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

$344.08-4.04(-0.01%)Market closed

Market Cap

$12.17B

P/E

15.8x

P/S

2.2x

P/B

9.2x

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 the 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 names. 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 brands. The company also offers 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: 67/100

Strongest: Cash & Earnings Quality (21/25); weakest: Growth (10/25).

Profitability16/25

Growth10/25

Balance Sheet & Red Flags20/25

Cash & Earnings Quality21/25

Strengths

Rising free cash flowStrong marginsHigh ROEInterest easily covered

Valuation vs. 5-year range

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

P/E · 15.8x5y range 15.3x – 29.5x

Currently below its 20-quarter median.

P/S · 2.2x5y range 1.6x – 4.2x

Currently below its 20-quarter median.

P/B · 9.2x5y range 9.2x – 183.2x

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 $12.17B

Metrics at a Glance

as of September 2026

Revenue & Profit

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

TTM Revenue: $5.45B
Q. Revenue: $1.57B
TTM EBITDA: $1.18B
TTM Op. Income: $1.05B
Q. Op. Income: $312.10M
TTM Net Income: $769.50M
Q. Net Income: $221.20M
EPS: $6.43
Shares Out.: $34.40M

$5.45B in TTM revenue grew 1.9% YoY, reaching $1.57B last quarter. TTM EBITDA of $1.18B and TTM operating income of $1.05B show growth is flowing through to the bottom line. TTM net income of $769.50M means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 3 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 31.6%
EBITDA Margin: 22.0%
Op. Margin: 19.8%
Net Margin: 14.1%

Op. margin of 19.8% is down 1.9% YoY — costs are rising relative to revenue. Net margin at 14.1% and gross margin of 31.6% show how much of each revenue dollar survives to profit. Over the past year, operating margin is down 9% — a weakening trend.

Price Ratios

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

P/E Ratio: 15.8x
P/S Ratio: 2.2x
P/B Ratio: 9.2x

At 15.8x P/E, the stock trades within typical market levels. P/S of 2.2x and P/B of 9.2x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Over the past year, P/E is down 27% — an improving trend.

Assets & Liabilities

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

Total Assets: $4.69B
Cash: $43.30M
Long-Term Debt: $847.10M
Book Value: $1.32B
D/E Ratio: 0.6
Debt/EBITDA: 2.4

With $4.69B in assets and $847.10M in long-term debt, D/E is 0.6and book value is $1.32B — a conservative capital structure with a cushion to weather downturns. Across the last 8 quarters, debt/equity has fallen for 3 consecutive quarters — an improving trend.

Cash Flow

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

Op. Cash Flow: $395.30M
TTM Free Cash Flow: $835.70M
FCF Margin: 15.3%
FCF / Net Income: 1.1

TTM FCF of $835.70M on $395.30M in operating cash flow. The FCF / Net Income ratio of 1.1x means free cash flow covers net income — earnings are backed by cash. Across the last 8 quarters, free cash flow has risen for 4 consecutive quarters — an improving trend.