Lennox International (LII) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Lennox International

NYSE•Industrials•Building Products & Equipment

$359.96+0.88(<0.01%)Market open

Market Cap

$12.49B

P/E

15.7x

P/S

2.4x

P/B

9.6x

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, air handlers, and unit heaters under Lennox, Dave Lennox Signature Collection, Armstrong Air, Ducane, AirEase, Concord, MagicPak, Advanced Distributor Products, Allied, Elite Series, Supco, Linebacker, Elite series, Merit Series, Comfort Sync, Healthy Climate, Healthy Climate Solutions, iComfort, ComfortSense, and Lennox Stores name. The Building Climate Solutions segment offers unitary heating and air conditioning equipment, 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, process chillers, compressorized racks, and replacement parts and supplies under the Lennox, Model L, CORE, Enlight, Xion, Energence, Prodigy, Strategos, Raider, Lennox VRF, Lennox National Account Services, Allied Commercial, Duro Dyne, Dyne-Tite, Durozone, Elite, AES Industries, Mechanical, Heatcraft Worldwide 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.

How this company scores

GoodMetricSide Score: 64/100

Strongest: Profitability (19/25); weakest: Growth (8/25).

Profitability19/25

Growth8/25

Balance Sheet & Red Flags18/25

Cash & Earnings Quality19/25

Strengths

Strong marginsHigh ROEInterest easily coveredImproving margins

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 15.7x5y range 15.3x – 29.5x

Currently below its 20-quarter median.

P/S · 2.4x5y range 1.6x – 4.2x

Currently near its 20-quarter median.

P/B · 9.6x5y range 9.6x – 183.2x

Currently below its 13-quarter median.

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

Some Concerns

Earnings Quality

Watch

FCF/Net Income has dropped below 0.7x in 4 quarters — monitor for earnings quality deterioration.

Cash Burn

Watch

FCF turned negative in 2 of the last 8 quarters — occasional cash consumption.

Price & Volume

Market Cap $12.49B

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $5.30B
Q. Revenue: $1.55B
TTM EBITDA: $1.17B
TTM Op. Income: $1.05B
Q. Op. Income: $355.00M
TTM Net Income: $794.10M
Q. Net Income: $269.00M
EPS: $7.75
Shares Out.: $34.70M

$5.30B in TTM revenue declined 2.1% YoY, reaching $1.55B last quarter. TTM EBITDA of $1.17B and TTM operating income of $1.05B show growth is flowing through to the bottom line. TTM net income of $794.10M means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 2 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 34.9%
EBITDA Margin: 25.1%
Op. Margin: 23.0%
Net Margin: 17.4%

Op. margin of 23.0% is down 0.6% YoY — costs are rising relative to revenue. Net margin at 17.4% and gross margin of 34.9% show how much of each revenue dollar survives to profit. Over the past year, operating margin is down 3% — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 15.7x
P/S Ratio: 2.4x
P/B Ratio: 9.6x

At 15.7x P/E, the stock trades within typical market levels. P/S of 2.4x and P/B of 9.6x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Across the last 8 quarters, P/E has fallen for 7 consecutive quarters — an improving trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $4.54B
Cash: $51.50M
Long-Term Debt: $1.15B
Book Value: $1.30B
D/E Ratio: 0.9
Debt/EBITDA: 3.0

With $4.54B in assets and $1.15B in long-term debt, D/E is 0.9and book value is $1.30B — a conservative capital structure with a cushion to weather downturns. Across the last 8 quarters, debt/equity has fallen for 2 consecutive quarters — an improving trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $172.00M
TTM Free Cash Flow: $738.70M
FCF Margin: 13.9%
FCF / Net Income: 0.9

TTM FCF of $738.70M on $172.00M in operating cash flow. The FCF / Net Income ratio of 0.9x means free cash flow covers net income — earnings are backed by cash. Across the last 8 quarters, free cash flow has risen for 3 consecutive quarters — an improving trend.