LENNOX INTERNATIONAL INC (LII) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does LENNOX INTERNATIONAL INC Do?
Lennox International Inc., together with its subsidiaries, designs, manufactures, and markets a range of products for the heating, ventilation, air conditioning, and refrigeration markets in the United States, Canada, and internationally. It operates through three segments: Residential Heating & Cooling, Commercial Heating & Cooling, and Refrigeration. The Residential Heating & Cooling segment provides furnaces, air conditioners, heat pumps, packaged heating and cooling systems, indoor air quality equipment and accessories, comfort control products, and replacement parts and supplies for residential replacement and new construction markets. The Commercial Heating & Cooling segment offers unitary heating and air conditioning equipment, applied systems, controls, installation and service of commercial heating and cooling equipment, and variable refrigerant flow commercial products for light commercial markets. The Refrigeration segment offers condensing units, unit coolers, fluid coolers, air cooled condensers, air handlers, and refrigeration rack systems for preserving food and other perishables in supermarkets, convenience stores, restaurants, warehouses, and distribution centers, as well as for data centers, machine tooling, and other cooling applications; and compressor racks and industrial process chillers. The company sells its products and services through direct sales, distributors, and company-owned parts and supplies stores. Lennox International Inc. was founded in 1895 and is headquartered in Richardson, Texas. LENNOX INTERNATIONAL INC (LII) is classified as a large-cap stock in the Industrials sector, specifically within the Machinery industry. The company is led by CEO Alok Maskara and employs approximately 13,200 people, headquartered in Richardson, Texas. With a market capitalization of $16.2B, LII is one of the prominent companies in the Industrials sector.
LENNOX INTERNATIONAL INC (LII) Stock Rating — Reduce (April 2026)
As of April 2026, LENNOX INTERNATIONAL INC receives a Reduce rating with a composite score of 44.2/100 and 2 out of 5 stars from the Blank Capital Research quantitative model.LII ranks #3,018 out of 4,446 stocks in our coverage universe. Within the Industrials sector, LENNOX INTERNATIONAL INC ranks #506 of 752 stocks, placing it in the lower half of its Industrials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
LII Stock Price and 52-Week Range
LENNOX INTERNATIONAL INC (LII) currently trades at $505.31. The stock gained $16.63 (3.4%) in the most recent trading session. The 52-week high for LII is $689.44, which means the stock is currently trading -26.7% from its annual peak. The 52-week low is $443.19, putting the stock 14.0% above its annual trough. Recent trading volume was 525K shares, suggesting relatively thin trading activity.
Is LII Overvalued or Undervalued? — Valuation Analysis
LENNOX INTERNATIONAL INC (LII) carries a value factor score of 64/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 17.38x, compared to the Industrials sector average of 28.33x — a discount of 39%. The price-to-book ratio stands at 13.48x, versus the sector average of 2.23x. The price-to-sales ratio is 2.85x, compared to 0.50x for the average Industrials stock. On an enterprise value basis, LII trades at 12.56x EV/EBITDA, versus 5.70x for the sector. The EV/EBIT multiple is 19.56x.
Overall, LII's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
LENNOX INTERNATIONAL INC Profitability — ROE, Margins, and Quality Score
LENNOX INTERNATIONAL INC (LII) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 77.6%, compared to the Industrials sector average of 8.9%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 22.1% versus the sector average of 3.3%.
On a margin basis, LENNOX INTERNATIONAL INC reports gross margins of 33.3%, compared to 35.8% for the sector. The operating margin is 20.5% (sector: 6.2%). Net profit margin stands at 16.1%, versus 3.9% for the average Industrials stock. Revenue growth is running at -1.7% on a trailing basis, compared to 6.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
LII Debt, Balance Sheet, and Financial Health
LENNOX INTERNATIONAL INC has a debt-to-equity ratio of 251.0%, compared to the Industrials sector average of 70.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.60x, suggesting adequate working capital coverage. Total debt on the balance sheet is $1.39B. Cash and equivalents stand at $53M.
LII has a beta of 1.01, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for LENNOX INTERNATIONAL INC is 59/100, reflecting average volatility within the normal range for its sector.
LENNOX INTERNATIONAL INC Revenue and Earnings History — Quarterly Trend
In TTM 2026, LENNOX INTERNATIONAL INC reported revenue of $5.50B and earnings per share (EPS) of $22.89. Net income for the quarter was $902M. Gross margin was 33.3%. Operating income came in at $1.15B.
In FY 2025, LENNOX INTERNATIONAL INC reported revenue of $5.20B and earnings per share (EPS) of $22.89. Net income for the quarter was $806M. Gross margin was 33.4%. Revenue grew -2.7% year-over-year compared to FY 2024. Operating income came in at $1.04B.
In Q3 2025, LENNOX INTERNATIONAL INC reported revenue of $1.43B and earnings per share (EPS) of $7.41. Net income for the quarter was $260M. Gross margin was 34.2%. Revenue grew -4.8% year-over-year compared to Q3 2024. Operating income came in at $329M.
In Q2 2025, LENNOX INTERNATIONAL INC reported revenue of $1.50B and earnings per share (EPS) of $7.75. Net income for the quarter was $274M. Gross margin was 34.5%. Revenue grew 3.4% year-over-year compared to Q2 2024. Operating income came in at $349M.
Over the past 8 quarters, LENNOX INTERNATIONAL INC has demonstrated a growth trajectory, with revenue expanding from $1.45B to $5.50B. Investors analyzing LII stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
LII Dividend Yield and Income Analysis
LENNOX INTERNATIONAL INC (LII) currently pays a dividend yield of 0.9%. At this yield, a $10,000 investment in LII stock would generate approximately $$93.00 in annual dividend income. With a net margin of 16.1%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
LII Momentum and Technical Analysis Profile
LENNOX INTERNATIONAL INC (LII) has a momentum factor score of 35/100, signaling weak relative price performance. Stocks with low momentum scores have historically tended to continue underperforming in the near term. The investment factor score is 34/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 15/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
LII vs Competitors — Industrials Sector Ranking and Peer Comparison
Within the Industrials sector, LENNOX INTERNATIONAL INC (LII) ranks #506 out of 752 stocks based on the Blank Capital composite score. This places LII in the lower half of all Industrials stocks in our coverage universe. Key competitors and sector peers include South Bow Corp (SOBO) with a score of 56.5/100, TSAKOS ENERGY NAVIGATION LTD (TEN) with a score of 61.4/100, Great Lakes Dredge & Dock CORP (GLDD) with a score of 56.7/100, Tri Pointe Homes, Inc. (TPH) with a score of 57.3/100, and Clear Channel Outdoor Holdings, Inc. (CCO) with a score of 52.2/100.
Comparing LII against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full LII vs S&P 500 (SPY) comparison to assess how LENNOX INTERNATIONAL INC stacks up against the broader market across all factor dimensions.
LII Next Earnings Date
No upcoming earnings date has been announced for LENNOX INTERNATIONAL INC (LII) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy LII? — Investment Thesis Summary
The quantitative profile for LENNOX INTERNATIONAL INC suggests caution. The value score of 64/100 suggests attractive pricing relative to fundamentals. Momentum is weak at 35/100, a headwind for near-term performance.
In summary, LENNOX INTERNATIONAL INC (LII) earns a Reduce rating with a composite score of 44.2/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on LII stock.
Related Resources for LII Investors
Explore more research and tools: LII vs S&P 500 comparison, top Industrials stocks, stock screener, our methodology, quality factor explained, value factor explained, momentum factor explained. Compare LII head-to-head with peers: LII vs SOBO, LII vs TEN, LII vs GLDD.