commercial Construction/Improvement | 85 |
| Energy Efficiency & Sustainability | 80 |
| Replacement Cycle | 70 |
| Infrastructure Spending | 60 |
| Interest Rate Sensitivity | 65 |
| Factor | Score |
|---|---|
| Valuation | 65 |
| Profitability | 85 |
| Growth | 70 |
| Balance Sheet Health | 60 |
| Cash Flow | 88 |
| Dividends | 70 |
| Factor | Score |
|---|---|
| Trend Analysis | 80 |
| Momentum | 55 |
| Volume | 70 |
| Support & Resistance | 60 |
| Short-term Indicators | 65 |
Consistent EPS Beat Rate
Lennox International Inc. (LII) has exceeded earnings per share (EPS) estimates in 9 out of the last 10 quarters, indicating consistent operational strength and effective management.
Favorable P/E Ratio Compared to Industry
The current P/E ratio of 28.41 for LII is lower than the industry average of 30.5 (based on typical industry comps for HVAC manufacturers), suggesting potential undervaluation relative to peers.
Elevated Price-to-Sales Ratio
The Price-to-Sales (PS) ratio of 4.3 for LII is higher than its 2021 ratio of 2.6, suggesting that the market is currently valuing its revenue more highly, which could indicate a stretched valuation.
Mixed Revenue Growth Trends
While annual revenue showed growth from 2021 ($4.19B) to 2024 ($5.34B), quarterly revenue trends show variability, with Q2 2025 revenue ($1.50B) being lower than Q1 2025 ($1.07B), indicating potential demand fluctuations.
June 2025
30
Ex-Dividend Date
July 2025
15
Next Dividend Date
October 2025
22
Next Earnings Date
H: $7.89
A: $7.35
L: $7.04
H: 1.59B
A: 1.56B
L: 1.52B
Lennox International Inc., together with its subsidiaries, designs, manufactures, and markets products for the heating, ventilation, air conditioning, and refrigeration markets in the United States, Canada, and internationally. The Home Comfort Solutions segment provides furnaces, air conditioners, heat pumps, packaged heating and cooling systems, indoor air quality equipment, comfort control products, and replacement parts and supplies; residential heating, ventilation, cooling equipment, and air conditioning; and evaporator coils and unit heaters under Lennox, Dave Lennox Signature Collection, Armstrong Air, Ducane, AirEase, Concord, MagicPak, Advanced Distributor Products, Allied, Elite Series, Merit Series, Comfort Sync, Healthy Climate, iComfort, ComfortSense, and Lennox Stores name. The Building Climate Solutions segment offers unitary heating and air conditioning equipment, applied systems, controls, installation and service of commercial heating and cooling equipment, variable refrigerant flow commercial, curb, curb adapters, drop box diffusers, HVAC recycling, and salvage service. This segment also provides condensing units, unit coolers, fluid coolers, air cooled condensers, air handlers, and refrigeration rack systems for preserving food and other perishables; and compressor racks and industrial process chillers under the Lennox, Model L, CORE, Enlight, Xion, Energence, Prodigy, Strategos, Raider, Lennox VRF, Lennox National Account Services, Allied Commercial, Elite, AES Industries, Mechanical, and Reclaim, Heatcraft Worldwide and Chandler Refrigeration, Bohn, MAGNA, Larkin, Climate Control, Chandler Refrigeration, IntelliGen, and Interlink brand name. In addition, the company provides small package units, rooftop units, chillers, air handlers, and fan coils. It sells its products and services through direct sales, distributors, and company-owned parts and supplies stores. The company was founded in 1895 and is headquartered in Richardson, Texas.
642.89 USD
The 39 analysts offering 1 year price forecasts for LII have a max estimate of 754.00 and a min estimate of 440.00.