Air-Cond & Warm Air Heatg Equip & Comm & Indl Refrig Equip
Lennox International Inc., together with its subsidiaries, designs, manufactures, and markets a range of products for the heating, ventilation, air conditioning, and refrigeration markets in the United States, Canada, and internationally. It operates through three segments: Residential Heating & Cooling, Commercial Heating & Cooling, and Refrigeration. The Residential Heating & Cooling segment provides furnaces, air conditioners, heat pumps, packaged heating and cooling systems, indoor air quality equipment and accessories, comfort control products, and replacement parts and supplies for residential replacement and new construction markets. The Commercial Heating & Cooling segment offers unitary heating and air conditioning equipment, applied systems, controls, installation and service of commercial heating and cooling equipment, and variable refrigerant flow commercial products for light commercial markets. The Refrigeration segment offers condensing units, unit coolers, fluid coolers, air cooled condensers, air handlers, and refrigeration rack systems for preserving food and other perishables in supermarkets, convenience stores, restaurants, warehouses, and distribution centers, as well as for data centers, machine tooling, and other cooling applications; and compressor racks and industrial process chillers. The company sells its products and services through direct sales, distributors, and company-owned parts and supplies stores. Lennox International Inc. was founded in 1895 and is headquartered in Richardson, Texas.
Discounted Cash Flow Valuation of Lennox International Inc
In the chart Earnings are multiplied by this value.
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
The average Net Margin over the past 5 years is +9.89%.
The trend of Net Margin over the past 5 years is +0.5%.
The average ROA over the past 5 years is +27.12%.
The trend of ROA over the past 5 years is -0.41%.
The average ROE over the past 5 years is -395.13%.
The trend of ROE over the past 5 years is -169.02%.
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
The Debt/FCF trailing twelve month is 3.68.
The trend of Debt/FCF over the past 5 years is 0.42.
Graham’s Stability measure stands at 1.00.
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
The Revenue CAGR over the past 5 years is +4.21%.
The trend of Revenue growth rate over the past 5 years is +0.66%.
The Earnings CAGR over the past 5 years is +10.21%.
The trend of Earnings growth rate over the past 5 years is -0.86%.
The Equity CAGR over the past 5 years is -.
The trend of Equity growth rate over the past 5 years is -70.15%.
The FCF CAGR over the past 5 years is -2.37%.
The trend of FCF growth rate over the past 5 years is -8.82%.