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Lennox InternationalSTU:LXI -1.31%92 Gross Margin % is 30.95% as of Mar. 2026, which is 7% above its 10-year median of 28.97. GuruFocus rates STU:LXI with a GF Score™ of 92/100 and a GF Value™ of €469.91 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,725 Construction companies, Lennox International ranks better than 73.8% on this metric.
The historical rank and industry rank for Lennox International's Gross Margin % or its related term are showing as below:
STU:LXI'
s Gross Margin % Range Over the Past 10 Years
Min: 27.23 Med: 28.97 Max: 33.43
Current: 33.43
During the past 13 years, the highestGross Margin % of Lennox International was 33.43%. The lowest was 27.23%. And the median was 28.97%.
STU:LXI's Gross Margin % is ranked better than 73.8% of 1725
companies
in the Construction industry
Industry Median: 20.7
vs STU:LXI: 33.43
Lennox International had a gross margin of 30.95% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Lennox International was 4.00% per year.
Lennox International (STU:LXI) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Lennox International had a gross margin of 30.95% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Lennox International Gross Margin % Related Terms
Lennox International Gross Margin % Historical Data
* Premium members only.
The historical data trend for Lennox International's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
STU:LXI vs MAIR, MAS, CSL: Gross Margin % Comparison
For the Building Products & Equipment subindustry, Lennox International's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Lennox International Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, Lennox International's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Lennox International's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Lennox International (STU:LXI) has a Gross Margin % of 30.95% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Lennox International and its competitors. This is near median its historical median of 28.97. Over the past decade, Lennox International's Gross Margin % has ranged from 27.23 to 33.43. According to the industry distribution chart, Lennox International ranks #452 out of 1725 companies in the Construction industry, placing it in the top 26.2%.
Is Lennox International's Gross Margin % too high?
Lennox International's current Gross Margin % of 30.95% is near median its 10-year median of 28.97. Over the past 10 years, this metric has ranged from a low of 27.23 to a high of 33.43. The Construction industry median Gross Margin % is 20.70. Lennox International's value of 30.95% is 49.5% above this industry median. Based on the distribution chart, Lennox International ranks #452 out of 1725 companies in the Construction industry, which is above the industry midpoint. Overall, Lennox International has a GF Score™ of 92/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Lennox International's Gross Margin % compare to MAIR and MAS?
According to the Construction industry distribution chart, Lennox International ranks #452 out of 1725 companies for Gross Margin %. This puts Lennox International in the upper half of its industry. The industry median Gross Margin % is 20.70. Lennox International's value of 30.95% is 49.5% above this benchmark. Historically, Lennox International's own Gross Margin % has ranged from 27.23 to 33.43 over the past decade. While the company's 10-year median is 28.97 vs. the industry median of 20.70, Lennox International has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Construction company?
The median Gross Margin % among Construction companies is 20.70, based on 1,725 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lennox International's current Gross Margin % of 30.95% is 49.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Lennox International and its competitors. For the Construction industry, the median Gross Margin % is 20.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lennox International's current Gross Margin % is 30.95%, which is near median its own 10-year median of 28.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lennox International stock overvalued right now?
Based on GuruFocus' analysis, Lennox International (STU:LXI) is currently considered Fairly Valued. The stock's GF Value™ is €469.91, compared to a current price of €467.40 — trading 0.5% below its estimated fair value. The current Gross Margin % is 30.95%, which is near median its 10-year median of 28.97 and 49.5% above the Construction industry median of 20.70. Lennox International's overall GF Score™ is 92/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Lennox International (STU:LXI), the current Gross Margin % is 30.95% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Lennox International (STU:LXI) Overvalued in 2026?
Based on GuruFocus' analysis, Lennox International stock appears to be undervalued.
The current stock price of €467.40 is trading 0.5% below its estimated GF Value™ of €469.91.
GuruFocus considers Lennox International to be Fairly Valued.
Key valuation signals for STU:LXI:
Gross Margin %: 30.95% (near median its 10-year median of 28.97)
GF Value™: €469.91 vs. price of €467.40 (0.5% below fair value)
Industry Position: 49.5% above the Construction median (#452 of 1725)
No single metric tells the full story. See the STU:LXI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lennox International manufacturers and distributes heating, ventilating, air conditioning, and refrigeration products for the North American replacement (75% of sales) and new construction (25% of sales) markets. Residential HVAC (home comfort solutions) accounts for 67% of sales and commercial HVAC (building climate solutions) accounts for the remaining 33% of sales. Lennox's commercial exposure is what its peers refer to as residential and light commercial, and lacks the scale and complexity of what is referred to as an applied solution. The company goes to market with multiple brands, but Lennox is its flagship HVAC brand.
92GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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