The firm said it raised its rating on the company, which is a provider of climate control solutions, based on its market share gains, opportunities for margin enhancement, and the company's focus on returning cash to shareholders.
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Separately, TheStreet Ratings team rates LENNOX INTERNATIONAL INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate LENNOX INTERNATIONAL INC (LII) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, good cash flow from operations, solid stock price performance and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows low profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- LII's revenue growth has slightly outpaced the industry average of 5.6%. Since the same quarter one year prior, revenues slightly increased by 4.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Powered by its strong earnings growth of 29.03% and other important driving factors, this stock has surged by 32.89% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, LII should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- LENNOX INTERNATIONAL INC has improved earnings per share by 29.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, LENNOX INTERNATIONAL INC increased its bottom line by earning $3.55 versus $2.64 in the prior year. This year, the market expects an improvement in earnings ($4.50 versus $3.55).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Building Products industry. The net income increased by 148.8% when compared to the same quarter one year prior, rising from $8.00 million to $19.90 million.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Building Products industry and the overall market, LENNOX INTERNATIONAL INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: LII Ratings Report