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
Debt/Capital0.980.9
Interest Expense6.95.7
Interest Coverage22.322.74


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)43.0445.05
Div / share0.430.36
EPS2.331.76
Book value / share0.552.15
Institutional Own % n/a n/a
Avg Daily Volume410258.0333512.0

Valuation


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.


Price/Earnings
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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
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.

 
Price/Book
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.

 
Price/Sales
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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