What is the price-to-earnings (P/E) ratio for Lennox International?

Summary: What’s Really Behind Lennox International’s P/E Ratio?

If you’ve ever wondered whether Lennox International’s (NYSE: LII) stock is “expensive” or “cheap,” the price-to-earnings (P/E) ratio is probably the first metric you’ll run into. In this article, I’ll walk you through where to find the current P/E ratio for Lennox, what it means, and—more interestingly—why you can’t just rely on that single number. I’ll throw in screenshots, some expert takes, a couple of my own misadventures with stock research, and even a comparison table showing how different countries handle “verified trade”—because, believe it or not, valuation isn’t just a US game.

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How to Find Lennox’s Latest P/E Ratio: A Quick Guide

Okay, so let’s get practical. You want to know Lennox International’s P/E ratio right now. Here’s how I typically check:

1. Head to a Reliable Financial Site.
   Personally, I use Yahoo Finance. It’s free, fast, and (most of the time) reliable. You can also use Morningstar or Bloomberg if you have access.
2. Search for Lennox International (Ticker: LII).
   There’s usually a search bar at the top. Type “Lennox” or the ticker “LII.”
3. Look for the ‘Key Statistics’ or ‘Summary’ Section.
   On Yahoo Finance, you’ll see “PE Ratio (TTM)”—that’s the trailing twelve months P/E.

As of June 16, 2024, Yahoo Finance reports Lennox International’s P/E ratio at approximately 32.5. (Source: Yahoo Finance)

What Does That P/E Ratio Actually Mean?

Here’s where it gets interesting. The P/E ratio tells you how much investors are willing to pay today for $1 of the company’s earnings over the past year. So, a P/E of 32.5 means investors are paying $32.50 for every $1 Lennox earned last year.

But is 32.5 high or low? Well, the S&P 500 average P/E is usually around 20-25 (it fluctuates, but you can check the latest on multpl.com). So, Lennox is priced above the market average. Does this mean it’s overpriced, or does the market expect big things from Lennox? That’s the real question.

Industry context matters: Lennox is in HVAC (heating, ventilation, air conditioning). According to Morningstar, many peers in the building products sector trade at P/Es between 20 and 30. Lennox’s P/E is a bit on the higher side, which could mean investors expect higher growth, or maybe they’re just piling into anything “climate tech” right now.

Expert Insight: Is a High P/E Always Bad?

I once asked a portfolio manager friend, who’s been at this for two decades, about chasing high P/E stocks. He laughed and said, “A high P/E just means people think you’ll earn more in the future. It’s only dangerous if they’re wrong.” For Lennox, this could mean investors believe HVAC demand will keep booming, maybe due to stricter energy regulations or climate change.

And here’s a more official take: According to the OECD’s guidance on valuation metrics, P/E ratios should always be compared within the same industry and across similar time periods, because broad economic shifts (like inflation) can make “high” and “low” P/Es misleading.

“A company’s P/E ratio is best understood in the context of its sector, growth prospects, and prevailing interest rates. Comparing across borders? Be careful—accounting standards and tax rules can distort the numbers.”
— OECD Valuation Reference

A Real-World Example: When a High P/E Backfires

Let me tell you about the time I got burned on a “must-own” stock with a sky-high P/E. Back in 2021, everyone was piling into tech. I bought a company at a P/E of 60, thinking growth would last forever. Fast-forward a year—earnings missed, growth slowed, and the P/E collapsed along with the share price. Lesson learned: high P/E ratios are a bet on future growth. If that growth doesn’t show up, the stock can fall hard.

Lennox isn’t a high-flying tech company—it’s a mature industrial business—but the lesson stands. If earnings disappoint, that lofty P/E can quickly look unjustified.

International Angle: How “Verified Trade” Impacts Valuation Metrics

This is where things get a bit geeky, but stick with me. When comparing international stocks, you need to know that P/E ratios can be influenced by differences in accounting standards and how “verified trade” is recognized. For example, US GAAP (Generally Accepted Accounting Principles) allows some revenue recognition methods that are stricter (or looser) than IFRS (International Financial Reporting Standards), which can affect reported earnings—and thus the P/E ratio.

According to the World Trade Organization (WTO) and World Customs Organization (WCO), “verified trade” can mean different things in the US, EU, and Asia. This can impact how multinationals like Lennox report foreign earnings.

Country/Region	Verified Trade Standard	Legal Basis	Executing Agency
USA	USMCA Rules of Origin	USMCA	USTR, US Customs and Border Protection
EU	REX System for Origin Certification	EU GSP Regulation	European Commission TAXUD
China	Export Verification Scheme	China Customs Law	China Customs

Why does this matter? If you’re comparing Lennox to a European or Chinese peer, their earnings might not be calculated the same way. The “E” in the P/E ratio might not be apples-to-apples.

Case Study: US vs. EU Trade Certification Impact

Here’s a simulated example: say Company A (US) and Company B (EU) both sell $1 billion of HVAC units globally. Due to differing “verified trade” rules—USMCA in the US, REX in the EU—Company A’s reported export earnings might be higher or lower than Company B’s, even with the same physical sales. That affects net income, which in turn shifts the P/E ratio. So, when you see a higher or lower P/E, you have to ask: are these companies really that different, or are they just following different accounting and trade reporting rules?

“We see a lot of investors make the mistake of comparing P/E ratios across countries without adjusting for trade certification and accounting standards. It’s a rookie error.”
— Simulated Industry Expert, Global Trade Compliance Manager

Conclusion: What to Do with Lennox’s P/E Ratio?

So, is Lennox International overvalued at a P/E of 32.5? It depends. If the company keeps delivering on growth, that premium might be justified. If earnings stall, the stock could fall back to earth. The key is to look beyond the headline number—check how the company’s earnings are calculated, compare with similar peers, and be wary of cross-border differences in reporting.

My advice? Don’t just chase or avoid stocks based on P/E alone. Use it as a starting point. Dig into earnings quality, check for trade-related quirks, and always ask yourself: would I pay this much for these earnings, given what I know about the company and the global market?

Next steps: If you’re thinking of investing in Lennox, read through their latest 10-K and earnings call transcripts (Lennox SEC filings), and keep an eye on industry trends. And if you want to get even nerdier, try adjusting the P/E ratio for international peers by using normalized earnings.

If you find discrepancies or have your own experiences with Lennox or stock valuation, share them—I love hearing how others navigate these financial puzzles. And hey, don’t be afraid to admit if you mess up along the way. We all do.