Lennox International Inc. logo LII - Lennox International Inc.

Price: -- -- | CONSENSUS: Hold DETAILS
STRONG
BUY
0
BUY 10
HOLD 16
SELL 4
STRONG
SELL
0
| PRICE TARGET: $564.00 DETAILS
HIGH: $650.00
LOW: $469.00
MEDIAN: $550.00
CONSENSUS: $564.00
UPSIDE: 40.00%
AlphaQuality

AlphaQuality

Quantitative six-pillar business-quality grade

Platform & Compounding FCF

AlphaQuality — archetype-weighted quantitative grade

A- 85.0 / 100 composite

Composite Grade

Composite of six pillars weighted for platform & compounding fcf businesses. Purely quantitative — the six pillars score only reported financials, no analyst input.

Profitability

Weight: 25%
A+ 98.4
  • 5yr Avg ROIC 34.3% 100/100
  • Operating Margin Trend +1.64 pp/yr 95/100
Contributes 24.6 pts toward composite.

Capital Efficiency

Weight: 15%
A+ 95.3
  • 5yr Avg ROE 123.1% 100/100
  • 5yr Share-Count CAGR -1.9% 87/100
Contributes 14.3 pts toward composite.

Growth Quality

Weight: 25%
A- 81.3
  • 5yr Revenue CAGR 7.4% 72/100
  • 5yr EPS CAGR 19.2% 94/100
  • Revenue-Growth Years (5) 4/5 80/100
Contributes 20.3 pts toward composite.

Cash Generation

Weight: 20%
B 73.5
  • 5yr FCF Margin 10.1% 70/100
  • 5yr FCF/NI Conversion 0.78x 77/100
Contributes 14.7 pts toward composite.

Balance Sheet

Weight: 10%
A 87.7
  • Net Debt / EBITDA 1.82x 73/100
  • Interest Coverage (EBIT/Int) 24.74x 100/100
  • Altman Z-Score 6.84 100/100
Contributes 8.8 pts toward composite.

Stability

Weight: 5%
C- 46.6
  • EPS Volatility (σ/μ) 0.51 29/100
  • Negative-Revenue Years (5) 1/5 80/100
  • Piotroski F-Score 4 44/100
Contributes 2.3 pts toward composite.

Guru Flow

Curated superinvestor sentiment — not part of the AlphaQuality grade.
Accumulating

4 of 4 gurus held; 4 added; 1 full exit.

Holders
4
Avg Δ position
+394.6%
New buys
0
Full exits
1
As of Q2 2026
How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

  • Profitability (25%) — 5yr Avg ROIC, Operating Margin Trend
  • Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
  • Growth Quality (25%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
  • Cash Generation (20%) — 5yr FCF Margin, 5yr FCF/NI Conversion
  • Balance Sheet (10%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
  • Stability (5%) — EPS Volatility (σ/μ), Negative-Revenue Years (5), Piotroski F-Score

The six pillars read only reported financial-statement fields — no analyst targets or consensus ratings. The archetype that picks which pillar formulas apply is not fully price-free, though: it can route a company to the distressed/ungradable archetype based on price vs. its 52-week high, and beta affects one classification check. A minimum of 5 fiscal years of audited statements is required. Insurers and banks are graded on their own methodology — insurers on loss ratio, its trend and stability, and premiums-to-surplus; banks on the efficiency ratio, its trend and stability, and equity-to-assets — rather than on industrial margin/ROIC signals. Distressed, highly leveraged infrastructure, asset-manager, and other financial businesses are declared ungradable rather than forced into a numeric score.