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Lennox InternationalMIL:1LII 93 ROC (Joel Greenblatt) % is 27.59% as of Mar. 2026, which is 53% below its 10-year median of 58.84. 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 1,782 Construction companies, Lennox International ranks better than 75.81% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Lennox International's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 27.59%.
The historical rank and industry rank for Lennox International's ROC (Joel Greenblatt) % or its related term are showing as below:
MIL:1LII'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 46.1 Med: 58.84 Max: 64.98
Current: 48.35
During the past 13 years, Lennox International's highest ROC (Joel Greenblatt) % was 64.98%. The lowest was 46.10%. And the median was 58.84%.
MIL:1LII's ROC (Joel Greenblatt) % is ranked better than 75.81% of 1782
companies
in the Construction industry
Industry Median: 19.6
vs MIL:1LII: 48.35
Lennox International's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 2.60% per year.
Lennox International (MIL:1LII) ROC (Joel Greenblatt) % Explanation
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
Lennox International ROC (Joel Greenblatt) % Related Terms
Lennox International ROC (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for Lennox International's ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % Chart
MIL:1LII vs MAIR, MAS, CSL: ROC (Joel Greenblatt) % Comparison
For the Building Products & Equipment subindustry, Lennox International's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Construction Industry
For the Construction industry and Industrials sector, Lennox International's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Lennox International's ROC (Joel Greenblatt) % falls into.
Lennox International ROC (Joel Greenblatt) % Calculation
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.
* 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.
What does a ROC (Joel Greenblatt) % of 27.59% mean?
Lennox International (MIL:1LII) has a ROC (Joel Greenblatt) % of 27.59% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Lennox International and its competitors. This is 53% below median its historical median of 58.84. Over the past decade, Lennox International's ROC (Joel Greenblatt) % has ranged from 46.10 to 64.98. According to the industry distribution chart, Lennox International ranks #431 out of 1782 companies in the Construction industry, placing it in the top 24.2%.
Is Lennox International's ROC (Joel Greenblatt) % too high?
Lennox International's current ROC (Joel Greenblatt) % of 27.59% is 53% below median its 10-year median of 58.84. Over the past 10 years, this metric has ranged from a low of 46.10 to a high of 64.98. The Construction industry median ROC (Joel Greenblatt) % is 19.60. Lennox International's value of 27.59% is 40.8% above this industry median. Based on the distribution chart, Lennox International ranks #431 out of 1782 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 ROC (Joel Greenblatt) % compare to MAIR and MAS?
According to the Construction industry distribution chart, Lennox International ranks #431 out of 1782 companies for ROC (Joel Greenblatt) %. This places Lennox International in the top 24% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 19.60. Lennox International's value of 27.59% is 40.8% above this benchmark. Historically, Lennox International's own ROC (Joel Greenblatt) % has ranged from 46.10 to 64.98 over the past decade. While the company's 10-year median is 58.84 vs. the industry median of 19.60, 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 ROC (Joel Greenblatt) % for a Construction company?
The median ROC (Joel Greenblatt) % among Construction companies is 19.60, based on 1,782 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lennox International's current ROC (Joel Greenblatt) % of 27.59% is 40.8% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Lennox International and its competitors. For the Construction industry, the median ROC (Joel Greenblatt) % is 19.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lennox International's current ROC (Joel Greenblatt) % is 27.59%, which is 53% below median its own 10-year median of 58.84. 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 ROC (Joel Greenblatt) % of 27.59%. 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 ROC (Joel Greenblatt) % is 27.59%, which is 53% below median its 10-year median of 58.84 and 40.8% above the Construction industry median of 19.60. 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 ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Lennox International (MIL:1LII), the current ROC (Joel Greenblatt) % is 27.59% 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:
ROC (Joel Greenblatt) %: 27.59% (53% below median its 10-year median of 58.84)
GF Value™: €501.24 vs. price of €493.20 (1.6% below fair value)
Industry Position: 40.8% above the Construction median (#431 of 1782)
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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