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LIXIL Group
(5938)
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Rating:46Neutral
Price Target:
¥1,629.00
▼(-8.02% Downside)
Action:Reiterated
Date:10/31/26
Overall score is held back primarily by weak/volatile profitability, elevated leverage, and inconsistent cash flow generation. Technicals also point to negative momentum with the stock trading below key moving averages. These negatives are partially offset by a high dividend yield and a mixed earnings-call outlook where guidance and dividend were maintained but demand, cost, and working-capital risks remain significant.
Positive Factors
Brand and Channel Strength
GROHE’s brand equity and endorsement by installers, plumbers, architects, and designers support durable differentiation in professional channels. This positioning can protect customer preference, support regional expansion, and sustain demand for higher-value products beyond short-term construction cycles.
Negative Factors
Thin and Volatile Profitability
Thin profitability leaves limited protection against cost inflation, foreign-exchange pressure, or weaker demand. After a prior loss and near-breakeven TTM performance, even moderate operating setbacks could materially affect earnings, limiting reinvestment capacity and making performance less predictable over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Brand and Channel Strength
GROHE’s brand equity and endorsement by installers, plumbers, architects, and designers support durable differentiation in professional channels. This positioning can protect customer preference, support regional expansion, and sustain demand for higher-value products beyond short-term construction cycles.
Read all positive factors
LIXIL Group (5938) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥478.16B
Dividend Yield5.41%
Average Volume (3M)1.83M
Price to Earnings (P/E)86.2
Beta (1Y)0.59
Revenue Growth2.42%
EPS Growth-97.84%
CountryJP
Employees48,073
SectorIndustrials
Sector Strength72
IndustryConstruction Materials
Share Statistics
EPS (TTM)0.69
Shares Outstanding287,664,520
10 Day Avg. Volume2,002,230
30 Day Avg. Volume1,834,140
Financial Highlights & Ratios
PEG Ratio0.19
Price to Book (P/B)0.70
Price to Sales (P/S)0.31
P/FCF Ratio9.22
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)43.36
Revenue Forecast (FY)¥1.56T
LIXIL Group Business Overview & Revenue Model
Company Description
LIXIL Corporation, a global enterprise, specializes in the development, manufacturing, and distribution of a wide array of building materials and home equipment through its international subsidiaries. The company's activities are organized into fo...
How the Company Makes Money
LIXIL makes money primarily by designing, manufacturing, and selling building products and water-related fixtures to the construction and renovation markets. Its revenue model is largely product-sales driven, with key streams coming from (1) Water...
LIXIL Group Earnings Call Summary
Earnings Call Date:Oct 30, 2026
(Q2-2027)
| % Change Since: |
Next Earnings Date:Jan 30, 2027
Earnings Call Sentiment Neutral
The call was mixed. LIXIL reported progress on price optimization, U.S. structural reform, market-share gains, LWT profitability, and AI-related initiatives, while maintaining its full-year forecast and JPY 45 dividend. However, these positives were offset by declining overall core earnings, significantly lower LHT core earnings, weaker-than-expected international demand, sluggish domestic renovation activity, higher costs, increased working capital and leverage, lower free cash flow, and continued uncertainty in the U.S., China, Europe, and the Middle East.Positive Updates
LWT Japan Revenue and Core Earnings Increased
LWT in Japan saw increases in both revenue and core earnings despite cost increases. The company conducted a price increase in August, with the increase gradually penetrating the market, and said the situation should improve as the price revision takes effect.
Negative Updates
LHT Revenue Increased but Core Earnings Declined Significantly
LHT revenue increased, but core earnings declined significantly. Cost increases occurred in April, while price optimization was scheduled for October, causing performance to deteriorate compared with the prior fiscal year.
Read all updates
Q2-2027 Updates
Positive
Negative
LWT Japan Revenue and Core Earnings Increased
LWT in Japan saw increases in both revenue and core earnings despite cost increases. The company conducted a price increase in August, with the increase gradually penetrating the market, and said the situation should improve as the price revision takes effect.
Read all positive updates
Company Guidance
For the full year, there is no change in the dividend or the forecast, with the dividend expected to be JPY 45; revenue is expected to go up, but volume is not necessarily increasing, and price optimization is expected to cover the decline in deteriorated areas. LHT’s price optimization is going smoothly, and LIXIL believes it can recover in the second half for what it lost in the first half, while LWT overall has JPY 31 billion core earnings planned and aims to catch up to the full-year plan. LIXIL intends to catch up in the second half for the gross profit margin gap and free cash flow gap, recover the equity ratio, which came down to 33.9%, quite quickly, and settle the tax cost between 30% and 40% as quickly as possible.LIXIL Group Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
49
Neutral
Cash Flow
42
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.54T | 1.51T | 1.50T | 1.48T | 1.50T | 1.43T |
| Gross Profit | 513.21B | 515.15B | 453.54B | 431.07B | 427.22B | 444.89B |
| EBITDA | 108.82B | 115.66B | 115.54B | 98.49B | 107.17B | 152.28B |
| Net Income | 199.00M | 8.14B | 2.00B | -13.77B | 17.25B | 51.21B |
Balance Sheet | ||||||
| Total Assets | 1.87T | 1.88T | 1.83T | 1.89T | 1.85T | 1.78T |
| Cash, Cash Equivalents and Short-Term Investments | 111.42B | 115.62B | 123.53B | 124.48B | 106.68B | 100.40B |
| Total Debt | 690.05B | 647.21B | 657.80B | 677.19B | 618.40B | 524.70B |
| Total Liabilities | 1.23T | 1.22T | 1.21T | 1.24T | 1.23T | 1.17T |
| Stockholders Equity | 632.95B | 664.84B | 617.89B | 642.51B | 625.43B | 612.38B |
Cash Flow | ||||||
| Free Cash Flow | 9.62B | 50.54B | 65.64B | 10.12B | -26.58B | 81.27B |
| Operating Cash Flow | 46.17B | 82.69B | 100.00B | 47.99B | 15.01B | 118.30B |
| Investing Cash Flow | -27.83B | -23.06B | -28.13B | -29.88B | -29.32B | -24.80B |
| Financing Cash Flow | -29.48B | -73.00B | -72.47B | -3.67B | 19.84B | -108.09B |
LIXIL Group Technical Analysis
Negative
1771.00
Price Trends
1692.65
Negative
1721.82
Negative
1694.71
Negative
Market Momentum
-8.23
Positive
42.46
Neutral
22.12
Neutral
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 1771 is above the 20-day moving average (MA) of 1682.28, above the 50-day MA of 1692.65, and above the 200-day MA of 1694.71, indicating a bearish trend. The MACD of -8.23 indicates Positive momentum. The RSI at 42.46 is Neutral, neither overbought nor oversold. The STOCH value of 22.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5938.
LIXIL Group Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | ¥127.09B | 10.73 | 10.85% | 3.91% | 3.01% | 2.30% | |
72 Outperform | ¥101.08B | 14.78 | 5.17% | 3.72% | -0.79% | 21.74% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | ¥6.16T | 22.35 | 8.84% | 1.69% | 10.88% | -2.59% | |
63 Neutral | ¥913.02B | 23.14 | 7.95% | 2.09% | 2.01% | 331.85% | |
60 Neutral | ¥95.28B | 22.32 | ― | 4.29% | -3.10% | 144.65% | |
46 Neutral | ¥478.16B | 86.23 | 0.03% | 5.41% | 2.42% | -97.84% |
* Industrials Sector Average
JP:5938
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LIXIL Group Corporate Events
LIXIL H1 Revenue Rises but Earnings Weaken on Higher Material Costs
Oct 30, 2026
LIXIL reported higher revenue for the first half of the fiscal year ending March 31, 2027, but saw year-on-year declines in core earnings and EBITDA as rising ingot and material costs outweighed limited benefits from price optimization. The LIXIL ...
LIXIL Posts H1 Loss but Sticks to Full-Year Outlook and Dividend Plan
Oct 30, 2026
LIXIL reported first-half fiscal 2027 revenue of ¥762.5 billion, up 3.6% year-on-year, but core earnings and operating profit fell sharply, leading to a loss attributable to owners of the parent of ¥4.6 billion. Management maintained its...
LIXIL Confirms Q1 Results Review as Profit Slides but Full-Year Outlook Intact
Aug 7, 2026
LIXIL Corporation has confirmed that its consolidated financial results for the first quarter ended June 30, 2026, previously disclosed on July 31, have now been reviewed by certified public accountants with no changes required. The company report...
LIXIL to Absorb Shower Toilet Subsidiary in Streamlining Move
Aug 5, 2026
LIXIL Corporation will absorb its wholly-owned subsidiary LIXIL Shower Toilet Tech Corp. through an absorption-type merger effective October 1, 2026, with LIXIL as the surviving entity and the subsidiary to be dissolved. The move follows the compl...
LIXIL Holds Full-Year Outlook Despite Q1 Margin Pressure From Rising Aluminum Costs
Jul 31, 2026
LIXIL reported increased year-on-year revenue for the first quarter of the fiscal year ending March 31, 2027, but core earnings and EBITDA declined, largely due to rising aluminum prices affecting its housing technology segment and a lower ratio o...
LIXIL Q1 Revenue Rises but Earnings Slump as Full-Year Guidance Held
Jul 31, 2026
LIXIL Corporation reported consolidated financial results for the first quarter of the fiscal year ending March 31, 2027, showing a 4.0% year-on-year increase in revenue to ¥379.2 billion but a sharp decline in profitability, with core earnin...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.