LIXIL Corporation

TSE:5938 Stock Report

Market Cap: JP¥505.0b

LIXIL Valuation

Is 5938 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 5938 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 5938 (¥1758) is trading above our estimate of fair value (¥974.66)

Significantly Below Fair Value: 5938 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 5938?

Key metric: As 5938 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 5938. This is calculated by dividing 5938's market cap by their current revenue.
What is 5938's PS Ratio?
PS Ratio0.3x
SalesJP¥1.49t
Market CapJP¥505.04b

Price to Sales Ratio vs Peers

How does 5938's PS Ratio compare to its peers?

The above table shows the PS ratio for 5938 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1x
5332 Toto
1x2.6%JP¥685.7b
5393 Nichias
1.5x2.6%JP¥386.6b
1969 Takasago Thermal Engineering
1.1x2.5%JP¥395.9b
5201 AGC
0.5x4.3%JP¥981.2b
5938 LIXIL
0.3x1.9%JP¥505.0b

Price-To-Sales vs Peers: 5938 is good value based on its Price-To-Sales Ratio (0.3x) compared to the peer average (1x).

Price to Sales Ratio vs Industry

How does 5938's PS Ratio compare vs other companies in the JP Building Industry?

3 CompaniesPrice / SalesEstimated GrowthMarket Cap
5202 Nippon Sheet Glass Company
0.04x2.1%US$200.72m
5932 Sankyo TateyamaInc
0.06xn/aUS$147.05m
5940 FujisashLtd
0.08xn/aUS$51.85m
No more companies available in this PS range
5938 0.3xIndustry Avg. 0.5xNo. of Companies8PS00.40.81.21.62+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 5938 is good value based on its Price-To-Sales Ratio (0.3x) compared to the JP Building industry average (0.5x).

Price to Sales Ratio vs Fair Ratio

What is 5938's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

5938 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.3x
Fair PS Ratio1.1x

Price-To-Sales vs Fair Ratio: 5938 is good value based on its Price-To-Sales Ratio (0.3x) compared to the estimated Fair Price-To-Sales Ratio (1.1x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 5938 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentJP¥1,758.00
JP¥1,834.44
+4.3%
9.7%JP¥2,300.00JP¥1,650.00n/a9
Nov ’25JP¥1,798.50
JP¥1,854.44
+3.1%
12.8%JP¥2,500.00JP¥1,650.00n/a9
Oct ’25JP¥1,728.00
JP¥1,854.44
+7.3%
12.8%JP¥2,500.00JP¥1,650.00n/a9
Sep ’25JP¥1,730.50
JP¥1,854.44
+7.2%
12.8%JP¥2,500.00JP¥1,650.00n/a9
Aug ’25JP¥1,740.50
JP¥1,854.44
+6.5%
12.8%JP¥2,500.00JP¥1,650.00n/a9
Jul ’25JP¥1,711.50
JP¥1,865.56
+9.0%
12.7%JP¥2,500.00JP¥1,650.00n/a9
Jun ’25JP¥1,725.00
JP¥1,871.11
+8.5%
12.4%JP¥2,500.00JP¥1,700.00n/a9
May ’25JP¥1,672.50
JP¥1,813.33
+8.4%
5.5%JP¥2,000.00JP¥1,700.00n/a9
Apr ’25JP¥1,853.00
JP¥2,033.75
+9.8%
10.5%JP¥2,500.00JP¥1,700.00n/a8
Mar ’25JP¥1,926.00
JP¥2,033.75
+5.6%
10.5%JP¥2,500.00JP¥1,700.00n/a8
Feb ’25JP¥1,940.50
JP¥1,981.11
+2.1%
11.6%JP¥2,500.00JP¥1,700.00n/a9
Jan ’25JP¥1,760.50
JP¥1,936.67
+10.0%
12.3%JP¥2,500.00JP¥1,650.00n/a9
Dec ’24JP¥1,804.00
JP¥1,918.00
+6.3%
13.1%JP¥2,500.00JP¥1,650.00n/a10
Nov ’24JP¥1,707.00
JP¥1,945.00
+13.9%
11.9%JP¥2,500.00JP¥1,730.00JP¥1,798.5010
Oct ’24JP¥1,741.50
JP¥1,957.00
+12.4%
12.5%JP¥2,500.00JP¥1,730.00JP¥1,728.0010
Sep ’24JP¥1,824.50
JP¥1,972.00
+8.1%
8.8%JP¥2,300.00JP¥1,730.00JP¥1,730.5010
Aug ’24JP¥1,804.00
JP¥2,007.00
+11.3%
7.7%JP¥2,200.00JP¥1,730.00JP¥1,740.5010
Jul ’24JP¥1,824.00
JP¥2,096.00
+14.9%
10.1%JP¥2,600.00JP¥1,730.00JP¥1,711.5010
Jun ’24JP¥1,773.00
JP¥2,186.00
+23.3%
11.3%JP¥2,600.00JP¥1,730.00JP¥1,725.0010
May ’24JP¥1,997.00
JP¥2,328.00
+16.6%
7.8%JP¥2,600.00JP¥2,100.00JP¥1,672.5010
Apr ’24JP¥2,177.00
JP¥2,329.00
+7.0%
6.0%JP¥2,600.00JP¥2,100.00JP¥1,853.0010
Mar ’24JP¥2,164.00
JP¥2,358.18
+9.0%
8.5%JP¥2,800.00JP¥2,100.00JP¥1,926.0011
Feb ’24JP¥2,117.00
JP¥2,449.09
+15.7%
11.9%JP¥3,100.00JP¥2,100.00JP¥1,940.5011
Jan ’24JP¥2,001.00
JP¥2,512.73
+25.6%
11.8%JP¥3,100.00JP¥2,100.00JP¥1,760.5011
Dec ’23JP¥2,102.00
JP¥2,624.00
+24.8%
12.0%JP¥3,200.00JP¥2,240.00JP¥1,804.0010
Nov ’23JP¥2,007.00
JP¥2,754.00
+37.2%
11.5%JP¥3,200.00JP¥2,240.00JP¥1,707.0010

Analyst Forecast: Target price is less than 20% higher than the current share price.

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