Assessing Lennox Intl: Insights From 6 Financial Analysts

In the last three months, 6 analysts have published ratings on Lennox Intl LII, offering a diverse range of perspectives from bullish to bearish.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

Analysts have recently evaluated Lennox Intl and provided 12-month price targets. The average target is $632.5, accompanied by a high estimate of $675.00 and a low estimate of $575.00. This upward trend is apparent, with the current average reflecting a 6.36% increase from the previous average price target of $594.67.

Decoding Analyst Ratings: A Detailed Look

The standing of Lennox Intl among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Lennox Intl. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Lennox Intl compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Lennox Intl's stock. This examination reveals shifts in analysts' expectations over time.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Lennox Intl's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on Lennox Intl analyst ratings.

Discovering Lennox Intl: A Closer Look

Lennox International manufactures and distributes heating, ventilating, air conditioning, and refrigeration products to replacement (75% of sales) and new construction (25% of sales) markets. In fiscal 2023, residential HVAC was 68% of sales and commercial HVAC and Heatcraft refrigeration was 32% of sales. The company goes to market with multiple brands, but Lennox is the company's flagship HVAC brand. The Texas-based company is focused on North America after the sale of its European HVAC and refrigeration businesses in late 2023.

Lennox Intl: Financial Performance Dissected

Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.

Revenue Growth: Lennox Intl's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately 2.81%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 16.95%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Lennox Intl's ROE stands out, surpassing industry averages. With an impressive ROE of 51.98%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 7.92%, the company showcases effective utilization of assets.

Debt Management: Lennox Intl's debt-to-equity ratio stands notably higher than the industry average, reaching 2.72. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

How Are Analyst Ratings Determined?

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.