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Lennox InternationalSTU:LXI -1.31%92 ROE % is 39.69% as of Mar. 2026, which is 90% below its 10-year median of 400.29. 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 1,747 Construction companies, Lennox International ranks better than 98.45% on this metric.
The historical rank and industry rank for Lennox International's ROE % or its related term are showing as below:
STU:LXI'
s ROE % Range Over the Past 10 Years
Min: 75.83 Med: 400.29 Max: 1438.44
Current: 77.18
During the past 13 years, Lennox International's highest ROE % was 1,438.44%. The lowest was 75.83%. And the median was 400.29%.
STU:LXI's ROE % is ranked better than 98.45% of 1747
companies
in the Construction industry
Industry Median: 6.74
vs STU:LXI: 77.18
Lennox International (STU:LXI) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
* 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.
For the Building Products & Equipment subindustry, Lennox International's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Construction Industry
For the Construction industry and Industrials sector, Lennox International's ROE % distribution charts can be found below:
* The bar in red indicates where Lennox International's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Lennox International (STU:LXI) has a ROE % of 39.69% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Lennox International and its competitors. This is 90% below median its historical median of 400.29. Over the past decade, Lennox International's ROE % has ranged from 75.83 to 1,438.44. According to the industry distribution chart, Lennox International ranks #27 out of 1747 companies in the Construction industry, placing it in the top 1.5%.
Is Lennox International's ROE % too high?
Lennox International's current ROE % of 39.69% is 90% below median its 10-year median of 400.29. Over the past 10 years, this metric has ranged from a low of 75.83 to a high of 1,438.44. The Construction industry median ROE % is 6.74. Lennox International's value of 39.69% is 488.9% above this industry median. Based on the distribution chart, Lennox International ranks #27 out of 1747 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 92/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Lennox International's ROE % compare to MAIR and MAS?
According to the Construction industry distribution chart, Lennox International ranks #27 out of 1747 companies for ROE %. This places Lennox International in the top 2% of its industry — outperforming the majority of peers. The industry median ROE % is 6.74. Lennox International's value of 39.69% is 488.9% above this benchmark. Historically, Lennox International's own ROE % has ranged from 75.83 to 1,438.44 over the past decade. While the company's 10-year median is 400.29 vs. the industry median of 6.74, 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 ROE % for a Construction company?
The median ROE % among Construction companies is 6.74, based on 1,747 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lennox International's current ROE % of 39.69% is 488.9% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Lennox International and its competitors. For the Construction industry, the median ROE % is 6.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lennox International's current ROE % is 39.69%, which is 90% below median its own 10-year median of 400.29. 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 ROE % is 39.69%, which is 90% below median its 10-year median of 400.29 and 488.9% above the Construction industry median of 6.74. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Lennox International (STU:LXI), the current ROE % is 39.69% 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:
ROE %: 39.69% (90% below median its 10-year median of 400.29)
GF Value™: €469.91 vs. price of €467.40 (0.5% below fair value)
Industry Position: 488.9% above the Construction median (#27 of 1747)
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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