Sekisui House Ltd (SKHSY) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of Sekisui House Ltd stock $37.73, price $22.18, upside +70.1%, quality 53 out of 100. Rating: strongly undervalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 6, 2026.
How to read this chart
60‑month range $13.28 – $26.64 · fair‑value band $19.56 – $58.93 · the $22.18 price screens below the $37.73 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 6, 2026.
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Sekisui House, Ltd. designs, constructs, and contracts built-to-order detached houses in Japan and internationally. It operates through Detached Houses, Rental Housing and Commercial Buildings, Architectural/Civil Engineering, Rental Housing Management, Remodeling, Development, and Overseas segments.
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It also engages in the design, construction, contracting, and sale of rental housing, office buildings, commercial buildings, and other properties; design, construction, and contracting of civil engineering works; leasing and management operations for rental housing and other buildings; remodeling of detached houses, rental housing, and other buildings; real estate and brokerage; development, sale, and management of condominiums; development, management, and operation of office buildings, hotels, and rental condominiums; and development and sale of residential lands.
In addition, it is involved in carpenter, plastering, concrete, roofing, electrical, piping, tiles, bricks and blocks, steel structure, reinforcing, paving, sheet metal, glass, painting, waterproofing, installation works, heat insulation, water facility and firefighting equipment work; management consulting; purchase and sale of furniture, interior decoration, household electric appliances, housing and medical equipment, and daily sundry goods; land measurement and geological survey; manufacture and sale of construction materials; collection, transportation, disposal, and recycling of waste; development and leasing of computer software and information processing systems; operated home for elderly and other facilities, facilities, sporting facilities, training institutes, trucking, warehousing, and security services; money lending, debt guarantees, and leasing of movable property; asset management of marketable securities; advertising and non-life insurance agent; and administration of welfare and career development facilities.
The company was incorporated in 1929 and is headquartered in Kita, Japan.
Stock analysis
Sekisui House Ltd (SKHSY) currently trades at $22.18, while our model-based Fair Value estimate is $37.73, implying the stock looks roughly 41% undervalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of $45.18 per share, and 20 of the 26 models we run sit above the $22.18 price.
Bear case: the Asset-Based group reads lowest at $10.16, and 6 of the 26 models stay below the price. Data coverage for this calculation is high.
Scenario range: $19.56 (bear) to $58.93 (bull), the price of $22.18 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 53/100 (solid quality), in the Consumer Cyclical sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Sekisui House Ltd ADR reported revenue of ¥4.3T in FY2026 versus ¥2.6T in FY2022, a compound +13.8%/yr. Reported net income was ¥240B in FY2026, compounding +11.8%/yr from FY2022.
Key figures
Market cap $14.4B Large · P/E ratio 8.8 · P/S ratio 0.48 · EPS (TTM) $2.53 · Dividend yield 4.1% · Net margin 5.5% · Return on equity 12.3% · Return on assets (EBIT) 7.8% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 44 out of 100 (medium confidence).
What moves the price
The share trades about 10% below its 52-week high and 12% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Consumer Cyclical peers we cover trades at 38% fair-value upside, at 70%, SKHSY screens cheaper than that median.
Fair Value models
Bear$19.56Fair Value $37.73Bull$58.93
Price $22.18 · Upside +70.1%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2026 figures (about 9 months old). Earnings retained since then ($1.25 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.86/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+7.0%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+14.0%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+12.2%
Start year 2021 (pandemic). Over 10 years: +8.9% a year
Revenue growth 27 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+4.5%
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What shareholders gained per year (last 5 years), in JPY ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Measured in JPY: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+16.6%
Earnings growth per share plus dividend.
Earnings per share, growth per year+12.5%
Dividend (yield on the price)4.1%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.12.5% vs 11.5%, steady
Profit margin 2021 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.8% → 8%
Pace: the 5-year rate starts in 2021 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes less growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+8.2%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+2.3%
Yearly sales growth analysts expect, extended to five years.
After inflation (figures in JPY, Japan: IMF forecast 2.1% a year to 2030, 1.3% from 2016 to 2025) that is about +6.0% a year for the price and +0.2% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (21 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Negative
Recent news coverage is more negative than average.
AI conclusion: Sekisui House draws its main strength from US footprint expansion via the MDC Holdings acquisition and rollout of resilient building methods, yet its core weakness is the limited moat in a competitive sector with thin margins and cyclical exposure.
Main risk: The MDC Holdings acquisition raised net debt and requires ongoing focus on keeping net debt to EBITDA below target levels which could limit further investment or raise refinancing costs if US housing margins stay weak.
Bull case: By integrating Japanese precision methods across US brands and using data-driven efficiencies the company could improve margins enough to comfortably meet leverage targets while expanding its resilient housing offerings.
Bear case: If US housing demand remains soft and integration costs persist the need to prioritise debt reduction could slow overseas growth and leave the company more exposed to cyclical pressures in its core markets.
Sekisui House has grown its US footprint significantly through the MDC Holdings acquisition and is now rolling out Japanese-inspired resilient and sustainable building methods across its brands. Management is simultaneously tightening focus on leverage ratios to keep net debt to EBITDA below target levels. Our models see the stock as undervalued, yet will the gains from overseas scale and cost discipline outweigh the pressures of integration and balance sheet management?
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Residential Construction · 62 stocks
Beats the industry median on 8/14 measures
A mixed picture versus its industry peers.
Valuation
Quality Score53 · Below median
Fair Value upside+70.1% · Above median
Profitability
Return on equity (12 months)12.3% · Above median
Return on assets4.8% · Below median
Net margin (12 months)6.2% · Above median
Operating margin (12 months)9.9% · Above median
Growth and dividend
Revenue growth (quarter YoY)−5.8% · Below median
Dividend yield (12 months)4.1% · Above median
Balance sheet
Debt / equity0.58× · Above median
Valuation Multiplesvs Residential Construction median · lower = cheaper
P/E (12 months)8.8× · Cheapest 25%
P/B1.06× · Pricier than median
P/S (12 months)0.55× · Cheaper than median
Price / free cash flow (fiscal year)14.7× · Pricier than median
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Sekisui House Ltd ADR Fair Value". https://www.fairvalue-calculator.com/stock/SKHSY
Frequently asked questions
Is Sekisui House Ltd (SKHSY) overvalued or undervalued?
As of Nov 6, 2026, our model estimates a fair value of $37.73 versus a price of $22.18, about +70% upside (undervalued).
What is the fair value of SKHSY?
Our model-based fair value for Sekisui House Ltd is $37.73 (as of Nov 6, 2026), built from audited fundamentals. The current price: $22.18.
What is the quality score of SKHSY?
Sekisui House Ltd has a Quality Score of 53/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Sekisui House Ltd (SKHSY)?
Our model-based price target is the fair value of $37.73 (as of Nov 6, 2026) from 26 valuation models. Cautious scenario $19.56, optimistic scenario $58.93. It is a calculation from audited fundamentals, not an analyst target.
What is the Sekisui House Ltd ADR stock forecast for 2026?
Our models put fair value at $37.73, about +70% upside versus a price of $22.18 (undervalued). Cautious scenario $19.56, optimistic scenario $58.93. The calculation is refreshed regularly with new filings.
What is the revenue of Sekisui House Ltd (SKHSY)?
Sekisui House Ltd reported trailing-twelve-month revenue of about ¥4.1T (latest available figure, as of Nov 6, 2026).
Does Sekisui House Ltd ADR pay a dividend?
Sekisui House Ltd currently shows a dividend yield of 4.10% relative to its recent price (as of Nov 6, 2026).
How much is the dividend of Sekisui House Ltd (SKHSY) and when is the ex-dividend date?
Sekisui House Ltd pays a dividend of $0.909 per share a year, a dividend yield of 4.1%. The last ex-dividend date was Jul 31, 2026. A dividend has been paid every year since at least 2001. The payout ratio is 38.9% of earnings. Free cash flow covers the dividend 1.66 times. Our assessment: Well covered. A low payout and the dividend is fully funded by free cash flow, a comfortable, sustainable dividend.
What growth is priced into Sekisui House Ltd (SKHSY)?
For today's price to be fair in a discounted-cash-flow model, Sekisui House Ltd would have to grow free cash flow by +8.2 % per year for five years (discount rate 8.1 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +12.2 % per year. As of Nov 6, 2026.
What discount rate (WACC) does the fair value of SKHSY use?
Our models discount Sekisui House Ltd at 8.1 %: a base by market capitalisation (large), damped by beta 0.31, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Sekisui House Ltd that is +8.2 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (8.1 %) and the same formula as our fair value.
How much growth has Sekisui House Ltd (SKHSY) delivered so far?
Over the past 5 years revenue at Sekisui House Ltd grew +12.2 % a year. The price currently implies free-cash-flow growth of +8.2 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Sekisui House Ltd (SKHSY) growing?
The median revenue growth in the sector is +4.7 % a year. That is the yardstick for the growth priced into Sekisui House Ltd (+8.2 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Sekisui House Ltd (SKHSY)?
The free-cash-flow yield on the price is 6.78 %: that much free cash flow Sekisui House Ltd produces per unit of market value. When it exceeds the discount rate of our models (8.1 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Sekisui House Ltd (SKHSY)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Sekisui House Ltd it is $37.73 per share (as of Nov 6, 2026), against a price of $22.18. It is the blended result of 26 valuation models in 8 families (DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings).
Is Sekisui House Ltd ADR stock overvalued or undervalued in 2026?
As of Nov 6, 2026, SKHSY trades below its calculated fair value: price $22.18, fair value $37.73, a gap of about +70% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of SKHSY?
No. The price is what the market pays today ($22.18); the fair value is what the company's own numbers justify ($37.73). For Sekisui House Ltd the two are $15.55 per share apart. That gap is exactly why we show both numbers side by side.
How much is Sekisui House Ltd ADR worth?
The market values Sekisui House Ltd at about $14.4B (market capitalisation, as of Nov 6, 2026). Per share that is $22.18; our models calculate a fair value of $37.73 per share.
What do the bullish and bearish scenarios say about SKHSY?
Our models span a range for Sekisui House Ltd: cautious scenario $19.56, base $37.73, optimistic $58.93 per share (as of Nov 6, 2026, price $22.18). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of SKHSY?
Sekisui House Ltd trades at a price-to-earnings ratio of 8.8 (as of Nov 6, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $37.73 is built from several models across several years. Other multiples: P/B 1.1, P/S 0.5, EV/EBITDA 7.6.
How solid is the balance sheet of Sekisui House Ltd (SKHSY)?
Balance-sheet figures for Sekisui House Ltd (as of Nov 6, 2026): return on equity 12.3%, debt of 0.58 per unit of equity. They feed the Quality Score of 53/100, which measures business quality independently of the share price.
How far is SKHSY from its 52-week high?
Sekisui House Ltd trades at $22.18, about 10% below its 52-week high of $24.71 and 12% above the low of $19.85 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of $37.73 is for.
Which stocks are comparable to Sekisui House Ltd ADR?
From the same area (Consumer Cyclical) we also value D.R. Horton, Inc, PulteGroup, Inc, Lennar Corporation, NVR, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Sekisui House Ltd ADR stock attractive at the current price?
The data as of Nov 6, 2026: price $22.18, calculated fair value $37.73 (+70%), Quality Score 53/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of SKHSY calculated?
We run Sekisui House Ltd through 26 models from 8 families: DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of $37.73 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.0% above its aggregate fair value. Sekisui House Ltd currently trades 41% below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Sekisui House Ltd (SKHSY)?
The closing price on Nov 6, 2026 was $22.18. Our model-based fair value is $37.73, about +70% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Sekisui House Ltd ADR right now?
The model range is unusually wide ($19.56 to $58.93). The outcome hinges heavily on assumptions, so read the point estimate with caution. Solid quality (53/100) at a price below fair value, the discount is the argument here, not the business quality.
Where does the earnings growth of Sekisui House Ltd (SKHSY) come from?
Earnings per share at Sekisui House Ltd grew +10.3 % a year from 2015 to 2026. Broken into its drivers: revenue per share +8.9 %, EBIT margin +0.0 %, tax rate +1.5 %, residual (interest, one-offs) −0.3 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Sekisui House Ltd
How large is the market capitalisation of Sekisui House Ltd (SKHSY)?
The market capitalisation of Sekisui House Ltd is $14.4B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Sekisui House Ltd (SKHSY)?
The price-to-sales ratio of Sekisui House Ltd is 0.48 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Sekisui House Ltd (SKHSY)?
Earnings per share at Sekisui House Ltd are $2.53 (price ÷ EPS = P/E 8.8). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Sekisui House Ltd (SKHSY)?
The dividend yield of Sekisui House Ltd is 4.1% (payout 35.9%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Sekisui House Ltd (SKHSY)?
The net margin of Sekisui House Ltd is 5.5% (fiscal year 2026). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Sekisui House Ltd (SKHSY)?
The return on equity (ROE) of Sekisui House Ltd is 12.3% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Sekisui House Ltd (SKHSY)?
On an EBIT basis the return on assets of Sekisui House Ltd is 7.8% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Sekisui House Ltd (SKHSY)?
The operating margin of Sekisui House Ltd is 9.9% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Sekisui House Ltd (SKHSY)?
Revenue at Sekisui House Ltd is growing −5.8% versus a year earlier (3y avg +14.0%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Sekisui House Ltd (SKHSY)?
Earnings per share at Sekisui House Ltd are growing −2.4% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Sekisui House Ltd (SKHSY) carry?
The net debt of Sekisui House Ltd is ¥1.4T (fiscal year 2026, ≈ 9.2 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Nov 6, 2026