Lennox International Inc (LII) Stock — Forensic Analysis, Red Flags & Rating | Stockonomy · Stockonomy
Forensic Analysis · Industrials / Manufacturing / Defense · as of Sep 24, 2026
Lennox International Inc (LII)
A forensic read on Lennox International Inc built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
C · Mixed — selective
Forensic grade
Safe
Financial health
11.4
Distress distance
Clean
Earnings quality
4
Forensic signals
15.6
P / E (ttm)
69.3%
ROE
$12.9B
Market cap
1.06%
Dividend yield
-2.7%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence, going concern, valuation). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Lennox International Inc earns a C (Mixed — selective) forensic quality grade, and its balance-sheet distress test reads 11.4, placing it in the Safe zone. 4 forensic signals were flagged in its latest SEC filings, led by accruals ratio (% of noa).
What the filings flag
+29.9%
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets grew +29.9% relative to their own average in FY2025 — scaled by NOA itself, not by total assets, which is what the Forensic Screens card's own accrual row divides by. Accruals are building sharply — a large slice of profit sits in operating assets, not cash. An accrual is a claim that still has to be collected or written down, so the gap resolves in a later period whichever way it goes. The build is led by inventory up +35% against -3% in cost of sales and payables paid down 11% against -3% in cost of sales. A cash-flow measure on the same base disagrees: reported earnings ran in line with operating cash by 2% of net operating assets, against an accruals ratio of 29.9%. The two are computed differently: the accruals ratio is the change in net operating assets over average net operating assets, while the cash-flow figure is net income less operating cash flow over that same average. Read them as two results, not one.
106d
FY2024→FY2025
Inventory days.Days inventory outstanding moved from 87 to 106 FY2024→FY2025 (against cost of goods sold; inventory +35% vs -3% in cost of sales). Inventory is outrunning what's being sold — a flag for softening demand or obsolescence risk ahead.
-0.4%/yr
FY2023–FY2025
Share count.Diluted share count changed -1% over the last 2 years to FY2025 (-0.4%/yr). Roughly flat — buybacks ($482M) are about offsetting stock comp ($29M), not shrinking the count. Per-share value isn't being meaningfully helped or hurt by the count.
103% of FCF
FY2025
Shareholder returns.Returned $655M to shareholders (buybacks + dividends) in FY2025 — 103% of free cash flow. That is $16M (3%) more than free cash flow covered. The balance sheet covered it: cash and short-term investments fell $388M and total debt rose $15M over FY2025. That ratio has been CLIMBING past free cash flow — 32% of free cash flow two years back — not just sitting there. Counting the $29M of stock-based comp paid out in shares on top of that, the combined claim on free cash flow is 107%.
Key fundamentals
Latest Revenue$5.20B
Revenue Growth YoY-2.7%
Revenue CAGR (2yr)+2.1%
Net Margin15.5%
Free Cash Flow$638.8M
Return on Equity69.3%
Debt / Equity1.00x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Lennox International Inc's actual 10-K/10-Q/8-K filings?