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Lennox International (LII) Stock Analysis

Industrials Updated August 23, 2026
$402.80
52W $402.44 – $590.99
49/100
$13.92B
18.2
1.20
AI Committee Verdict
Watch
49/100
Conviction: Contested · 50% agreement · 6 analysts
+36.8%
Contested

Is LII Bullish or Bearish?

Mixed. Innellis AI committee rates Lennox International (LII) Watch with a composite score of 49/100 , based on 6 analysts with 50% agreement. Last updated August 23, 2026.

What Would Change This View

Upgrade to Buy
Requires a committee score of 60.0 — +11.04 from today. Applies on the first day at or above the line; upgrades are never dampened.
Downgrade to Reduce
Requires the score to fall below 40.0 — -8.96 from today. The band boundary is 45.0, but a one-step downgrade must clear a further margin first. A score oscillating around the line should not change the rating every night.

Executive Summary

The committee is genuinely divided. Macro Analyst sees a compelling case. Risk Analyst remains cautious — bollinger bandwidth of 36.1% signals elevated volatility. This disagreement is itself the signal — the setup is not clean in either direction.

Bull & Bear Case

Bull Case
  • ROE of 67.0% shows genuine earnings power backing the valuation — Value
  • Quarter-over-quarter growth rate is ACCELERATING, not just positive — Growth
  • Weekly trend (downtrend) confirms the daily trend -- multi-timeframe agreement — Technical
Bear Case
  • Price-to-book of 14.6x prices in significant intangible value — Value
  • Revenue declining -2.1% YoY -- this is not a growth story right now — Growth
  • EPS declining -3.0% YoY despite any revenue growth — Growth
  • Price structure making lower highs and lower lows — Technical
  • RSI at 28 is in oversold territory (could mean either capitulation or a bounce setup) — Technical
  • MACD histogram negative -- bearish momentum — Technical
Both cases are generated from quantitative data signals, not qualitative or forward-looking judgement. They summarise what the numbers say today.
Price History (6M)

AI Investment Committee

Committee Consensus As of August 23, 2026
Overall Committee Score
49/100
Agreement
50%
Analysts
6
Conviction
Contested
Sector Rank
Top 94%
of 226 Industrials peers
Value Analyst neutral
55 / 100 · Moderate confidence
Fair value -- neither a bargain nor obviously overpriced
+ ROE of 67.0% shows genuine earnings power backing the valuation
− Price-to-book of 14.6x prices in significant intangible value
Growth Analyst bearish
40 / 100 · High confidence
Growth story is weak, decelerating, or inconsistent
+ Quarter-over-quarter growth rate is ACCELERATING, not just positive
− Revenue declining -2.1% YoY -- this is not a growth story right now
Technical Analyst neutral
41 / 100 · High confidence
Mixed or range-bound price action
+ Weekly trend (downtrend) confirms the daily trend -- multi-timeframe agreement
− Price structure making lower highs and lower lows
Risk Analyst bearish
35 / 100 · Low confidence
Elevated risk from leverage, volatility, event exposure, or portfolio concentration -- size accordingly
− Bollinger bandwidth of 36.1% signals elevated volatility
Macro Analyst bullish
65 / 100 · Low confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
News Analyst neutral
58 / 100 · Low confidence
News flow is mixed or quiet -- no strong signal either way right now
Portfolio Manager neutral
45 / 100 · High confidence
Portfolio-level factors are mixed -- worth a deliberate sizing decision, not a default-size position
+ Portfolio position concentration is currently healthy
− Sector concentration is already high (HHI 3069.37)
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Investment Thesis Evolution

Committee score moved marginally from 49.0 to 49.0.

Comparing 2026-08-22 to 2026-08-23 (1 day apart).

Technical Analysis

RSI (14)
27.6
Oversold
MACD Histogram
-0.038
Bearish Momentum
Trend Direction
Downtrend
Weekly: Downtrend
Market Structure
Mixed
Bollinger %B
0.29
Inside Bands
Price vs Moving Averages
EMA 9
$417.23 Below
EMA 21
$442.29 Below
EMA 50
$477.03 Below
EMA 200
$508.79 Below

Fundamental Analysis

Valuation
62
Growth
64
Profitability
76
Financial Health
56
Cash Flow
70
Valuation
P/E Ratio 18.2×
P/B Ratio 10.78×
PEG Ratio -3.21
Dividend Yield 1.31%
52W High $590.99
52W Low $402.44
Quality & Growth
ROE 6759.5%
ROA 1926.1%
Gross Margin 3310.1%
Operating Margin 1937.1%
Revenue Growth YoY
Debt / Equity 1.56
AI Fundamental Assessment
P/E ratio of 18.2 (inexpensive relative to a 15-40x range); Price-to-book of 10.8x; PEG ratio of -3.2 (under 1.0 suggests growth is undervalued relative to price); Return on equity of 67.6%; Return on assets of 19.3%; Net margin of 14.6%; Gross margin of 33.1%; Current ratio of 1.57 (healthy short-term liquidity); Debt-to-equity of 1.56; Free cash flow per share is positive (21.29); Most recent quarter missed estimates by 0.5%; EPS growth accelerating (-24.7% -> +130.4% QoQ); Average YoY EPS growth of -1.3%; Analyst estimates rising over recent quarters
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