LIXIL Group (5938) AI Stock Analysis

• Market Cap: $551.50B
• Dividend Yield: 4.69%
• Average Volume (3M): 1.37M
• Price to Earnings (P/E): 79.3
• Beta (1Y): 0.51
• Revenue Growth: 0.38%
• EPS Growth: N/A
• Country: JP
• Employees: 49,310
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): -3.17
• Shares Outstanding: 287,514,950
• 10 Day Avg. Volume: 1,173,180
• 30 Day Avg. Volume: 1,374,256
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.86
• Enterprise Value/Revenue: 0.68
• Enterprise Value/Gross Profit: 2.03
• Enterprise Value/Ebitda: 8.51
• 1Y Price Target: $2,085.37
• Price Target Upside: 8.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 56 Neutral
• Price Target: ¥1,969.00 ▲(2.63% Upside)

LIXIL Group's stock score is primarily influenced by its mixed financial performance and high valuation. The positive technical momentum provides some support, but the high P/E ratio and low profitability are significant concerns. The attractive dividend yield partially offsets the valuation risk.

LIXIL Group Business Overview & Revenue Model

Company Description

LIXIL Group Corporation, headquartered in Tokyo, Japan, is a leading global manufacturer and supplier in the housing and building materials industry. The company operates across various sectors, including water technology, housing technology, building technology, and kitchen technology. LIXIL is renowned for its comprehensive product range, including bathroom fixtures, kitchen systems, windows, doors, and exterior building materials, catering to both residential and commercial markets.

How the Company Makes Money

LIXIL Group generates revenue through the sale of its diverse range of housing and building products. The company's primary revenue streams include water technology products like faucets, showers, and toilets, as well as housing technology products such as windows, doors, and exterior building materials. Furthermore, LIXIL benefits from its global presence and brand portfolio, including well-known brands such as INAX, GROHE, and American Standard. Partnerships with construction companies, distributors, and retailers worldwide also play a significant role in reaching a broad customer base, thereby enhancing its sales and market penetration. Additionally, LIXIL invests in innovative technology and sustainable solutions to meet the evolving demands of its customers, which further supports its revenue growth.

LIXIL Group Financial Statement Overview

Summary

LIXIL Group's financial performance is mixed, with a significant revenue decline and low profitability. The balance sheet shows moderate leverage, and cash flow generation is improving but needs better conversion from earnings.

Income Statement

LIXIL Group's income statement shows mixed results. The TTM data indicates a significant revenue decline of 34.1%, which is concerning. However, the company maintains a stable gross profit margin of around 33%. The net profit margin is extremely low at 0.13%, indicating minimal profitability. EBIT and EBITDA margins are also relatively low, suggesting limited operational efficiency.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio is slightly above 1, indicating a balanced but leveraged capital structure. Return on equity is very low at 0.32%, showing limited returns for shareholders. The equity ratio is not provided, but the overall leverage suggests potential risks if not managed carefully.

Cash Flow

Cash flow analysis reveals some positive trends. The free cash flow has grown significantly in the TTM period, and the operating cash flow to net income ratio is healthy at 0.17. However, the free cash flow to net income ratio is 0.66, indicating that not all earnings are translating into free cash flow, which could be a concern for liquidity.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.50T	1.50T	1.48T	1.50T	1.43T	1.38T
Gross Profit	505.52B	498.11B	472.71B	468.63B	486.87B	469.22B
EBITDA	120.61B	117.20B	101.19B	107.17B	152.43B	136.75B
Net Income	6.95B	2.00B	-13.91B	15.99B	48.60B	33.05B
Balance Sheet
Total Assets	1.83T	1.83T	1.89T	1.85T	1.78T	1.74T
Cash, Cash Equivalents and Short-Term Investments	108.67B	130.70B	137.51B	106.68B	100.40B	111.06B
Total Debt	652.78B	657.80B	677.19B	618.40B	524.70B	595.50B
Total Liabilities	1.21T	1.21T	1.24T	1.23T	1.17T	1.19T
Stockholders Equity	614.70B	617.89B	642.51B	625.43B	612.38B	552.27B
Cash Flow
Free Cash Flow	66.49B	54.83B	-7.08B	-40.34B	69.66B	82.55B
Operating Cash Flow	100.20B	100.00B	45.79B	15.01B	118.30B	151.04B
Investing Cash Flow	-32.67B	-28.13B	-29.88B	-29.32B	-24.80B	-54.15B
Financing Cash Flow	-80.41B	-72.47B	-3.67B	19.84B	-108.09B	-93.42B

LIXIL Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1918.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5938, the sentiment is Neutral. The current price of 1918.5 is below the 20-day moving average (MA) of 1943.73, above the 50-day MA of 1855.77, and above the 200-day MA of 1715.36, indicating a neutral trend. The MACD of 21.90 indicates Positive momentum. The RSI at 50.05 is Neutral, neither overbought nor oversold. The STOCH value of 19.80 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5938.

LIXIL Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5929	73 Outperform	946.47B	16.94	17.85%	2.18%	6.35%	30.39%
5332	72 Outperform	679.60B	69.67	2.33%	2.49%	2.18%	-75.73%
5930	64 Neutral	161.02B	13.89	11.62%	2.67%	4.00%	8.80%
7943	61 Neutral	105.15B	55.95	2.17%	3.97%	1.05%	-76.91%
5938	56 Neutral	$551.50B	79.30	1.08%	4.69%	0.38%	―
5932	52 Neutral	20.63B	-8.83	-2.56%	3.80%	1.81%	-129.27%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

LIXIL Group Corporate Events

LIXIL Corporation Confirms Q1 Financial Results with No Changes

LIXIL Corporation announced that its consolidated financial results for the first quarter ending June 30, 2025, have been reviewed with no changes from the previously disclosed figures. The announcement indicates stability in LIXIL’s financial reporting and suggests a steady operational performance, which may reassure stakeholders and investors about the company’s current market position.

LIXIL Corporation Reports Mixed Q1 Results Amid Structural Reforms

LIXIL Corporation’s Q1 financial results for the fiscal year ending March 31, 2026, reveal a decrease in revenue but an increase in profits and EBITDA year-on-year. In Japan, higher profits were driven by strong sales growth in water-related renovation products and a surge in demand before a regulatory change. Internationally, the company saw strong performance in Europe and the Middle East, though challenges in the Americas affected revenue. The company is also undergoing structural reforms, including the withdrawal of its ceramic siding business and reorganization in Europe.

LIXIL Reports Q1 2025 Financial Results with Decline in Revenue and Profitability

LIXIL Corporation reported its consolidated financial results for the first quarter ending June 30, 2025, showing a slight decrease in revenue by 1.4% compared to the previous year. The company experienced a significant decline in core earnings and operating profit, indicating challenges in maintaining profitability. Despite these setbacks, LIXIL has not revised its dividend forecast, suggesting a commitment to shareholder returns. The financial results highlight potential operational challenges and may impact LIXIL’s market positioning and stakeholder confidence.

LIXIL Introduces New Restricted Stock Compensation Plan for Directors

LIXIL Corporation has announced the issuance of new shares as part of a Restricted Stock Compensation Plan for its directors, replacing the previous Phantom Stock Plan. This move aims to align the interests of directors with those of shareholders and enhance corporate value over the long term. The plan involves issuing 24,592 common shares at a price of JPY1,627 each, with a total issuance amount of JPY40,011,184. The shares will be subject to transfer restrictions until the directors retire, ensuring their commitment to the company’s growth and stability.