LIXIL Corporation
LIXIL Corporation Fundamental Analysis
LIXIL Corporation (5938.T) shows weak financial fundamentals with a PE ratio of 49.51, profit margin of 0.63%, and ROE of 1.50%. The company generates $1502.8B in annual revenue with weak year-over-year growth of 1.45%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 34.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 5938.T's fundamental strength across five key dimensions:
Efficiency Score
Weak5938.T struggles to generate sufficient returns from assets.
Valuation Score
Weak5938.T trades at a premium to fair value.
Growth Score
Weak5938.T faces weak or negative growth trends.
Financial Health Score
Moderate5938.T shows balanced financial health with some risks.
Profitability Score
Moderate5938.T maintains healthy but balanced margins.
Key Financial Metrics
Is 5938.T Expensive or Cheap?
P/E Ratio
5938.T trades at 49.51 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, 5938.T's PEG of 20.01 indicates potential overvaluation.
Price to Book
The market values LIXIL Corporation at 0.71 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.90 times EBITDA. This is generally considered low.
How Well Does 5938.T Make Money?
Net Profit Margin
For every $100 in sales, LIXIL Corporation keeps $0.63 as profit after all expenses.
Operating Margin
Core operations generate 2.45 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.50 in profit for every $100 of shareholder equity.
ROA
LIXIL Corporation generates $0.49 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
LIXIL Corporation generates limited operating cash flow of $87.52B, signaling weaker underlying cash strength.
Free Cash Flow
LIXIL Corporation produces free cash flow of $56.02B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $194.90 in free cash annually.
FCF Yield
5938.T converts 11.88% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
49.51
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
20.007
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.71
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.31
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.03
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.29
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.005
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How 5938.T Stacks Against Its Sector Peers
| Metric | 5938.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 49.51 | 25.96 | Worse (Expensive) |
| ROE | 1.50% | 1263.00% | Weak |
| Net Margin | 0.63% | -41827.00% (disorted) | Weak |
| Debt/Equity | 1.03 | 0.79 | Weak (High Leverage) |
| Current Ratio | 1.29 | 10.05 | Neutral |
| ROA | 0.49% | -1497918.00% (disorted) | Weak |
5938.T outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews LIXIL Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-55.13%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
-91.92%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
-67.96%
Industry Style: Cyclical, Value, Infrastructure
Declining