Latest Ratios: P/E Ratio 15.7x · EV/EBITDA 12.0x · ROE 80.0%. (1998–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $11.8B | $17.0B | $21.8B | $16.0B | $8.6B | $12.2B | $10.6B | $9.6B | $9.0B | $8.9B | $6.7B |
| Enterprise Value | $13.8B | $19.1B | $22.9B | $17.4B | $10.3B | $13.6B | $11.6B | $10.9B | $10.0B | $9.8B | $7.6B |
| P/E Ratio → | 15.73 | 21.85 | 27.03 | 27.07 | 17.22 | 26.22 | 29.68 | 23.53 | 25.07 | 29.17 | 24.24 |
| P/S Ratio | 2.17 | 3.28 | 4.08 | 3.21 | 1.82 | 2.90 | 2.91 | 2.52 | 2.32 | 2.32 | 1.85 |
| P/B Ratio | 10.32 | 14.65 | 25.66 | 56.00 | — | — | — | — | — | 177.91 | 177.35 |
| P/FCF | 14.14 | 26.68 | 27.89 | 32.87 | 42.57 | 29.76 | 19.81 | 33.09 | 22.47 | 39.30 | 24.94 |
| P/OCF | 15.60 | 22.50 | 23.07 | 21.70 | 28.33 | 23.60 | 17.27 | 24.27 | 18.15 | 27.42 | 19.01 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.67 | 4.28 | 3.50 | 2.17 | 3.24 | 3.20 | 2.87 | 2.57 | 2.57 | 2.08 |
| EV / EBITDA | 11.95 | 16.53 | 20.26 | 19.91 | 13.98 | 20.48 | 21.10 | 15.01 | 17.35 | 17.62 | 15.50 |
| EV / EBIT | 13.30 | 18.30 | 22.05 | 21.98 | 15.65 | 23.15 | 24.49 | 19.64 | 19.70 | 19.85 | 17.54 |
| EV / FCF | — | 29.86 | 29.26 | 35.89 | 51.00 | 33.20 | 21.78 | 37.62 | 24.96 | 43.43 | 27.97 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 33.4% | 33.4% | 33.2% | 31.1% | 27.2% | 28.3% | 28.6% | 28.4% | 28.6% | 29.3% | 29.6% |
| Operating Margin | 20.0% | 20.0% | 19.4% | 15.9% | 13.9% | 14.1% | 13.2% | 17.3% | 13.1% | 12.9% | 11.8% |
| Net Profit Margin | 15.5% | 15.5% | 15.1% | 11.8% | 10.5% | 11.1% | 9.8% | 10.7% | 9.2% | 8.0% | 7.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 80.0% | 80.0% | 142.1% | 1435.8% | — | — | — | — | — | 694.0% | 398.0% |
| ROA | 21.3% | 21.3% | 25.7% | 22.0% | 21.0% | 22.1% | 17.5% | 21.2% | 19.4% | 16.7% | 16.1% |
| ROIC | 30.5% | 30.5% | 42.2% | 36.5% | 37.4% | 40.7% | 32.9% | 49.4% | 41.8% | 40.3% | 38.7% |
| ROCE | 41.3% | 41.3% | 52.5% | 57.3% | 56.6% | 44.1% | 40.5% | 71.4% | 49.9% | 46.9% | 49.7% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.77 | 1.77 | 1.75 | 5.35 | — | — | — | — | — | 20.04 | 22.85 |
| Debt / EBITDA | 1.79 | 1.79 | 1.32 | 1.74 | 2.38 | 2.17 | 2.14 | 1.86 | 1.81 | 1.80 | 1.78 |
| Net Debt / Equity | — | 1.75 | 1.26 | 5.14 | — | — | — | — | — | 18.68 | 21.53 |
| Net Debt / EBITDA | 1.76 | 1.76 | 0.95 | 1.67 | 2.31 | 2.12 | 1.91 | 1.81 | 1.73 | 1.67 | 1.68 |
| Debt / FCF | — | 3.18 | 1.37 | 3.02 | 8.44 | 3.44 | 1.98 | 4.54 | 2.49 | 4.13 | 3.03 |
| Interest Coverage | 25.48 | 25.48 | 23.54 | 14.17 | 16.47 | 22.54 | 15.99 | 11.45 | 12.97 | 15.45 | 15.33 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.60 | 1.60 | 1.43 | 1.41 | 0.94 | 1.42 | 1.55 | 1.12 | 1.08 | 1.74 | 1.13 |
| Quick Ratio | 0.63 | 0.63 | 0.90 | 0.72 | 0.47 | 0.80 | 0.92 | 0.58 | 0.57 | 1.00 | 0.66 |
| Cash Ratio | 0.03 | 0.03 | 0.32 | 0.07 | 0.04 | 0.04 | 0.18 | 0.04 | 0.05 | 0.10 | 0.06 |
| Asset Turnover | — | 1.27 | 1.54 | 1.78 | 1.84 | 1.93 | 1.79 | 1.87 | 2.14 | 2.03 | 2.07 |
| Inventory Turnover | 3.00 | 3.00 | 5.06 | 4.91 | 4.56 | 5.88 | 5.90 | 5.01 | 5.44 | 5.61 | 6.13 |
| Days Sales Outstanding | — | 40.66 | 45.18 | 43.56 | 47.07 | 44.24 | 45.03 | 45.81 | 44.42 | 48.15 | 47.09 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.4% | 1.0% | 0.7% | 1.0% | 1.7% | 1.0% | 1.1% | 1.1% | 1.0% | 0.9% | 1.0% |
| Payout Ratio | 21.5% | 21.5% | 19.9% | 26.0% | 28.6% | 27.3% | 33.1% | 27.0% | 26.2% | 26.1% | 24.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 6.4% | 4.6% | 3.7% | 3.7% | 5.8% | 3.8% | 3.4% | 4.3% | 4.0% | 3.4% | 4.1% |
| FCF Yield | 7.1% | 3.7% | 3.6% | 3.0% | 2.3% | 3.4% | 5.0% | 3.0% | 4.5% | 2.5% | 4.0% |
| Buyback Yield | 4.2% | 2.9% | 0.3% | 0.1% | 3.6% | 5.1% | 1.1% | 4.4% | 5.3% | 3.1% | 4.9% |
| Total Shareholder Yield | 5.7% | 4.0% | 1.1% | 1.1% | 5.3% | 6.2% | 2.2% | 5.6% | 6.3% | 4.0% | 6.0% |
| Shares Outstanding | — | $35M | $36M | $36M | $36M | $38M | $39M | $39M | $41M | $43M | $44M |
Includes 30+ ratios · 28 years · Updated daily
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Quick answers to the most common questions about buying LII stock.
Lennox International Inc.'s current P/E ratio is 15.7x. The historical average is 22.2x. This places it at the 25th percentile of its historical range.
Lennox International Inc.'s current EV/EBITDA is 12.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.0x.
Lennox International Inc.'s return on equity (ROE) is 80.0%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 57.7%.
Based on historical data, Lennox International Inc. is trading at a P/E of 15.7x. This is at the 25th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Lennox International Inc.'s current dividend yield is 1.44% with a payout ratio of 21.5%.
Lennox International Inc. has 33.4% gross margin and 20.0% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Lennox International Inc.'s Debt/EBITDA ratio is 1.8x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Residential demand softness and acquisition-funded leverage
Metrics are mathematically derived from official filings.
Discount to Peers Reflects Cyclical Caution
Based on reported figures, LII trades at a 15.70x trailing P/E and 12.57x EV/EBITDA, well below Trane at 30.23x and Carrier at 31.30x, while its 0.82 PEG suggests the market is pricing in limited growth.
The discount appears driven by the current contraction in revenue and the market's skepticism that acquisitions can offset residential softness, rather than by a structural mispricing. A PEG below 1 would ordinarily signal growth at a reasonable price, but with forward EPS estimates only modestly above trailing levels, investors should monitor whether the forward multiple compresses further if guidance continues to be revised down. The 10.53x price-to-book multiple is elevated relative to the book equity base and likely reflects the buyback-driven and acquisition-driven equity build rather than durable franchise value.
Leverage Elevated Despite Improving Coverage
According to recent SEC filings, LII's debt-to-equity ratio stood at 1.58 in Q3 2026 against interest coverage of 17.76x, indicating debt service is comfortable even as absolute leverage remains high for a cyclical industrial.
Interest coverage has moved in a volatile range, from 4.06x in Q2 2025 to 42.57x in the same period, which suggests that quarterly EBIT swings drive coverage more than any change in the debt load itself. Debt-to-EBITDA of 6.01x is considerably higher than the sub-4x levels seen in 2024 and 2025 Q3, which may indicate that trailing EBITDA has compressed faster than debt has been reduced. Investors should monitor refinancing exposure and whether acquisition spending continues to be debt-funded, as this would limit the cushion available if residential volumes weaken further.
ROIC Compressing From Peak Levels
Based on reported quarterly figures, LII's ROIC fell from 11.8% in Q2 2024 to 7.1% in Q3 2026, while ROE dropped from 52.0% to 16.9%, with the latter partly reflecting a rebuilt equity base.
The decline in ROIC appears to reflect both lower operating margins and a larger invested capital base following acquisitions that added goodwill and debt. The ROE figures are heavily distorted by the historically depressed equity from aggressive buybacks, so the ROIC trend is the more reliable indicator of underlying capital efficiency. Relative to Trane at 26.2% ROIC, LII's returns lag materially, which suggests the acquired businesses have not yet lifted returns to the level of the core residential franchise.
Working Capital Cycle Lengthening Unevenly
As reported in financial statements, LII's cash conversion cycle expanded from 73 days in Q2 2024 to 106 days in Q3 2026, driven primarily by inventory days rising from 67 to 100.
The inventory build is the dominant driver of the lengthening cycle, which may reflect either precautionary stocking ahead of the refrigerant transition or slower sell-through in a softer residential market. Payables days have been broadly stable around 42 to 54, so supplier financing has not been the offset, leaving more capital tied up in working capital. Investors should monitor whether inventory normalizes as the pre-buy activity fades, since sustained inventory growth would weigh on free cash flow conversion.
Low Debt-to-Equity Figure Warrants Verification
The supplied debt-to-equity ratio of 1.58 differs from the 1.77% figure in the company intelligence, a discrepancy that should be reconciled against SEC filings before drawing conclusions about capital structure.
The ratio table is internally consistent with rising debt and equity, but the narrative data point is inconsistent with it and may reflect a units or data-source error. Analysts relying on leverage metrics for valuation or credit assessment should confirm the figure directly from the balance sheet. Using the simplest alternative metric, net debt to EBITDA, would also help separate cash-funded from debt-funded acquisition activity given the very thin cash position of $43.3M.