Lennox International Inc. stock may be undervalued by 45% based on cash flow analysis. Valuation opinion on cash flows can moderately shift investor views and near-term price action.
| Nov 25 | Feb 26 | May 26 | Aug 26 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Buy | — | — | — | — | — | — | — | — | — | — | — | — |
| Sell | — | 1 | — | — | 3 | — | — | 1 | — | — | — | — |
| total | individual payouts | |
|---|---|---|
| 2028 | ‡‡‡‡ |
|
| 2027 | ‡‡‡‡‡ |
|
| 2026 | 5.14 |
—
—
|
| 2025 | 5.05 |
—
—
—
—
|
| 2024 | 4.55 |
—
—
—
—
|
| 2023 | 4.36 |
—
—
—
—
|
| 2022 | 4.10 |
—
—
—
—
|
| 2021 | 3.53 |
—
—
—
—
|
| 2020 | 3.08 |
—
—
—
—
|
| 2019 | 2.95 |
—
—
—
—
|
| 2018 | 2.43 |
—
—
—
—
|
| 2017 | 1.96 |
—
—
—
—
|
| 2016 | 1.65 |
—
—
—
—
|
| 2023 | 2024 | 2025 | Q'26 | |
|---|---|---|---|---|
| Cash | 69.10 | 422.30 | 34.70 | 52.10 |
| Receivables | 594.60 | 661.10 | 578.80 | 918.10 |
| Inventory | 699.10 | 853.00 | 1,152.60 | 1,152.40 |
| Other | 70.70 | 96.00 | 137.70 | 135.20 |
| 1,433.50 | 2,032.40 | 1,903.80 | 2,257.80 |
| 2023 | 2024 | 2025 | Q'26 | |
|---|---|---|---|---|
| Payables | 374.70 | 490.00 | 438.00 | 523.50 |
| ST’ Debt | 12.10 | 314.50 | 18.30 | 20.10 |
| Other | — | — | — | — |
| 1,014.60 | 1,313.30 | 1,191.80 | 1,438.80 |
| 10y | 5y | 3y | |
| Sales | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ |
| Cash Flow | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ |
| Earnings | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ |
| Book Value | ‡‡‡‡‡ | ‡‡‡ | ‡‡‡ |
| Mar | Jun | Sep | Dec | Year | |
|---|---|---|---|---|---|
| ’26 | 1,135.10 | 1,545.30 | — | — |
—
|
| ’25 | 1,072.60 | 1,500.90 | 1,426.80 | 1,195.00 |
5,195.30
|
| ’24 | 1,047.10 | 1,451.10 | 1,498.10 | 1,345.00 |
5,341.30
|
| ’23 | 1,049.40 | 1,411.40 | 1,366.30 | 1,154.80 |
4,981.90
|
| ’22 | 1,013.40 | 1,366.30 | 1,244.90 | 1,093.80 |
4,718.40
|
| ’21 | 930.50 | 1,239.00 | 1,059.90 | 964.70 |
4,194.10
|
| ’20 | 723.80 | 941.30 | 1,055.00 | 914.00 |
3,634.10
|
| Mar | Jun | Sep | Dec | Year | |
|---|---|---|---|---|---|
| ’26 | 16.10 | 172.00 | — | — |
—
|
| ’25 | (35.80) | 86.80 | 300.70 | 405.90 |
757.60
|
| ’24 | (22.80) | 184.00 | 452.10 | 332.40 |
945.70
|
| ’23 | (78.80) | 195.50 | 313.20 | 306.30 |
736.20
|
| ’22 | (97.90) | 97.10 | 170.90 | 132.20 |
302.30
|
| ’21 | (17.50) | 192.00 | 221.80 | 119.20 |
515.50
|
| ’20 | (98.80) | 105.30 | 439.70 | 166.20 |
612.40
|
| Mar | Jun | Sep | Dec | Year | |
|---|---|---|---|---|---|
| ’26 | (38.70) | 137.00 | — | — |
—
|
| ’25 | (60.80) | 58.70 | 265.30 | 377.00 |
640.20
|
| ’24 | (51.80) | 156.00 | 411.70 | 268.70 |
784.60
|
| ’23 | (113.90) | 146.80 | 273.60 | 181.60 |
488.10
|
| ’22 | (123.40) | 76.40 | 151.30 | 98.50 |
202.80
|
| ’21 | (41.80) | 171.40 | 198.90 | 81.10 |
409.60
|
| ’20 | (123.40) | 86.70 | 427.70 | 143.90 |
534.90
|
| Mar | Jun | Sep | Dec | Year | |
|---|---|---|---|---|---|
| ’26 | 3.35 | 7.72 | — | — |
—
|
| ’25 | 3.37 | 7.82 | 6.98 | 4.07 |
22.79
|
| ’24 | 3.47 | 6.87 | 6.68 | 5.52 |
22.54
|
| ’23 | 2.75 | 6.10 | 3.65 | 4.04 |
16.54
|
| ’22 | 2.29 | 4.96 | 3.99 | 2.65 |
13.88
|
| ’21 | 2.20 | 4.51 | 3.41 | 2.27 |
12.39
|
| ’20 | 0.33 | 2.60 | 3.42 | 2.89 |
9.24
|
| 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | 182.85 | 232.00 | 412.09 | 443.19 | — | — | — |
Low Price
|
| ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | 324.04 | 451.35 | 682.50 | 689.44 | — | — | — |
High Price
|
| ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | 13,200 | 12,600 | 14,200 | 12,900 | — | — | — |
Employees
|
| ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | 0.36 | 0.40 | 0.38 | 0.40 | — | — | — |
Revenue/Emp
|
| ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | 4,718.40 | 4,981.90 | 5,341.30 | 5,195.30 | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ |
Revenue
|
| ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | 27.23% | 31.10% | 33.28% | 33.39% | — | — | — |
Gross Margin
|
| ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | 615.80 | 738.90 | 999.40 | 996.80 | ‡‡‡‡‡ | — | — |
EBT
|
| ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | 13.05% | 14.83% | 18.71% | 19.19% | ‡‡‡ | ‡‡‡ | ‡‡‡ |
EBT Margin
|
| ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | 497.10 | 591.20 | 811.10 | 805.80 | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ |
Net Income
|
| ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | 77.90 | 86.00 | 95.10 | 112.50 | — | — | — |
Depreciation
|
| ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | 132.17 | 140.34 | 150.04 | 147.59 | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ |
Revenue/Sh
|
| ‡‡‡‡ | ‡‡‡‡ | ‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡ | ‡‡‡‡‡ | 13.92 | 16.61 | 22.67 | 22.89 | ‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ |
Earnings/Sh
|
| ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | 8.47 | 20.74 | 26.56 | 21.52 | ‡‡‡‡ | — | — |
Cash Flow/Sh
|
| ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | (2.79) | (6.99) | (4.53) | (3.34) | ‡‡‡ | ‡‡‡ | ‡‡‡ |
Capex/Sh
|
| ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | 5.68 | 13.75 | 22.04 | 18.19 | — | — | — |
Free CF/Sh
|
| ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | (5.69) | 8.04 | 27.03 | 33.04 | ‡‡‡‡‡ | — | — |
Book Value/Sh
|
| ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | 35.70 | 35.50 | 35.60 | 35.20 | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ |
Shares
|
| ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | 17.32 | 26.54 | 26.89 | 21.74 | ‡‡‡‡ | ‡‡‡‡ | ‡‡‡‡ |
PE Ratio
|
| ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | 1.83 | 3.14 | 4.06 | 3.29 | ‡‡‡ | ‡‡‡ | ‡‡‡ |
PS Ratio
|
| ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡ | ‡‡‡ | ‡‡‡ | ‡‡‡ | 0.00 | 54.89 | 22.55 | 14.70 | ‡‡‡ | ‡‡‡ | ‡‡‡ |
PB Ratio
|
| ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | 2.14 | 3.36 | 4.20 | 3.51 | ‡‡‡ | ‡‡‡‡ | ‡‡‡‡ |
EV/Sales
|
| ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | 49.70 | 34.31 | 28.57 | 28.46 | — | — | — |
EV/FCF
|
| ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | 302.30 | 736.20 | 945.70 | 757.60 | ‡‡‡ | ‡‡‡ | ‡‡‡ |
Op' Cash Flow
|
| ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | (99.50) | (248.10) | (161.10) | (117.40) | ‡‡‡‡‡ | ‡‡‡‡‡ | — |
Capex
|
| ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | 202.80 | 488.10 | 784.60 | 640.20 | ‡‡‡‡‡ | — | — |
FCF
|
| ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | (99.20) | 418.90 | 719.10 | 712.00 | — | — | — |
Working Cap'
|
| ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | 1,524.80 | 1,155.20 | 1,147.60 | 1,162.40 | — | — | — |
Total Debt
|
| ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | 1,463.70 | 1,086.10 | 725.30 | 1,127.70 | — | — | — |
Net Debt
|
| ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | (203.10) | 285.30 | 962.10 | 1,163.10 | — | — | — |
Sh' Equity
|
| ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | 20.98% | 22.04% | 25.27% | 20.92% | ‡‡‡‡‡ | — | — |
ROA
|
| ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | 32.53% | 36.07% | 38.54% | 28.42% | — | — | — |
ROIC
|
| ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | ‡‡‡‡‡ | (210.59%) | 1,438.44% | 130.05% | 75.83% | ‡‡‡‡‡ | — | — |
ROE
|
Lennox International, Inc. (LII) emerges as a dominant force in the HVAC sector, capitalizing on surging demand for energy-efficient climate control amid sustainable building trends and smart home adoption. From 2016 to 2024, the company delivered resilient revenue growth at a 5.5% CAGR to $5.34 billion, paired with exceptional margin expansion—gross margins up to 33.2% and EBT margins soaring 68% to 18.6%—driving net income tripling to $807 million and EPS surging 255% to $22.67. Elite ROIC of 41.1%, robust free cash flow per share up 230%, and a strengthened balance sheet underscore operational excellence and shareholder value creation through buybacks and disciplined capital allocation.
Projections signal a temporary 2025 revenue dip to $5.20 billion before rebounding 6% annually through 2027, with EPS climbing to $26.63 by then, supported by forward multiples around 20-26x. Insider sales totaling $25 million raise mild caution, but absent panic selling and with pristine fundamentals, they contrast sharply with catalysts like IRA heat pump subsidies, data center cooling booms, and IoT innovations in a $100B+ electrifying market.
LII’s track record—from pandemic resilience to 315% stock gains—positions it for 10-20% total returns via earnings beats and multiple expansion, offering growth investors a compelling play on efficiency megatrends despite housing cyclical risks buffered by high margins and FCF firepower.
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