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LII:NYSELennox International, Inc. Analysis

Data as of 2026-06-17 - not real-time

$528.33

Latest Price

7/10Risk

Risk Level: Medium

Executive Summary

Lennox International is trading comfortably above its short‑term and medium‑term moving averages, with the MACD line perched above its signal line and a neutral‑zone RSI, suggesting modest bullish momentum. The recent dividend hike signals confidence in cash generation, while decreasing volume and a neutral trend direction hint at a short‑term consolidation phase.
Fundamentally, the company delivers solid revenue growth and strong profitability metrics, including a high return on equity and margins that outpace many peers. However, the DCF‑derived fair value sits well below the current market price and the stock’s beta and 30‑day volatility point to heightened price swings. With a PE multiple under the industry average but a price‑to‑book ratio that remains elevated, the equity appears stretched relative to intrinsic estimates, though the dividend payout remains modest and sustainable.

Market Outlook

Short Term

< 1 year
Neutral
Model confidence: 6/10

Key Factors

  • Bullish MACD but decreasing volume
  • Price near short‑term resistance
  • Neutral trend direction

Medium Term

1–3 years
Positive
Model confidence: 8/10

Key Factors

  • Revenue growth and strong profitability
  • Dividend increase with low payout ratio
  • PE multiple below industry peers

Long Term

> 3 years
Positive
Model confidence: 7/10

Key Factors

  • Durable demand for HVAC and building solutions
  • Sustainable dividend backed by cash flow
  • High return on equity indicating efficient capital use

Key Metrics & Analysis

Financial Health

Revenue Growth5.80%
Profit Margin15.09%
P/E Ratio23.3
ROE76.79%
ROA16.74%
Debt/Equity161.04
P/B Ratio15.2
Op. Cash Flow$809.5M
Free Cash Flow$187.1M
Industry P/E31.2

Technical Analysis

TrendNeutral
RSI57.4
Support$475.22
Resistance$542.19
MA 20$506.50
MA 50$505.17
MA 200$510.49
MACDBullish
VolumeDecreasing
Fear & Greed Index92.13

Valuation

Fair Value$36.25
Target Price$570.07
Upside/Downside7.90%
GradeOvervalued
TypeBlend
Dividend Yield1.04%

Risk Assessment

Beta1.26
Volatility35.74%
Sector RiskMedium
Reg. RiskMedium
Geo RiskLow
Currency RiskLow
Liquidity RiskMedium

This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.