The Analyst Verdict: Lennox Intl In The Eyes Of 7 Experts

In the preceding three months, 7 analysts have released ratings for Lennox Intl LII, presenting a wide array of perspectives from bullish to bearish.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $625.14, with a high estimate of $674.00 and a low estimate of $565.00. Surpassing the previous average price target of $618.71, the current average has increased by 1.04%.

Understanding Analyst Ratings: A Comprehensive Breakdown

A clear picture of Lennox Intl's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Lennox Intl. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Lennox Intl compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of Lennox Intl's stock. This analysis reveals shifts in analysts' expectations over time.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Lennox Intl's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Lennox Intl analyst ratings.

Unveiling the Story Behind Lennox Intl

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 2024, residential HVAC was 67% of sales and commercial HVAC and Heatcraft refrigeration was 33% 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: A Financial Overview

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

Negative Revenue Trend: Examining Lennox Intl's financials over 3 months reveals challenges. As of 31 December, 2024, the company experienced a decline of approximately -10.22% in revenue growth, reflecting a decrease in 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: Lennox Intl's net margin is impressive, surpassing industry averages. With a net margin of 14.7%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Lennox Intl's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 24.65% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Lennox Intl's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 5.83%, the company showcases efficient use of assets and strong financial health.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 1.75, caution is advised due to increased financial risk.

How Are Analyst Ratings Determined?

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

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