DAIKIN (DKILY) AI Stock Analysis

• Market Cap: $36.14B
• Dividend Yield: 1.31%
• Average Volume (3M): 16.78K
• Price to Earnings (P/E): 18.9
• Beta (1Y): 0.77
• Revenue Growth: 3.47%
• EPS Growth: 16.40%
• Country: US
• Employees: 98,162
• Sector: Industrials
• Sector Strength: 74
• Industry: Construction
• EPS (TTM): 0.19
• Shares Outstanding: 2,931,139,600
• 10 Day Avg. Volume: 10,301
• 30 Day Avg. Volume: 16,782
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: <0.01
• Enterprise Value/Gross Profit: 0.02
• Enterprise Value/Ebitda: 0.05
• 1Y Price Target: $14.00
• Price Target Upside: 11.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• Price Target: $14.00 ▲(11.82% Upside)

Daikin's strong financial performance is the most significant factor, supported by consistent revenue and profit growth. Technical analysis indicates a bearish trend, which slightly offsets the financial strengths. Valuation is reasonable, providing a balanced investment profile.

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 Industries generates revenue primarily through the sale of HVAC systems and components, which cater to residential, commercial, and industrial clients. This includes both unit sales and installation services. The company also derives income from after-sales services such as maintenance contracts and repairs. In addition, Daikin earns revenue from its chemicals division, which produces fluorochemicals and other materials used in various industries. Strategic partnerships and acquisitions, along with a focus on innovation and energy-efficient solutions, contribute significantly to Daikin's financial performance, helping to expand its market reach and maintain its leadership position in the HVAC industry.

DAIKIN Financial Statement Overview

Summary

Daikin's financial performance is strong, featuring consistent revenue and profit growth, stable margins, and a solid balance sheet. Despite rising debt levels, they are well-managed through equity. The company also demonstrates robust cash flow generation, though investment periods have impacted free cash flow growth.

Income Statement

Daikin has shown impressive revenue growth over the years, with a solid increase from 2021 to 2025. The gross profit and net profit margins are strong, indicating effective cost management. EBIT and EBITDA margins are stable, reflecting consistent operational efficiency. However, the growth rate of revenue has slightly slowed compared to earlier years, suggesting potential market saturation.

Balance Sheet

The company's balance sheet reflects a healthy equity base, with a favorable equity ratio indicating a strong financial position. The debt-to-equity ratio is reasonable, showcasing prudent leveraging. Return on equity remains robust, consistent with profitability trends. However, the rising total debt warrants attention, though it is well-managed through equity.

Cash Flow

Daikin's cash flow metrics demonstrate solid operating cash flow, with a significant increase in free cash flow over recent years. The operating cash flow to net income ratio is strong, indicating effective cash generation from operations. However, fluctuations in free cash flow growth, particularly in earlier years, suggest periods of heavy investment or capital expenditure.

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

DAIKIN Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.52
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 12.52 is below the 20-day moving average (MA) of 13.15, below the 50-day MA of 12.69, and above the 200-day MA of 11.74, indicating a neutral trend. The MACD of -0.11 indicates Positive momentum. The RSI at 37.70 is Neutral, neither overbought nor oversold. The STOCH value of 4.35 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
LII	74 Outperform	$19.72B	24.00	112.94%	0.82%	7.92%	29.72%
CSL	72 Outperform	$16.76B	21.78	31.34%	1.03%	1.37%	5.96%
TT	71 Outperform	$91.93B	32.40	38.89%	0.88%	10.20%	24.57%
JCI	71 Outperform	$70.08B	31.81	12.52%	1.39%	-13.10%	40.62%
DKILY	70 Outperform	$36.14B	18.86	10.29%	1.31%	3.47%	16.40%
CARR	68 Neutral	$54.07B	24.93	10.79%	1.32%	-5.24%	-33.37%
Sector *	64 Neutral	$10.73B	15.74	7.56%	2.01%	2.76%	-15.10%