📊 LII Key Takeaways
Is Lennox International Inc. (LII) a Good Investment?
Lennox generates accounting profits but faces critical cash flow deterioration with negative FCF of -$39.4M, declining revenue (-2.7% YoY), and dangerously low cash reserves relative to $1.1B debt. The weak cash conversion despite positive net income raises sustainability concerns.
Lennox delivers exceptional profitability and cash generation despite a slight revenue decline, evidenced by a 20% operating margin and a 12% FCF margin. Strong ROE/ROA and high interest coverage suggest durable competitive positioning and disciplined capital use. Near-term growth softness appears cyclical; maintaining margins and cash conversion would support continued fundamental strength.
Lennox International Inc. Key Strengths (LII)
- Solid 14.4% operating margin demonstrates operational efficiency
- Interest coverage of 10.8x provides adequate debt service capability
- Current ratio of 1.57x supports near-term obligation fulfillment
- Industry-leading operating margin and net margin
- Strong free cash flow conversion and double-digit FCF margin
- High ROE/ROA with robust interest coverage
LII Stock Risks: Lennox International Inc. Investment Risks
- Negative free cash flow of -$39.4M signals cash burn despite GAAP profitability
- Revenue declining 2.7% YoY with stalling growth momentum
- Quick ratio of 0.64x and $48.2M cash against $1.1B debt indicates severe liquidity stress
- Operating cash flow only $16.1M on $1.1B revenue suggests working capital deterioration
- Low ROE (9.7%) and ROA (2.7%) indicate poor capital efficiency
- Cyclical exposure to housing/HVAC replacement driving revenue softness
- Low quick ratio and minimal cash balance increase liquidity sensitivity
- Input cost and regulatory changes could pressure margins
Key Metrics to Watch
- Operating cash flow recovery and working capital normalization
- Revenue stabilization with margin defense
- Free cash flow path to positive and debt reduction progress
- YoY revenue growth
- Gross margin
Lennox International Inc. (LII) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Lennox International Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
LII Profit Margin, ROE & Profitability Analysis
LII vs Market Sector: How Lennox International Inc. Compares
How Lennox International Inc. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Lennox International Inc. Stock Overvalued? LII Valuation Analysis 2026
Based on fundamental analysis, Lennox International Inc. has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Lennox International Inc. Balance Sheet: LII Debt, Cash & Liquidity
LII Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Lennox International Inc.'s revenue has grown significantly by 27% over the 5-year period, indicating strong business expansion. The most recent EPS of $16.58 reflects profitable operations.
LII Revenue Growth, EPS Growth & YoY Performance
LII Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $1.1B | $117.2M | $3.35 |
| Q3 2025 | $1.4B | $239.0M | $6.68 |
| Q2 2025 | $1.5B | $245.9M | $6.87 |
| Q1 2025 | $1.0B | $120.3M | $3.37 |
| Q3 2024 | $1.4B | $130.4M | $3.65 |
| Q2 2024 | $1.4B | $217.2M | $6.10 |
| Q1 2024 | $1.0B | $98.0M | $2.75 |
| Q3 2023 | $1.2B | $130.4M | $3.65 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Lennox International Inc. Dividends, Buybacks & Capital Allocation
LII SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Lennox International Inc. (CIK: 0001069202)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| May 26, 2026 | 4 | xslF345X06/wk-form4_1779825398.xml | View → |
| May 26, 2026 | 4 | xslF345X06/wk-form4_1779825351.xml | View → |
| May 26, 2026 | 4 | xslF345X06/wk-form4_1779825309.xml | View → |
| May 26, 2026 | 4 | xslF345X06/wk-form4_1779825240.xml | View → |
| May 26, 2026 | 4 | xslF345X06/wk-form4_1779825203.xml | View → |
❓ Frequently Asked Questions about LII
What is the AI rating for LII?
Lennox International Inc. (LII) has a Combined AI Grade of B from Claude (C) and ChatGPT (A) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are LII's key strengths?
Claude: Solid 14.4% operating margin demonstrates operational efficiency. Interest coverage of 10.8x provides adequate debt service capability. ChatGPT: Industry-leading operating margin and net margin. Strong free cash flow conversion and double-digit FCF margin.
What are the risks of investing in LII?
Claude: Negative free cash flow of -$39.4M signals cash burn despite GAAP profitability. Revenue declining 2.7% YoY with stalling growth momentum. ChatGPT: Cyclical exposure to housing/HVAC replacement driving revenue softness. Low quick ratio and minimal cash balance increase liquidity sensitivity.
What is LII's revenue and growth?
Lennox International Inc. reported revenue of $1.1B.
Does LII pay dividends?
Lennox International Inc. pays dividends, with $45.2M distributed to shareholders in the trailing twelve months.
Where can I find LII SEC filings?
Official SEC filings for Lennox International Inc. (CIK: 0001069202) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is LII's EPS?
Lennox International Inc. has a diluted EPS of $3.35.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is LII's fundamental grade?
Based on our AI fundamental analysis in May 2026, Lennox International Inc. has a B grade with 76% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is LII stock overvalued or undervalued?
Valuation metrics for LII: ROE of 9.7% (sector avg: 15%), net margin of 10.3% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is LII's AI grade for 2026?
Our dual AI analysis gives Lennox International Inc. a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is LII's free cash flow?
Lennox International Inc.'s operating cash flow is $16.1M, with capital expenditures of $55.5M. FCF margin is -3.5%.
How does LII compare to other Market stocks?
Vs Default sector averages: Net margin 10.3% (avg: 12%), ROE 9.7% (avg: 15%), current ratio 1.57 (avg: 1.8).