Last Updated: 09 Nov 2024
Executive Summary
Lennox International Inc. (LII) is a leading manufacturer and marketer of heating, ventilation, air conditioning, and refrigeration (HVACR) products. The company has a strong financial position, with healthy revenue growth, profitability, and cash flow. The stock is currently trading at a premium valuation, but analysts are generally positive on the company's long-term prospects.
Company Overview
Lennox International Inc. is headquartered in Richardson, Texas, and has operations in over 100 countries. The company designs, manufactures, and markets a wide range of HVACR products, including furnaces, air conditioners, heat pumps, and refrigeration systems. Lennox also provides installation, maintenance, and repair services.
Fundamental Analysis
Lennox International Inc. has a strong financial position. The company's revenue has grown steadily in recent years, and its profitability has improved. The company's gross profit margin is 24.9%, and its operating margin is 20.1%. Lennox also has a strong balance sheet, with low debt levels and ample cash flow.
The company's earnings per share (EPS) have grown at an average annual rate of 10% over the past five years. Analysts expect Lennox to continue to grow its earnings in the future, with EPS growth of 10% in 2023 and 11% in 2024.
Technical Analysis
The stock price of Lennox International Inc. has been trending higher in recent months. The stock is currently trading at $630.95, which is above its 50-day and 200-day moving averages. The stock's relative strength index (RSI) is 65, which indicates that the stock is overbought.
Short Term Outlook
The technical analysis suggests that the stock price of Lennox International Inc. is likely to continue to trend higher in the short term. The stock is trading above its moving averages, and the RSI is overbought. This indicates that there is strong momentum behind the stock.
Long Term Outlook
The long-term outlook for Lennox International Inc. is positive. The company has a strong financial position, and analysts expect the company to continue to grow its earnings in the future. The stock is currently trading at a premium valuation, but it is still within the range of its historical valuation multiples.
Analyst Recommendations
Analysts are generally positive on the stock of Lennox International Inc. The consensus recommendation for the stock is "buy." The average analyst price target for the stock is $628.88, which represents a potential upside of 3.4% from the current price.
