November 21, 2024
Top 10 Stock LIXIL Group Sell Recommendation

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For each investment strategy, we provide you with more detailed analysis and our recommendation. You see the ranks of the top 10 stocks ranked by that particular investment strategy (360° View, Sentiment, Value, Growth, Safety and Combined Financial Performance).

360° View: Obermatt 360° View LIXIL Group Sell

360 METRICS	November 21, 2024
VALUE
VALUE	69
GROWTH
GROWTH	35
SAFETY
SAFETY	13
SENTIMENT
SENTIMENT	10
360° VIEW
360° VIEW	12

ANALYSIS: With an Obermatt 360° View of 12 (better than 12% compared with alternatives), overall professional sentiment and financial characteristics for the stock LIXIL Group are critical, mostly below average. The 360° View is based on consolidating four consolidated indicators, with three out of four indicators below average for LIXIL Group. Only the consolidated Value Rank has an attractive rank of 69, which means that the share price of LIXIL Group is on the lower side compared with the typical size in indicators such as revenues, profits, and invested capital. This means that the stock price is lower than for 69% of alternative stocks in the same industry. All other consolidated ranks are below average. The consolidated Growth Rank has a low rank of 35, which means that the company exhibits below-average growth momentum when looking at financial metrics such as revenue, profit, and invested capital growth as well as stock returns. The consolidated Safety Rank has a riskier rank of 13, meaning the company has a riskier financing structure than 87% comparable companies when looking at the amount of its debt, its refinancing requirements, and its ability to service debt. Finally, professionals are more pessimistic about the stock than for 90% of alternative investment opportunities, reflected in the consolidated Sentiment Rank of 10. ...read more

RECOMMENDATION: With a consolidated 360° View of 12, LIXIL Group is worse than 88% of all alternative stock investment opportunities based on the Obermatt Method. This means that LIXIL Group shares are on the riskier side for investors. Only one of the consolidated Obermatt Ranks exhibits above-average performance, namely the Value Rank at a level of 69. All other ranks are below average, so proceed with caution. The company has below-average growth expectations (Growth Rank of 35), a riskier financing structure than the competition (Safety Rank of 13), and the market sentiment in the professional investor community ranking at (Sentiment Rank of 10) is negative. This combination is sensitive to a crisis, because high debt levels (low safety) require growth to finance the debt burden. It’s no wonder that the investor community indicators are skeptical (low sentiment). Good value is sometimes an indication that the company's future is challenging. The below-par growth performance may be the reason for this assessment. We recommend evaluating whether the future of LIXIL Group is as challenging as the low price of the stock suggests. Since the professional community is pessimistic, you might need to worry about the future of LIXIL Group. Only invest if you have solid reasons to believe that the low growth is temporary and the current market sentiment is an overreaction, possibly due to reputational issues in the past. ...read more

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Sentiment Strategy: Professional Market Sentiment for LIXIL Group negative

SENTIMENT METRICS	November 21, 2024
ANALYST OPINION
ANALYST OPINION	18
OPINIONS CHANGE
OPINIONS CHANGE	32
PRO HOLDINGS
PRO HOLDINGS	22
MARKET PULSE
MARKET PULSE	8
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	10

ANALYSIS: With an Obermatt Sentiment Rank of 10 (better than 10% compared with alternatives), overall professional sentiment and engagement for the stock LIXIL Group is critical, mostly below average. The Sentiment Rank is based on consolidating four sentiment indicators, with half of the metrics below and half above average for LIXIL Group. Analyst Opinions are at a rank of 18 (worse than 82% of alternative investments), which means that currently, stock research analysts tend to warn against investing in the stock of the company. Worse, Analyst Opinions Change has a rank of 32 which means that stock research experts are getting even more pessimistic. It doesn't end with the analysts. Market Pulse is also low with a rank of 8, which means that the current professional news and professional social networks are on the negative side when discussing this company (more negative news than for 92% of competitors). No wonder, the Professional Investors rank is only 22, which means that professional investors hold less stock in this company than in 78% of alternative investment opportunities. Pros tend to stay away from LIXIL Group, which may be due to a small company size but just as likely because of its relatively low Sentiment Rank. ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 10 (less encouraging than 90% compared with investment alternatives), LIXIL Group has a reputation among professional investors that is far below that of its competitors. Investors should be careful with this stock right now. Further research is required if an investment is desired, because the facts found in the professional community are all negative. ...read more

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Value Strategy: LIXIL Group Stock Price Value better than average

VALUE METRICS	November 21, 2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	85
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	21
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	67
DIVIDEND YIELD
DIVIDEND YIELD	95
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	69

ANALYSIS: With an Obermatt Value Rank of 69 (better than 69% compared with alternatives), LIXIL Group shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, where three out of four indicators are above average for LIXIL Group. Price-to-Sales (P/S) is 85 which means that the stock price compared with what market professionals expect for future sales is lower than for 85% of comparable companies, indicating a good value for LIXIL Group's revenue size. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 67. Finally, compared with other companies in the same industry, dividend yields of LIXIL Group are expected to be higher than for 95% of all competitors (a Dividend Yield rank of 95). The only low rank is for expected profits with a Price-to-Profit Rank of 21, indicating that the market expects the company's profit to be low despite a high dividend. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 69, is a buy recommendation based on LIXIL Group's stock price compared with the company's operational size and dividend yields. The low Profit Rank could result from a one-off charge, for instance, for an accident, a legal settlement, or a restructuring project. If the company keeps its dividends high, the low expected profit may be transitory. If that is the case, the three good value ranks for Sales, Capital, and Dividends are reliable indicators for good stock price value, a low stock price. ...read more

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Growth Strategy: LIXIL Group Growth Momentum low

GROWTH METRICS	November 21, 2024
REVENUE GROWTH
REVENUE GROWTH	15
PROFIT GROWTH
PROFIT GROWTH	96
CAPITAL GROWTH
CAPITAL GROWTH	27
STOCK RETURNS
STOCK RETURNS	43
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	35

ANALYSIS: With an Obermatt Growth Rank of 35 (better than 35% compared with alternatives), LIXIL Group shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four metrics below average for LIXIL Group. While Profit Growth has a good rank of 96, as professionals currently expect the company to grow its profits more than 96% of its competitors, all other growth indicators are below market averages. Sales Growth has a rank of 15, which means that currently professionals expect the company to grow less than 85% of its competitors, while Capital Growth has a rank of 27 and Stock Returns have been below market median, with a rank of 43 (57% of alternative investments were better). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 35, is a hold recommendation for growth and momentum investors. While revenue growth and capital growth are good growth momentum indicators, profit is less reliable, because profits may increase due to cost-cutting measures which typically indicate negative growth momentum. "You can save a dollar only once" is the saying about such situations. Growth Investors should look at company priorities closely if they are interested in growth, because the increase in profits is not usually an indicator of growth, and stock prices have been below market, too. ...read more

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Safety Strategy: LIXIL Group Debt Financing Safety risky

SAFETY METRICS	November 21, 2024
LEVERAGE
LEVERAGE	16
REFINANCING
REFINANCING	49
LIQUIDITY
LIQUIDITY	19
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	13

ANALYSIS: With an Obermatt Safety Rank of 13 (better than 13% compared with alternatives), the company LIXIL Group has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of LIXIL Group is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with all three metrics below average for LIXIL Group. Liquidity is at 19, meaning that the company generates less profit to service its debt than 81% of its competitors. This indicates that the company is on the riskier side when it comes to debt service. Even worse, Leverage is at a rank of 16, meaning the company has an above-average debt-to-equity ratio. It has more debt than 84% of its competitors. Finally, Refinancing is at a rank of 49 which means that the portion of the debt about to be refinanced is above average. It has more debt in the refinancing stage than 51% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 13 (worse than 87% compared with alternatives), LIXIL Group has a financing structure that is significantly riskier than that of its competitors. This combination is rather dangerous in most situations. Only very promising companies with bright future outlooks and stellar reputations can operate with such risky financing.

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Combined financial peformance: LIXIL Group Below-Average Financial Performance

COMBINED PERFORMANCE	November 21, 2024
VALUE
VALUE	69
GROWTH
GROWTH	35
SAFETY
SAFETY	19
COMBINED
COMBINED	27

ANALYSIS: With an Obermatt Combined Rank of 27 (worse than 73% compared with investment alternatives), LIXIL Group (Building Products, Japan) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of LIXIL Group are a good value (attractively priced) with a consolidated Value Rank of 69 (better than 69% of alternatives) but show below-average growth (Growth Rank of 35), and are riskily financed (Safety Rank of 13), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 27, is a hold recommendation based on LIXIL Group's financial characteristics. As the company LIXIL Group's key financial metrics exhibit good value (Obermatt Value Rank of 69) but low growth (Obermatt Growth Rank of 35) and risky financing practices (Obermatt Safety Rank of 13), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 69% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. ...read more

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