Latest Ratios: P/E Ratio 25.6x · EV/EBITDA 19.5x · ROE 78.1%. (1998–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $19.8B | $17.0B | $21.8B | $16.0B | $8.6B | $12.2B | $10.6B | $9.6B | $9.0B | $8.9B | $6.7B |
| Enterprise Value | $21.8B | $19.1B | $22.9B | $17.4B | $10.3B | $13.6B | $11.6B | $10.9B | $10.0B | $9.8B | $7.6B |
| P/E Ratio → | 25.56 | 21.85 | 27.03 | 27.07 | 17.22 | 26.22 | 29.68 | 23.53 | 25.07 | 29.17 | 24.24 |
| P/S Ratio | 3.80 | 3.28 | 4.08 | 3.21 | 1.82 | 2.90 | 2.91 | 2.52 | 2.32 | 2.32 | 1.85 |
| P/B Ratio | 17.14 | 14.65 | 25.66 | 56.00 | — | — | — | — | — | 177.91 | 177.35 |
| P/FCF | 30.94 | 26.68 | 27.89 | 32.87 | 42.57 | 29.76 | 19.81 | 33.09 | 22.47 | 39.30 | 24.94 |
| P/OCF | 26.09 | 22.50 | 23.07 | 21.70 | 28.33 | 23.60 | 17.27 | 24.27 | 18.15 | 27.42 | 19.01 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.67 | 4.28 | 3.50 | 2.17 | 3.24 | 3.20 | 2.87 | 2.57 | 2.57 | 2.08 |
| EV / EBITDA | 19.45 | 17.02 | 20.26 | 19.91 | 13.98 | 20.48 | 21.10 | 15.01 | 17.35 | 17.62 | 15.50 |
| EV / EBIT | 21.46 | 18.85 | 22.05 | 21.98 | 15.65 | 23.15 | 24.49 | 19.64 | 19.70 | 19.85 | 17.54 |
| EV / FCF | — | 29.86 | 29.26 | 35.89 | 51.00 | 33.20 | 21.78 | 37.62 | 24.96 | 43.43 | 27.97 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 33.0% | 33.0% | 33.2% | 31.1% | 27.2% | 28.3% | 28.6% | 28.4% | 28.6% | 29.3% | 29.6% |
| Operating Margin | 19.5% | 19.5% | 19.4% | 15.9% | 13.9% | 14.1% | 13.2% | 17.3% | 13.1% | 12.9% | 11.8% |
| Net Profit Margin | 15.1% | 15.1% | 15.1% | 11.8% | 10.5% | 11.1% | 9.8% | 10.7% | 9.2% | 8.0% | 7.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 78.1% | 78.1% | 142.1% | 1435.8% | — | — | — | — | — | 694.0% | 398.0% |
| ROA | 20.8% | 20.8% | 25.7% | 22.0% | 21.0% | 22.1% | 17.5% | 21.2% | 19.4% | 16.7% | 16.1% |
| ROIC | 29.8% | 29.8% | 42.2% | 36.5% | 37.4% | 40.7% | 32.9% | 49.4% | 41.8% | 40.3% | 38.7% |
| ROCE | 40.2% | 40.2% | 52.5% | 57.3% | 56.6% | 44.1% | 40.5% | 71.4% | 49.9% | 46.9% | 49.7% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.77 | 1.77 | 1.75 | 5.35 | — | — | — | — | — | 20.04 | 22.85 |
| Debt / EBITDA | 1.84 | 1.84 | 1.32 | 1.74 | 2.38 | 2.17 | 2.14 | 1.86 | 1.81 | 1.80 | 1.78 |
| Net Debt / Equity | — | 1.75 | 1.26 | 5.14 | — | — | — | — | — | 18.68 | 21.53 |
| Net Debt / EBITDA | 1.81 | 1.81 | 0.95 | 1.67 | 2.31 | 2.12 | 1.91 | 1.81 | 1.73 | 1.67 | 1.68 |
| Debt / FCF | — | 3.18 | 1.37 | 3.02 | 8.44 | 3.44 | 1.98 | 4.54 | 2.49 | 4.13 | 3.03 |
| Interest Coverage | 24.74 | 24.74 | 23.54 | 14.17 | 16.47 | 22.54 | 15.99 | 11.45 | 12.97 | 15.45 | 15.33 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.60 | 1.60 | 1.43 | 1.41 | 0.94 | 1.42 | 1.55 | 1.12 | 1.08 | 1.74 | 1.13 |
| Quick Ratio | 0.63 | 0.63 | 0.90 | 0.72 | 0.47 | 0.80 | 0.92 | 0.58 | 0.57 | 1.00 | 0.66 |
| Cash Ratio | 0.03 | 0.03 | 0.32 | 0.07 | 0.04 | 0.04 | 0.18 | 0.04 | 0.05 | 0.10 | 0.06 |
| Asset Turnover | — | 1.27 | 1.54 | 1.78 | 1.84 | 1.93 | 1.79 | 1.87 | 2.14 | 2.03 | 2.07 |
| Inventory Turnover | 3.02 | 3.02 | 5.06 | 4.91 | 4.56 | 5.88 | 5.90 | 5.01 | 5.44 | 5.61 | 6.13 |
| Days Sales Outstanding | — | 40.66 | 45.18 | 43.56 | 47.07 | 44.24 | 45.03 | 45.81 | 44.42 | 48.15 | 47.09 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.9% | 1.0% | 0.7% | 1.0% | 1.7% | 1.0% | 1.1% | 1.1% | 1.0% | 0.9% | 1.0% |
| Payout Ratio | 22.0% | 22.0% | 19.9% | 26.0% | 28.6% | 27.3% | 33.1% | 27.0% | 26.2% | 26.1% | 24.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.9% | 4.6% | 3.7% | 3.7% | 5.8% | 3.8% | 3.4% | 4.3% | 4.0% | 3.4% | 4.1% |
| FCF Yield | 3.2% | 3.7% | 3.6% | 3.0% | 2.3% | 3.4% | 5.0% | 3.0% | 4.5% | 2.5% | 4.0% |
| Buyback Yield | 2.5% | 2.9% | 0.3% | 0.1% | 3.6% | 5.1% | 1.1% | 4.4% | 5.3% | 3.1% | 4.9% |
| Total Shareholder Yield | 3.4% | 4.0% | 1.1% | 1.1% | 5.3% | 6.2% | 2.2% | 5.6% | 6.3% | 4.0% | 6.0% |
| Shares Outstanding | — | $35M | $36M | $36M | $36M | $38M | $39M | $39M | $41M | $43M | $44M |
Cyclical residential replacement volatility
Based on current market data, Lennox trades at a P/E of 25.38, which appears to price in significant growth expectations that may be disconnected from the recent revenue contraction of 2.73% observed in the most recent quarterly filings compared to historical performance trends.
The current valuation premium suggests investors are pricing in the resilience of the direct-to-dealer model rather than the immediate top-line trajectory. However, the P/FCF of 30.72 warrants caution, as it implies a high cost for cash flow generation that may not be fully supported by the current volatility in operating cash conversion.
As reported in financial statements, ROIC has fluctuated significantly, dropping to 3.9% in 2026Q1 from a peak of 11.8% in 2024Q2, suggesting that the company's ability to compound returns is currently hampered by both operational volatility and a historically aggressive capital structure.
The sharp decline in ROIC indicates that the capital deployed into the business is not currently generating the returns seen in previous periods, likely due to the combination of inventory buildup and the costs associated with the refrigerant transition. Investors should monitor whether this trend represents a structural decay in efficiency or a temporary impact from strategic divestitures.
According to recent SEC filings, the cash conversion cycle has expanded to 132 days in 2026Q1, a notable deterioration from the 73-day cycle observed in 2024Q4, which highlights increasing pressure on working capital management and potential inefficiencies in inventory turnover within the distribution network.
The rise in days inventory outstanding to 136 days suggests that Lennox is carrying significant stock, which may be a strategic buffer for the refrigerant transition but nonetheless ties up critical liquidity. This trend warrants further investigation into whether the company is over-producing in anticipation of demand that has yet to materialize.
Based on reported figures, the debt-to-equity ratio of 1.61 in 2026Q1, while improved from the 5.35 peak in 2023Q4, still indicates a highly leveraged balance sheet that leaves the company with limited flexibility to navigate cyclical downturns in the North American residential market.
While the deleveraging trend is positive, the absolute level of debt remains elevated compared to peers like Trane Technologies, which maintains a more conservative capital structure. The interest coverage ratio of 10.93 suggests that debt service is currently manageable, but any further contraction in operating margins could quickly tighten this safety margin.
The P/B ratio of 17.02 is frequently misapplied to Lennox, as it fails to account for the historical impact of aggressive share repurchases that have artificially depressed the book value of equity, thereby rendering the metric largely meaningless for assessing true asset-based valuation.
Analysts should instead focus on EV/EBITDA or normalized ROIC to evaluate the company's performance, as these metrics are less sensitive to the accounting distortions caused by the company's capital allocation strategy. Relying on P/B in this context obscures the underlying operational health by focusing on a denominator that has been intentionally minimized by management.
Includes 30+ ratios · 28 years · Updated daily
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Quick answers to the most common questions about buying LII stock.
Lennox International Inc.'s current P/E ratio is 25.6x. The historical average is 22.2x. This places it at the 67th percentile of its historical range.
Lennox International Inc.'s current EV/EBITDA is 19.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.0x.
Lennox International Inc.'s return on equity (ROE) is 78.1%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 57.6%.
Based on historical data, Lennox International Inc. is trading at a P/E of 25.6x. This is at the 67th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Lennox International Inc.'s current dividend yield is 0.87% with a payout ratio of 22.0%.
Lennox International Inc. has 33.0% gross margin and 19.5% operating margin. Operating margin between 10-20% is typical for established companies.
Lennox International Inc.'s Debt/EBITDA ratio is 1.8x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.