---
title: Lennox International (LII) — intrinsic value and fair price
canonical: https://sweetvaluelab.com/stocks/lii
ticker: LII
as_of: 2026-10-17
sector: Industrials
industry: Industrial - Machinery
---
# Lennox International (LII)

Lennox International (LII) closed at $357.73 on Oct 16, 2026, overvalued by 10% vs its model value of $326.19 (from a five-year discounted cash flow).

## Key figures

| Figure | Value |
| --- | ---: |
| Last close | $357.73 (Oct 16, 2026) |
| Model value (from a five-year discounted cash flow) | $326.19 |
| Price vs model | overvalued by 10% vs model |
| Range of that model | $217.53 – $641.74 |
| Market value | $12.4B |
| P/E (fiscal 2025) | 15.7 |
| Net margin (fiscal 2025) | 15.1% |
| Free cash flow (fiscal 2025) | $638.8M |
| Dividend yield (trailing twelve months) | 1.49% |
| Beta | 1.16 |
| Cost of capital (WACC) | 9.12% |
| Business classification | Mature & Stable (Low/slowing growth (~2% recent), Moderate margins (16% net margin), Pays dividends, Moderately volatile earnings, Strong FCF yield (5.2%)) |

## On the stock lists

| List | Place | Figure | Page |
| --- | ---: | ---: | --- |
| Near 52-week lows | #11 | +2.5% | https://sweetvaluelab.com/lists/near-52-week-lows |
| Worst performing this year | #45 | −26.3% | https://sweetvaluelab.com/lists/worst-performing-this-year |

## Dividends

| Figure | Value |
| --- | ---: |
| Trailing dividend yield | 1.49% |
| Dividends per share, last 12 months | $5.32 |
| Dividends / free cash flow (fiscal 2025) | 27.1% |
| Raised | 16 years in a row |
| Growth over 5 years | 9.5% a year |
| Latest payment | $1.36, ex-date Sep 30, 2026, paid Oct 15, 2026 |

| Year of payments | Dividends per share |
| --- | ---: |
| To Sep 29, 2021 | $3.38 |
| To Aug 30, 2022 | $3.96 |
| To Aug 30, 2023 | $4.32 |
| To Sep 30, 2024 | $4.50 |
| To Sep 30, 2025 | $4.90 |
| Trailing twelve months (to Sep 30, 2026) | $5.32 |

## Valuation models

Each model's value per share and the role the engine gave it for this business. The headline above is one model's value; every other model is listed with its own, and each has a page of its own under the valuation. Computed Oct 17, 2026.

| Model | Role | Value per share | Low | High |
| --- | --- | ---: | ---: | ---: |
| DCF · Perpetuity growth · 5y | primary | $326.19 | $217.53 | $641.74 |
| DCF · Perpetuity growth · 10y | cross check | $327.49 | $226.24 | $615.10 |
| DCF · EBITDA exit · 5y | cross check | $549.56 | $411.88 | $710.81 |
| DCF · EBITDA exit · 10y | cross check | $492.07 | $357.17 | $669.54 |
| P/E · peers | cross check | $602.05 | $360.89 | $843.22 |
| P/E · own history | cross check | $555.90 | $470.75 | $646.07 |
| PEG | sanity check | $196.04 | $196.04 | $196.04 |
| EV/EBITDA · peers | cross check | $463.18 | $307.50 | $618.87 |
| EV/Revenue · peers | cross check | $370.28 | $292.43 | $448.13 |
| Earnings power value | cross check | $99.94 | $80.42 | $127.15 |
| Dividend discount | cross check | $101.28 | $71.33 | $158.64 |

## Insider activity (SEC Form 4)

No open-market insider buys or sales filed in the past 90 days.

| Date | Insider | Relationship | Transaction | Shares | Value |
| --- | --- | --- | --- | ---: | ---: |
| Aug 6, 2026 | NORRIS JOHN W III | Director | Bona fide gift | 8,988 | $0 |
| May 28, 2026 | NORRIS JOHN W III | Director | Bona fide gift | 990 | $0 |
| May 26, 2026 | Somasundaram Sivasankaran | Director | Disposition to issuer | 343 | $0 |
| May 21, 2026 | Buck Sherry | Director | Grant / award | 343 | $0 |
| May 21, 2026 | Quintos Karen H | Director | Grant / award | 343 | $0 |

## Recent SEC filings

| Filed | Form | What | Filing |
| --- | --- | --- | --- |
| Sep 18, 2026 | 8-K | 5.02 Departure/Election of Directors or Officers; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/1069202/000106920226000091/lii-20260916.htm |
| Jul 29, 2026 | 10-Q | Quarterly report | https://www.sec.gov/Archives/edgar/data/1069202/000106920226000087/lii-20260630.htm |
| Jul 29, 2026 | 8-K | 2.02 Results of Operations (Earnings); 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/1069202/000106920226000085/lii-20260729.htm |
| May 28, 2026 | 8-K | 5.02 Departure/Election of Directors or Officers; 5.07 Submission of Matters to a Shareholder Vote | https://www.sec.gov/Archives/edgar/data/1069202/000106920226000076/lii-20260521.htm |
| Apr 29, 2026 | 10-Q | Quarterly report | https://www.sec.gov/Archives/edgar/data/1069202/000106920226000054/lii-20260331.htm |

## Superinvestors holding it (latest 13F)

| Manager | Quarter | Shares | Value |
| --- | --- | ---: | ---: |
| Viking Global | 2026-06-30 | 1,590,959 | $911.5M |
| Bridgewater | 2026-06-30 | 63,229 | $36.2M |

2 tracked managers in all.

## About

Lennox International Inc. is a global manufacturer and distributor specializing in heating, ventilation, air conditioning (HVAC), and refrigeration solutions. The company operates across three divisions: Residential Heating & Cooling, Commercial Heating & Cooling, and Refrigeration. Its Residential Heating & Cooling division supplies homeowners with systems like furnaces, air conditioners, and heat pumps, along with indoor air quality products, comfort controls, and replacement components, catering to both new construction and existing residential upgrades. The Commercial Heating & Cooling division serves the light commercial sector, providing unitary HVAC equipment, advanced applied systems, control technologies, and comprehensive installation and maintenance services, including variable refrigerant flow solutions. Lastly, the Refrigeration division delivers essential components such as…

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Source: https://sweetvaluelab.com/stocks/lii (SweetValueLab, free, no account). Prices and statements from Financial Modeling Prep; filings from SEC EDGAR. Research and educational data, not investment advice; nothing here is a recommendation to buy, sell or hold any security.