Lennox International Inc

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LII : NYSE : Industrial Goods
$184.26 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 349300.0
06/27/17 - 4:02 PM ET

Financial Analysis


LENNOX INTERNATIONAL INC's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged 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 0.54 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has greatly increased by 98.10% 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 FY17 Q1 FY16
Net Sales ($mil)793.4715.2
EBITDA ($mil)74.257.4
EBIT ($mil)58.543.2
Net Income ($mil)43.524.9


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)48.840.6
Total Assets ($mil)1950.61861.0
Total Debt ($mil)1103.11099.4
Equity ($mil)-1.4-73.8


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin28.5627.66
EBITDA Margin9.358.02
Operating Margin7.376.04
Sales Turnover1.911.88
Return on Assets15.1910.61
Return on Equity0.00.0
Debt Q1 FY17 Q1 FY16
Current Ratio1.141.4
Debt/Capital1.01.07
Interest Expense7.45.8
Interest Coverage7.917.45


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)42.7343.6
Div / share0.430.36
EPS1.00.56
Book value / share-0.03-1.69
Institutional Own % n/a n/a
Avg Daily Volume337599.0327643.0

Valuation


BUY. LENNOX INTERNATIONAL INC's P/E ratio indicates a premium compared to an average of 25.51 for the Building Products industry and a premium compared to the S&P 500 average of 25.75. 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 current price-to-sales ratio is similar to the S&P 500 average, but it is above the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, LENNOX INTERNATIONAL INC seems to be trading 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 27.79 Peers 25.51   LII 22.65 Peers 17.57

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 significant 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 21.20 Peers 19.24   LII 1.13 Peers 1.21

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.

 

Average. 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 valuation on par to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
LII NM Peers 9.98   LII 55.73 Peers 138.72

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 2.17 Peers 1.73   LII 6.37 Peers 12.63

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 significant premium to its industry.

 

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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