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Lennox InternationalMIL:1LII 93 Return-on-Tangible-Asset is 13.81% as of Mar. 2026, which is 40% below its 10-year median of 23.14. GuruFocus rates MIL:1LII with a GF Score™ of 93/100 and a GF Value™ of €501.24. The stock has 3 warning signs investors should review. Among 1,783 Construction companies, Lennox International ranks better than 97.92% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Lennox International's annualizedNet Income for the quarter that ended in Mar. 2026 was €406 Mil. Lennox International's average total tangible assets for the quarter that ended in Mar. 2026 was €2,936 Mil. Therefore, Lennox International's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 13.81%.
The historical rank and industry rank for Lennox International's Return-on-Tangible-Asset or its related term are showing as below:
MIL:1LII'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 18.31 Med: 23.14 Max: 27.35
Current: 23.88
During the past 13 years, Lennox International's highest Return-on-Tangible-Asset was 27.35%. The lowest was 18.31%. And the median was 23.14%.
MIL:1LII's Return-on-Tangible-Asset is ranked better than 97.92% of 1783
companies
in the Construction industry
Industry Median: 3.05
vs MIL:1LII: 23.88
Lennox International (MIL:1LII) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Lennox International Return-on-Tangible-Asset Related Terms
Lennox International Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Lennox International's Return-on-Tangible-Asset 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.
Lennox International Return-on-Tangible-Asset Chart
MIL:1LII vs MAIR, MAS, CSL: Return-on-Tangible-Asset Comparison
For the Building Products & Equipment subindustry, Lennox International's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Construction Industry
For the Construction industry and Industrials sector, Lennox International's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Lennox International's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 13.81% mean?
Lennox International (MIL:1LII) has a Return-on-Tangible-Asset of 13.81% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Lennox International and its competitors. This is 40% below median its historical median of 23.14. Over the past decade, Lennox International's Return-on-Tangible-Asset has ranged from 18.31 to 27.35. According to the industry distribution chart, Lennox International ranks #37 out of 1783 companies in the Construction industry, placing it in the top 2.1%.
Is Lennox International's Return-on-Tangible-Asset too high?
Lennox International's current Return-on-Tangible-Asset of 13.81% is 40% below median its 10-year median of 23.14. Over the past 10 years, this metric has ranged from a low of 18.31 to a high of 27.35. The Construction industry median Return-on-Tangible-Asset is 3.05. Lennox International's value of 13.81% is 352.8% above this industry median. Based on the distribution chart, Lennox International ranks #37 out of 1783 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Lennox International has a GF Score™ of 93/100, reflecting its overall financial health beyond just this single metric.
How does Lennox International's Return-on-Tangible-Asset compare to MAIR and MAS?
According to the Construction industry distribution chart, Lennox International ranks #37 out of 1783 companies for Return-on-Tangible-Asset. This places Lennox International in the top 2% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 3.05. Lennox International's value of 13.81% is 352.8% above this benchmark. Historically, Lennox International's own Return-on-Tangible-Asset has ranged from 18.31 to 27.35 over the past decade. While the company's 10-year median is 23.14 vs. the industry median of 3.05, 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 Return-on-Tangible-Asset for a Construction company?
The median Return-on-Tangible-Asset among Construction companies is 3.05, based on 1,783 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lennox International's current Return-on-Tangible-Asset of 13.81% is 352.8% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Lennox International and its competitors. For the Construction industry, the median Return-on-Tangible-Asset is 3.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lennox International's current Return-on-Tangible-Asset is 13.81%, which is 40% below median its own 10-year median of 23.14. 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?
Lennox International (MIL:1LII) has a current Return-on-Tangible-Asset of 13.81%. The stock's GF Value™ is €501.24, compared to a current price of €493.20 — trading 1.6% below its estimated fair value. The current Return-on-Tangible-Asset is 13.81%, which is 40% below median its 10-year median of 23.14 and 352.8% above the Construction industry median of 3.05. Lennox International's overall GF Score™ is 93/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Lennox International (MIL:1LII), the current Return-on-Tangible-Asset is 13.81% 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 (MIL:1LII) Overvalued in 2026?
Based on GuruFocus' analysis, Lennox International stock appears to be undervalued.
The current stock price of €493.20 is trading 1.6% below its estimated GF Value™ of €501.24.
Key valuation signals for MIL:1LII:
Return-on-Tangible-Asset: 13.81% (40% below median its 10-year median of 23.14)
GF Value™: €501.24 vs. price of €493.20 (1.6% below fair value)
Industry Position: 352.8% above the Construction median (#37 of 1783)
No single metric tells the full story. See the MIL:1LII 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.
93GF Score
Get the complete analysis for MIL:1LII
Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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