Lennox International Inc (LII) fair value: what the stock is really worth
As of Nov 5, 2026: fair value (intrinsic value) of Lennox International Inc stock $304, price $349, that is 12.9% below the price, quality 66 out of 100. Rating: overvalued. Calculated from audited financials with 25 of our 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 4, 2026.
How to read this chart
60‑month range $177.13 – $667.14 · fair‑value band $192.54 – $440.41 · the $348.79 price screens above the $303.70 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. As of Nov 4, 2026.
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Lennox International Inc., together with its subsidiaries, designs, manufactures, and markets products for the heating, ventilation, air conditioning, and refrigeration markets in the United States, Canada, and internationally.
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The Home Comfort Solutions segment provides furnaces, air conditioners, heat pumps, packaged heating and cooling systems, indoor air quality equipment, comfort control products, and replacement parts and supplies; residential heating, ventilation, cooling equipment, and air conditioning; and evaporator coils, air handlers, and unit heaters under Lennox, Dave Lennox Signature Collection, Armstrong Air, Ducane, AirEase, Concord, MagicPak, Advanced Distributor Products, Allied, Elite Series, Supco, Linebacker, Elite series, Merit Series, Comfort Sync, Healthy Climate, Healthy Climate Solutions, iComfort, ComfortSense, and Lennox Stores name.
The Building Climate Solutions segment offers unitary heating and air conditioning equipment, controls, installation and service of commercial heating and cooling equipment, variable refrigerant flow commercial, curb, curb adapters, drop box diffusers, HVAC recycling, and salvage service.
This segment also provides , condensing units, unit coolers, fluid coolers, air cooled condensers, process chillers, compressorized racks, and replacement parts and supplies under the Lennox, Model L, CORE, Enlight, Xion, Energence, Prodigy, Strategos, Raider, Lennox VRF, Lennox National Account Services, Allied Commercial, Duro Dyne, Dyne-Tite, Durozone, Elite, AES Industries, Mechanical, Heatcraft Worldwide Refrigeration, Bohn, MAGNA, Larkin, Climate Control, Chandler Refrigeration, IntelliGen, and Interlink brand name.
In addition, the company provides small package units, rooftop units, chillers, air handlers, and fan coils. It sells its products and services through direct sales, distributors, and company-owned parts and supplies stores. The company was founded in 1895 and is headquartered in Richardson, Texas.
Stock analysis
Lennox International Inc (LII) currently trades at $348.79, while our model-based Fair Value estimate is $303.70, 13% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of $386.97 per share, and 7 of the 25 models we run sit above the $348.79 price.
Bear case: the Dividend Discount group reads lowest at $63.17, and 18 of the 25 models stay below the price. Data coverage for this calculation is high.
Scenario range: $192.54 (bear) to $440.41 (bull), the price of $348.79 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 66/100 (solid quality), in the Industrials sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
Lennox International Inc reported revenue of $5.2B in FY2025 versus $4.2B in FY2021, a compound +5.5%/yr. Reported net income was $786M in FY2025, compounding +14.1%/yr from FY2021.
Key figures
Market cap $12.1B Large · P/E ratio 15.8 · P/S ratio 2.29 · EPS (TTM) $22.11 · Dividend yield 1.5% · Net margin 14.9% · Return on equity 71.8% · Return on assets (EBIT) 27.1%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 81 out of 100 (low confidence).
What moves the price
The share trades about 39% below its 52-week high and 5% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Industrials peers we cover trades at −32% fair-value upside, at −13%, LII screens cheaper than that median.
Fair Value models
Bear$192.54Fair Value $303.70Bull$440.41
Price $348.79 · Downside -12.9%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then ($14.31 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, no officer or director bought or sold shares on the open market.
SaleChris KoselVP-Corp Controller and CAO2× since Feb 4, 2026: 1,225 shares, avg. $543.08$665,272May 6, 2026
SaleShane D WallDirector100 shares at $540.01$54,001Feb 25, 2026
SaleTodd J TeskeDirector2× since Nov 11, 2025: 1,300 shares, avg. $514.25$668,525Feb 4, 2026
Plus 12 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.79/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
−2.7%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+3.3%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+7.4%
Start year 2020 (pandemic). Over 10 years: +4.1% a year
Revenue growth 27 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+4.0%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
+18.1%
Earnings growth per share plus dividend.
Earnings per share, growth per year+16.6%
Dividend (yield on the price)1.5%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.16.6% vs 18.1%, steady
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.13% → 20%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes about as much growth as the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+10.3%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+6.1%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +7.7% a year for the price and +3.7% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (97 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Positive
Recent news coverage is more positive than average.
AI conclusion: Moderate profitability is supported by service operations growth through technician training programs, yet thin public evidence limits assessment of a durable moat.
Main risk: An ongoing antitrust class action lawsuit against Lennox and other HVAC manufacturers could lead to damages or settlements that pressure margins or force adjustments to pricing strategies.
Bull case: By strengthening its direct-to-dealer relationships and expanding service offerings through AI tools, Lennox could offset any legal pressures with higher recurring revenue from its installed base.
Bear case: If the antitrust litigation results in substantial penalties, Lennox might face reduced financial flexibility, limiting investments in training centers and service expansion amid slower equipment sales.
Lennox is expanding its own training programs and centers for commercial HVAC technicians to build a reliable service workforce amid persistent industry shortages. This strengthens its National Account Services business even while new housing construction lags and curbs equipment demand. Our models see the stock as overvalued. Will the service operations deliver enough growth to outweigh slower replacement sales?
Compare Lennox International Inc with another stock
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Building Products & Equipment · 254 stocks
Beats the industry median on 8/15 measures
A mixed picture versus its industry peers.
Valuation
Quality Score66 · Top 25%
Fair Value upside−12.9% · Above median
Profitability
Return on equity (12 months)71.8% · Top 25%
Return on assets19.3% · Top 25%
Net margin (12 months)14.9% · Top 25%
Operating margin (12 months)22.9% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)3.0% · Below median
Dividend yield (12 months)1.5% · Below median
Balance sheet
Debt / equity0.98× · Highest 25%
Valuation Multiplesvs Building Products & Equipment median · lower = cheaper
P/E (12 months)15.8× · Cheaper than median
P/B10.44× · Priciest 25%
P/S (12 months)2.29× · Priciest 25%
Price / free cash flow (fiscal year)19.0× · Pricier than median
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Cite: Fair Value Calculator (2026). "Lennox International Inc Fair Value". https://www.fairvalue-calculator.com/stock/LII
Frequently asked questions
Is Lennox International Inc (LII) overvalued or undervalued?
As of Nov 4, 2026, our model estimates a fair value of $303.70 versus a price of $348.79, about 13% lower (overvalued).
What is the fair value of LII?
Our model-based fair value for Lennox International Inc is $303.70 (as of Nov 4, 2026), built from audited fundamentals. The current price: $348.79.
What is the quality score of LII?
Lennox International Inc has a Quality Score of 66/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Lennox International Inc (LII)?
Our model-based price target is the fair value of $303.70 (as of Nov 4, 2026) from 25 valuation models. Cautious scenario $192.54, optimistic scenario $440.41. It is a calculation from audited fundamentals, not an analyst target.
What is the Lennox International Inc stock forecast for 2026?
Our models put fair value at $303.70, about 13% lower versus a price of $348.79 (overvalued). Cautious scenario $192.54, optimistic scenario $440.41. The calculation is refreshed regularly with new filings.
What is the revenue of Lennox International Inc (LII)?
Lennox International Inc reported trailing-twelve-month revenue of about $5.3B (latest available figure, as of Nov 4, 2026).
Does Lennox International Inc pay a dividend?
Lennox International Inc currently shows a dividend yield of 1.51% relative to its recent price (as of Nov 4, 2026).
What growth is priced into Lennox International Inc (LII)?
For today's price to be fair in a discounted-cash-flow model, Lennox International Inc would have to grow free cash flow by +10.3 % per year for five years (discount rate 9.6 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +7.4 % per year. As of Nov 4, 2026.
What discount rate (WACC) does the fair value of LII use?
Our models discount Lennox International Inc at 9.6 %: a base by market capitalisation (large), damped by beta 1.16, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Lennox International Inc that is +10.3 % per year a year over ten years, using the same discount rate (9.6 %) and the same formula as our fair value.
How much growth has Lennox International Inc (LII) delivered so far?
Over the past 5 years revenue at Lennox International Inc grew +7.4 % a year. The price currently implies +10.3 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Lennox International Inc (LII) growing?
The median revenue growth in the sector is +7.8 % a year. That is the yardstick for the growth priced into Lennox International Inc (+10.3 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Lennox International Inc (LII)?
The free-cash-flow yield on the price is 5.26 %: that much free cash flow Lennox International Inc produces per unit of market value. When it exceeds the discount rate of our models (9.6 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Lennox International Inc (LII)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Lennox International Inc it is $303.70 per share (as of Nov 4, 2026), against a price of $348.79. It is the blended result of 25 valuation models (cash flow, earnings, asset, dividend).
Is Lennox International Inc stock overvalued or undervalued in 2026?
As of Nov 4, 2026, LII trades above its calculated fair value: price $348.79, fair value $303.70, a gap of about −13% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of LII?
No. The price is what the market pays today ($348.79); the fair value is what the company's own numbers justify ($303.70). For Lennox International Inc the two are $45.09 per share apart. That gap is exactly why we show both numbers side by side.
How much is Lennox International Inc worth?
The market values Lennox International Inc at about $12.1B (market capitalisation, as of Nov 4, 2026). Per share that is $348.79; our models calculate a fair value of $303.70 per share.
What do the bullish and bearish scenarios say about LII?
Our models span a range for Lennox International Inc: cautious scenario $192.54, base $303.70, optimistic $440.41 per share (as of Nov 4, 2026, price $348.79). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of LII?
Lennox International Inc trades at a price-to-earnings ratio of 15.8 (as of Nov 4, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $303.70 is built from several models across several years. Median P/E at fiscal year-end, 10 fiscal years (2016 to 2025), reported earnings, FY2018, FY2023, FY2025 ex one-offs: 25.2. Other multiples: PEG 1.0, P/B 10.4, P/S 2.3, EV/EBITDA 11.3.
What is the PEG ratio of LII?
The PEG ratio of Lennox International Inc is 0.95 (P/E divided by earnings growth, as of Nov 4, 2026). That is below 1, so growth is priced more cheaply than the earnings multiple alone suggests.
How solid is the balance sheet of Lennox International Inc (LII)?
Balance-sheet figures for Lennox International Inc (as of Nov 4, 2026): return on equity 71.8%, debt of 0.98 per unit of equity. They feed the Quality Score of 66/100, which measures business quality independently of the share price.
How far is LII from its 52-week high?
Lennox International Inc trades at $348.79, about 39% below its 52-week high of $572.95 and 5% above the low of $332.64 (as of Nov 5, 2026). Distance from the high says nothing about value: that is what the fair value of $303.70 is for.
Which stocks are comparable to Lennox International Inc?
From the same area (Industrials) we also value Johnson Controls International plc, Trane Technologies plc, Carrier Global Corporation, Compagnie de Saint-Gobain S.A, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Lennox International Inc stock attractive at the current price?
The data as of Nov 4, 2026: price $348.79, calculated fair value $303.70 (−13%), Quality Score 66/100, from 25 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of LII calculated?
We run Lennox International Inc through 25 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $303.70, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.5% above its aggregate fair value. Lennox International Inc itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Lennox International Inc (LII)?
The closing price on Nov 5, 2026 was $348.79. Our model-based fair value is $303.70, about 13% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Lennox International Inc right now?
Solid but not exceptional quality (66/100) and above fair value, neither a clear bargain nor a standout compounder. A fairly wide model range ($192.54 to $440.41) leaves room in how you read the outcome.
Where does the earnings growth of Lennox International Inc (LII) come from?
Earnings per share at Lennox International Inc grew +17.4 % a year from 2014 to 2025. Broken into its drivers: revenue per share +7.5 %, EBIT margin +6.7 %, tax rate +2.1 %, residual (interest, one-offs) +0.2 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Lennox International Inc
How large is the market capitalisation of Lennox International Inc (LII)?
The market capitalisation of Lennox International Inc is $12.1B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Lennox International Inc (LII)?
The price-to-sales ratio of Lennox International Inc is 2.29 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Lennox International Inc (LII)?
Earnings per share at Lennox International Inc are $22.11 (price ÷ EPS = P/E 15.8). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Lennox International Inc (LII)?
The dividend yield of Lennox International Inc is 1.5% (payout 23.8%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Lennox International Inc (LII)?
The net margin of Lennox International Inc is 14.9% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Lennox International Inc (LII)?
The return on equity (ROE) of Lennox International Inc is 71.8% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Lennox International Inc (LII)?
On an EBIT basis the return on assets of Lennox International Inc is 27.1% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Lennox International Inc (LII)?
The operating margin of Lennox International Inc is 22.9% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Lennox International Inc (LII)?
Revenue at Lennox International Inc is growing +3.0% versus a year earlier (3y avg +3.3%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Lennox International Inc (LII)?
Earnings per share at Lennox International Inc are growing +0.1% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Lennox International Inc (LII) carry?
The net debt of Lennox International Inc is $2.0B (fiscal year 2025, ≈ 3.2 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Nov 4, 2026