Is NYSE:LII a Suitable Choice for Quality Investing?

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.

A Deep Dive into LENNOX INTERNATIONAL INC's Quality Metrics.

• The 5-year revenue growth of LENNOX INTERNATIONAL INC has been remarkable, with 5.11% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
• With a robust ROIC excluding cash and goodwill at 36.09%, LENNOX INTERNATIONAL INC showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
• 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.
• LENNOX INTERNATIONAL INC demonstrates consistent Profit Quality over the past 5 years, with a strong 86.37%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
• LENNOX INTERNATIONAL INC has consistently achieved strong EBIT growth over the past 5 years, with a 10.07% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• 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.

A complete fundamental analysis of NYSE:LII

As part of its analysis, ChartMill provides a comprehensive Fundamental Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various fundamental indicators and properties.

LII gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 40 industry peers in the Building Products industry. While LII belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. LII is quite expensive at the moment. It does show a decent growth rate.

For an up to date full fundamental analysis you can check the fundamental report of LII

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.