# Lennox International Inc. (LII) — Stock CV

Lennox International Inc. is a $12.3B industrial company. Revenue shrank 2.1% over the last year, it keeps 15¢ of every dollar of sales as profit, and its net debt equals ~1.5 years of free cash flow. It trades at 15.5× earnings — near the lowest of its own history.

> Lennox manufactures and distributes heating, ventilating, air conditioning, and refrigeration products for the North American replacement (75% of sales) and new construction (25% of sales) markets.

## Identity

- **Ticker**: LII
- **Sector**: Industrials
- **Industry**: Air-Cond & Warm Air Heatg Equip & Comm & Indl Refrig Equip
- **Headquarters**: RICHARDSON, TX
- **Employees**: 12 900
- **Website**: https://www.lennox.com
- **Market cap**: $12.3B
- **Last price**: $356.44
- **Financial profile**: Mixed

## Vitals (TTM)

- **Revenue**: $5.30B
- **Net income**: $794M
- **Free cash flow**: $739M
- **Net debt**: $1.13B
- **P/E**: 15.5
- **Revenue growth (YoY)**: -2.1%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 85 |
| Growth | 64 |
| Profitability | 90 |
| Health | 55 |
| Quality | 74 |
| Moat | 74 |

## Qualifications (beginner checklist) — 9 of 11 passed

- [ ] Revenue growing — -2.1% YoY
- [x] Profitable — $794M TTM
- [x] Profit growing — +17.9% YoY
- [x] Generates cash — $739M TTM
- [x] Debt under control — ~1.5y of cash flow to repay
- [x] Established company — $12.3B market cap
- [x] Not printing shares — -8.3% shares over ~5y
- [x] Proven track record — 10/10 profitable years
- [ ] Financially stable — health score 43/100
- [x] Pays a dividend — yield 1.48%
- [x] Valuation not extreme — P/E 15.5

## Experience (career milestones)

- **FY2024** — Best year on record: $807M net income
- **2023** — The company acquired AES
- **FY2016** — Profitable every year on record: 10 consecutive profitable years in our data
- **FY2016** — Revenue already above $1B: $3.64B in first reported year
- **FY2016** — Positive free cash flow every year since: 10-year streak
- **2010** — The company acquired Kysor/Warren from The Manitowoc Company for $138 million
- **1999** — The company became a public company via an initial public offering
- **1998** — The company acquired Pyro Industries, a manufacturer of pellet stoves
- **1973** — Lennox acquired Heatcraft, including the Larkin, Bohn, Chandler
- **1904** — Norris, III, a descendant of DW Norris, who acquired the company in 1904
- **1895** — The company was founded in 1895, in Marshalltown, Iowa, by Dave Lennox, the owner of a machine repair business for…

## Strengths

- Interest covered 41.2× by operating earnings
- High returns on invested capital (ROIC 36.6%)

## Watch-outs

- Revenue shrinking 2.1% year over year

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $4.19B | $464M | $409M |
| FY2022 | $4.72B | $497M | $201M |
| FY2023 | $4.98B | $590M | $486M |
| FY2024 | $5.34B | $807M | $782M |
| FY2025 | $5.20B | $806M | $639M |

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Source: https://stockcv.com/LII — derived from company filings; may be delayed or incomplete. Information, not investment advice.