Lennox International LII
Lennox International is a leading provider of HVAC and refrigeration solutions for the replacement and new construction markets, both residential and commercial, generating recurring revenue from the sale of equipment and services. Lennox is a high-quality business with a 71.76% ROE and 36.48% ROIC, but its growth is anemic (revenue +3%) and momentum is very negative (score 1.47), with the stock at 52-week lows. Valuation is not a clear bargain (P/E 16.61) and the risk of a value trap is real if the business does not improve.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Lennox International is a leading provider of HVAC and refrigeration solutions for the replacement and new construction markets, both residential and commercial, generating recurring revenue from the sale of equipment and services. Lennox is a high-quality business with a 71.76% ROE and 36.48% ROIC, but its growth is anemic (revenue +3%) and momentum is very negative (score 1.47), with the stock at 52-week lows. Valuation is not a clear bargain (P/E 16.61) and the risk of a value trap is real if the business does not improve.
Score by category
| Category | Score |
|---|---|
| Financial health | 6.4 |
| Quality / Moat | 7.5 |
| Valuation | 5.5 |
| Growth | 4.5 |
| Dividend | 5.4 |
| Momentum | 1.5 |
| Risk & Context | 4.9 |
OVERALL SCORE: 5.6/10
Context and risks
Lennox's business is tied to the US construction cycle and replacement demand. Weakness in the housing sector and sensitivity to interest rates (10-year Treasury at 5.17%) pressure demand for new units. However, the replacement and services business is defensive, limiting the impact.
News considered in the analysis
- Lennox (LII) Stock May Be 45% Undervalued On Cash Flow — El análisis de valoración sugiere un potencial alcista significativo basado en el flujo de caja, pero es una opinión de analista, no un evento corporativo.
- Lennox is Down 38% and Trading at 52-Week Lows. Bargain or Value Trap? — La caída del 38% y el mínimo de 52 semanas reflejan el débil momentum y las preocupaciones del sector, pero la pregunta de 'value trap' es especulativa.
- Lennox (LII) Trains An Army Of Technicians While Housing Lags — La inversión en técnicos es una señal positiva a largo plazo para el negocio de servicios, aunque el mercado lo ha ignorado por la debilidad del sector.
- Lennox International Stock: Is LII Underperforming the Industrial Sector? — Titular sin información nueva, solo compara el rendimiento de la acción con el sector.
- 1 Mid-Cap Stock with Competitive Advantages and 2 That Underwhelm — Listículo genérico sin información específica sobre Lennox.
Verdict: Hold; wait for earnings growth to stabilize and momentum to improve before buying.
Main risk: The main risk is that weakness in the housing sector and pressure from interest rates prolong the decline in revenue and earnings, turning the seemingly cheap valuation into a value trap.
Other Industrials companies
Neighbours in the sector ranking, to compare without going back to the index.
See all 1,000+ companies in the index →