Industrials · Building Products · US stock · price as of 16 Oct 2026
Key indicators
Price
$357.73
52-week range
$340.32 – $585.05
Market cap
$12.5B
P/E (trailing)
15.9×
EV / EBITDA
12.1×
Free-cash-flow yield
5.3%
Dividend yield
1.5%
Revenue (last 12 months)
$5.3B
Revenue growth (3y a year)
3.3%
Operating margin
19.7%
Return on invested capital
31.2%
Net debt / EBITDA
1.3×
Fair value
Blended fair value$668.56 range $615 – $733
Versus priceUndervalued+87% to fair value
Peer multiples
$603.49
Fundamentals-adjusted multiple
$619.86
10-year DCF (market-scaled)
$782.32
Earnings power value (floor, not blended)
$182.31
Model uncertainty
Medium
X-Ray Score
62/ 100 · High confidence · ahead of 84% of sector peers
Valuation86
Growth50
Profitability58
Financial health51
Dividends58
Five-year price chart navy: price · brown: 200-day average · blue band: fair value range
Executive summary
Lennox International designs and manufactures heating, ventilation, air conditioning and refrigeration equipment for homes and commercial buildings. Its products include furnaces, heat pumps, air conditioners and commercial rooftop units, sold mainly through independent dealers, distributors and its own stores. Revenue comes from equipment sales and replacement parts, and demand is influenced by housing activity, weather, building codes and replacement cycles for existing systems.
Revenue over the last twelve months was $5.3 billion, with growth of 3.3% a year over three years. The operating margin stands at 19.7%. The return on invested capital is shown as 31%. Net debt to EBITDA is 1.3 times. Shareholders receive a dividend yielding 1.5%. These numbers describe past results and current financial position, and they are shown for reference only.
StocksXray gives Lennox International Inc an X-Ray Score of 62 out of 100 (high confidence), ahead of 84% of the S&P 500 stocks in its sector. Its strongest lens is valuation (86) and its weakest is growth (50).
Our fair value blend is $668.56 (range $614.71 to $732.60). At $357.73 the stock trades 46% below that blend, so the label is "Undervalued" with medium model uncertainty. Fair value is a range, not a price target.
XStocksXray
Lennox International Inc (LII)
Valuation history multiples at each fiscal year-end price; the last column uses today's price and the last twelve months
FY2021
FY2022
FY2023
FY2024
FY2025
Now
Price
$306.23
$229.84
$435.66
$598.02
$481.18
$357.73
Market cap
$11.5B
$8.2B
$15.6B
$21.4B
$17.0B
$12.5B
P/E
24.7×
16.6×
26.3×
26.4×
21.1×
15.9×
EV / revenue
3.0×
2.1×
3.4×
4.1×
3.5×
2.7×
EV / EBITDA
19.1×
13.2×
19.1×
19.5×
15.9×
12.1×
Price / free cash flow
28.1×
40.9×
32.0×
27.4×
26.7×
19.0×
Free-cash-flow yield
3.6%
2.4%
3.1%
3.7%
3.8%
5.3%
Price / book
–
–
39.6×
22.3×
14.6×
10.3×
Dividend yield
1.15%
1.78%
1.00%
0.76%
1.05%
1.49%
Fundamentals checklist ● 10 Good · ● 4 Average · ● 2 Bad · each check graded against the sector
Cash quality
Earnings backed by cash−0.4%Bad
Free-cash-flow yield5.3%Good
Risk models
Altman Z score6.9×Good
Piotroski F-Score5 of 9Bad
Growth
EPS growth (3y)18.0%Good
Free-cash-flow growth (3y)47.0%Good
Revenue growth (3y)3.3%Average
Growth consistency70%Average
Balance sheet
Current ratio1.6×Good
Net debt / EBITDA1.3×Average
Interest cover20.8×Average
Valuation
Fair value vs price1.9×Good
EBIT / EV yield7.4%Good
Profitability
Return on invested capital31.2%Good
Operating margin19.7%Good
Gross profitability40.7%Good
XStocksXray
Lennox International Inc (LII)
Financials US$ millions, from SEC filings; last column is the last twelve months
Income statement
FY21
FY22
FY23
FY24
FY25
LTM
Revenue
4,194
4,718
4,982
5,341
5,195
5,258
Gross profit
1,188
1,285
1,549
1,778
1,735
1,745
Operating income
590
656
792
1,040
1,042
1,037
Net income
464
497
591
811
806
794
Diluted EPS ($)
12.39
13.88
16.58
22.66
22.79
22.49
Free cash flow
409
201
486
782
639
661
Gross margin
28.3%
27.2%
31.1%
33.3%
33.4%
33.2%
Operating margin
14.1%
13.9%
15.9%
19.5%
20.0%
19.7%
Net margin
11.1%
10.5%
11.9%
15.2%
15.5%
15.1%
Balance sheet
FY21
FY22
FY23
FY24
FY25
LTM
Total assets
2,172
2,568
2,941
3,620
4,082
4,293
Cash
31
53
61
415
34
48
Total debt
1,238
1,525
1,305
1,148
1,388
1,523
Equity
-269
-203
393
962
1,163
1,214
Dividend per share ($)
3.53
4.10
4.36
4.55
5.05
–
Revenue and net income US$ billions: navy revenue, teal net income
Every number comes from SEC filings, end-of-day prices and the StocksXray models described on the methodology page. The X-Ray Score ranks each metric against the company's own sector. Fair value blends three models and carries a typical error of about 40%, so treat it as a range. Analyst ratings, price targets and earnings-call summaries are not part of this report. Educational research, not financial advice; read the disclaimer.