DAIKIN (DKILY) AI Stock Analysis

• Market Cap: $35.15B
• Dividend Yield: 1.29%
• Average Volume (3M): 5.47K
• Price to Earnings (P/E): 19.1
• Beta (1Y): 0.62
• Revenue Growth: 2.61%
• EPS Growth: 7.11%
• Country: US
• Employees: 98,162
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 0.18
• Shares Outstanding: 2,931,139,600
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 5,471
• PEG Ratio: 10.28
• Price to Book (P/B): 1.71
• Price to Sales (P/S): 1.01
• P/FCF Ratio: 17.84
• Enterprise Value/Market Cap: 159.99
• Enterprise Value/Revenue: 1.18
• Enterprise Value/Gross Profit: 3.42
• Enterprise Value/Ebitda: 8.46
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: $13.50 ▲(6.38% Upside)

DKILY's overall stock score reflects a balance of strengths and risks. The stable profitability and balance sheet are positive factors, but significant revenue decline and cash flow challenges are concerning. Technical analysis suggests a neutral to slightly positive outlook, while the high P/E ratio indicates potential overvaluation. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Stable Profitability

Stable profitability metrics indicate effective cost management and operational efficiency, which are crucial for long-term business sustainability.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability and provides flexibility to invest in growth opportunities.

Market Leadership

Leading market position in HVAC systems supports competitive advantages and potential for sustained revenue growth in diverse markets.

Negative Factors

Revenue Decline

A substantial drop in revenue can impact long-term growth prospects and indicates potential challenges in market demand or competition.

Cash Flow Challenges

Declining free cash flow may limit the company's ability to invest in growth initiatives and manage operational needs effectively.

Liquidity Concerns

Challenges in converting profits to cash could strain liquidity, affecting the company's ability to meet short-term obligations and invest in future growth.

DAIKIN Business Overview & Revenue Model

Company Description

Daikin Industries, Ltd. manufactures, distributes, and sells air-conditioning and refrigeration equipment, and chemical products. The company's air-conditioning and refrigeration equipment products include room air-conditioning systems; air purifiers; heat-pump hot-water supply and room-heating systems; packaged air-conditioning systems; multiple air-conditioning systems for office buildings; air-conditioning systems for facilities and plants; absorption refrigerators; freezers; water chillers; turbo refrigerator equipment; air-handling units; air filters; industrial dust collectors; marine-type container refrigeration; and refrigerating and freezing showcases. The company's chemical products comprising fluorocarbons, fluoroplastics, fluoroelastomers, fluoropaints, fluoro coating agents, semiconductor-etching products, water and oil repellent agents, pharmaceuticals and intermediates, and dry air suppliers. It also provides oil hydraulics products, including oil hydraulic pumps and valves, cooling equipment and systems, inverter-controlled pump motors, hydrostatic transmissions, and centralized lubrication units and systems; and defense products consisting of warheads, warhead parts for guided missiles, and home-use oxygen therapy equipment. In addition, the company offers after sales services. It sells its products in Japan, the United States, China, Asia, Oceania, Europe /the Middle and Near East/Africa, and internationally. Daikin Industries, Ltd. was founded in 1924 and is headquartered in Osaka, Japan.

How the Company Makes Money

DAIKIN generates revenue primarily through the sale of its air conditioning and refrigeration systems across different market segments. Key revenue streams include direct sales of products to consumers and businesses, service contracts for maintenance and repair, and the sale of replacement parts and accessories. Additionally, DAIKIN benefits from partnerships with construction companies and HVAC contractors, which enhance its market reach and distribution capabilities. The company also invests in research and development to innovate new products and improve energy efficiency, further driving sales growth in an increasingly environmentally-conscious market.

DAIKIN Financial Statement Overview

Summary

The company shows a mixed financial performance. Despite a significant revenue decline of 26.16%, it maintains stable profitability metrics with a gross profit margin of 34% and a net profit margin of 5.8%. The balance sheet is stable with a manageable debt-to-equity ratio of 0.29 and a consistent return on equity of 9.5%. However, cash flow challenges, particularly a 54.3% decline in free cash flow, pose risks to liquidity and operational flexibility.

Income Statement

The income statement shows a mixed performance. The TTM data indicates a significant revenue decline of 26.16%, which is concerning. However, the company maintains a stable gross profit margin of approximately 34% and a net profit margin around 5.8%. The EBIT and EBITDA margins are also stable, suggesting operational efficiency. Despite the revenue drop, profitability metrics remain relatively strong, indicating resilience in cost management.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.29 in the TTM period, showing improvement from previous years. The return on equity is consistent at around 9.5%, indicating effective use of equity to generate profits. The equity ratio is healthy, suggesting a solid capital structure. Overall, the balance sheet shows stability, with a trend towards reducing leverage.

Cash Flow

Cash flow analysis reveals challenges, particularly in free cash flow, which declined by 54.3% in the TTM period. The operating cash flow to net income ratio is below 1, indicating potential issues in converting profits to cash. However, the free cash flow to net income ratio remains over 50%, suggesting some ability to generate cash relative to profits. The cash flow situation requires attention to ensure liquidity and operational flexibility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.76T	4.75T	4.40T	3.98T	3.11T	2.49T
Gross Profit	1.64T	1.63T	1.51T	1.33T	1.06T	864.14B
EBITDA	664.91B	665.14B	645.76B	559.26B	464.41B	372.22B
Net Income	275.42B	264.76B	260.31B	257.75B	217.71B	156.25B
Balance Sheet
Total Assets	5.45T	5.13T	4.88T	4.30T	3.82T	3.24T
Cash, Cash Equivalents and Short-Term Investments	890.25B	802.66B	737.96B	617.66B	817.62B	736.10B
Total Debt	876.12B	986.85B	968.18B	887.63B	824.81B	751.21B
Total Liabilities	2.36T	2.27T	2.19T	2.02T	1.82T	1.54T
Stockholders Equity	3.03T	2.81T	2.64T	2.24T	1.97T	1.67T
Cash Flow
Free Cash Flow	236.11B	268.46B	156.93B	-16.18B	130.97B	269.72B
Operating Cash Flow	445.17B	514.45B	399.57B	158.90B	245.07B	374.69B
Investing Cash Flow	-268.37B	-337.41B	-227.19B	-229.79B	-180.79B	-159.67B
Financing Cash Flow	-89.88B	-153.47B	-129.62B	-113.09B	-48.70B	98.94B

DAIKIN Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.69
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DKILY, the sentiment is Negative. The current price of 12.69 is above the 20-day moving average (MA) of 12.47, above the 50-day MA of 12.60, and above the 200-day MA of 12.16, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 36.81 is Neutral, neither overbought nor oversold. The STOCH value of 7.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DKILY.

DAIKIN Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TT	79 Outperform	$93.26B	32.41	36.81%	0.95%	8.58%	20.37%
CSL	70 Outperform	$14.24B	19.29	32.36%	1.28%	0.14%	3.88%
JCI	70 Outperform	$73.00B	43.56	11.86%	1.27%	-10.19%	100.65%
LII	67 Neutral	$17.36B	21.72	78.10%	0.96%	3.77%	12.46%
CARR	66 Neutral	$50.18B	23.91	9.44%	1.65%	-7.93%	-35.00%
DKILY	64 Neutral	$35.15B	19.12	9.46%	1.29%	2.61%	7.11%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%