Michael Boyd
Long/short equity, contrarian, medium-term horizon, mid-cap

Lennox International: Multi-Year Turnaround Still Has Legs

Lennox International (NYSE:LII) is a leading manufacturer and marketer of heating, ventilation, air conditioning, and refrigeration (HVACR) products such as furnaces and air conditioners. The company competes against some massive brands, such as United Technologies' (NYSE:UTX) Carrier brand of products and Ingersoll-Rand's (NYSE:IR) Trane brand. Despite the highly competitive business, Lennox has been able to expand its product offerings, grab market share, and improve its margins. Shareholders who were confident in the management and bought early have been rewarded, with Lennox's equity 137% in the past five years, far above both the S&P 500 and the aforementioned peers. Does the company have more room to run?

Business Model

Lennox International manufactures and sells its

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