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Lennox International Inc
LII : NYSE : Industrial Goods
$135.42 up0.35 | 0.26%
Today's Range: 134.36 - 135.66
Avg. Daily Volume: 444,800
05/05/16 - 4:02 PM ET

Financial Analysis


LENNOX INTERNATIONAL INC's gross profit margin for the first quarter of its fiscal year 2016 has increased when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. LENNOX INTERNATIONAL INC has weak liquidity. Currently, the Quick Ratio is 0.64 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

At the same time, stockholders' equity ("net worth") has significantly decreased by 339.28% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)715.2685.8
EBITDA ($mil)57.445.1
EBIT ($mil)43.229.6
Net Income ($mil)24.913.9


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)40.636.7
Total Assets ($mil)1861.01879.5
Total Debt ($mil)1099.41085.8
Equity ($mil)-73.8-16.8


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin27.6626.03
EBITDA Margin8.026.57
Operating Margin6.044.32
Sales Turnover1.881.79
Return on Assets10.6110.63
Return on Equity0.00.0
Debt Q1 FY16 Q1 FY15
Current Ratio1.41.48
Debt/Capital1.071.02
Interest Expense5.85.7
Interest Coverage7.455.19


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)43.644.99
Div / share0.360.3
EPS0.560.31
Book value / share-1.69-0.37
Institutional Own % n/a n/a
Avg Daily Volume451894.0367989.0

Valuation


BUY. LENNOX INTERNATIONAL INC's P/E ratio indicates a premium compared to an average of 27.16 for the Building Products industry and a premium compared to the S&P 500 average of 23.99. Normally, for additional comaprison, we would look at the price-to-book ratio; however, this company's price-to-book ratio is negative making the value useless for comparisons. The price-to-sales ratio is below both the S&P 500 average and the industry average, indicating a discount.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
LII 30.99 Peers 27.16   LII 17.95 Peers 15.50

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

LII is trading at a premium to its peers.

 

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

LII is trading at a premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
LII 17.99 Peers 19.98   LII 0.51 Peers 0.90

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

LII is trading at a valuation on par with its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

LII trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
LII NM Peers 13.95   LII 4.05 Peers 408.09

Neutral. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

LII's P/B is negative making this valuation measure meaningless.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, LII is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
LII 1.68 Peers 1.68   LII 4.13 Peers 17.89

Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

LII is trading at a valuation on par with its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

LII significantly trails its peers on the basis of sales growth

 

 

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