Lennox International Inc. (LII) Financial Ratios
28 years of historical data (1998–2025) · Industrials · Construction
EV/EBITDA
↓
18.63
+2% vs avg
5yr avg: 18.33
30Y Low4.3·High21.1
P/FCF
↓
29.49
-8% vs avg
5yr avg: 31.95
30Y Low2.3·High78.3
P/B Ratio
↓
16.34
↓-49% vs avg
5yr avg: 32.10
30Y Low0.6·High177.9
ROE
↓
78.1%
↑-86% vs avg
5yr avg: 552.0%
30Y Low-34%·High398%
Debt/EBITDA
↓
1.84
↓-3% vs avg
5yr avg: 1.89
30Y Low0.5·High6.3
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
LII Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Lennox International Inc. trades at 24.4x earnings, roughly in line with its 5-year average of 23.9x, sitting at the 58th percentile of its historical range. Compared to the Industrials sector median P/E of 25.9x, the stock trades at a discount of 6%. On a free-cash-flow basis, the stock trades at 29.5x P/FCF, 8% below the 5-year average of 32.0x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $18.8B | $17.0B | $21.8B | $16.0B | $8.6B | $12.2B | $10.6B | $9.6B | $9.0B | $8.9B | $6.7B |
| Enterprise Value | $20.9B | $19.1B | $22.9B | $17.4B | $10.3B | $13.6B | $11.6B | $10.9B | $10.0B | $9.8B | $7.6B |
| P/E Ratio → | 24.36 | 21.85 | 27.03 | 27.07 | 17.22 | 26.22 | 29.68 | 23.53 | 25.07 | 29.17 | 24.24 |
| P/S Ratio | 3.63 | 3.28 | 4.08 | 3.21 | 1.82 | 2.90 | 2.91 | 2.52 | 2.32 | 2.32 | 1.85 |
| P/B Ratio | 16.34 | 14.65 | 25.66 | 56.00 | — | — | — | — | — | 177.91 | 177.35 |
| P/FCF | 29.49 | 26.68 | 27.89 | 32.87 | 42.57 | 29.76 | 19.81 | 33.09 | 22.47 | 39.30 | 24.94 |
| P/OCF | 24.87 | 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
LII EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Lennox International Inc.'s enterprise value stands at 18.6x EBITDA, roughly in line with its 5-year average of 18.3x. The Industrials sector median is 13.9x, placing the stock at a 34% premium on an enterprise-value basis.
| 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 | 18.63 | 17.02 | 20.26 | 19.91 | 13.98 | 20.48 | 21.10 | 15.01 | 17.35 | 17.62 | 15.50 |
| EV / EBIT | 20.55 | 18.85 | 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 |
LII Profitability
Margins and return-on-capital ratios measuring operating efficiency
Lennox International Inc. earns an operating margin of 19.5%, above the Industrials sector average of 4.9%. Operating margins have expanded from 15.9% to 19.5% over the past 3 years, signaling improving operational efficiency. Return on equity of 78.1% is exceptionally high — well above the sector median of 8.2%. ROIC of 29.8% represents excellent returns on invested capital versus a sector median of 6.3%.
Margins
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 | 33.0% | 33.0% | 33.2% | 31.1% | 27.2% | 28.3% | 28.6% | 28.4% | 28.6% | 29.3% | 29.6% |
| Operating Margin | 19.5% | 19.5% | 19.4% | 15.9% | 13.9% | 14.1% | 13.2% | 17.3% | 13.1% | 12.9% | 11.8% |
| Net Profit Margin | 15.1% | 15.1% | 15.1% | 11.8% | 10.5% | 11.1% | 9.8% | 10.7% | 9.2% | 8.0% | 7.6% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 78.1% | 78.1% | 142.1% | 1435.8% | — | — | — | — | — | 694.0% | 398.0% |
| ROA | 20.8% | 20.8% | 25.7% | 22.0% | 21.0% | 22.1% | 17.5% | 21.2% | 19.4% | 16.7% | 16.1% |
| ROIC | 29.8% | 29.8% | 42.2% | 36.5% | 37.4% | 40.7% | 32.9% | 49.4% | 41.8% | 40.3% | 38.7% |
| ROCE | 40.2% | 40.2% | 52.5% | 57.3% | 56.6% | 44.1% | 40.5% | 71.4% | 49.9% | 46.9% | 49.7% |
LII Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Lennox International Inc. carries a Debt/EBITDA ratio of 1.8x, which is manageable (42% below the sector average of 3.2x). Net debt stands at $2.0B ($2.1B total debt minus $34M cash). Interest coverage of 24.7x signals virtually no risk of debt distress — earnings comfortably cover interest obligations.
| 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 | 1.84 | 1.84 | 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 | 1.81 | 1.81 | 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 | 24.74 | 24.74 | 23.54 | 14.17 | 16.47 | 22.54 | 15.99 | 11.45 | 12.97 | 15.45 | 15.33 |
LII Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.60x means Lennox International Inc. can comfortably meet its short-term obligations, though there is limited excess liquidity. The quick ratio of 0.63x is notably lower than the current ratio, indicating a significant portion of current assets is tied up in inventory. The current ratio has improved from 1.41x to 1.60x over the past 3 years.
| 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 | 3.02 | 3.02 | 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 |
LII Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Lennox International Inc. returns 3.6% to shareholders annually — split between a 0.9% dividend yield and 2.7% buyback yield. The payout ratio of 22.0% is conservative, leaving significant room for dividend growth or reinvestment. The earnings yield of 4.1% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
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 | 0.9% | 1.0% | 0.7% | 1.0% | 1.7% | 1.0% | 1.1% | 1.1% | 1.0% | 0.9% | 1.0% |
| Payout Ratio | 22.0% | 22.0% | 19.9% | 26.0% | 28.6% | 27.3% | 33.1% | 27.0% | 26.2% | 26.1% | 24.8% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.1% | 4.6% | 3.7% | 3.7% | 5.8% | 3.8% | 3.4% | 4.3% | 4.0% | 3.4% | 4.1% |
| FCF Yield | 3.4% | 3.7% | 3.6% | 3.0% | 2.3% | 3.4% | 5.0% | 3.0% | 4.5% | 2.5% | 4.0% |
| Buyback Yield | 2.7% | 2.9% | 0.3% | 0.1% | 3.6% | 5.1% | 1.1% | 4.4% | 5.3% | 3.1% | 4.9% |
| Total Shareholder Yield | 3.6% | 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 |
Peer Comparison
Compare LII with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 LIIYou | $19B | 24.4 | 18.6 | 29.5 | 33.0% | 19.5% | 78.1% | 29.8% | 1.8 |
 CARR | $57B | 39.9 | 21.9 | 33.4 | 25.9% | 9.9% | 10.5% | 6.7% | 4.1 |
 TT | $108B | 37.6 | 26.2 | 38.4 | 36.2% | 18.6% | 36.3% | 26.2% | 1.1 |
 JCI | $88B | 54.4 | 26.7 | 90.8 | 36.4% | 12.0% | 21.7% | 8.5% | 3.0 |
 ALLE | $12B | 18.2 | 13.7 | 17.0 | 45.2% | 21.1% | 36.1% | 18.1% | 2.3 |
 AAON | $8B | 76.2 | 37.6 | — | 26.7% | 10.1% | 12.5% | 9.4% | 1.9 |
 WSO | $18B | 35.3 | 23.9 | 32.8 | 28.0% | 9.6% | 15.8% | 16.6% | 0.7 |
 SPXC | $11B | 42.0 | 21.5 | 44.3 | 36.7% | 16.8% | 13.6% | 13.4% | 1.0 |
 NDSN | $16B | 33.7 | 20.8 | 24.2 | 55.2% | 25.5% | 16.2% | 10.5% | 2.4 |
 RBC | $20B | 80.9 | 43.6 | 83.6 | 44.4% | 22.6% | 8.5% | 6.9% | 2.1 |
 AIXI | $8M | -0.5 | — | — | 68.3% | -18.3% | — | -34.4% | — |
| Industrials Median | — | 25.9 | 13.9 | 20.6 | 32.8% | 4.9% | 8.2% | 6.3% | 3.2 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Start ComparisonLII — Frequently Asked Questions
Quick answers to the most common questions about buying LII stock.
What is Lennox International Inc.'s P/E ratio?
Lennox International Inc.'s current P/E ratio is 24.4x. The historical average is 22.2x. This places it at the 58th percentile of its historical range.
What is Lennox International Inc.'s EV/EBITDA?
Lennox International Inc.'s current EV/EBITDA is 18.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.0x.
What is Lennox International Inc.'s ROE?
Lennox International Inc.'s return on equity (ROE) is 78.1%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 57.6%.
Is LII stock overvalued?
Based on historical data, Lennox International Inc. is trading at a P/E of 24.4x. This is at the 58th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Lennox International Inc.'s dividend yield?
Lennox International Inc.'s current dividend yield is 0.91% with a payout ratio of 22.0%.
What are Lennox International Inc.'s profit margins?
Lennox International Inc. has 33.0% gross margin and 19.5% operating margin. Operating margin between 10-20% is typical for established companies.
How much debt does Lennox International Inc. have?
Lennox International Inc.'s Debt/EBITDA ratio is 1.8x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.