Lennox International vs UFP Industries
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KIRA’s take AI analyst
I put Lennox International and UFP Industries side by side, using each one’s latest annual report. Here is what stands out:
- UFP Industries is the larger business, with $6.3B of revenue in fiscal 2025 against $5.2B for Lennox International.
- Lennox International grew revenue faster (−2.7%, against −5.0%).
- Lennox International kept more of each dollar of sales as operating profit (20.1% operating margin, against 5.8%).
- Lennox International turned more of its sales into free cash flow (12.3% FCF margin, against 4.4%).
- Lennox International earned a higher return on the capital invested in it (40.1%, against 11.8%).
- Investors pay more for each dollar of UFP Industries’s earnings: a P/E of 18.6x against 16.2x for Lennox International.
Who comes out ahead
Of the 11 measures where higher (or lower) is clearly better, how many each company leads.
Lennox International
LII
8/11
Revenue growth5-year growthGross marginOperating marginNet marginFCF marginReturn on capitalReturn on equity
UFP Industries
UFPI
2/11
Net debt / EBITDAShare count change
Side by side
Best in the row
| Latest fiscal year | LII FY25 | UFPI FY25 |
|---|---|---|
| Size | ||
| Market cap | $12.8B | $4.4B |
| Revenue | $5.2B | $6.3B |
| Free cash flow | $639M | $276M |
| Net income | $806M | $295M |
| Growth | ||
| Revenue growth | −2.7% | −5.0% |
| 5-year growth | 7.4% | 4.2% |
| Share count change | −1.1% | −3.5% |
| Profitability | ||
| Gross margin | 33.4% | 16.8% |
| Operating margin | 20.1% | 5.8% |
| Net margin | 15.5% | 4.7% |
| FCF margin | 12.3% | 4.4% |
| Return on capital | 40.1% | 11.8% |
| Return on equity | 75.8% | 9.4% |
| Balance sheet | ||
| Net debt | $1.4B | −$719M |
| Net debt / EBITDA | 1.2x | −1.4x |
| Dividends and buybacks | $655M | $515M |
| Valuation & quality | ||
| P/E | 16.2x | 18.6x |
| Piotroski F-score | 5 | 5 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.