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Lennox International Inc. (LII) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

Lennox International Inc.

LIIMarket cap $13BPrice $365.6

Country🇺🇸United States

SectorIndustrials

IndustryBuilding Products

Makes heating, ventilation, and air conditioning systems for homes and businesses across North America. It's quietly become one of the most profitable industrials stocks by ditching low-margin refrigeration to focus purely on HVAC.

In Bastion Portfolios?

52W Return-30%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)+3%4

Revenue Forecast

Rev CAGR (1y)+8%5

Rev CAGR (3y)+6%5

Rev CAGR (5y)+7%6

Earnings Forecast

EPS Growth Y+1+4%5

EPS Growth Y+2+9%6

EPS Growth Y+3+9%6

Quality

Margins

EBIT Margin20%7

Net Income Margin15%7

Free Cash Flow Margin14%7

Debt

Net Debt/EBITDA1.55

Efficiency

ROE72%10

ROA19%10

Earnings Stability1010

GEAR+STRONG75

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)146

P/E Ratio (Forward 3y)136

P/BV9.72

EV Multiples

EV/EBITDA Fwd125

EV/EBIT Fwd137

Yield

Free Cash Flow Yield5.8%7

Dividend Yield1.5%4

Momentum

Short term

1 month return-6%4

3 month return-34%1

YTD return-24%2

Mid term

Price vs 52wHigh62%2

1 year return-32%2

Long term

3 year return+1%3

5 year return+28%5

Risk Shield

Price Risk

Beta0.95

Volatility42%4

Free Cash Flow

Free Cash Flow Margin14%7

Free Cash Flow Yield5.8%7

Quality

ROCE39%10

Earnings Stability1010

Net Debt/EBITDA1.55

02Growth

Is it actually growing, and how fast?

LIILennox International

Revenue FY25$5.2B

GROWTH RATING↗

AVERAGE47 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+3%4

Revenue, next 1Y+8%5

Revenue, next 3Y, CAGR+6%5

Revenue, next 5Y, CAGR+7%6

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+4%5

EPS growth, FY27E+9%6

EPS growth, FY28E+9%6

GROWTH ASSESSMENT

STRENGTHS

Revenue grew 3%/yr over the last 3 years and is set to grow 6%/yr from here.

Earnings are set to grow in step with sales (EPS about 9%/yr vs revenue 6%/yr).

WATCH

A mid-pack grower, ahead of 47% of companies worldwide.

Revenue is set to grow 6%/yr over the next 3 years, in line with the market.5/10

Over five years revenue is set to grow 7%/yr, ahead of 50% of companies worldwide.6/10

WEAKNESSES

None flagged.

BOTTOM LINE

Steady Grower

A middle-of-the-pack grower that's speeding up. The one thing to watch: forward revenue growth is only about average.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

VERY WEAK10 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-6%4

3-month return-34%1

YTD return-24%2

MID & LONG-TERM▾SCORE

% of 52-week high62%2

1-year return-32%2

3-year return+1%3

5-year return+28%5

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

Average long-term results. Multi-year returns are middling (+0.8% over three years and +28% over five), roughly average for the market.

Returns sit at the market level over the past month (-6%).

WEAKNESSES

It's down 32% over the past year, now 38% below its 52-week high. That is lagging the market.

The stock is underperforming over three months (-34%) and so far this year (-24%).

BOTTOM LINE

Falling Knife

Returns rank poorly over both the short and long run, and the price is still falling. Momentum is firmly negative — catching this is a bet against the tape, not with it. Wait for a base to form. The one thing to watch: the one-year trend is weak.

04Value

Are you paying a fair price for it?

Stop guessing on Lennox International Inc.. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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02Growth

Is it actually growing, and how fast?

LIILennox International

Revenue FY25$5.2B

GROWTH RATING↗

AVERAGE47 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+3%4

Revenue, next 1Y+8%5

Revenue, next 3Y, CAGR+6%5

Revenue, next 5Y, CAGR+7%6

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+4%5

EPS growth, FY27E+9%6

EPS growth, FY28E+9%6

GROWTH ASSESSMENT

STRENGTHS

Revenue grew 3%/yr over the last 3 years and is set to grow 6%/yr from here.

Earnings are set to grow in step with sales (EPS about 9%/yr vs revenue 6%/yr).

WATCH

A mid-pack grower, ahead of 47% of companies worldwide.

Revenue is set to grow 6%/yr over the next 3 years, in line with the market.5/10

Over five years revenue is set to grow 7%/yr, ahead of 50% of companies worldwide.6/10

WEAKNESSES

None flagged.

BOTTOM LINE

Steady Grower

A middle-of-the-pack grower that's speeding up. The one thing to watch: forward revenue growth is only about average.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

VERY WEAK10 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-6%4

3-month return-34%1

YTD return-24%2

MID & LONG-TERM▾SCORE

% of 52-week high62%2

1-year return-32%2

3-year return+1%3

5-year return+28%5

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

Average long-term results. Multi-year returns are middling (+0.8% over three years and +28% over five), roughly average for the market.

Returns sit at the market level over the past month (-6%).

WEAKNESSES

It's down 32% over the past year, now 38% below its 52-week high. That is lagging the market.

The stock is underperforming over three months (-34%) and so far this year (-24%).

BOTTOM LINE

Falling Knife

04Value

Are you paying a fair price for it?

Stop guessing on Lennox International Inc.. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community