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LIXIL Group
(5938)
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Rating:50Neutral
Price Target:
¥1,719.00
▼(-2.94% Downside)
Action:Reiterated
Date:08/04/26
The score is held back primarily by thin profitability/low returns and uneven cash-flow quality, alongside weak near-term technical momentum. Valuation is mixed: a high dividend yield is outweighed by a very high P/E. The earnings call adds moderate risk due to a very weak Q1 and significant cost headwinds, partially offset by unchanged full-year guidance and planned pricing/cost actions that are expected to improve results later in the year.
Positive Factors
Emerging markets growth
Strong double-digit growth in IMEA demonstrates durable geographic diversification and market-share gains in faster-growing regions. Consistent expansion in India, Middle East & Africa reduces reliance on mature markets, supports revenue resilience and provides a multi-year growth runway if sustained.
Negative Factors
Thin profitability
Very low margins and near-zero ROE indicate limited earnings power and inefficient capital utilization. Such thin profitability reduces capacity to self-fund growth, increases sensitivity to cost shocks, and implies slower balance-sheet repair and lower resilience across 2–6 month horizons unless margins materially recover.
Read all positive and negative factors
Positive Factors
Negative Factors
Emerging markets growth
Strong double-digit growth in IMEA demonstrates durable geographic diversification and market-share gains in faster-growing regions. Consistent expansion in India, Middle East & Africa reduces reliance on mature markets, supports revenue resilience and provides a multi-year growth runway if sustained.
Read all positive factors
LIXIL Group (5938) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥498.44B
Dividend Yield5.21%
Average Volume (3M)2.13M
Price to Earnings (P/E)89.6
Beta (1Y)0.59
Revenue Growth1.71%
EPS Growth-20.26%
CountryJP
Employees48,073
SectorIndustrials
Sector Strength72
IndustryConstruction Materials
Share Statistics
EPS (TTM)19.28
Shares Outstanding287,664,520
10 Day Avg. Volume1,697,310
30 Day Avg. Volume2,129,186
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)38.58
Revenue Forecast (FY)¥1.55T
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 primarily makes money by selling building products and housing equipment to households, homebuilders, contractors, distributors, and retailers in Japan and international markets. Its core revenue stream is product sales across major categori...
LIXIL Group Earnings Call Summary
Earnings Call Date:Jul 31, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Negative
The call conveyed meaningful operational and margin pressures in Q1 driven by rapid material cost inflation, logistics disruptions and weak renovation demand, producing a negative Q1 earnings outcome (core earnings JPY 1.7b; net loss JPY 3.5b; only ~3.8% progress vs FY target). Management highlighted concrete mitigation actions — phased price revisions, cost reductions, hedging, plant rationalization and efficiency programs — and kept the full-year core earnings target at JPY 45.0 billion, but the benefits of those measures are largely expected in H2 and into the following fiscal year. Near-term cash flow, margin recovery and regional demand (especially Americas and Gulf) remain risk points.Positive Updates
Revenue Growth in Q1
Consolidated revenue increased to JPY 379.2 billion in Q1.
Negative Updates
Very Weak Q1 Profitability and Low Progress Against Full-Year Target
Q1 core earnings were only JPY 1.7 billion and profit for the quarter was a loss of JPY 3.5 billion. Management stated Q1 progress against the full-year target was about 3.8%, indicating a very slow start to the year.
Read all updates
Q1-2027 Updates
Positive
Negative
Revenue Growth in Q1
Consolidated revenue increased to JPY 379.2 billion in Q1.
Read all positive updates
Company Guidance
Management reiterated an unchanged full‑year guidance — core earnings target JPY 45.0 billion and no change to the dividend — while Q1 showed revenues JPY 379.2 billion, core earnings JPY 1.7 billion and profit for the quarter of -JPY 3.5 billion (Q1 progress ~3.8% of the FY core‑earnings target). Management flagged a large commodity and logistics headwind (variously described as ~JPY 30 billion of immediate cost impact and a broader cumulative swing cited up to JPY 49.2 billion versus the beginning‑of‑year plan), and said aluminum is trading around JPY 3,200 (previously modeled nearer JPY 3,600), with copper and petrochemical cost pressure also material; they expect to offset these with price revisions (phased July for international, August for LWT/Living, October for LHT), cost reductions and hedges, with most benefit back‑loaded into H2 and the following fiscal year. Other metrics: equity ratio 33.8% (down from ~35%), temporary rise in net interest‑bearing debt due to short‑term investments, negative free cash flow in Q1, lower renovation mix/new‑housing prioritization, and LWT IMEA revenues up ~16% but margins weakened (from ~16.5% to ~8.9%).LIXIL Group Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
57
Neutral
Cash Flow
49
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.53T | 1.51T | 1.50T | 1.48T | 1.50T | 1.43T |
| Gross Profit | 514.83B | 515.15B | 453.54B | 431.07B | 427.22B | 444.89B |
| EBITDA | 110.00B | 115.66B | 115.54B | 98.49B | 107.17B | 152.28B |
| Net Income | 5.54B | 8.14B | 2.00B | -13.77B | 17.25B | 51.21B |
Balance Sheet | ||||||
| Total Assets | 1.93T | 1.88T | 1.83T | 1.89T | 1.85T | 1.78T |
| Cash, Cash Equivalents and Short-Term Investments | 133.08B | 115.62B | 123.53B | 124.48B | 106.68B | 100.40B |
| Total Debt | 708.58B | 647.21B | 657.80B | 677.19B | 618.40B | 524.70B |
| Total Liabilities | 1.27T | 1.22T | 1.21T | 1.24T | 1.23T | 1.17T |
| Stockholders Equity | 653.25B | 664.84B | 617.89B | 642.51B | 625.43B | 612.38B |
Cash Flow | ||||||
| Free Cash Flow | 36.41B | 50.54B | 65.64B | 10.12B | -26.58B | 81.27B |
| Operating Cash Flow | 71.17B | 82.69B | 100.00B | 47.99B | 15.01B | 118.30B |
| Investing Cash Flow | -48.31B | -23.06B | -28.13B | -29.88B | -29.32B | -24.80B |
| Financing Cash Flow | -5.94B | -73.00B | -72.47B | -3.67B | 19.84B | -108.09B |
LIXIL Group Technical Analysis
Negative
1771.00
Price Trends
1803.64
Negative
1744.04
Negative
1749.95
Negative
Market Momentum
-12.88
Positive
40.31
Neutral
5.80
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 1771 is above the 20-day moving average (MA) of 1753.28, below the 50-day MA of 1803.64, and above the 200-day MA of 1749.95, indicating a bearish trend. The MACD of -12.88 indicates Positive momentum. The RSI at 40.31 is Neutral, neither overbought nor oversold. The STOCH value of 5.80 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | ¥98.11B | 14.37 | 5.17% | 3.83% | -0.79% | 21.74% | |
69 Neutral | ¥126.76B | 10.56 | 10.85% | 3.97% | 3.01% | 2.30% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | ¥6.10T | 21.88 | 8.84% | 1.63% | 10.88% | -2.59% | |
63 Neutral | ¥922.08B | 23.42 | 7.95% | 1.89% | 2.01% | 331.85% | |
62 Neutral | ¥99.30B | 23.11 | ― | 3.87% | -3.10% | 144.65% | |
50 Neutral | ¥498.44B | 89.57 | 0.85% | 5.21% | 1.71% | -20.26% |
* Industrials Sector Average
JP:5938
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LIXIL Group Corporate Events
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...
LIXIL Issues Restricted Stock to Directors to Align Pay With Shareholders
Jun 22, 2026
LIXIL Corporation has approved the issuance of 23,704 new common shares as restricted stock compensation for eight directors, including outside directors but excluding those who also serve as executive officers. The shares, priced at ¥1,688 e...
LIXIL Maintains Annual Dividend at JPY90 Per Share for FY2026
May 18, 2026
LIXIL Corporation’s board has approved a year-end dividend of JPY45 per share for shareholders of record as of March 31, 2026, bringing the total annual dividend to JPY90 per share including the interim payment. The total year-end payout wil...
LIXIL Revises Non-Consolidated FY2026 Results Without Affecting Group Earnings
May 18, 2026
LIXIL Corporation has revised part of its previously disclosed non-consolidated financial results for the fiscal year ended March 31, 2026, following a reassessment of receivables from a consolidated subsidiary and the application of Japanese tax ...
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.