Lennox International Inc

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LII : NYSE : Industrial Goods
$157.36 up 0.31 | 0.2%
Today's Range: 156.03 - 157.85
Avg. Daily Volume: 415400.0
12/09/16 - 4:02 PM ET

Financial Analysis

LENNOX INTERNATIONAL INC's gross profit margin for the third quarter of its fiscal year 2016 has increased when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. LENNOX INTERNATIONAL INC has weak liquidity. Currently, the Quick Ratio is 0.52 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has significantly decreased by 75.46% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)1010.0955.0
EBITDA ($mil)168.8145.6
EBIT ($mil)153.9129.6
Net Income ($mil)101.780.2

Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)47.835.1
Total Assets ($mil)1926.61881.5
Total Debt ($mil)1055.9918.0
Equity ($mil)23.897.0

Profitability Q3 FY16 Q3 FY15
Gross Profit Margin32.230.3
EBITDA Margin16.7115.24
Operating Margin15.2413.57
Sales Turnover1.861.83
Return on Assets12.911.68
Return on Equity1047.47228.76
Debt Q3 FY16 Q3 FY15
Current Ratio0.981.35
Interest Expense6.95.7
Interest Coverage22.322.74

Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)43.0445.05
Div / share0.430.36
Book value / share0.552.15
Institutional Own % n/a n/a
Avg Daily Volume410258.0333512.0


BUY. LENNOX INTERNATIONAL INC's P/E ratio indicates a discount compared to an average of 26.66 for the Building Products industry and a value on par with the S&P 500 average of 25.37. For additional comparison, its price-to-book ratio of 270.23 indicates a significant premium versus the S&P 500 average of 2.81 and a significant premium versus the industry average of 21.44. The current price-to-sales ratio is below the S&P 500 average, but above the industry average.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
LII 26.40 Peers 26.66   LII 19.86 Peers 18.75

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

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


Average. 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 valuation on par to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
LII 19.40 Peers 19.49   LII 0.39 Peers 0.68

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

LII is trading at a premium to 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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
LII 270.23 Peers 21.44   LII 16.46 Peers 28.87

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

LII is trading at a significant premium to its peers.


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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
LII 1.80 Peers 1.58   LII 3.84 Peers 7.77

Premium. 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 premium to 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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