Lennox International Inc (LII) is fairly valued and Owens Corning (OC) is undervalued.
Against our estimates of intrinsic value, OC trades at the wider discount: a margin of safety of +37%, against -0% for LII.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 9.9% (average of 3 methods) values the shares at $370.30; the price of $371.68 sits right on that value, and 73% of that value comes from beyond year five.
Leak Score 59/100 on 3 of 12 signals
Discounting its cash flows at 9.0% (average of 2 methods) values the shares at $200.21; the price of $126.66 is 37% below that value, and 76% of that value comes from beyond year five.
Leak Score 56/100 on 2 of 12 signals
| Metric | LII | OC |
|---|---|---|
| Verdict | Fairly valued | Undervalued |
| Price | $371.68 | $126.66 |
| Intrinsic value | $370.30 | $200.21 |
| Margin of safety | -0% | +37% |
| Leak Score | 59/100 (3/12) | 56/100 (2/12) |
| Market cap | $12.8B | $10.0B |
| Revenue growth, 5 years | 7.4% | 7.4% |
| Operating margin | 19.7% | 14.9% |
| Net margin | 14.6% | -6.8% |
| Return on equity | 70.5% | -9.6% |
| Debt to equity | 1.56 | 1.52 |
| P/E | 16.8x | — |
| Forward P/E | 14.3x | 10.6x |
| P/B | 9.9x | 2.6x |
| Dividend yield | 1.4% | 2.4% |