LII is now overvalued and could go down -26%

Based on our analysis, Lennox International has received an overvalued rating of 2 out of 5 stars from Cashu. Several key financial ratios indicate that the company's current valuation may not be justified when compared to its sector. The Price-to-Earnings (PE) Ratio for Lennox stands at 24.41, significantly higher than the sector average of 19.94. A higher PE ratio suggests that investors are paying more for each dollar of earnings, which may indicate overvaluation, especially when the sector is performing at a more reasonable level. Additionally, the Price-to-Book (PB) Ratio for Lennox is 25.53, sharply contrasting with the sector average of 2.54. A high PB ratio could signal that the stock is overpriced relative to its book value, which is a concern for potential investors looking for value opportunities. The Dividend Yield for Lennox is 0.83, notably lower than the sector average of 1.70. A lower dividend yield may deter income-focused investors, as it indicates that the company is returning less cash to shareholders compared to its peers. While Lennox International shows strong performance in other areas, such as a high Net Profit Margin and Return on Equity, the elevated PE and PB ratios, along with the low Dividend Yield, suggest that the stock may be overvalued relative to its sector. This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.