Lennox International Inc

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LII : NYSE : Industrial Goods
$164.1 up 0.08 | 0.049%
Today's Range: 163.56 - 165.075
Avg. Daily Volume: 342600.0
08/22/17 - 9:36 AM ET

Financial Analysis


LENNOX INTERNATIONAL INC's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. LENNOX INTERNATIONAL INC has weak liquidity. Currently, the Quick Ratio is 0.76 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

At the same time, stockholders' equity ("net worth") has significantly decreased by 67.09% 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 Q2 FY17 Q2 FY16
Net Sales ($mil)1102.21019.2
EBITDA ($mil)188.7169.9
EBIT ($mil)172.4155.6
Net Income ($mil)115.5110.7


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)61.354.7
Total Assets ($mil)2145.82024.2
Total Debt ($mil)1188.91075.2
Equity ($mil)10.231.0


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin32.4132.31
EBITDA Margin17.1216.66
Operating Margin15.6415.27
Sales Turnover1.771.74
Return on Assets14.0311.21
Return on Equity2964.7734.51
Debt Q2 FY17 Q2 FY16
Current Ratio1.381.13
Debt/Capital0.990.97
Interest Expense8.36.9
Interest Coverage20.7722.55


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)42.1843.66
Div / share0.510.43
EPS2.712.52
Book value / share0.240.71
Institutional Own % n/a n/a
Avg Daily Volume345182.0306183.0

Valuation


BUY. The current P/E ratio indicates a premium compared to an average of 23.44 for the Building Products industry and a value on par with the S&P 500 average of 24.23. For additional comparison, its price-to-book ratio of 682.84 indicates a significant premium versus the S&P 500 average of 3.02 and a significant premium versus the industry average of 49.01. The current price-to-sales ratio is below the S&P 500 average, but above the industry average. Upon assessment of these and other key valuation criteria, LENNOX INTERNATIONAL INC proves to trade at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
LII 23.65 Peers 23.44   LII 20.53 Peers 16.63

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.

 

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 18.29 Peers 18.02   LII 0.89 Peers 1.76

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
LII 682.84 Peers 49.01   LII 37.13 Peers 31.61

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.

 

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

LII is expected to have an earnings growth rate that exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
LII 1.83 Peers 1.63   LII 7.92 Peers 22.85

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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