Should Quality Investors Include NYSE:LII in Their Portfolio?

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if LENNOX INTERNATIONAL INC (NYSE:LII) is suited for quality investing. Investors should of course do their own research, but we spotted LENNOX INTERNATIONAL INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Highlighting Notable Quality Metrics of NYSE:LII.

• LENNOX INTERNATIONAL INC has achieved substantial revenue growth over the past 5 years, with a 5.11% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
• With a notable ROIC excluding cash and goodwill at 36.09%, LENNOX INTERNATIONAL INC demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
• With a Debt/Free Cash Flow Ratio of 2.6, LENNOX INTERNATIONAL INC exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
• With a robust Profit Quality (5-year) ratio of 86.37%, LENNOX INTERNATIONAL INC highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
• The 5-year EBIT growth of LENNOX INTERNATIONAL INC has been remarkable, with 10.07% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
• LENNOX INTERNATIONAL INC demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

Fundamental analysis of NYSE:LII

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

Overall LII gets a fundamental rating of 5 out of 10. We evaluated LII against 42 industry peers in the Building Products industry. LII scores excellent on profitability, but there are some minor concerns on its financial health. LII is quite expensive at the moment. It does show a decent growth rate.

Our latest full fundamental report of LII contains the most current fundamental analsysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.