Why LENNOX INTERNATIONAL INC (NYSE:LII) should be investigated by quality investors.

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.

Some of the quality metrics of NYSE:LII highlighted

• 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.
• LENNOX INTERNATIONAL INC demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 51.33% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
• The Debt/Free Cash Flow Ratio of LENNOX INTERNATIONAL INC stands at 1.63, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
• 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 has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

Fundamental Analysis Observations

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.

Overall LII gets a fundamental rating of 6 out of 10. We evaluated LII against 39 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.

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

Keep in mind

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.