CluenexLennox International LII
Lennox International scores average on business quality (4.8 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Lennox International does
Lennox International designs, manufactures, and markets climate control solutions, generating revenue primarily from heating, ventilation, air conditioning, and refrigeration equipment sold to contractors and building owners.
- What it does best
Lennox delivers elite return on equity of 66.9%, outperforming peers like CARR at 8.9% and MAS at 279.8% while maintaining tighter capital discipline. This efficiency stems from a deeply integrated dealer network that locks in installers.
- The main risk
Revenue contraction of 2.7% highlights top-line vulnerability. If demand for residential and commercial HVAC units drops further, factory utilization falls and pressures the 20.2% operating margin.
Quality, check by check
Scored against its own industry, from company filings.
Operating margin stands at 20.2% and FCF margin at 13.9%, ranking in the top quartile of its sector. Strong pricing power and manufacturing efficiency drive these margins, letting the business extract high cash flow as it scales.
A top-quartile operating margin of 20.2% and top-decile ROE of 67.0% reflect a strong dealer-distribution moat that locks in contractors through specialized training and localized service.
Revenue declined 2.7% to $5.3B over the latest period, reversing prior gains and dropping growth to the 13th sector percentile as top-line momentum fades.
Debt-to-equity sits at 1.2 with total debt of $1.4B against $35M in cash, leaving a net debt position of $1.4B. Free cash flow reached $739M, signaling solid cash conversion despite a softer balance sheet.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
No open market buys or unplanned sales by executives or directors.
Our sealed record on LII
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Lennox International scores average on the Cluenex quality check (4.8 of 10), measured against its own industry. Profitability is strong, moat fair, growth slow and financial health fair.
In the last 90 days of SEC Form 4 filings: No open market buys or unplanned sales by executives or directors.
Oct 28, 2026, before the open.
See LII today
- Today's verdict on LII, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “Lennox International (LII)”, https://cluenex.com/stocks/lii/, data as of Oct 10, 2026.