Lennox International designs, manufactures, and markets climate control products for the heating, ventilation, air conditioning, and refrigeration markets. The company operates in three segments: Residential Heating & Cooling, Commercial Heating & Cooling, and Refrigeration. The company was founded in 1895 and is based in Richardson, Texas.
LII Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Lennox International Inc. To summarize, we found that Lennox International Inc ranked in the 69th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. The most interesting components of our discounted cash flow analysis for Lennox International Inc ended up being:
LII's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 34.22% of tickers in our DCF set.
Lennox International Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 14.75. This coverage rate is greater than that of 82.58% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Relative to other stocks in its sector (Industrials), Lennox International Inc has a reliance on debt greater than just 23.36% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Lennox International Inc? See AIT, ICFI, ACY, FELE, and KBR.
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MINNEAPOLIS, Dec. 16, 2020 /PRNewswire/ -- FPX, the leading provider of Lead-to-Order Selling Solutions for Mechanical Equipment Providers, announces its partnership and successful implementation with Lennox International providing its Selling Cloud to quote and sell their HVAC products…
DALLAS, Dec. 11, 2020 /PRNewswire/ -- The board of directors of Lennox International Inc. (NYSE: LII) voted to declare a quarterly cash dividend of $0.77 per share of common stock. The dividend is payable on January 15, 2021, to stockholders of record as of December 31, 2020. The company…