Assessing Lennox International (LII) Valuation As Recent Returns Diverge From Discounted Cash Flow Estimates

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Jan 15

AdvertisementWhy Lennox International Is On Investors’ Radar Today Lennox International (LII) has caught attention after recent share performance, with the stock showing mixed returns across different...

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The 1 year total shareholder...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"AI":"C3.ai, Inc.","BK4086":"建筑产品","DCF":"Dreyfus Alcentra Global Credit Income 2024 Target Term Fund, Inc","LII":"雷诺士"},"translate_title":"由于近期回报与贴现现金流估计不同，评估Lennox International(LII)的估值","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"LII":1.5,"AI":0.6,"DCF":1},"content_text":"AdvertisementWhy Lennox International Is On Investors’ Radar Today Lennox International (LII) has caught attention after recent share performance, with the stock showing mixed returns across different periods and a last close of US$531 that some investors are reassessing. See our latest analysis for Lennox International. Recent price moves at Lennox International have been relatively steady, with a 4.99% 1 month share price return and a 6.43% year to date share price return. The 1 year total shareholder return of 14.59% suggests momentum has cooled compared with the strong 3 and 5 year total shareholder returns of 116.71% and 99.97%. If you are weighing up Lennox International alongside other industrial names, this can be a good moment to see how it compares with aerospace and defense stocks. With Lennox shares around US$531, recent returns look mixed and the stock trades at a discount to the average analyst price target. The key question for you is whether there is real value here or if the market is already pricing in future growth. Most Popular Narrative: 6.7% Undervalued With Lennox International last closing at US$531 against a narrative fair value of about US$568.93, the current setup focuses squarely on future earnings power and capital returns.  Investments in digital platforms, AI-based pricing tools, and proprietary data analytics are enabling Lennox to optimize pricing, streamline dealer interactions, and maintain premium pricing power, supporting higher net margins and recurring revenue as digital adoption in the HVAC market accelerates.  Read the complete narrative. Curious what has to happen for this valuation to add up? Revenue growth, fatter margins, and a richer earnings multiple all sit at the heart of the story. Want to see how those pieces fit together and what that implies for future earnings per share and share count? The full narrative lays out the math behind that fair value line by line. Result: Fair Value of $568.93 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, softer 2025 revenue guidance and the risk that higher input costs are not fully passed through to customers could quickly challenge this undervalued narrative. Find out about the key risks to this Lennox International narrative. Another Angle On Valuation That 6.7% undervalued fair value narrative sits awkwardly next to our SWS DCF model, which points to a fair value of about US$402.93 per share. With Lennox trading around US$531, the DCF view frames the stock as expensive rather than cheap. This raises a key question: which story do you trust more? Look into how the SWS DCF model arrives at its fair value. LII Discounted Cash Flow as at Jan 2026Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Lennox International for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 886 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.  Build Your Own Lennox International Narrative If this framework does not quite fit how you see Lennox, you can pull the same data, test your own assumptions, and build a custom view in just a few minutes with Do it your way. A great starting point for your Lennox International research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision. Looking for more investment ideas? If Lennox has you thinking more broadly about your portfolio, this can be a moment to scan for other opportunities before the market moves on without you.  Spot potential trades early by checking out these 3532 penny stocks with strong financials that pair smaller share prices with stronger financials. Focus on the AI theme by reviewing these 25 AI penny stocks that connect artificial intelligence themes to listed businesses. Target value opportunities with discipline by scanning these 886 undervalued stocks based on cash flows that look for prices below estimated cash-flow-based worth.   This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: AI Stock Screener & AlertsOur new AI Stock Screener scans the market every day to uncover opportunities.• Dividend Powerhouses (3%+ Yield)• Undervalued Small Caps with Insider Buying• High growth Tech and AI CompaniesOr build your own from over 50 metrics.Explore Now for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"}}}