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Lennox InternationalMIL:1LII 93 Return-on-Tangible-Equity is 113.18% as of Mar. 2026, which is 37% below its 10-year median of 180.63. 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 1,712 Construction companies, Lennox International ranks better than 92.82% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Lennox International's annualized net income for the quarter that ended in Mar. 2026 was €406 Mil. Lennox International's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €358 Mil. Therefore, Lennox International's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 113.18%.
The historical rank and industry rank for Lennox International's Return-on-Tangible-Equity or its related term are showing as below:
MIL:1LII'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 133.94 Med: 180.63 Max: 213.39
Current: 133.94
During the past 13 years, Lennox International's highest Return-on-Tangible-Equity was 213.39%. The lowest was 133.94%. And the median was 180.63%.
MIL:1LII's Return-on-Tangible-Equity is ranked better than 92.82% of 1712
companies
in the Construction industry
Industry Median: 8.21
vs MIL:1LII: 133.94
Lennox International (MIL:1LII) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Lennox International Return-on-Tangible-Equity Related Terms
Lennox International Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Lennox International's Return-on-Tangible-Equity 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-Equity Chart
MIL:1LII vs MAIR, MAS, CSL: Return-on-Tangible-Equity Comparison
For the Building Products & Equipment subindustry, Lennox International's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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-Equity vs Construction Industry
For the Construction industry and Industrials sector, Lennox International's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Lennox International's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 113.18% mean?
Lennox International (MIL:1LII) has a Return-on-Tangible-Equity of 113.18% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Lennox International and its competitors. This is 37% below median its historical median of 180.63. Over the past decade, Lennox International's Return-on-Tangible-Equity has ranged from 133.94 to 213.39. According to the industry distribution chart, Lennox International ranks #123 out of 1712 companies in the Construction industry, placing it in the top 7.2%.
Is Lennox International's Return-on-Tangible-Equity too high?
Lennox International's current Return-on-Tangible-Equity of 113.18% is 37% below median its 10-year median of 180.63. Over the past 10 years, this metric has ranged from a low of 133.94 to a high of 213.39. The Construction industry median Return-on-Tangible-Equity is 8.21. Lennox International's value of 113.18% is 1278.6% above this industry median. Based on the distribution chart, Lennox International ranks #123 out of 1712 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-Equity compare to MAIR and MAS?
According to the Construction industry distribution chart, Lennox International ranks #123 out of 1712 companies for Return-on-Tangible-Equity. This places Lennox International in the top 7% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.21. Lennox International's value of 113.18% is 1278.6% above this benchmark. Historically, Lennox International's own Return-on-Tangible-Equity has ranged from 133.94 to 213.39 over the past decade. While the company's 10-year median is 180.63 vs. the industry median of 8.21, 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-Equity for a Construction company?
The median Return-on-Tangible-Equity among Construction companies is 8.21, based on 1,712 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lennox International's current Return-on-Tangible-Equity of 113.18% is 1278.6% 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Lennox International and its competitors. For the Construction industry, the median Return-on-Tangible-Equity is 8.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lennox International's current Return-on-Tangible-Equity is 113.18%, which is 37% below median its own 10-year median of 180.63. 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-Equity of 113.18%. 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-Equity is 113.18%, which is 37% below median its 10-year median of 180.63 and 1278.6% above the Construction industry median of 8.21. 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-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Lennox International (MIL:1LII), the current Return-on-Tangible-Equity is 113.18% 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-Equity: 113.18% (37% below median its 10-year median of 180.63)
GF Value™: €501.24 vs. price of €493.20 (1.6% below fair value)
Industry Position: 1278.6% above the Construction median (#123 of 1712)
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
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