DB:TJS

Stock Analysis Report

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Executive Summary

LIXIL Group Corporation, through its subsidiaries, operates in the housing and building industry worldwide.


Snowflake Analysis

Established dividend payer and slightly overvalued.


Similar Companies

Share Price & News

How has LIXIL Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TJS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

TJS

3.3%

DE Building

3.5%

DE Market


1 Year Return

-15.2%

TJS

2.8%

DE Building

3.0%

DE Market

Return vs Industry: TJS underperformed the German Building industry which returned 2.8% over the past year.

Return vs Market: TJS underperformed the German Market which returned 3% over the past year.


Shareholder returns

TJSIndustryMarket
7 Day0%3.3%3.5%
30 Day-4.7%0.8%-0.08%
90 Day16.0%10.2%21.0%
1 Year-11.4%-15.2%5.8%2.8%5.2%3.0%
3 Year-35.9%-42.5%2.9%-7.0%4.5%-4.0%
5 Year-21.5%-32.9%59.3%41.3%11.5%-3.2%

Price Volatility Vs. Market

How volatile is LIXIL Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is LIXIL Group undervalued compared to its fair value and its price relative to the market?

14.46x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TJS (€12.3) is trading above our estimate of fair value (€9.2)

Significantly Below Fair Value: TJS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TJS is poor value based on its PE Ratio (14.5x) compared to the Building industry average (11x).

PE vs Market: TJS is good value based on its PE Ratio (14.5x) compared to the German market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: TJS is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: TJS is good value based on its PB Ratio (0.9x) compared to the DE Building industry average (1.1x).


Next Steps

Future Growth

How is LIXIL Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

4.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TJS's forecast earnings growth (4.9% per year) is above the savings rate (0.2%).

Earnings vs Market: TJS's earnings (4.9% per year) are forecast to grow slower than the German market (22.4% per year).

High Growth Earnings: TJS's earnings are forecast to grow, but not significantly.

Revenue vs Market: TJS's revenue is expected to decline over the next 3 years (-0.7% per year).

High Growth Revenue: TJS's revenue is forecast to decline over the next 3 years (-0.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TJS's Return on Equity is forecast to be low in 3 years time (6.6%).


Next Steps

Past Performance

How has LIXIL Group performed over the past 5 years?

-7.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TJS has high quality earnings.

Growing Profit Margin: TJS became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: TJS's earnings have declined by -7.2% per year over the past 5 years.

Accelerating Growth: TJS has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: TJS has become profitable in the last year, making it difficult to compare its past year earnings growth to the Building industry (22.3%).


Return on Equity

High ROE: TJS's Return on Equity (6%) is considered low.


Next Steps

Financial Health

How is LIXIL Group's financial position?


Financial Position Analysis

Short Term Liabilities: TJS's short term assets (¥742.8B) do not cover its short term liabilities (¥807.1B).

Long Term Liabilities: TJS's short term assets (¥742.8B) do not cover its long term liabilities (¥749.3B).


Debt to Equity History and Analysis

Debt Level: TJS's debt to equity ratio (111.4%) is considered high.

Reducing Debt: TJS's debt to equity ratio has increased from 105.2% to 111.4% over the past 5 years.

Debt Coverage: TJS's debt is well covered by operating cash flow (26.5%).

Interest Coverage: TJS's interest payments on its debt are well covered by EBIT (15.8x coverage).


Balance Sheet


Next Steps

Dividend

What is LIXIL Group current dividend yield, its reliability and sustainability?

4.56%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TJS's dividend (4.56%) is higher than the bottom 25% of dividend payers in the German market (1.26%).

High Dividend: TJS's dividend (4.56%) is in the top 25% of dividend payers in the German market (3.8%)


Stability and Growth of Payments

Stable Dividend: TJS's dividends per share have been stable in the past 10 years.

Growing Dividend: TJS's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (66%), TJS's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.1yrs

Average management tenure


CEO

Kinya Seto (60yo)

4.08yrs

Tenure

JP¥1,127,000,000

Compensation

Mr. Kinya Seto serves as Representative Executive Officer and Chief Executive Officer at LIXIL Group Corporation since June 25, 2019. He serves as President of LIXIL Group Corporation since June 2016 and a ...


CEO Compensation Analysis

Compensation vs Market: Kinya's total compensation ($USD0.00) is below average for companies of similar size in the German market ($USD2.43M).

Compensation vs Earnings: Kinya's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Kinya Seto
Representative Executive Officer4.08yrsJP¥1.13b0.084% ¥3.1m
Sachio Matsumoto
Representative Executive Officer7.08yrsJP¥270.00m0.030% ¥1.1m
Hwa Jin Montesano
Chief People Officerno dataJP¥195.00m0.0024% ¥88.2k
Yugo Kanazawa
Chief Digital Officerno datano data0.0034% ¥126.3k
Shoko Kimijima
Executive Officer0.50yrno datano data
Makoto Yoshitaka
Managing Director and Operating Officer for Business Development5.25yrsno datano data
Yang Chen
Chief Integration Officer3.25yrsno datano data
Paul Flowers
Chief Design Officerno datano datano data
Nik Bafana
Chief of Staff4.25yrsno datano data
Satoshi Yoshida
Senior MD of LHT Japan1.08yrsno data0.0034% ¥126.3k

4.1yrs

Average Tenure

Experienced Management: TJS's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kinya Seto
Representative Executive Officer4.08yrsJP¥1.13b0.084% ¥3.1m
Satoshi Yoshida
Senior MD of LHT Japan1.08yrsno data0.0034% ¥126.3k
Keiichiro Ina
Director19.08yrsno data0.14% ¥5.1m
Ryuichi Kawamoto
Director4.08yrsJP¥255.00m0.0024% ¥88.2k
Kazuhiko Ootsubo
Director1.08yrsno data0.0055% ¥202.1k
Masatoshi Matsuzaki
Independent Chairperson of the Board1.08yrsno datano data
Kurt M. Campbell
Independent Outside Director1.08yrsno datano data
Zenji Miura
Independent Outside Director1.08yrsno datano data
Yuji Nishiura
Independent Outside Director1.08yrsno datano data
Daisuke Hamaguchi
Independent Outside Director1.08yrsno datano data

1.1yrs

Average Tenure

64yo

Average Age

Experienced Board: TJS's board of directors are not considered experienced ( 1.1 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

LIXIL Group Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: LIXIL Group Corporation
  • Ticker: TJS
  • Exchange: DB
  • Founded: 1923
  • Industry: Building Products
  • Sector: Capital Goods
  • Market Cap: JP¥445.019b
  • Listing Market Cap: JP¥3.661b
  • Shares outstanding: 290.10m
  • Website: https://www.lixil.com

Number of Employees


Location

  • LIXIL Group Corporation
  • Kasumigaseki Building
  • 36th Floor
  • Tokyo
  • 100-6036
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
5938TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
JSGC.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
TJSDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992
JSGR.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDOct 2008

Biography

LIXIL Group Corporation, through its subsidiaries, operates in the housing and building industry worldwide. It operates through LIXIL Water Technology (LWT), LIXIL Housing Technology (LHT), LIXIL Building Technology (LBT), Distribution & Retail Business (D&R), and Housing & Services Business (H&S) segments. The LWT segment offers sanitary ware, shower toilets, water faucets, washstands, bathtubs, prefabricated bathrooms, showerheads, washstand fixtures, washstand cabinet units, kitchen systems, etc.; and tiles for houses and buildings, and internal decorative tiles, etc. The LHT segment provides housing window sashes, entrance doors, various types of shutters, gates, carports, banisters, high railings, tide barriers, smoke insulated screens, etc.; window frames, wooden furnishing materials, interior decorative materials, etc.; sidings, stone materials, roofing materials, etc.; curtains; and solar power systems, etc. The LBT segment offers curtain walls, building sashes, store facades, etc. The D&R segment operates home centers that provide household products, DIY products, building materials, etc.; and building material stores that offer building materials, tools, hardware, etc. The H&S segment develops homebuilding franchise chains; offers construction on order, ground inspections and improvements, etc.; provides services for land, buildings, real estate management, real estate franchises development support, etc.; and offers housing loans. The company was formerly known as JS Group Corporation and changed its name to LIXIL Group Corporation in July 2012. LIXIL Group Corporation was founded in 1923 and is headquartered in Tokyo, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/07 21:22
End of Day Share Price2020/07/07 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.