Key Drivers
- High margins
- Substantial FCF
- Elevated leverage
AIAI Summary
Lennox is shifting from a cyclical volume HVAC maker toward a higher‑margin, cash‑generative aftermarket/JV/M&A platform—so the investment now hinges on execution: inventory‑driven free‑cash‑flow normalization and consistent margin beats are the single make‑or‑break metrics.
Price Chart
Financial Metrics
Deep Analysis
Research tool. Not personalized advice.
Fundamental Analysis
Key Financial Insights:
- •High margins
- •Substantial FCF
- •Elevated leverage
LII delivers outstanding margins and cash generation with very high ROIC/ROE, but elevated leverage, inventory-heavy working capital and rich valuation increase risk.
Price Behavior
Key Price Behavior Insights:
- •Downtrend confirmed
- •Nearby congestion
- •Strong upper resistance
LII is in a short-term downtrend, trading ~16–17% below its late‑Feb level and well under its last-month average, with nearby congestion (~$508) offering limited mean‑reversion resistance and stronger supply expected in the $550–$566 zone.
~16–17% drop from $561.01 (2026-02-20) to $467.88 (2026-03-20) indicating accelerated selling
Sentiment & News
Key News Insights:
- •Water-heater JV
- •Guidance reaffirmed
- •Dividend approved
Lennox launched a JV with Ariston to enter North American residential water heating, reaffirmed 2026 guidance and long-term targets, approved a quarterly dividend, and saw a modest institutional stake reduction.
The JV and sustained guidance signal product-led growth with steady cash returns, supporting a constructive near- to medium-term outlook for LII shares
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