Comparable Company Analysis

Lennox International Inc.
Benchmarking Analysis - Financial Statistics and Ratios, Page 1
($ in millions, except per share data)

				Market Valuation				LTM Financial Statistics								LTM Profitability Margins			Growth Rates 1 year
																			Revenue		EBITDA		EPS
Company			Ticker	Equity Value		Enterprise Value		Revenue		EBITDA		EBIT		Net Income		EBITDA (%)	EBIT (%)	Net Income (%)	Hist. 1-year	Est. 1-year	Hist. 1-year	Est. 1-year	Hist. 1-year	Est. 1-year
Lennox International Inc.			LII	$ 10,681.6		$ 11,694.0		$ 3,634.1		$ 560.6		$ 488.0		$ 356.3		15%	13%	10%	(5%)	6%	0%	15%	(11%)	18%

Johnson Controls International plc			JCI	42,598.8		50,154.8		22,082.0		2,978.0		2,156.0		1,100.0		13%	10%	5%	(8%)	4%	(3%)	18%	(22%)	NM
Trane Technologies plc			TT	38,248.7		40,612.0		12,454.7		1,837.9		1,593.8		869.1		15%	13%	7%	(5%)	8%	(4%)	20%	(14%)	35%
A. O. Smith Corporation			AOS	10,095.0		9,564.1		2,895.3		521.4		441.4		344.9		18%	15%	12%	(3%)	9%	(3%)	17%	(5%)	18%
Watsco, Inc.			WSO	8,433.2		8,692.4		5,054.9		416.2		390.3		323.2		8%	8%	6%	6%	5%	9%	8%	8%	9%
AAON, Inc.			AAON	3,806.5		3,729.1		514.6		123.1		97.5		79.0		24%	19%	15%	10%	(2%)	35%	(2%)	46%	(12%)

Mean																16%	13%	9%	(0%)	5%	7%	12%	3%	49%
Median																15%	13%	7%	(3%)	5%	(3%)	17%	(5%)	18%

High																24%	19%	15%	10%	9%	35%	20%	46%	NM
Low																8%	8%	5%	(8%)	(2%)	(4%)	(2%)	(22%)	(12%)
Lennox International Inc.
Benchmarking Analysis - Financial Statistics and Ratios, Page 2
($ in millions, except per share data)

				General		Return on Investment				LTM Leverage Ratios			LTM Coverage Ratios
Company			Ticker	FYE	Beta	ROIC (%)	ROE (%)	ROA (%)	Implied Div. Yield (%)	Debt / Tot. Cap. (%)	Debt / EBITDA (x)	Net Debt / EBITDA (x)	EBITDA / Int. Exp (x)	(EBITDA - Cpx) / Int. (x)	EBIT / Int. Exp. (x)
Lennox International Inc.			LII	Dec-31	0.82	25%	NM	18%	4%	NM	3.7x	3.4x	19.8x	17.0x	17.2x

Johnson Controls International plc			JCI	Sep-30	1.11	5%	6%	3%	7%	55%	7.6x	7.0x	13.3x	11.5x	9.6x
Trane Technologies plc			TT	Dec-31	1.24	9%	13%	4%	6%	65%	6.4x	4.6x	7.5x	6.9x	6.5x
A. O. Smith Corporation			AOS	Dec-31	1.04	18%	20%	11%	7%	42%	2.5x	1.2x	71.4x	63.6x	60.5x
Watsco, Inc.			WSO	Dec-31	0.72	16%	18%	13%	12%	28%	1.7x	1.3x	NM	NM	NM
AAON, Inc.			AAON	Dec-31	0.64	27%	25%	19%	2%	22%	0.8x	0.2x	NM	NM	NM

Mean						15%	16%	10%	7%	42%	3.8x	2.9x	NM	NM	NM
Median						16%	18%	11%	7%	42%	2.5x	1.3x	71.4x	63.6x	60.5x

High						27%	25%	19%	12%	65%	7.6x	7.0x	NM	NM	NM
Low						5%	6%	3%	2%	22%	0.8x	0.2x	7.5x	6.9x	6.5x
Lennox International Inc.
Comparable Companies Analysis
($ in millions, except per share data)

						Enterprise Value /											Price /
Company	Ticker	Current Share Price	% of 52-wk high	Equity Value	Enterprise Value	LTM Revenue	2021E Revenue	2022E Revenue	LTM EBITDA	2021E EBITDA	2022E EBITDA	LTM EBIT	2021E EBIT	2022E EBIT	LTM EBITDA Margin	Total Debt / EBITDA	LTM EPS	2021E EPS	2022E EPS
Lennox International Inc.	LII	$ 283.1	89%	$ 10,681.6	$ 11,694.0	3.2x	3.0x	2.9x	20.9x	18.2x	16.9x	24.0x	20.5x	18.9x	15%	3.7x	30.6x	25.9x	23.6x

Johnson Controls International plc	JCI	59.2	100%	42,598.8	50,154.8	2.3x	2.2x	2.1x	16.8x	14.6x	13.4x	23.3x	19.4x	17.6x	13%	7.6x	55.1x	23.9x	21.1x
Trane Technologies plc	TT	160.4	100%	38,248.7	40,612.0	3.3x	3.0x	2.9x	22.1x	18.4x	17.0x	25.5x	21.2x	19.5x	15%	6.4x	39.9x	29.6x	26.7x
A. O. Smith Corporation	AOS	62.5	99%	10,095.0	9,564.1	3.3x	3.0x	2.9x	18.3x	15.7x	14.5x	21.7x	18.0x	16.6x	18%	2.5x	29.5x	25.0x	23.2x
Watsco, Inc.	WSO	239.7	90%	8,433.2	8,692.4	1.7x	1.6x	1.6x	20.9x	19.4x	18.4x	22.3x	20.4x	19.4x	8%	1.7x	34.2x	31.5x	30.6x
AAON, Inc.	AAON	72.8	90%	3,806.5	3,729.1	7.2x	7.4x	6.9x	30.3x	31.0x	27.6x	38.3x	40.4x	34.7x	24%	0.8x	48.9x	55.6x	48.0x

Mean						3.6x	3.4x	3.3x	21.7x	19.8x	18.2x	26.2x	23.9x	21.6x	16%	3.8x	41.5x	33.1x	29.9x
1st Quartile						2.3x	2.2x	2.1x	18.3x	15.7x	14.5x	22.3x	19.4x	17.6x	13%	1.7x	34.2x	25.0x	23.2x
Median						3.3x	3.0x	2.9x	20.9x	18.4x	17.0x	23.3x	20.4x	19.4x	15%	2.5x	39.9x	29.6x	26.7x
3rd Quartile						3.3x	3.0x	2.9x	22.1x	19.4x	18.4x	25.5x	21.2x	19.5x	18%	6.4x	48.9x	31.5x	30.6x

High						7.2x	7.4x	6.9x	30.3x	31.0x	27.6x	38.3x	40.4x	34.7x	24%	7.6x	55.1x	55.6x	48.0x
Low						1.7x	1.6x	1.6x	16.8x	14.6x	13.4x	21.7x	18.0x	16.6x	8%	0.8x	29.5x	23.9x	21.1x
Lennox International Inc.
Comparable Companies Analysis
($ in millions, except per share data)

						EV / EBITDA					P/E
Company	Ticker	Current Share Price	% of 52-wk high	Equity Value	Enterprise Value	2021E	2022E	2021E EBITDA Margin	LTM Debt / EBITDA	LTM Int. Exp / EBITDA	2021E	2022E	LT EPS Growth	Dividend Yield
Lennox International Inc.	LII	$ 283.1	89%	$ 10,681.6	$ 11,694.0	18.2x	16.9x	17%	3.7x	0.1x	25.9x	23.6x	4%	4%

Johnson Controls International plc	JCI	59.2	100%	42,598.8	50,154.8	14.6x	13.4x	15%	7.6x	0.1x	23.9x	21.1x	(0%)	7%
Trane Technologies plc	TT	160.4	100%	38,248.7	40,612.0	18.4x	17.0x	16%	6.4x	0.1x	29.6x	26.7x	16%	6%
A. O. Smith Corporation	AOS	62.5	99%	10,095.0	9,564.1	15.7x	14.5x	19%	2.5x	0.0x	25.0x	23.2x	4%	7%
Watsco, Inc.	WSO	239.7	90%	8,433.2	8,692.4	19.4x	18.4x	8%	1.7x	0.0x	31.5x	30.6x	(19%)	12%
AAON, Inc.	AAON	72.8	90%	3,806.5	3,729.1	31.0x	27.6x	24%	0.8x	0.0x	55.6x	48.0x	2%	2%

Mean						19.8x	18.2x	17%	3.8x	0.0x	33.1x	29.9x	1%	7%
1st Quartile						15.7x	14.5x	15%	1.7x	0.0x	25.0x	23.2x	(0%)	6%
Median						18.4x	17.0x	16%	2.5x	0.0x	29.6x	26.7x	2%	7%
3rd Quartile						19.4x	18.4x	19%	6.4x	0.1x	31.5x	30.6x	4%	7%

High						31.0x	27.6x	24%	7.6x	0.1x	55.6x	48.0x	16%	12%
Low						14.6x	13.4x	8%	0.8x	0.0x	23.9x	21.1x	(19%)	2%