NAS10027,087+1.72%S&P7,401+0.65%GOLD$4,073−1.00%BTC$75,828−0.15%VIX24.55−12.88%latest tape · as of 20:03 UTC
The Screen · Industrials · Building Products & Equipment
Lennox International
LII · a US exchange · USD · Market cap $11.8B · 5,400 employees
Lennox International Inc., together with its subsidiaries, designs, manufactures, and markets products for the heating, ventilation, air conditioning, and refrigeration markets in the United States, Canada, and internationally.
FAIL · Does not pass the screen
348.79 USD
Price as of 5 Nov 2026Daily close, not a live quote
Screened 2026-11-05 · the tape above runs as of 20:03 UTC · two dates, stated on purpose · verdict and workings shown in full · never trimmed
Key facts today
Price348.79 USD at the 5 Nov 2026 close
Our value readOvervalued vs our fair value, as of 5 Nov 2026
Positioning political selling, disclosed 2026-09-11
Options put/call open interest 2.62, read 2026-11-03
Ethical does not pass the values gate
Price348.79 USD
Fair value279.84
Ethical score10.0/100
Value readOvervaluedas of 5 Nov 2026
Our investment reviews on this name
2026-11-04Read Distribution346.49+0.7% to today Accumulation gives way to Distribution
2026-10-26Read Accumulation357.73-2.5% to today Markdown gives way to Accumulation
2026-10-22Read Markdown357.73-2.5% to today ✓Accumulation gives way to Markdown first Markdown read since October
2026-10-17Read Accumulation357.73-2.5% to today Markdown gives way to Accumulation after an 11% slide in 6 weeks
Our analytic regime reads on this name, dated and marked against the screened price. Small sample per name, and separate from the daily-framework accuracy on the Track Record page.
Lennox International holds its Distribution at $348.79. The statistical read favours the buyers, held for 2 days.
As held on the ledger · 2026-11-05
Phase
Distribution · caution
Quantitative state
The statistical read favours the buyers, held for 2 days
Price at the screen
$348.79
Valuation
15.56 trailing · 14.56 forward price to earnings
Values screen
FAIL· score 10.0
Beta
1.16
The Workings
Five Screens, Shown in Full
Does not pass. Debt ratio
Test
Figure
Limit
What it means
Status
Business activity
Permissible
Core business clean
Its core business isn't built on prohibited lines: no gambling, alcohol, tobacco, weapons, or interest-based lending.
Pass
Debt load
43.38%
Below 33%
Interest-bearing debt is 43.4% of its assets, above the one-third ceiling the screen allows.
Fail
Interest-bearing cash
0.01%
Below 33%
Cash held in interest-bearing accounts and securities is 0.0% of assets, under the one-third limit.
Pass
Receivables
15.02%
Below 49%
Money owed to the company is 15.0% of assets, under the 49% limit.
Pass
Revenue purity
0.11%
Below 5%
Only 0.1% of revenue comes from non-compliant sources, under the 5% line.
Pass
Five checks adapted from AAOIFI screening standards: business activity plus four balance-sheet ratios. All five must pass for ethical clearance. Every figure is arithmetic on public accounts, not judgement.
The Ethical Read
Why It Falls Short, in Plain English
Lennox International's business is in a permissible area, but its interest-bearing debt is about 43% of the company, well over the ~33% line, so it does not pass on the financial screens.
Read as at 2026-11-05. It updates when the underlying figures move, and past reads are kept below.
Follow this verdict
Get an email when LII's ethical verdict changes
Today LII does not pass the screen. If new figures move it to a pass, we send you one short email with the before and after. Verdicts change rarely, so you may not hear from us for a long time.
Free, no account needed. Every email has a link to stop.
What the Numbers Say It Is Worth
The Fair Value Range
Our analysis reads Overvalued vs our fair value, as of 5 Nov 2026: it trades above our $279.84 fair value estimate, moderate competitive moat, 10.20% revenue growth.
Fair value range in USD, drawn from the 2026-11-05 screen. The gold marker is the market price at the same screen. The price runs 24.6% above the base estimate.
Where our models see it going: fair-value estimate $279.84, with a range of $279.84 to $321.82, dated to the 2026-11-05 screen.
Fair value and rating are our own model estimates; the Street's range reflects third-party analyst estimates. Analysis, not advice.
The Business, in Plain Words
Home comfort leader priced beyond its reach
When a heatwave strikes or winter bites, Lennox equipment keeps homes liveable across North America. Yet the shares sit 27 percent above our fair value at a forward multiple of 20 times earnings, and the business fails our ethical screen on its debt ratio. We pass.
Revenue growth of 6 percent and 15 percent profit margins support a 77 percent ROE, but the moderate moat and premium valuation leave no cushion. In cyclical building products, strong returns often signal peak conditions rather than a bargain, and nothing in the numbers suggests the cycle has been tamed.
Analysts still cluster around a higher target, yet that optimism ignores both the debt flag and the trap that appears when multiples stay elevated while demand normalises. Analysis, not advice.
Another profit measure, before interest, tax and non-cash costs: EBITDA.
The risks · The things to watch: it carries a real debt load, which raises the stakes if revenue slips.
Plain-English interpretation of our own screen data. Analysis, not advice.
Where & How to Trade
LII trades on a US exchange. As a listed security it is accessible through almost any international broker offering its home market. New to this, or investing from abroad? Our guide to accessing global markets covers brokers, currencies and the practical steps.
The framework has shifted from accumulation to distribution since the last review. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 3.1% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows negative risk-adjusted returns. Our composite framework grades it C, carrying a low risk profile. Technically it is sitting below its long-term trend line with momentum reading bullish. Over the past year the shares are down 7%. Our forward projection puts the odds of a 10% gain over the next month near 20%. The street (16 analysts) rates it none, with a mean price target of $567.
2026-10-28Accumulation$357.73+0.0%Entry 15
The analysis reads accumulation. Smart money appears to be quietly building positions. This typically precedes a markup phase. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows negative risk-adjusted returns. Our composite framework grades it C, carrying a low risk profile. Technically it is sitting below its long-term trend line with momentum reading bullish. Over the past year the shares are down 7%. Our forward projection puts the odds of a 10% gain over the next month near 20%. The street (16 analysts) rates it none, with a mean price target of $567. It reported earnings in this window, a natural checkpoint for the thesis.
2026-10-27Accumulation$357.73+0.0%Entry 14
The analysis reads accumulation. Smart money appears to be quietly building positions. This typically precedes a markup phase. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows negative risk-adjusted returns. Our composite framework grades it C, carrying a low risk profile. Technically it is sitting below its long-term trend line with momentum reading bullish. Over the past year the shares are down 7%. Our forward projection puts the odds of a 10% gain over the next month near 20%. The street (16 analysts) rates it none, with a mean price target of $567. It reported earnings in this window, a natural checkpoint for the thesis.
The framework has shifted from markdown to accumulation since the last review. Smart money appears to be quietly building positions. This typically precedes a markup phase. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows negative risk-adjusted returns. Our composite framework grades it C, carrying a low risk profile. Technically it is sitting below its long-term trend line with momentum reading bullish. Over the past year the shares are down 7%. Our forward projection puts the odds of a 10% gain over the next month near 20%. The street (16 analysts) rates it none, with a mean price target of $567. It reported earnings in this window, a natural checkpoint for the thesis.
2026-10-25Markdown$357.73+0.0%Entry 12
The analysis reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows negative risk-adjusted returns. Our composite framework grades it C, carrying a low risk profile. Technically it is sitting below its long-term trend line with momentum reading neutral. Over the past year the shares are down 7%. Our forward projection puts the odds of a 10% gain over the next month near 20%. The street (16 analysts) rates it none, with a mean price target of $567. It reported earnings in this window, a natural checkpoint for the thesis.
2026-10-24Markdown$357.73+0.0%Entry 11
The analysis reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows negative risk-adjusted returns. Our composite framework grades it C, carrying a low risk profile. Technically it is sitting below its long-term trend line with momentum reading neutral. Over the past year the shares are down 7%. Our forward projection puts the odds of a 10% gain over the next month near 20%. The street (16 analysts) rates it none, with a mean price target of $567. It reported earnings in this window, a natural checkpoint for the thesis.
2026-10-23Markdown$357.73+0.0%Entry 10
The analysis reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows negative risk-adjusted returns. Our composite framework grades it C, carrying a low risk profile. Technically it is sitting below its long-term trend line with momentum reading neutral. Over the past year the shares are down 7%. Our forward projection puts the odds of a 10% gain over the next month near 20%. The street (16 analysts) rates it none, with a mean price target of $567. It reported earnings in this window, a natural checkpoint for the thesis.
2026-10-22Markdown · changed$357.73+0.0%Entry 9
The framework has shifted from accumulation to markdown since the last review. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows negative risk-adjusted returns. Our composite framework grades it C, carrying a low risk profile. Technically it is sitting below its long-term trend line with momentum reading neutral. Over the past year the shares are down 7%. Our forward projection puts the odds of a 10% gain over the next month near 20%. The street (16 analysts) rates it none, with a mean price target of $567. It reported earnings in this window, a natural checkpoint for the thesis.
2026-10-21Accumulation$357.73+0.0%Entry 8
The analysis reads accumulation. Smart money appears to be quietly building positions. This typically precedes a markup phase. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows negative risk-adjusted returns. Our composite framework grades it C, carrying a low risk profile. Technically it is sitting below its long-term trend line with momentum reading neutral. Over the past year the shares are down 7%. Our forward projection puts the odds of a 10% gain over the next month near 20%. The street (16 analysts) rates it none, with a mean price target of $567. It reported earnings in this window, a natural checkpoint for the thesis.
The framework has shifted from markdown to accumulation since the last review. Smart money appears to be quietly building positions. This typically precedes a markup phase. Price has moved down 2.9% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows negative risk-adjusted returns. Our composite framework grades it D, carrying a low risk profile. Technically it is sitting below its long-term trend line with momentum reading neutral. Over the past year the shares are down 7%. Our forward projection puts the odds of a 10% gain over the next month near 20%. The street (16 analysts) rates it none, with a mean price target of $567.
Each entry above was written on its date, before the outcome. A journal you can prune is not a journal.
