LIXIL Group (5938) AI Stock Analysis

• Market Cap: ¥521.32B
• Dividend Yield: 4.8%
• Average Volume (3M): 1.22M
• Price to Earnings (P/E): 56.1
• Beta (1Y): 0.48
• Revenue Growth: 0.68%
• 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: 1,024,740
• 30 Day Avg. Volume: 1,224,953
• PEG Ratio: -2.17
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 0.33
• P/FCF Ratio: 9.04
• 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: ¥2,014.20
• Price Target Upside: 13.28% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: ¥1,983.00 ▲(11.53% Upside)

LIXIL Group's stock score is primarily driven by its technical strength, with positive market momentum and price trends. However, the high P/E ratio indicates overvaluation, and financial performance concerns, particularly in profitability and cash flow, weigh on the overall score.

Positive Factors

Revenue Growth

The positive revenue growth indicates LIXIL's ability to recover and expand its market presence, driven by demand for its diverse product offerings.

Market Position

LIXIL's strong market position as a global leader in building materials provides a competitive edge, ensuring sustained demand and brand recognition.

Sustainability and Innovation

LIXIL's focus on sustainability and innovation aligns with global trends, enhancing its appeal to environmentally conscious consumers and supporting long-term growth.

Negative Factors

Profitability Challenges

Low profitability margins suggest difficulty in cost management and operational efficiency, which could hinder long-term financial performance.

Cash Flow Generation

Declining free cash flow growth indicates potential issues in liquidity management, affecting the company's ability to invest in growth opportunities.

Return on Equity

Low ROE suggests inefficient use of equity capital, which may deter investors seeking higher returns and impact the company's attractiveness.

LIXIL Group Business Overview & Revenue Model

Company Description

LIXIL Corporation, through its subsidiaries, manufactures and sells building materials and housing equipment worldwide. It operates through LIXIL Water Technology (LWT), LIXIL Housing Technology (LHT), LIXIL Building Technology (LBT), and Housing & Services Business (H&S) segments. The LWT segment offers sanitary ware, shower toilets, water faucets, washstands, bathtubs, prefabricated bathrooms, smart products, showerheads, washstand fixtures, washstand cabinet units, kitchen systems, etc.; and tiles for houses and buildings, and internal decorative tiles, etc. This segment offers its products under the INAX, GROHE, American Standard, COBRA, DXV, Jaxson, RICHELLE, and SPAGE brands. The LHT segment provides housing window sashes, entrance doors, various types of shutters, gates, carports, banisters, high railings, etc.; window frames, wooden furnishing materials, interior decorative materials, etc.; sidings, roofing materials, etc.; and solar power systems, etc. This segment offers its products under the Tostem, Exsior, Interio, Super Wall, Nodea, and Asahi Tostem brands. The LBT segment offers curtain walls, building window sashes, store facades, etc. The H&S segment engages in the development of homebuilding franchise chains, construction on order, etc.; and provides services for land, buildings, real estate management, real estate franchises development support, etc., as well as housing loans. This segment offers its products under the Lixil, Eyeful Home, Face Home, ERA, and GL HOME brands. The company was formerly known as LIXIL Group Corporation and changed its name to LIXIL Corporation in December 2020. LIXIL Corporation was founded in 1875 and is headquartered in Tokyo, Japan.

How the Company Makes Money

LIXIL Group generates revenue through multiple key streams, including the sale of its core products such as toilets, faucets, showers, and kitchen systems, which are distributed globally. The company operates through various brands that cater to different market segments, enhancing its ability to reach diverse customer bases. Additionally, LIXIL engages in strategic partnerships and collaborations with builders, architects, and real estate developers, which further expands its market reach and boosts sales. The company also benefits from its focus on innovation, introducing new technologies and sustainable products that meet evolving consumer demands and regulatory standards. Furthermore, LIXIL's presence in emerging markets contributes to its revenue growth, as urbanization and rising living standards increase the demand for quality housing and sanitary solutions.

LIXIL Group Financial Statement Overview

Summary

LIXIL Group shows moderate financial health with positive revenue growth and stable leverage. However, profitability and cash flow generation remain areas of concern, with low net profit margins and declining free cash flow growth.

Income Statement

LIXIL Group's income statement shows moderate performance with a gross profit margin of 33.71% and an EBIT margin of 2.55% for the TTM period. The net profit margin is low at 0.46%, indicating challenges in translating revenue into profit. Revenue growth is positive at 8.7% TTM, showing recovery from previous declines. However, the net income has been volatile, impacting profitability.

Balance Sheet

The balance sheet reveals a debt-to-equity ratio of 1.06, indicating a balanced leverage position. Return on equity is low at 1.12% TTM, reflecting limited returns for shareholders. The equity ratio stands at 34.09%, suggesting a stable capital structure but with room for improvement in asset utilization.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by 13.03% TTM, highlighting cash generation challenges. The operating cash flow to net income ratio is 0.18, suggesting moderate cash conversion efficiency. The free cash flow to net income ratio is 0.66, indicating that a significant portion of net income is converted into free cash flow.

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	508.82B	498.11B	472.71B	468.63B	486.87B	469.22B
EBITDA	115.48B	117.20B	101.19B	107.17B	152.43B	136.75B
Net Income	9.29B	2.00B	-13.91B	15.99B	48.60B	33.05B
Balance Sheet
Total Assets	1.87T	1.83T	1.89T	1.85T	1.78T	1.74T
Cash, Cash Equivalents and Short-Term Investments	126.38B	130.70B	137.51B	106.68B	100.40B	111.06B
Total Debt	668.26B	657.80B	677.19B	618.40B	524.70B	595.50B
Total Liabilities	1.23T	1.21T	1.24T	1.23T	1.17T	1.19T
Stockholders Equity	636.57B	617.89B	642.51B	625.43B	612.38B	552.27B
Cash Flow
Free Cash Flow	57.82B	54.83B	-7.08B	-40.34B	69.66B	82.55B
Operating Cash Flow	89.61B	100.00B	45.79B	15.01B	118.30B	151.04B
Investing Cash Flow	-28.11B	-28.13B	-29.88B	-29.32B	-24.80B	-54.15B
Financing Cash Flow	-51.10B	-72.47B	-3.67B	19.84B	-108.09B	-93.42B

LIXIL Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1778.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5938, the sentiment is Negative. The current price of 1778 is below the 20-day moving average (MA) of 1894.90, below the 50-day MA of 1862.46, and above the 200-day MA of 1752.40, indicating a neutral trend. The MACD of -12.29 indicates Positive momentum. The RSI at 26.68 is Positive, neither overbought nor oversold. The STOCH value of >-0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5938.

LIXIL Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5929	68 Neutral	¥853.03B	14.44	18.61%	2.94%	2.90%	36.64%
5332	67 Neutral	¥828.17B	214.86	0.83%	2.36%	-0.03%	-89.02%
7943	66 Neutral	¥117.37B	35.09	―	3.53%	-0.58%	-46.15%
5930	66 Neutral	¥136.50B	10.55	12.89%	3.40%	2.98%	41.11%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5938	62 Neutral	¥521.32B	56.11	1.44%	4.80%	0.68%	―
5932	52 Neutral	¥20.32B	-4.49	―	4.03%	1.03%	-92.80%

LIXIL Group Corporate Events

LIXIL Reshapes Top Management, Appoints Yugo Kanazawa as Co-Representative Executive Officer and COO

LIXIL Corporation announced that its Board of Directors has approved a change in its top management structure, appointing Executive Officer and Executive Vice President Yugo Kanazawa as Representative Executive Officer, Executive Vice President, and COO effective April 1, 2026, alongside current President and CEO Kinya Seto, who remains a Representative Executive Officer. The move is part of a planned leadership transition aimed at strengthening strategic execution for LIXIL’s ongoing transformation, highlighting the increasing importance of Kanazawa’s digital, marketing, and customer experience expertise to the company’s next phase of growth and operational efficiency, and signaling a stronger dual-leadership framework expected to support its competitiveness and stakeholder value.

The most recent analyst rating on (JP:5938) stock is a Hold with a Yen1983.00 price target. To see the full list of analyst forecasts on LIXIL Group stock, see the JP:5938 Stock Forecast page.

LIXIL Corporation Reports Mixed H1 Financial Results Amid Market Changes

LIXIL Corporation reported a decrease in revenue for the first half of the fiscal year ending March 31, 2026, despite an increase in core earnings and EBITDA. The company experienced slowed sales growth in Q2 due to changes in Japan’s Building Standards Act, but renovation sales remained solid. The international business saw improved profits despite lower revenue, with strong performance in Europe, the Middle East, and India, while the Americas and China faced sluggish housing markets. Tax expenses decreased due to a favorable corporate tax rate change in LIXIL Europe, and the full-year earnings and dividend forecasts remain unchanged.

The most recent analyst rating on (JP:5938) stock is a Hold with a Yen1825.00 price target. To see the full list of analyst forecasts on LIXIL Group stock, see the JP:5938 Stock Forecast page.

LIXIL Corporation Reports Stable Financial Performance Amid Revenue Dip

LIXIL Corporation has reported its consolidated financial results for the first half of the fiscal year ending March 2026, showing a slight decrease in revenue but a significant increase in core earnings and operating profit. The company maintains its dividend forecast and has not revised its performance forecast, indicating stability in its financial strategy despite the slight revenue dip.

The most recent analyst rating on (JP:5938) stock is a Hold with a Yen1825.00 price target. To see the full list of analyst forecasts on LIXIL Group stock, see the JP:5938 Stock Forecast page.

LIXIL Europe Sees Tax Expense Reduction Amid German Tax Reforms

LIXIL Corporation announced a significant decrease in corporate income tax expenses for its subsidiary, LIXIL Europe, due to the recalculation of future tax liabilities following Germany’s Corporate Growth Opportunities Act. This adjustment, expected to reduce tax expenses by approximately JPY12.0 billion, will not impact LIXIL Europe’s operations or cash flow, but it will be reflected in the company’s financial performance over the fiscal year ending March 2026. Despite this tax adjustment, LIXIL maintains its annual dividend forecast, indicating stable financial expectations.

The most recent analyst rating on (JP:5938) stock is a Hold with a Yen1825.00 price target. To see the full list of analyst forecasts on LIXIL Group stock, see the JP:5938 Stock Forecast page.