Analyst Estimates: Here’s What Brokers Think Of LIXIL Corporation (TSE:5938) After Its Interim Report

Shareholders might have noticed that LIXIL Corporation (TSE:5938) filed its half-year result this time last week. The early response was not positive, with shares down 4.1% to JP¥1,692 in the past week. Revenues of JP¥762b arrived in line with expectations, although statutory losses per share were JP¥3.76, an impressive 75% smaller than what broker models predicted. Earnings are an important time for investors, as they can track a company’s performance, look at what the analysts are forecasting for next year, and see if there’s been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Following the latest results, LIXIL’s seven analysts are now forecasting revenues of JP¥1.58t in 2027. This would be an okay 2.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 5,693% to JP¥40.08. Before this earnings report, the analysts had been forecasting revenues of JP¥1.58t and earnings per share (EPS) of JP¥40.10 in 2027. So it’s pretty clear that, although the analysts have updated their estimates, there’s been no major change in expectations for the business following the latest results.

View our latest analysis for LIXIL

The analysts reconfirmed their price target of JP¥1,849, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so – it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on LIXIL, with the most bullish analyst valuing it at JP¥2,200 and the most bearish at JP¥1,600 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await LIXIL shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It’s clear from the latest estimates that LIXIL’s rate of growth is expected to accelerate meaningfully, with the forecast 5.7% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 1.3% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 4.2% per year. Factoring in the forecast acceleration in revenue, it’s pretty clear that LIXIL is expected to grow much faster than its industry.

The Bottom Line

The most obvious conclusion is that there’s been no major change in the business’ prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates – from multiple LIXIL analysts – going out to 2029, and you can see them free on our platform here.

However, before you get too enthused, we’ve discovered 4 warning signs for LIXIL (2 are concerning!) that you should be aware of.

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