Lennox International Inc.
Find Ratings ReportsLENNOX INTERNATIONAL INC's gross profit margin for the fourth quarter of its fiscal year 2023 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 subsector this quarter as compared to the same quarter a year ago. LENNOX INTERNATIONAL INC has weak liquidity. Currently, the Quick Ratio is 0.65 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
At the same time, stockholders' equity ("net worth") has greatly increased by 240.47% 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 | Q4 FY23 | Q4 FY22 |
---|---|---|
Net Sales ($mil) | 1154.8 | 1093.8 |
EBITDA ($mil) | 200.9 | 151.9 |
EBIT ($mil) | 176.9 | 130.2 |
Net Income ($mil) | 144.5 | 94.4 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 69.1 | 61.1 |
Total Assets ($mil) | 2798.3 | 2567.6 |
Total Debt ($mil) | 1527.3 | 1749.9 |
Equity ($mil) | 285.3 | -203.1 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 32.8 | 28.06 |
EBITDA Margin | 17.39 | 13.88 |
Operating Margin | 15.32 | 11.9 |
Sales Turnover | 1.78 | 1.84 |
Return on Assets | 21.08 | 19.36 |
Return on Equity | 206.83 | 0.0 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 1.41 | 0.94 |
Debt/Capital | 0.84 | 1.13 |
Interest Expense | 11.3 | 12.6 |
Interest Coverage | 15.65 | 10.33 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 35.58 | 35.47 |
Div / share | 1.1 | 1.06 |
EPS | 4.04 | 2.65 |
Book value / share | 8.02 | -5.73 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 263065.0 | 329884.0 |
BUY. LENNOX INTERNATIONAL INC's P/E ratio indicates a discount compared to an average of 34.89 for the Machinery Manufacturing subsector and a value on par with the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 58.54 indicates a significant premium versus the S&P 500 average of 4.68 and a significant premium versus the subsector average of 15.81. The price-to-sales ratio is well above the S&P 500 average, but well below the subsector average. The valuation analysis reveals that, LENNOX INTERNATIONAL INC seems to be trading at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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LII 28.38 | Peers 34.89 | LII 22.69 | Peers 35.56 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. LII is trading at a discount to its peers. |
Discount. 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 discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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LII 21.34 | Peers 25.65 | LII 1.49 | Peers 5.15 | |||||||||||||||||||||
Average. An average price-to-projected earnings ratio can signify an subsector 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. |
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Price/Book |
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Earnings Growth |
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LII 58.54 | Peers 15.81 | LII 19.07 | Peers 20.44 | |||||||||||||||||||||
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. |
Average. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. LII is expected to keep pace with its peers on the basis of earnings growth. |
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Price/Sales |
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Sales Growth |
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LII 3.35 | Peers 8.34 | LII 5.58 | Peers 14.92 | |||||||||||||||||||||
Discount. 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 discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. LII significantly trails its peers on the basis of sales growth. |
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