Lennox International Inc. (LII) 10-Year Financial Performance & Capital Metrics

LII • • Industrial / General

IndustrialsConstructionHVAC & Building SystemsHVAC Equipment Manufacturers

AboutLennox International Inc., together with its subsidiaries, designs, manufactures, and markets a range of products for the heating, ventilation, air conditioning, and refrigeration markets in the United States, Canada, and internationally. It operates through three segments: Residential Heating & Cooling, Commercial Heating & Cooling, and Refrigeration. The Residential Heating & Cooling segment provides furnaces, air conditioners, heat pumps, packaged heating and cooling systems, indoor air quality equipment and accessories, comfort control products, and replacement parts and supplies for residential replacement and new construction markets. The Commercial Heating & Cooling segment offers unitary heating and air conditioning equipment, applied systems, controls, installation and service of commercial heating and cooling equipment, and variable refrigerant flow commercial products for light commercial markets. The Refrigeration segment offers condensing units, unit coolers, fluid coolers, air cooled condensers, air handlers, and refrigeration rack systems for preserving food and other perishables in supermarkets, convenience stores, restaurants, warehouses, and distribution centers, as well as for data centers, machine tooling, and other cooling applications; and compressor racks and industrial process chillers. The company sells its products and services through direct sales, distributors, and company-owned parts and supplies stores. Lennox International Inc. was founded in 1895 and is headquartered in Richardson, Texas.Show more

Revenue $5.34B +7.2%
EBITDA $1.13B +29.0%
Net Income $807M +36.7%
EPS (Diluted) 22.54 +36.4%
Gross Margin 33.17% +6.8%
EBITDA Margin 21.15% +20.3%
Operating Margin 19.37% +22.2%
Net Margin 15.11% +27.5%
ROE 142.12% -90.1%
ROIC 42.23% +15.7%
Debt/Equity 1.75 -67.3%
Interest Coverage 23.46 +66.3%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Excellent 3Y average ROE of 788.9%
✓Strong Piotroski F-Score: 7/9
✓11 consecutive years of dividend growth
✓Healthy 5Y average net margin of 11.7%
✓Efficient asset utilization: 1.5x turnover

✗Weaknesses

✗Expensive at 22.5x book value

Price & Volume

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Growth Metrics

Revenue CAGR

10Y4.72%

5Y7.01%

3Y8.39%

TTM3.77%

Profit (Net Income) CAGR

10Y14.64%

5Y14.57%

3Y20.25%

TTM11.64%

EPS CAGR

10Y18.21%

5Y16.8%

3Y22.14%

TTM12.39%

ROCE

10Y Avg50.3%

5Y Avg50.22%

3Y Avg55.5%

Latest52.5%

Peer Comparison

HVAC Equipment Manufacturers

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
AAONAAON, Inc.	6.97B	85.37	42.26	2.75%	7.62%	11.62%		0.21
LIILennox International Inc.	18.7B	533.25	23.66	7.21%	15.74%	78.63%	4.18%	1.75
CARRCarrier Global Corporation	46.64B	55.38	9.00	18.65%	18.05%	26.83%	0.09%	0.88

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Sales/Revenue+	3.47B	3.64B	3.84B	3.88B	3.81B	3.63B	4.19B	4.72B	4.98B	5.34B
Revenue Growth %	0.03%	0.05%	0.05%	0.01%	-0.02%	-0.05%	0.15%	0.13%	0.06%	0.07%
Cost of Goods Sold+	2.52B	2.57B	2.71B	2.77B	2.73B	2.59B	3.01B	3.43B	3.43B	3.57B
COGS % of Revenue	0.73%	0.7%	0.71%	0.71%	0.72%	0.71%	0.72%	0.73%	0.69%	0.67%
Gross Profit+	947.4M	1.08B	1.13B	1.11B	1.08B	1.04B	1.19B	1.28B	1.55B	1.77B
Gross Margin %	0.27%	0.3%	0.29%	0.29%	0.28%	0.29%	0.28%	0.27%	0.31%	0.33%
Gross Profit Growth %	0.05%	0.14%	0.05%	-0.01%	-0.03%	-0.04%	0.14%	0.08%	0.2%	0.14%
Operating Expenses+	642M	647.1M	630.7M	601.3M	422.9M	561.6M	598.1M	628.5M	757.7M	737.1M
OpEx % of Revenue	0.19%	0.18%	0.16%	0.15%	0.11%	0.15%	0.14%	0.13%	0.15%	0.14%
Selling, General & Admin	580.5M	621M	637.7M	608.2M	585.9M	555.9M	598.9M	627.2M	705.5M	730.6M
SG&A % of Revenue	0.17%	0.17%	0.17%	0.16%	0.15%	0.15%	0.14%	0.13%	0.14%	0.14%
Research & Development	0	0	0	0	0	0	0	0	0	0
R&D % of Revenue	-	-	-	-	-	-	-	-	-	-
Other Operating Expenses	61.5M	26.1M	-7M	-6.9M	-163M	5.7M	-800K	1.3M	52.2M	6.5M
Operating Income+	305.4M	429.4M	494.5M	509.9M	656.9M	478.5M	590.3M	656.2M	790.1M	1.03B
Operating Margin %	0.09%	0.12%	0.13%	0.13%	0.17%	0.13%	0.14%	0.14%	0.16%	0.19%
Operating Income Growth %	-0.09%	0.41%	0.15%	0.03%	0.29%	-0.27%	0.23%	0.11%	0.2%	0.31%
EBITDA+	368.2M	487.5M	559.1M	575.9M	728M	551.1M	662.7M	734.1M	876.1M	1.13B
EBITDA Margin %	0.11%	0.13%	0.15%	0.15%	0.19%	0.15%	0.16%	0.16%	0.18%	0.21%
EBITDA Growth %	-0.07%	0.32%	0.15%	0.03%	0.26%	-0.24%	0.2%	0.11%	0.19%	0.29%
D&A (Non-Cash Add-back)	62.8M	58.1M	64.6M	66M	71.1M	72.6M	72.4M	77.9M	86M	95.1M
EBIT	307.8M	430.8M	496.1M	507M	556.5M	474.9M	586.1M	655.6M	793.5M	1.04B
Net Interest Income+	-23.6M	-27M	-30.6M	-38.3M	-47.5M	-28.3M	-25M	-38.7M	-51.7M	-38.7M
Interest Income	1.6M	1.1M	1.5M	800K	1.1M	1.4M	1M	1.1M	4.3M	5.4M
Interest Expense	25.2M	28.1M	32.1M	39.1M	48.6M	29.7M	26M	39.8M	56M	44.1M
Other Income/Expense	-22.8M	-26.7M	-30.5M	-42M	0	-33.3M	-30.2M	-40.4M	-52.6M	-41M
Pretax Income+	282.6M	402.7M	464M	467.9M	507.9M	445.2M	560.1M	615.8M	737.5M	993.8M
Pretax Margin %	0.08%	0.11%	0.12%	0.12%	0.13%	0.12%	0.13%	0.13%	0.15%	0.19%
Income Tax+	95.4M	124.1M	156.9M	107.6M	99.1M	88.1M	96.1M	118.7M	147.4M	186.9M
Effective Tax Rate %	0.66%	0.69%	0.66%	0.77%	0.8%	0.8%	0.83%	0.81%	0.8%	0.81%
Net Income+	186.6M	277.8M	305.7M	359M	408.7M	356.3M	464M	497.1M	590.1M	806.9M
Net Margin %	0.05%	0.08%	0.08%	0.09%	0.11%	0.1%	0.11%	0.11%	0.12%	0.15%
Net Income Growth %	-0.09%	0.49%	0.1%	0.17%	0.14%	-0.13%	0.3%	0.07%	0.19%	0.37%
Net Income (Continuing)	187.2M	278.6M	307.1M	360.3M	408.8M	357.1M	464M	497.1M	590.1M	806.9M
Discontinued Operations	0	0	0	0	0	-800K	0	0	0	0
Minority Interest	400K	400K	0	0	0	0	0	0	0	0
EPS (Diluted)+	4.09	6.32	7.14	8.73	10.37	9.23	12.37	13.89	16.53	22.54
EPS Growth %	-0.03%	0.55%	0.13%	0.22%	0.19%	-0.11%	0.34%	0.12%	0.19%	0.36%
EPS (Basic)	4.16	6.39	7.25	8.84	10.48	9.30	12.47	13.92	16.62	22.67
Diluted Shares Outstanding	45.6M	44M	42.8M	41.1M	39.4M	38.6M	37.5M	35.8M	35.7M	35.8M
Basic Shares Outstanding	44.9M	43.4M	42.2M	40.6M	39M	38.3M	37.2M	35.7M	35.5M	35.6M
Dividend Payout Ratio	0.32%	0.25%	0.26%	0.26%	0.27%	0.33%	0.27%	0.29%	0.26%	0.2%

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Current Assets+	938.2M	1.01B	1.14B	1.09B	1.12B	1.09B	1.18B	1.5B	1.43B	1.88B
Cash & Short-Term Investments	38.9M	50.2M	68.2M	46.3M	40.2M	129M	36.5M	61.1M	69.1M	422.3M
Cash Only	38.9M	50.2M	68.2M	46.3M	37.3M	123.9M	31M	52.6M	60.7M	415.1M
Short-Term Investments	0	0	0	0	2.9M	5.1M	5.5M	8.5M	8.4M	7.2M
Accounts Receivable	422.8M	469.8M	506.5M	472.7M	477.8M	448.3M	508.3M	608.5M	594.6M	661.1M
Days Sales Outstanding	44.51	47.09	48.15	44.42	45.81	45.03	44.24	47.07	43.56	45.18
Inventory	418.8M	418.5M	484.2M	509.8M	544.1M	439.4M	510.9M	753M	699.1M	704.8M
Days Inventory Outstanding	60.66	59.55	65.11	67.11	72.82	61.83	62.04	80.04	74.31	72.07
Other Current Assets	57.7M	67.4M	78.4M	60.6M	58.8M	70.9M	119.7M	73.9M	70.7M	96M
Total Non-Current Assets+	742M	754.4M	754.2M	727.8M	914M	944.9M	996.5M	1.07B	1.36B	1.59B
Property, Plant & Equipment	339.6M	361.4M	397.8M	408.3M	627M	658.7M	711.2M	768.8M	934M	1.13B
Fixed Asset Turnover	10.21x	10.08x	9.65x	9.51x	6.07x	5.52x	5.90x	6.14x	5.33x	4.74x
Goodwill	195.1M	195.1M	200.5M	186.6M	186.5M	186.9M	186.6M	186.3M	222.1M	220M
Intangible Assets	6.2M	7.3M	8.6M	0	0	0	0	0	0	0
Long-Term Investments	36.8M	35.1M	38.1M	36.6M	38.6M	37M	37.7M	44.4M	58.4M	56.4M
Other Non-Current Assets	18.6M	18.8M	23.4M	29.3M	40.4M	49.1M	49.7M	44.1M	98.5M	108.8M
Total Assets+	1.68B	1.76B	1.89B	1.82B	2.03B	2.03B	2.17B	2.57B	2.8B	3.47B
Asset Turnover	2.06x	2.07x	2.03x	2.14x	1.87x	1.79x	1.93x	1.84x	1.78x	1.54x
Asset Growth %	-0.05%	0.05%	0.07%	-0.04%	0.12%	-0%	0.07%	0.18%	0.09%	0.24%
Total Current Liabilities+	824M	888.6M	654.5M	1.01B	1B	701.3M	827.1M	1.6B	1.01B	1.31B
Accounts Payable	320.1M	361.2M	348.6M	433.3M	372.4M	340.3M	402.1M	427.3M	374.7M	490M
Days Payables Outstanding	46.36	51.4	46.88	57.04	49.84	47.88	48.83	45.42	39.83	50.11
Short-Term Debt	235.1M	251.7M	30.3M	297.3M	314.1M	-200K	0	699.4M	150M	299.6M
Deferred Revenue (Current)	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Other Current Liabilities	99.1M	111.8M	97.9M	94.9M	88.7M	112.5M	132.2M	117M	150.4M	162.5M
Current Ratio	1.14x	1.13x	1.74x	1.08x	1.12x	1.55x	1.42x	0.94x	1.41x	1.43x
Quick Ratio	0.63x	0.66x	1.00x	0.57x	0.58x	0.92x	0.80x	0.47x	0.72x	0.90x
Cash Conversion Cycle	58.8	55.24	66.38	54.49	68.79	58.97	57.45	81.69	78.04	67.14
Total Non-Current Liabilities+	754.6M	833.7M	1.19B	958.3M	1.2B	1.35B	1.61B	1.18B	1.5B	1.31B
Long-Term Debt	490.4M	600.7M	958.6M	724.8M	823.4M	941.4M	1.2B	785.9M	1.11B	793.6M
Capital Lease Obligations	15.6M	15M	11.9M	15.7M	156.9M	172.1M	174M	190.1M	197.3M	307.1M
Deferred Tax Liabilities	0	0	0	0	0	0	0	0	0	0
Other Non-Current Liabilities	230.4M	218M	216.4M	217.8M	222.1M	234.8M	242.3M	199M	190.7M	207.6M
Total Liabilities	1.58B	1.72B	1.84B	1.97B	2.21B	2.05B	2.44B	2.77B	2.51B	2.62B
Total Debt+	743.9M	868.2M	1B	1.04B	1.35B	1.18B	1.44B	1.75B	1.53B	1.49B
Net Debt	705M	818M	935.8M	995M	1.32B	1.05B	1.41B	1.7B	1.47B	1.07B
Debt / Equity	7.32x	22.85x	20.04x	-	-	-	-	-	5.35x	1.75x
Debt / EBITDA	2.02x	1.78x	1.80x	1.81x	1.86x	2.14x	2.17x	2.38x	1.74x	1.32x
Net Debt / EBITDA	1.91x	1.68x	1.67x	1.73x	1.81x	1.91x	2.12x	2.31x	1.67x	0.95x
Interest Coverage	12.12x	15.28x	15.40x	13.04x	13.52x	16.11x	22.70x	16.49x	14.11x	23.46x
Total Equity+	101.6M	38M	50.1M	-149.6M	-170.2M	-17.1M	-269M	-203.1M	285.3M	850.2M
Equity Growth %	10.29%	-0.63%	0.32%	-3.99%	-0.14%	0.9%	-14.73%	0.24%	2.4%	1.98%
Book Value per Share	2.23	0.86	1.17	-3.64	-4.32	-0.44	-7.17	-5.67	7.99	23.75
Total Shareholders' Equity	101.2M	37.6M	50.1M	-149.6M	-170.2M	-17.1M	-269M	-203.1M	285.3M	850.2M
Common Stock	900K	900K	900K	900K	900K	900K	900K	900K	900K	900K
Retained Earnings	1.15B	1.35B	1.58B	1.85B	2.15B	2.39B	2.72B	3.07B	3.51B	4.15B
Treasury Stock	-1.84B	-2.17B	-2.43B	-2.9B	-3.31B	-3.42B	-4.03B	-4.34B	-4.35B	-4.42B
Accumulated OCI	-204.7M	-195.1M	-157.4M	-188.8M	-103.8M	-97.2M	-88.1M	-90.6M	-56.9M	-93.7M
Minority Interest	400K	400K	0	0	0	0	0	0	0	0

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	331.2M	354.5M	325.1M	495.5M	396.1M	612.4M	515.5M	302.3M	736.2M	945.7M
Operating CF Margin %	0.1%	0.1%	0.08%	0.13%	0.1%	0.17%	0.12%	0.06%	0.15%	0.18%
Operating CF Growth %	0.79%	0.07%	-0.08%	0.52%	-0.2%	0.55%	-0.16%	-0.41%	1.44%	0.28%
Net Income	187.2M	277.8M	305.7M	359M	408.7M	356.3M	464M	497.1M	590.1M	806.9M
Depreciation & Amortization	62.8M	58.1M	64.6M	66M	71.1M	72.6M	72.4M	77.9M	86M	95.1M
Stock-Based Compensation	26.6M	31.7M	24.9M	26.3M	21.3M	24.3M	24.3M	21.8M	30.1M	28.5M
Deferred Taxes	-21.3M	-4M	43.3M	25.2M	16.6M	7.2M	-5.4M	-15.2M	-26M	-24.5M
Other Non-Cash Items	58.3M	-17.9M	2.1M	14.3M	44.6M	15.9M	12.8M	-11.4M	47.2M	-2.8M
Working Capital Changes	17.6M	8.8M	-115.5M	4.7M	-166.2M	136.1M	-52.6M	-267.9M	8.8M	42.5M
Change in Receivables	-20.9M	-14.3M	-34.2M	-4.2M	-35.9M	26.5M	-68.8M	-112.4M	-32.7M	-80.4M
Change in Inventory	28.8M	300K	-56.4M	-84.2M	-63.9M	110.3M	-71M	-249.3M	11.1M	-10.1M
Change in Payables	-2.9M	40.1M	-18.5M	102.2M	-56.1M	-31.7M	55.2M	28.2M	-29.2M	115M
Cash from Investing+	-69.8M	-84.1M	-98.1M	30.5M	15.9M	-79.7M	-106.4M	-103M	-319.7M	-174.4M
Capital Expenditures	-69.9M	-84.3M	-98.3M	-95.2M	-105.6M	-78.5M	-106.8M	-101.1M	-250.2M	-163.6M
CapEx % of Revenue	0.02%	0.02%	0.03%	0.02%	0.03%	0.02%	0.03%	0.02%	0.05%	0.03%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	100K	200K	200K	11M	79.6M	1M	400K	1.6M	2.2M	-3.4M
Cash from Financing+	-248.7M	-255.2M	-218.3M	-537.8M	-423.4M	-441.8M	-498.7M	-174.1M	-406.2M	-418.6M
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	-59.3M	-69M	-79.7M	-93.9M	-110.5M	-118.1M	-126.5M	-142M	-153.4M	-160.3M
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	22.4M	17.8M	2.9M	-26.9M	3M	-4.5M	5.7M	3.6M	0	0
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	261.3M	270.2M	226.8M	400.3M	290.5M	533.9M	408.7M	201.2M	486M	782.1M
FCF Margin %	0.08%	0.07%	0.06%	0.1%	0.08%	0.15%	0.1%	0.04%	0.1%	0.15%
FCF Growth %	1.71%	0.03%	-0.16%	0.76%	-0.27%	0.84%	-0.23%	-0.51%	1.42%	0.61%
FCF per Share	5.73	6.14	5.30	9.74	7.37	13.83	10.90	5.62	13.61	21.85
FCF Conversion (FCF/Net Income)	1.77x	1.28x	1.06x	1.38x	0.97x	1.72x	1.11x	0.61x	1.25x	1.17x
Interest Paid	23.7M	26.3M	32.4M	38.7M	46.8M	25.3M	23.8M	35.4M	50.2M	45.2M
Taxes Paid	83.2M	127.4M	119.3M	90M	83M	90.3M	128.5M	77.2M	197.8M	231.9M

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	337.43%	397.99%	693.98%	-	-	-	-	-	1435.77%	142.12%
Return on Invested Capital (ROIC)	26.89%	38.74%	40.27%	41.77%	49.45%	32.85%	40.71%	37.4%	36.51%	42.23%
Gross Margin	27.32%	29.56%	29.31%	28.61%	28.36%	28.62%	28.34%	27.23%	31.07%	33.17%
Net Margin	5.38%	7.63%	7.96%	9.24%	10.73%	9.8%	11.06%	10.54%	11.84%	15.11%
Debt / Equity	7.32x	22.85x	20.04x	-	-	-	-	-	5.35x	1.75x
Interest Coverage	12.12x	15.28x	15.40x	13.04x	13.52x	16.11x	22.70x	16.49x	14.11x	23.46x
FCF Conversion	1.77x	1.28x	1.06x	1.38x	0.97x	1.72x	1.11x	0.61x	1.25x	1.17x
Revenue Growth	2.97%	5.02%	5.44%	1.15%	-1.97%	-4.55%	15.41%	12.5%	5.58%	7.21%

Revenue by Segment

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Residential Heating and Cooling	1.87B	2B	2.14B	2.23B	2.29B	2.36B	2.78B	3.2B	3.22B	3.58B
Residential Heating and Cooling Growth	-	7.17%	6.98%	3.95%	2.97%	3.07%	17.54%	15.23%	0.77%	10.99%
Commercial Heating and Cooling	887.2M	917.9M	973.8M	1.04B	947.4M	721.1M	790.1M	837.7M	1.51B	1.76B
Commercial Heating and Cooling Growth	-	3.46%	6.09%	7.16%	-9.21%	-23.89%	9.57%	6.02%	80.42%	16.73%
Corporate and Other	-	-	-	-	-	-	-	-	247.6M	-
Corporate and Other Growth	-	-	-	-	-	-	-	-	-	-
Refrigeration	713.3M	722.9M	725.4M	615.4M	568.7M	471.7M	553.7M	619.4M	247.6M	-
Refrigeration Growth	-	1.35%	0.35%	-15.16%	-7.59%	-17.06%	17.38%	11.87%	-60.03%	-
UNITED STATES	-	-	-	3.28B	3.3B	-	-	-	-	-
UNITED STATES Growth	-	-	-	-	0.88%	-	-	-	-	-
International	-	-	-	353.2M	247.9M	-	-	-	-	-
International Growth	-	-	-	-	-29.81%	-	-	-	-	-

Revenue by Geography

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
International	456.3M	456M	473.1M	-	-	216M	231.3M	234.3M	247.6M	-
International Growth	-	-0.07%	3.75%	-	-	-	7.08%	1.30%	5.68%	-
UNITED STATES	2.79B	2.97B	3.13B	-	-	-	-	-	-	-
UNITED STATES Growth	-	6.21%	5.46%	-	-	-	-	-	-	-
CANADA	217.7M	218.8M	237.8M	-	-	-	-	-	-	-
CANADA Growth	-	0.51%	8.68%	-	-	-	-	-	-	-

Frequently Asked Questions

Valuation & Price

Lennox International Inc. (LII) has a price-to-earnings (P/E) ratio of 23.7x. This is roughly in line with market averages.

Growth & Financials

Lennox International Inc. (LII) reported $5.35B in revenue for fiscal year 2024. This represents a 62% increase from $3.30B in 2011.

Lennox International Inc. (LII) grew revenue by 7.2% over the past year. This is steady growth.

Yes, Lennox International Inc. (LII) is profitable, generating $841.4M in net income for fiscal year 2024 (15.1% net margin).

Dividend & Returns

Yes, Lennox International Inc. (LII) pays a dividend with a yield of 0.84%. This makes it attractive for income-focused investors.

Lennox International Inc. (LII) has a return on equity (ROE) of 142.1%. This is excellent, indicating efficient use of shareholder capital.

Lennox International Inc. (LII) generated $534.3M in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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