Lennox International Inc

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LII : NYSE : Industrial Goods
$156.80 | %
Today's Range: 156.75 - 159.00
Avg. Daily Volume: 375,300
07/29/16 - 4:02 PM ET

Financial Analysis


LENNOX INTERNATIONAL INC's gross profit margin for the second quarter of its fiscal year 2016 has increased 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 0.62 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 significantly decreased by 44.34% 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 FY16 Q2 FY15
Net Sales ($mil)1019.2992.5
EBITDA ($mil)169.9145.7
EBIT ($mil)155.6130.6
Net Income ($mil)110.781.2


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)54.747.5
Total Assets ($mil)2024.22026.3
Total Debt ($mil)1075.21055.6
Equity ($mil)31.055.7


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin32.3130.08
EBITDA Margin16.6614.68
Operating Margin15.2713.16
Sales Turnover1.741.67
Return on Assets11.2110.22
Return on Equity734.51375.58
Debt Q2 FY16 Q2 FY15
Current Ratio1.131.43
Debt/Capital0.970.95
Interest Expense6.96.5
Interest Coverage22.5520.09


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)43.6645.02
Div / share0.430.36
EPS2.521.79
Book value / share0.711.24
Institutional Own % n/a n/a
Avg Daily Volume369637.0449186.0

Valuation


BUY. This stock's P/E ratio indicates a significant discount compared to an average of 72.33 for the Building Products industry and a premium compared to the S&P 500 average of 25.05. For additional comparison, its price-to-book ratio of 211.54 indicates a significant premium versus the S&P 500 average of 2.81 and a significant premium versus the industry average of 34.80. The current price-to-sales ratio is similar to the S&P 500 average, but it is above the industry average, indicating a premium.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
LII 29.51 Peers 72.33   LII 19.67 Peers 16.34

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

LII is trading at a significant discount to 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 19.74 Peers 21.63   LII 0.46 Peers 0.98

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

LII is trading at a valuation on par with 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 211.54 Peers 34.80   LII 13.61 Peers 421.10

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 1.86 Peers 1.78   LII 3.95 Peers 9.34

Average. 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 valuation on par with 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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