LII
Lennox International Inc.
LII's fundamentals are mixed, but it looks cheap: trading at 16x earnings, below its usual 25x. Analysts expect earnings to hold roughly steady, though they disagree widely on how much.
LII Fundamentals
| Metric | Status |
|---|---|
| Stable | |
| Healthy | |
| Strong | |
| Healthy |
LII's profitability, cash flow and balance sheet are currently healthy, and its revenue is stable.
LII PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Current | 16x | $348 | — |
| Forward | 16x | $348 | — |
| Cheap | 19x | $412 | +18% |
| Fair | 24x | $526 | +51% |
| Expensive | 30x | $651 | +87% |
Historical ranges are pointers, not guarantees.
LII's PE is in its cheap range at 16.1x. On analysts' estimates for next year's earnings, today's price would be 15.6x.
LII Forward outlook
| Metric | Outlook |
|---|---|
| Stable | |
| Stable | |
| Stable | |
| Weakening | |
| Limited | |
| Low |
Analysts expect LII's profitability to weaken, with its earnings and revenue holding steady. However, they disagree widely on these estimates.
LII Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Forward | $22.37 | +3.8% |
| Q3 2026 | $21.55 | -9% |
| Q2 2026 | $22.12 | -5.4% |
| Q1 2026 | $22.22 | -1% |
| Q4 2025 | $22.24 | -1.3% |
| Q3 2025 | $23.69 | +12% |
| Q2 2025 | $23.39 | +30% |
| Q1 2025 | $22.44 | +30% |
| Q4 2024 | $22.54 | +36% |
LII earned $21.55 per share over the past year, down 9% from the year before.
LII Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q3 2026 | $1.6B | +10% |
| Q2 2026 | $1.5B | +3% |
| Q1 2026 | $1.1B | +5.8% |
| Q4 2025 | $1.2B | -11% |
| Q3 2025 | $1.4B | -4.8% |
| Q2 2025 | $1.5B | +3.4% |
| Q1 2025 | $1.1B | +2.4% |
| Q4 2024 | $1.3B | +16% |
LII's revenue grew through 2024 and has held roughly level since: $1.6B last quarter, up 10% from the same quarter a year ago.
| Quarter | Margin | YoY |
|---|---|---|
| Q3 2026 | 20% | -1.9 points |
| Q2 2026 | 23% | -0.6 points |
| Q1 2026 | 14% | -0.1 points |
| Q4 2025 | 16% | -1.8 points |
| Q3 2025 | 22% | +1.5 points |
| Q2 2025 | 24% | +1.5 points |
| Q1 2025 | 15% | -1.4 points |
| Q4 2024 | 18% | +2.1 points |
LII's operating margin was 20% last quarter, down 1.9 points from the same quarter a year ago.
LII Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q3 2026 | $362.1M | +37% |
| Q2 2026 | $136.3M | +134% |
| Q1 2026 | -$39.4M | +$21.9M |
| Q4 2025 | $376.7M | +38% |
| Q3 2025 | $265.1M | -35% |
| Q2 2025 | $58.3M | -61% |
| Q1 2025 | -$61.3M | -$9M |
| Q4 2024 | $272.2M | +50% |
LII generated $836M in free cash flow over the past year, up 56% from the year before.
LII Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | -0.9% | -300K shares |
| 1 year | -2% | -700K shares |
| 3 years | -3.4% | -1.2M shares |
| 5 years | -6.8% | -2.5M shares |
| Available history | -12% | -4.9M shares |
LII has 35M diluted shares, down 2% from a year ago, with $452M in buybacks over the past year.
| Quarter | Spent |
|---|---|
| Q3 2026 | $150.6M |
| Q2 2026 | $131.8M |
| Q1 2026 | $19.5M |
| Q4 2025 | $150.5M |
| Q3 2025 | $37M |
| Q2 2025 | $209.6M |
| Q1 2025 | $85.2M |
| Q4 2024 | $40.7M |
LII spent $452M buying back its own shares over the past year, up 21% from the year before.
LII Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q3 2026 | 1.4x | Healthy |
| Q2 2026 | 1.3x | Healthy |
| Q1 2026 | 1.3x | Healthy |
| Q4 2025 | 1.2x | Healthy |
| Q3 2025 | 0.8x | Very low |
| Q2 2025 | 1.0x | Very low |
| Q1 2025 | 0.8x | Very low |
| Q4 2024 | 0.7x | Very low |
LII's net debt is about 1.4 years of its operating earnings (EBITDA), up from less than a year a year ago.
LII Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 33.8 | Neutral |
| Stochastic | 15.4 | Oversold |
LII's weekly RSI is 34 (neutral) and its Stochastic is 15 (oversold).
LII PE vs Industrials Sector
| Metric | LII | Sector median | Relative |
|---|---|---|---|
| PE | 16x | 24x | 33% below |
| PE % | 2 | 58 | 56 pts below |
LII is trading at 16x earnings, a 33% discount to the Industrials sector's median of 24x.
LII Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $356.8 | 2.4% below |
| 20 week MA | $412.6 | 16% below |
| 50 week MA | $470.9 | 26% below |
| 100 week MA | $520.2 | 33% below |
| 200 week MA | $475.9 | 27% below |
LII is in a downtrend: it's below all five of its weekly moving averages, and 27% below its 200-week average.
LII Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2020 | $243.3 | $273.4 | +12% |
| 2021 | $273.4 | $316.1 | +16% |
| 2022 | $316.1 | $243.1 | -23% |
| 2023 | $243.1 | $447.5 | +84% |
| 2024 | $447.5 | $620.0 | +39% |
| 2025 | $620.0 | $498.2 | -20% |
| 2026 YTD | $498.2 | $348.1 | -30% |
LII is down 30% so far in 2026, after finishing higher in four of the previous six years.