Lennox International
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,…
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 the 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 names. 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 brands. The company also offers 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.Priced within the modelled range
Other models: USD 281.68–341.59 (median 305.80). The recommended value is in line with them.
Why: Free cash flow is positive and in line with earnings, and the dividend is small, so a cash-flow DCF fits best.
Details and the full model are below.
Market price within modeled range
Free-cash-flow DCF using TTM through 30 Sep 2026 reported free cash flow, with cash, debt, and shares from the latest report. Base assumptions are 3% growth, 2.7% terminal growth, and 10% discount. Low/high cases vary growth by 2 and terminal growth/discount by 1 percentage point; this illustrative range is not a statistical confidence interval or investment advice.
Assumptions: growth 3% (limited from 5.72% because the latest annual revenue declined), discount rate 10%, terminal growth 2.70%. See a worked example.
Blended growth assumption: 5.7% (sector default 6.2%, own revenue history 5.5%, analyst revenue consensus 5.6%).
5-year outlook: relative outlook of about 7.8% a year (High confidence), anchored to a 7% market return and adjusted for how this company ranks against others. A ranking aid, not a prediction. See the full forecast.
Analyst consensus expects revenue growth of 5.6% a year; the growth assumption used is 3.0%.
Adjust assumptions
Why this model: Free cash flow is positive and in line with earnings, and the dividend is small, so a cash-flow DCF fits best.
Compare models- Recommended: Free-cash-flow DCF — USD 286.06 (-18.0%)
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EPS-based Gordon proxy
— USD 305.80 (-12.3%)
Not used: Treats all earnings as if paid out and ignores the cash kept for reinvestment, so it overstates value for companies that retain most profit.
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DCF (trailing free cash flow)
— USD 286.06 (-18.0%)
Not used: Not chosen: Free-cash-flow DCF ranks ahead of it for this company.
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FCFF (steady state)
— USD 281.68 (-19.2%)
Not used: Assumes only the long-run terminal growth rate from today, so it ignores the near-term growth expected.
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EV/EBITDA (12x)
— USD 341.59 (-2.1%)
Not used: Used only when free cash flow is far below earnings even after averaging three years; a fixed 12x multiple also ignores sector differences.
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Fade DCF (10-year growth fade)
— USD 285.89 (-18.0%)
Not used: An alternative growth path (fading over 10 years) shown for comparison; the automatic choice does not use it.
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EV/Sales (Rule of 40)
— USD 703.47 (+101.7%)
Not used: Used only for technology and communication companies whose cash-flow value is far below the price.
| Bear USD 198.17 | -76.0% |
| Base USD 286.06 | -21.9% |
| Bull USD 442.45 | 21.2% |
Margin = (value − price) / value, so it is measured against the value and reads lower than the upside to value, which is measured against the price. Positive means the price is below that case.
At USD 348.79 the market implies about this annual free-cash-flow growth for 5 years (terminal 2.7%, discount 10.0%).
Compare: the market implies 7.0% a year, this model assumes 3.0%. The market expects more than this model does, which is why it reads as overvalued.
How the Free-cash-flow DCF value changes with growth (rows) and discount rate (columns). Green cells are above the current price.
| Growth \ Discount | 8.0% | 9.0% | 10.0% | 11.0% | 12.0% |
|---|---|---|---|---|---|
| -1.0% | 338.69 | 276.55 | 231.40 | 197.11 | 170.17 |
| 1.0% | 376.15 | 307.55 | 257.73 | 219.90 | 190.20 |
| 3.0% | 416.53 | 340.94 | 286.06 | 244.41 | 211.72 |
| 5.0% | 460.00 | 376.86 | 316.52 | 270.75 | 234.83 |
| 7.0% | 506.74 | 415.46 | 349.23 | 299.01 | 259.61 |
Track record: see the methodology page for how this model has performed historically, including its limits. Treat it as a screen, not a forecast.
Price history and fair value
No chartable saved daily price history is available for this range. The chart uses stored EODHD prices only and will appear after history is saved.
More detail: quality, peers, price history, dividends and financials
Quality score: 92 / 100
Five equal checks on reported history: profitability, cash generation, revenue growth, balance sheet and margins. It describes business quality, not whether the price is attractive.
| Profitability | 5 of 5 years profitable | 20 / 20 |
| Cash generation | free cash flow positive in 5 of 5 years | 20 / 20 |
| Growth | revenue +3.7% a year | 12 / 20 |
| Balance sheet | net debt 1.8x EBITDA | 20 / 20 |
| Margins | EBITDA margin 21% | 20 / 20 |
Peers in Industrials
Same-sector companies with a valuation, most undervalued first. Compare the margin of safety, yield and quality score side by side.
| Company | Price | Margin of safety | P/E | P/B | Yield | Quality |
|---|---|---|---|---|---|---|
| LII (this company) | USD 348.79 | -21.9% | 16.0 | 9.1 | 1.5% | 92 |
| EZJ.L easyJet plc | GBP 6.88 | 74.3% | 10.6 | 1.5 | 1.7% | 78 |
| WAWI.OL Wallenius Wilhelmsen ASA | NOK 160.80 | 64.8% | 7.1 | 2.2 | 0.3% | 100 |
| IAG.L International Consolidated Airlines Group S.A. | GBP 4.37 | 58.9% | 8.0 | 3.5 | 1.8% | 92 |
| TPK.L Travis Perkins plc | GBP 6.54 | 54.7% | – | 0.8 | 2.1% | 46 |
| SRP.L Serco Group plc | GBP 2.77 | 46.2% | 19.7 | 3.3 | 1.5% | 82 |
| DFDS.CO DFDS A/S | DKK 157.30 | 45.9% | – | 0.6 | – | 64 |
| DG.PA VINCI SA | EUR 111.75 | 42.2% | 12.9 | 2.1 | 4.2% | 90 |
| HAFNI.OL Hafnia Limited | NOK 89.00 | 40.8% | 7.2 | 1.8 | 1.2% | 100 |
| Peer median | 9.3 | 1.9 | ||||
Dividends
Paid in the last 12 months: USD 5.32 per share · yield 1.53% at the current price.
| Year | Dividends per share |
|---|---|
| 2026 (so far) | 4.020 |
| 2025 | 5.050 |
| 2024 | 4.550 |
| 2023 | 4.360 |
| 2022 | 4.100 |
| 2021 | 3.530 |
Trailing 12-month financials
TTM through 30 Sep 2026 · quarterly EODHD data · data downloaded 06 Nov 2026 12:55
| Revenue | USD 5,447,900,000 |
|---|---|
| EBITDA | USD 1,152,000,000 |
| EBIT | USD 1,022,500,000 |
| Net income | USD 749,900,000 |
| Free cash flow | USD 835,700,000 |
| Capital expenditures | USD 153,600,000 |
| Debt | USD 2,084,600,000 |
| Cash | USD 45,500,000 |
| Working capital | USD 389,300,000 |
| Shares outstanding | 34,500,000 |
| Reported dividends per share | USD 5.3072 |