Lennox International Inc (LII) Fair Value & Analysis

Industrials · US · Market cap $19.4B

A solid business, but screening 17% overvalued on our models.

What matters now

• Solid but not exceptional quality (52/100) and above fair value, neither a clear bargain nor a standout compounder.
• A fairly wide model range ($199.25 to $468.44) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 18, 2026.

How to read this chart

60‑month range $177.13 – $667.14 · fair‑value band $199.25 – $468.44 · the $435.73 price screens above the $363.09 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 18, 2026.

Full chart & analysis →

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Analysis

Lennox International Inc (LII) currently trades at $435.73, while our model-based Fair Value estimate is $363.09, implying the stock looks roughly 16.7% overvalued today. We read business quality at 52/100 (solid quality), in the Industrials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Lennox International Inc generated revenue of $5.3B at a net margin of 15.1%. Revenue grew 5.8% year over year. It earns a return on equity of 76.8%. Net debt stands at $2.0B. Fundamentals as of Jul 18, 2026

Our scenario range runs from $199.25 (bear case) to $468.44 (bull case); at $435.73, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 36% below its 52-week high and 1% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -41% fair-value upside, at -17%, LII screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Widest divergence: Multiples ($373.23) versus Asset-Based ($22.39). Highest evidence: Growth DCF (80).

Key figures & financial health

Quality Score breakdown

About the company

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.

Full company description

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. 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.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

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.

LII screens 17% overvalued. Compare with Trane Technologies plc →

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

• Lennox International (LII) Is Down 22.4% After Cutting 2026 EPS Guidance Amid Residential Weakness – Has The Bull Case Changed? Yahoo Finance · Jul 31, 2026
• LII Q2 Deep Dive: Residential Weakness and Guidance Cut Overshadow Commercial Gains Yahoo Finance · Jul 30, 2026
• Why Lennox (LII) Stock Is Down Today Yahoo Finance · Jul 30, 2026
• Lennox International Inc (LII) Q2 2026 Earnings Call Highlights: Navigating Challenges with ... Yahoo Finance · Jul 29, 2026

Peer Group

Building Products & Equipment · 245 stocks

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.

Valuation Multiples vs Building Products & Equipment median · lower = cheaper

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

Insider activity: 42/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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Frequently asked questions

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.