LIXIL Group (5938) AI Stock Analysis

• Market Cap: $469.54B
• Dividend Yield: 0.04%
• Average Volume (3M): 1.18M
• Price to Earnings (P/E): 234.5
• Beta (1Y): 0.53
• Revenue Growth: 1.45%
• EPS Growth: N/A
• Country: JP
• Employees: 49,310
• Sector: Industrials
• Sector Strength: 87
• Industry: Construction
• EPS (TTM): 28.60
• Shares Outstanding: 287,490,360
• 10 Day Avg. Volume: 1,038,770
• 30 Day Avg. Volume: 1,180,206
• PEG Ratio: -0.59
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -15.54
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $1,763.53
• Price Target Upside: 9.30% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 56 Neutral
• Price Target: ¥1,664.00 ▲(3.13%Upside)

The overall score is impacted by a combination of stable financial performance with improved cash flow, but offset by a bearish technical outlook and a concerningly high P/E ratio. The attractive dividend yield is a positive, providing some support to the stock's valuation.

LIXIL Group Business Overview & Revenue Model

Company Description

LIXIL Group Corporation is a global leader in the housing and building materials industry. The company operates through several segments, including water technology, housing technology, building technology, and distribution and retail businesses. LIXIL's core products and services include kitchen systems, bathroom fixtures, windows, doors, building materials, and other related products designed to enhance living spaces. The company is headquartered in Tokyo, Japan, and is known for its innovation in water and housing technology solutions, aiming to improve the quality of living environments worldwide.

How the Company Makes Money

LIXIL Group makes money through the manufacture and sale of housing and building materials, focusing primarily on water technology products such as faucets, toilets, and shower systems. Revenue is generated from its extensive portfolio of brands, including American Standard, GROHE, and INAX, which are well-recognized in the global market. The company's revenue streams are diversified across its segments, with significant contributions from the sale of housing technology products like windows and doors, as well as building technology solutions. LIXIL also benefits from its distribution and retail networks, which facilitate the sale of its products to both residential and commercial customers. Strategic partnerships and collaborations in various regions also play a role in enhancing its market reach and profitability.

LIXIL Group Financial Statement Overview

Summary

LIXIL Group shows moderate revenue growth and stable gross margins, though it faces profitability challenges with low net profit and ROE. The balance sheet is solid, with balanced leverage, and cash flow management has improved significantly.

Income Statement

LIXIL Group shows moderate revenue growth, with a 1.45% increase from the previous year. The gross profit margin is stable at roughly 33.1%, though net profit margin is low at 0.13% due to a significant drop in net income. EBIT and EBITDA margins are 2.08% and 7.77% respectively, indicating pressure on operational efficiency.

Balance Sheet

The debt-to-equity ratio stands at approximately 1.06, suggesting a balanced leverage. Return on equity is low at 0.32%, reflecting the recent dip in profitability. The equity ratio is 33.75%, indicating a stable capital structure but with room for improvement.

Cash Flow

Free cash flow saw a significant recovery, growing from negative to positive, demonstrating improved cash management. The operating cash flow to net income ratio is high at 50, suggesting strong cash generation relative to net earnings, which is a positive sign.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
1.50T	1.48T	1.50T	1.43T	1.38T
	Gross Profit
498.11B	431.07B	468.63B	486.87B	469.22B
	EBIT
31.34B	23.16B	25.75B	69.47B	35.84B
	EBITDA
116.88B	101.19B	107.17B	152.43B	121.40B
	Net Income Common Stockholders
2.00B	-13.91B	15.99B	48.60B	33.05B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
123.53B	124.48B	127.65B	123.50B	124.94B
	Total Assets
1.83T	1.89T	1.85T	1.78T	1.74T
	Total Debt
657.80B	677.19B	618.40B	524.70B	595.50B
	Net Debt
534.27B	552.71B	511.72B	424.30B	484.44B
	Total Liabilities
1.21T	1.24T	1.23T	1.17T	1.19T
	Stockholders Equity
617.89B	642.51B	625.43B	612.38B	552.27B
Cash Flow		Free Cash Flow
65.64B	-4.88B	-40.34B	69.66B	82.55B
	Operating Cash Flow
100.00B	47.99B	15.01B	118.30B	151.04B
	Investing Cash Flow
-28.13B	-29.88B	-29.32B	-24.80B	-54.15B
	Financing Cash Flow
-72.47B	-3.67B	19.84B	-108.09B	-93.42B

LIXIL Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1613.50
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5938, the sentiment is Positive. The current price of 1613.5 is below the 20-day moving average (MA) of 1622.85, below the 50-day MA of 1629.03, and below the 200-day MA of 1664.21, indicating a neutral trend. The MACD of -3.48 indicates Negative momentum. The RSI at 50.46 is Neutral, neither overbought nor oversold. The STOCH value of 60.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5938.

LIXIL Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5930	79 Outperform	¥148.59B	12.23	12.17%	2.89%	3.32%	21.23%
5929	76 Outperform	$1.09T	18.91	18.79%	2.36%	8.39%	34.99%
7943	71 Outperform	¥110.57B	38.49		3.77%	3.98%	-64.82%
Sector *	66 Neutral	$4.51B	12.22	5.40%	3.63%	4.14%	-12.01%
5332	64 Neutral	$626.88B	51.56	2.34%	2.70%	3.16%	-67.29%
5938	56 Neutral	$469.54B	234.50	0.35%	0.04%	1.45%	―
5932	49 Neutral	¥19.16B	―		4.09%	-0.87%	-288.95%

LIXIL Group Corporate Events

LIXIL Corporation Reports Fiscal Year 2025 Financial Discrepancies

LIXIL Corporation reported a discrepancy between its forecasted and actual financial results for the fiscal year ending March 31, 2025. The profit before tax exceeded expectations due to reduced expenses from structural reforms, but the overall profit attributable to owners fell short due to increased tax burdens from underperforming subsidiaries.

LIXIL Issues New Shares Under Restricted Stock Plan to Align Executive Interests

LIXIL Corporation announced the issuance of new shares as part of its Restricted Stock Compensation Plan, aimed at aligning the interests of its Executive Officers with those of shareholders and enhancing corporate value over the long term. This initiative involves issuing 149,905 common shares to eligible Executive Officers, with a total issuance amount of JPY265,631,660, under conditions that restrict transfer until retirement, thereby reinforcing commitment to the company’s strategic goals.

LIXIL Corporation Restructures Reporting Segments to Enhance Profitability

LIXIL Corporation announced a change in its reporting segments, integrating the kitchen and washstand cabinet unit from the Water Technology Business with the wooden interior materials from the Housing Technology Business into a new segment called ‘Living Business’. This strategic move is intended to improve profitability and offer new value to end users, reflecting LIXIL’s commitment to strengthening its business structure and market positioning.

LIXIL Reports Revenue and Profit Growth Amid Structural Reforms

LIXIL Corporation reported an increase in revenue and profits for the fiscal year ending March 2025, despite challenges in the Japanese housing market and a system outage in the Americas. The company’s international business saw growth in Europe and the Middle East, aided by structural reforms, while ongoing reforms and strategic shifts are expected to continue into the next fiscal year, with a focus on optimizing operations and improving profitability.

LIXIL Corporation Reports Fiscal Year 2025 Financial Results

LIXIL Corporation reported its consolidated financial results for the fiscal year ended March 31, 2025, showing a slight increase in revenue by 1.4% compared to the previous year. Despite the revenue growth, the company experienced a significant decline in total comprehensive income by 66.3%, highlighting challenges in maintaining profitability amidst market conditions.

LIXIL Announces New Executive and Director Candidates for 2025

LIXIL Corporation announced the determination of candidates for Executive Officers and Directors, set to be effective from April 1, 2025, and proposed at the upcoming Annual General Meeting in June 2025. The announcement includes the nomination of Hiroshi Ishino as a new independent outside director, highlighting LIXIL’s commitment to strengthening its governance structure and strategic leadership, which may impact its market positioning and stakeholder relations positively.