Lennox International Inc. (LII) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+8.8%

$378.54

vs $348.07 price

Levered DCF

$332.42

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

5.73

Safe zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	21.77×	26.88×	26.93×	17.19×	26.01×	29.46×	23.28×	24.76×
P/B	14.57×	25.51×	55.69×	-42.05×	-44.86×	-613.63×	-55.9×	-59.4×
P/S	3.26×	4.06×	3.19×	1.81×	2.88×	2.89×	2.5×	2.29×
EV / EBITDA	16.43×	20.09×	19.73×	13.96×	20.46×	21.09×	17.26×	17.24×
Gross margin	33.4%	33.2%	31.1%	27.2%	28.3%	28.6%	28.4%	28.6%
Operating margin	20.0%	19.4%	15.9%	13.9%	14.1%	13.2%	17.3%	13.1%
Net margin	15.5%	15.1%	11.8%	10.5%	11.1%	9.8%	10.7%	9.2%
Current ratio	1.6×	1.43×	1.41×	0.94×	1.42×	1.55×	1.12×	1.08×
Debt / equity	1.77×	1.75×	5.35×	-8.62×	-5.34×	-68.91×	-7.96×	-6.96×
Interest coverage	25.46×	23.46×	14.11×	16.49×	22.7×	16.11×	13.52×	13.04×
Dividend yield	1.0%	0.7%	1.0%	1.7%	1.0%	1.1%	1.2%	1.1%
Payout ratio	21.5%	19.9%	26.0%	28.6%	27.3%	33.1%	27.0%	26.2%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	69.3%	94.9%	206.8%	-244.8%	-172.5%	-2083.6%	-240.1%	-240.0%
Return on invested capital	26.1%	33.0%	31.6%	30.3%	34.7%	27.5%	37.6%	35.4%
Return on assets	19.7%	23.2%	21.1%	19.4%	21.4%	17.5%	20.1%	19.8%
Free cash flow yield	3.8%	3.6%	3.1%	2.4%	3.4%	5.1%	3.1%	4.5%
Earnings yield	4.8%	3.7%	3.7%	5.8%	3.8%	3.4%	4.3%	4.0%
Enterprise value	$19B	$22.8B	$17.4B	$10.2B	$13.5B	$11.5B	$10.8B	$9.9B
Net debt / EBITDA	1.76×	0.95×	1.67×	2.31×	2.14×	1.93×	2.1×	1.74×
Cash conversion cycle (days)	116	67	78	82	57	59	69	54