Is LENNOX INTERNATIONAL INC (NYSE:LII) a Strong Candidate for Quality Investing?

In this article we will dive into LENNOX INTERNATIONAL INC (NYSE:LII) as a possible candidate for quality investing. Investors should always do their own research, but we noticed LENNOX INTERNATIONAL INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

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

• 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.
• The ROIC excluding cash and goodwill of LENNOX INTERNATIONAL INC stands at 35.5%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
• LENNOX INTERNATIONAL INC maintains a healthy Debt/Free Cash Flow Ratio of 2.33, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
• With a favorable Profit Quality (5-year) ratio of 86.37%, LENNOX INTERNATIONAL INC showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
• LENNOX INTERNATIONAL INC has demonstrated consistent growth in EBIT over the past 5 years, with a strong 10.07%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
• With EBIT 5-year growth outpacing its Revenue 5-year growth, LENNOX INTERNATIONAL INC showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

What else is there to say on the fundamentals of NYSE:LII?

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.

LII gets a fundamental rating of 6 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 valied quite expensively at the moment, while it does show a decent growth rate.

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

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

Disclaimer

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.