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:
Below please find a table outlining a discounted cash flow forecast for LII, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Lennox International Inc ranked in the 44th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. The most interesting components of our discounted cash flow analysis for Lennox International Inc ended up being:
As a business, LII is generating more cash flow than 72.49% of positive cash flow stocks in the Industrials.
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 30.38% 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 10.97. This coverage rate is greater than that of 77.95% of stocks we're observing for the purpose of forecasting via discounted cash flows.
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 LMT, GWW, NOC, RBA, and AME.
Raising the bar on its Ultimate Comfort System, Lennox Industries, a division of Lennox International ([[LII]] +2.7%), launched a 99% efficient SLP99V gas furnace with enhanced diagnostics, and a new Lennox PROs Service Dashboard for contractors to improve customer relationship management and remote service capabilities. Not only is annual fuel utilization efficiency a...
Lennox Industries, a trusted HVAC brand for 125 years, is raising the bar on its Ultimate Comfort System by unveiling a 99 percent efficient gas furnace with enhanced diagnostics, and a new Lennox PROs Service Dashboard for contractors to improve customer relationship management and remote service capabilities.
The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. Insider Monkey finished processing 821 13F filings submitted by hedge funds and prominent investors. These filings show these funds' portfolio positions as of March 31st, 2020. […]