Lennox International Inc (LII) Stock Analysis
Verdict: WATCH (do not buy)
HVAC margin leadership is overshadowed by a rare guidance cut and revenue contraction, signaling a cyclical peak in residential demand.
Investment score: 42/100
Analysis as of
Is Lennox International Inc stock worth reviewing? The TradeMates thesis
Avoid LII despite the 34% discount from highs. A guidance cut combined with negative revenue growth and insider selling suggests the fundamental bottom has not yet been reached.
7-factor investment score
- Valuation: 55/100 (weight 20%)
- Financial Health: 50/100 (weight 15%)
- Technical Momentum: 15/100 (weight 15%)
- Earnings Quality: 30/100 (weight 15%)
- Insider Sentiment: 35/100 (weight 10%)
- Analyst Consensus: 60/100 (weight 10%)
- Risk-Adjusted Return: 40/100 (weight 15%)
Lennox International Inc opportunities and risks
What speaks for LII
- Deep Value Relative to HVAC Peers
What speaks against LII
- Residential Market Prolonged Slump
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| LII | 19.4x | 2.8x | 14.9x | 33.1% | 14.6% | 4.9% |
| CARR | 41.2x | 2.2x | 22.0x | 24.3% | 5.5% | 3.7% |
| MAIR | 90.4x | 4.5x | 30.6x | 38.8% | 0.9% | 2.8% |
| MAS | 16.7x | 1.9x | 12.1x | 36.9% | 11.6% | 9.9% |
| CSL | 19.1x | 2.7x | 10.7x | 35.3% | 14.2% | 6.4% |
| OC | n/a | 1.1x | 23.8x | 27.0% | -5.4% | 4.4% |
| Peer median | 19.1x | 2.2x | 22.0x | 35.3% | 5.5% | 4.4% |
Frequently asked questions about Lennox International Inc (LII)
Is LII stock a good investment?
The TradeMates model rates Lennox International Inc as WATCH (do not buy) with an investment score of 42/100. Avoid LII despite the 34% discount from highs. A guidance cut combined with negative revenue growth and insider selling suggests the fundamental bottom has not yet been reached. This is algorithmic model output, not personal investment advice.
Is LII stock a buy?
The TradeMates model verdict for LII is WATCH (do not buy) with an investment score of 42/100. Treat this as a model signal to review, not a personal buy recommendation.