LII Stock Analysis — Lennox International
Sector: Industrials
AI Verdict
Lennox trades at 20.9x next year's earnings for just 4.8% expected growth, so you’re paying a premium the numbers don’t yet support—even with its dealer network moat.
Competitive Moat
Lennox International manufactures and services HVAC systems, with a defensible moat built on a dense dealer network and entrenched relationships with commercial and residential contractors. Their scale and brand recognition make it difficult for smaller competitors to match their service reach and product reliability.
Summary
Lennox stands out for its sticky dealer network, but its muted growth outlook is testing investor patience.
Where It Stands
Lennox is down -17.46% over the past year, trades at 20.9x next year's earnings versus a sector median of 20x, and its RSI of 51.6 signals neutral momentum.
Key Metrics
- RSI: 51.6 — Neutral
- Trailing P/E: 22.0x
- Forward P/E: 20.9x
- PEG Ratio: 2.88
- Earnings Growth: +0.0%
- Revenue Growth: -0.0%
- Market Cap: $17.4B
- Dividend Yield: 0.01%
- 1-Year Return: -17.46%
- 52-Week High: $689.44
- 52-Week Low: $434.06
Analyst Consensus
9 Buy · 14 Hold · 2 Sell (25 analysts)
Bull Case
Lennox trades at a 20.9x forward P/E, which is only slightly above the industrials median, so you’re not paying a huge premium for a business with entrenched distribution.
Bear Case
With forward EPS growth expected at just 4.8% and a trailing PEG of 2.88, you’re paying up for a narrative the numbers don’t yet support, and any P/E compression to the sector median could mean a 4–5% downside from here.
Catalyst to Watch
Watch for any signs of a rebound in residential or commercial HVAC demand, as a positive inflection in orders could justify the current premium.