LII Industrials

Lennox International Inc.

$346.49-2.02%

Price as of close on Nov 3, 2026 · Financials updated Oct 9, 2026

Basics

Sector: Industrials
Industry: Building Products & Equipment
Country: United States
Market cap: 12.0B USD
Enterprise value: 13.9B USD
Full-time employees: 5,400

Overall health

Strength: its shares are priced lower than most peers relative to what it earnspriced lower than peers for its earnings
Drawback: growing more slowly than most peersgrowing more slowly than peers
Drawback: higher risk than most peers: its share price swings more than most peers’ (beta 1.16 vs a peer median of 0.64) and more debt relative to equity (1.22× vs a peer median of 0.40×)higher risk: bigger price swings (beta 1.16 vs peers 0.64) and more debt vs equity (1.22× vs peers 0.40×)

Ranks #1,060 of 2,308 industrials companies (top 46%)

See how it ranks against its peers

Worth knowing

Profits growing faster than sales. Since 2022: revenue +10%, operating profit +59%.
Since 2022, Lennox International's revenue grew 10% while operating profit grew 59%: each extra dollar of sales is adding more profit.
Profitable, but revenue is shrinking. More profitable than most peers, but revenue fell 2.1% in the 12 months to June 2026 vs the 12 months before.
Lennox International is more profitable than most peers, yet revenue fell 2.1% in the 12 months to June 2026 vs the 12 months before.
Profit is backed by cash. Free cash flow is 94% of reported profit.
Lennox International's free cash flow is 94% of its reported profit, so its earnings are turning into cash it can reinvest, pay out or use to reduce debt.
Wide margins. Operating margin 20% (12 months to Jun 2026) vs a peer median of 7.7%.Operating margin 20% vs peers 7.7%.
Lennox International keeps 20% of revenue as operating profit, more than 88% of peers (median 7.7%).

StockQuotient Score

53/ 100▲ 1 since Oct 27 close

Oct 5 53 → Nov 4 53

Valuation

Is the price right?

64/100

Moderate▲ 3 since Oct 27 close

3/3 inputs reported · High confidence

Since last quarter: No major changeValuation also moves with the share price every day.

Why it changed since the Oct 27, 2026 close: Score 61 → 64

Share price -6.9%+3

Each step re-scores the company against its peers as they were on Oct 28, 2026; the parts add up to the change. Price effects on EBITDA yield are approximate.

Why

Stronger than most peers on:

▲ Earnings yield
▲ FCF yield

Compare with peers

Behind the score

Sector-normalized EBITDA, earnings, and free cash flow yields.

Earnings yield6.6%

SEC filings · 12 months to Jun 2026Reported value30% base weight · Z-score 0.96Sector median: 0.0377 · MAD: 0.0294

EBITDA yield8.6%

SEC filings · 12 months to Jun 2026Reported value50% base weight · Z-score 0.39Sector median: 0.0695 · MAD: 0.0425

Free cash flow yield6.2%

SEC filings · 12 months to Jun 2026 · operating cash flow − capital spendingReported value20% base weight · Z-score 0.67Sector median: 0.0370 · MAD: 0.0370

Other data (not scored)

Book yield10.8%

SEC filings · latest balance sheetReported valueInformational · 0% composite weightSector median: 0.5027 · MAD: 0.2823

Growth

Is it growing?

34/100

Weak

3/3 inputs reported · High confidence

Since last quarter: No major change

Why

Weaker than most peers on:

▼ Revenue growth
▼ EPS growth

Compare with peers

Behind the score

Revenue and earnings-per-share growth over one year, and revenue growth over three years.

Earnings per share growth-5.1%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score -0.49Sector median: 0.0709 · MAD: 0.2481

3-year revenue growth3.4%

SEC filings · 3 years to Jun 2026Reported value33% base weight · Z-score -0.13Sector median: 0.0421 · MAD: 0.0625

Revenue growth-2.1%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score -0.85Sector median: 0.0439 · MAD: 0.0766

Profitability

Does it earn well?

97/100

Strong

3/3 inputs reported · High confidence

Since last quarter: No major change

Why

Stronger than most peers on:

▲ ROA
▲ ROIC
▲ Operating margin

Compare with peers

Behind the score

Return on invested capital, operating margin, and return on assets.

Operating margin19.7%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 2.35Sector median: 0.0773 · MAD: 0.0507

Return on assets17.3%

SEC filings · 12 months to Jun 2026Outlier capped at sector 5th/95th percentile33% base weight · Z-score 3.33Sector median: 0.0311 · MAD: 0.0241

Return on invested capital29.1%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 3.94Sector median: 0.0715 · MAD: 0.0558

Other data (not scored)

Gross margin33.3%

SEC filings · 12 months to Jun 2026Reported valueInformational · 0% composite weightSector median: 0.2573 · MAD: 0.1038

Return on equity60.8%

SEC filings · 12 months to Jun 2026Outlier capped at sector 5th/95th percentileInformational · 0% composite weightSector median: 0.0802 · MAD: 0.0639

Risk

Debt, liquidity, price swings

Higher

Higher relative risk

3/3 inputs reported · High confidence

Since last quarter: No major change

Why

Weaker than most peers on:

▼ Beta
▼ Debt / equity

Compare with peers

Behind the score

Relative to sector peers: 0 = lower relative risk · 1 = moderate · 2 = higher. Based on leverage, beta and liquidity.

Beta1.16

Yahoo Finance · 5-year monthly beta vs the marketReported value33% base weight · Z-score -1.89Sector median: 0.6440 · MAD: 0.2745

Current ratio1.57×

SEC filings · latest balance sheetReported value33% base weight · Z-score -0.09Sector median: 1.6180 · MAD: 0.5360

Debt / equity1.22×

SEC filings · latest balance sheetReported value33% base weight · Z-score -2.42Sector median: 0.4019 · MAD: 0.3378

Valuation, growth and profitability scores: higher is better. Risk: 0 is lower, 2 is higher. Risk is a relative proxy, not a bankruptcy probability. Scores depend on available sector peers.

Questions investors ask about Lennox International

Is Lennox International getting weaker?: Its latest SEC filing (Jul 29, 2026) showed no major changes. Its overall score is 53/100, up 1 since Oct 28, 2026.
How is Lennox International valued vs its peers?: Priced lower than most peers relative to what it earns. Valuation scores 64/100 against 2,459 industrials peers. Earnings yield 6.6% vs a peer median of 3.8% (stronger than 74% of peers).Earnings yield 6.6% vs peers 3.8% (stronger than 74% of peers).
Is Lennox International growing?: More slowly than most of its peers. Growth scores 34/100 against 2,459 industrials peers. Revenue growth -2.1% vs a peer median of 4.4% (weaker than 73% of peers).Revenue growth -2.1% vs peers 4.4% (weaker than 73% of peers).
How profitable is Lennox International?: More profitable than most of its peers. Profitability scores 97/100 against 2,459 industrials peers. Return on assets 17.3% vs a peer median of 3.1% (stronger than 95% of peers).Return on assets 17.3% vs peers 3.1% (stronger than 95% of peers).
How risky is Lennox International?: Higher risk relative to 2,459 industrials peers, judged on debt, liquidity and share-price swings. Beta 1.16 vs a peer median of 0.64 (weaker than 82% of peers).Beta 1.16 vs peers 0.64 (weaker than 82% of peers). A relative measure, not a bankruptcy probability.

Latest filing: what changed

Quarter ended Jun 30, 2026 · filed Jul 29, 2026 · compared with the quarter ended Mar 31, 2026

No major changes

	Previous quarter	Latest quarter	Change
Revenue (12 months)	5.3B USD	5.3B USD	+0.8%
Net income (12 months)	793.4M USD	788.5M USD	−0.6%
Operating margin	19.7%	19.7%	−0.1 pts
Free cash flow (12 months)	660.7M USD	738.7M USD	+11.8%
Debt	1.5B USD	1.6B USD	+3.8%
Cash	48.2M USD	51.5M USD	+6.8%
Shares outstanding	34.8M	34.6M	−0.7%

From the company’s own SEC filings, as filed. Twelve-month figures roll forward one quarter at a time.

Industry valuation context

Industry: Building Products & Equipment · 19 companies

Valuations in Building Products & Equipment are above their usual range since Nov 2016.

79% of months since Nov 2016 were valued lower than now.
25% of companies are in the most expensive fifth of their own price-to-sales history.
Over 24 months, company values −19% and earnings −9% (medians): prices and earnings moved broadly together.
Median price-to-sales is −9% vs the whole market, against a usual −30%.

Nov 2016Shaded: most expensive fifth of its range2026

Financials

Fiscal years from SEC annual filings · change vs the prior year

Key ratios	FY 2021	FY 2022	FY 2023	FY 2024	FY 2025	Change
Gross margin	28.3%	27.2%	31.1%	33.3%	33.4%	▲ 0.1 pts
Operating margin	14.1%	13.9%	15.9%	19.5%	20.0%	▲ 0.6 pts
Net margin	11.1%	10.5%	11.9%	15.2%	15.5%	▲ 0.3 pts
Return on assets (ROA)	21.4%	19.4%	20.1%	22.4%	19.7%	▼ 2.7 pts
Return on equity (ROE)	—	—	150.4%	84.3%	69.3%	▼ 15 pts
Free cash flow margin	9.7%	4.3%	9.8%	14.6%	12.3%	▼ 2.3 pts
Current ratio	1.42×	0.94×	1.55×	1.55×	1.60×	▲ 3.2%
Quick ratio	0.80×	0.47×	0.72×	0.90×	0.63×	▼ 30%
Debt to equity	—	—	3.32×	1.19×	1.19×	▲ 0.1%
Interest coverage	23.61×	16.96×	15.31×	26.88×	25.46×	▼ 5.3%

LII price history

Price history is added with the daily price update and will appear after the next one.

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Bringing the fundamentals into focus…

Overall health

Strength: its shares are priced lower than most peers relative to what it earnspriced lower than peers for its earnings

Drawback: growing more slowly than most peersgrowing more slowly than peers

Drawback: higher risk than most peers: its share price swings more than most peers’ (beta 1.16 vs a peer median of 0.64) and more debt relative to equity (1.22× vs a peer median of 0.40×)higher risk: bigger price swings (beta 1.16 vs peers 0.64) and more debt vs equity (1.22× vs peers 0.40×)

Ranks #1,060 of 2,308 industrials companies (top 46%)

See how it ranks against its peers

Worth knowing

Profits growing faster than sales. Since 2022: revenue +10%, operating profit +59%.

Since 2022, Lennox International's revenue grew 10% while operating profit grew 59%: each extra dollar of sales is adding more profit.

Profitable, but revenue is shrinking. More profitable than most peers, but revenue fell 2.1% in the 12 months to June 2026 vs the 12 months before.

Lennox International is more profitable than most peers, yet revenue fell 2.1% in the 12 months to June 2026 vs the 12 months before.

Profit is backed by cash. Free cash flow is 94% of reported profit.

Lennox International's free cash flow is 94% of its reported profit, so its earnings are turning into cash it can reinvest, pay out or use to reduce debt.

Wide margins. Operating margin 20% (12 months to Jun 2026) vs a peer median of 7.7%.Operating margin 20% vs peers 7.7%.

Lennox International keeps 20% of revenue as operating profit, more than 88% of peers (median 7.7%).

Questions investors ask about Lennox International

Is Lennox International getting weaker?

Its latest SEC filing (Jul 29, 2026) showed no major changes. Its overall score is 53/100, up 1 since Oct 28, 2026.

How is Lennox International valued vs its peers?

Priced lower than most peers relative to what it earns. Valuation scores 64/100 against 2,459 industrials peers. Earnings yield 6.6% vs a peer median of 3.8% (stronger than 74% of peers).Earnings yield 6.6% vs peers 3.8% (stronger than 74% of peers).

Is Lennox International growing?

More slowly than most of its peers. Growth scores 34/100 against 2,459 industrials peers. Revenue growth -2.1% vs a peer median of 4.4% (weaker than 73% of peers).Revenue growth -2.1% vs peers 4.4% (weaker than 73% of peers).

How profitable is Lennox International?

More profitable than most of its peers. Profitability scores 97/100 against 2,459 industrials peers. Return on assets 17.3% vs a peer median of 3.1% (stronger than 95% of peers).Return on assets 17.3% vs peers 3.1% (stronger than 95% of peers).

How risky is Lennox International?

Higher risk relative to 2,459 industrials peers, judged on debt, liquidity and share-price swings. Beta 1.16 vs a peer median of 0.64 (weaker than 82% of peers).Beta 1.16 vs peers 0.64 (weaker than 82% of peers). A relative measure, not a bankruptcy probability.

Previous quarter

Latest quarter

Change

Revenue (12 months)

5.3B USD

5.3B USD

+0.8%

Net income (12 months)

793.4M USD

788.5M USD

−0.6%

Operating margin

19.7%

19.7%

−0.1 pts

Free cash flow (12 months)

660.7M USD

738.7M USD

+11.8%

Debt

1.5B USD

1.6B USD

+3.8%

Cash

48.2M USD

51.5M USD

+6.8%

Shares outstanding

34.8M

34.6M

−0.7%

Key ratios

FY 2021

FY 2022

FY 2023

FY 2024

FY 2025

Change

Gross margin

28.3%

27.2%

31.1%

33.3%

33.4%

▲ 0.1 pts

Operating margin

14.1%

13.9%

15.9%

19.5%

20.0%

▲ 0.6 pts

Net margin

11.1%

10.5%

11.9%

15.2%

15.5%

▲ 0.3 pts

Return on assets (ROA)

21.4%

19.4%

20.1%

22.4%

19.7%

▼ 2.7 pts

Return on equity (ROE)

—

150.4%

84.3%

69.3%

▼ 15 pts

Free cash flow margin

9.7%

4.3%

9.8%

14.6%

12.3%

▼ 2.3 pts

Current ratio

1.42×

0.94×

1.55×

1.60×

▲ 3.2%

Quick ratio

0.80×

0.47×

0.72×

0.90×

0.63×

▼ 30%

Debt to equity

—

3.32×

1.19×

▲ 0.1%

Interest coverage

23.61×

16.96×

15.31×

26.88×

25.46×

▼ 5.3%