Lennox International Inc. (LII): one to watch?

Cheap-looking but a real, ongoing residential demand slump is behind this drop — worth watching, not a screaming buy yet.

👀 WATCH Fundamentals59/100

Fell 23% in 11 trading day(s) — now $423.28

Why LII dropped

Lennox cut its full-year 2026 profit guidance to $23-$24/share (from $23.50-$25) after Q2 revenue missed due to a 7% sales decline (12% unit volume drop) in its residential HVAC segment, even though its commercial segment grew 24%; the stock fell ~20% in one day (largest since 2001) and has drifted lower since, as management said the residential recovery now likely slips into 2027.

Fwd P/E 16.1Op margin 22.9%Rev growth 3.0%Debt/equity 156.1%Analyst upside 20.8%

How this scored 59/100

✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.

✅ Makes money Net profit margin 14.9%

✅ Generates cash Free cash flow $278M

✅ Not drowning in debt Debt/equity 156.1% (limit 200%)

✅ Can pay its bills Current ratio 1.6 (needs 1+)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 22/25

Operating margin 22.9% 8/9

Net profit margin 14.9% 6/8

Return on equity 71.8% 8/8

Growth Is it getting bigger, or dying? 10/25

Revenue growth 3.0% 2/9

Earnings growth 0.1% 2/8

Expected profit change 16.9% 5/8

Value Is it cheap right now? 15/25

Forward P/E 16.1 7/10

PEG ratio 1.3 5/8

Analyst target upside 20.8% 2/7

Balance sheet Will it survive? 12/25

Debt / equity 156.1% 2/10

Current ratio 1.6 3/8

Free cash flow $278M 7/7

🔒 Read the full AI analysis

Create a free account to unlock the bull case and the risks for LII — plus today's other picks.

Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-08-11. Research only — not financial advice.