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Examining the Quality Attributes of NYSE:LII.

By Mill Chart

Last update: Sep 3, 2024

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.

Why NYSE:LII may be interesting for quality investors.

  • Over the past 5 years, LENNOX INTERNATIONAL INC has experienced impressive revenue growth, with 5.11% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
  • LENNOX INTERNATIONAL INC demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 35.5% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
  • LENNOX INTERNATIONAL INC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 2.33, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
  • 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 experienced impressive EBIT growth over the past 5 years, with 10.07% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
  • LENNOX INTERNATIONAL INC has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

What is the full fundamental picture of NYSE:LII telling us.

ChartMill employs a sophisticated system to assign a Fundamental Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple fundamental indicators and properties.

Overall LII gets a fundamental rating of 6 out of 10. We evaluated LII against 40 industry peers in the Building Products industry. While LII has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, LII is valued expensive at the moment.

Check the latest full fundamental report of LII for a complete fundamental analysis.

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

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

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