Lennox International (LII) Could Be 20% Undervalued After Q3 Results And New Guidance

Lennox International (LII) just paired its third quarter earnings release with a revision to full year revenue guidance to about 6% growth, including a 5% contribution from completed acquisitions.

That updated outlook lands after a tough stretch for the share price. Lennox International’s stock is down sharply this year, with a year to date share price decline of 29.95% and a 1 year total shareholder return that has fallen 27.75%. However, the 5 year total shareholder return of 17.98% shows a much softer picture over a longer horizon.

Scan how Lennox International compares with other quality industrial players by reviewing a curated list of list of solid balance sheet and fundamentals (25 results).

Lennox International now pairs a weaker recent share run with guidance that leans on acquisitions for most of its growth. Do those ingredients still leave enough potential upside to justify the risk at today’s price?

Most Popular Narrative: 20% Undervalued

Lennox International closed at $349.47, while the analyst consensus Narrative on Simply Wall St assigns a fair value of about $438, implying a sizeable valuation gap based on an 8.76% discount rate and detailed earnings forecasts.

Strategic partnerships with Samsung for mini splits and VRF systems and with Ariston for heat pump water heaters remain central to Lennox International’s push into higher efficiency, electrified HVAC and water heating. This approach is aimed at supporting future revenue growth and mix driven earnings from 2026 and 2027 onward.

See why 8 investors see Lennox International as 20% undervalued.

Result: Fair Value of $438 (UNDERVALUED)

Still, Lennox International faces pressure if residential demand remains soft and factory under absorption persists, because both directly squeeze segment profit and overall margins.

Find out about the key risks to this Lennox International narrative.

Next Steps

If the mix of long term upside narratives and near term risks around Lennox International feels finely balanced, consider acting while sentiment is still forming and stress test the data for yourself using the full breakdown of 4 key rewards and 1 important warning sign

Looking for more investment ideas beyond Lennox International?

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