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

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.

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 exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 51.33% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
• With a Debt/Free Cash Flow Ratio of 1.63, 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 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.

Zooming in on the fundamentals.

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

Taking everything into account, LII scores 6 out of 10 in our fundamental rating. LII was compared to 41 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.

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

More quality stocks can be found 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.