DAIKIN (DKILY) AI Stock Analysis

• Market Cap: $37.06B
• Dividend Yield: 1.31%
• Average Volume (3M): 5.47K
• Price to Earnings (P/E): 20.1
• Beta (1Y): 0.67
• 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: 0.92
• Enterprise Value/Revenue: <0.01
• Enterprise Value/Gross Profit: 0.02
• Enterprise Value/Ebitda: 0.05
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.62
• Revenue Forecast (FY): $31.70B

• Rating: 72 Outperform
• Price Target: $14.50 ▲(12.84% Upside)

DAIKIN's overall stock score is driven by strong technical indicators and solid financial performance. The bullish momentum and positive price trends are significant strengths. However, challenges in revenue and cash flow growth, along with a modest valuation, slightly temper the overall score.

Positive Factors

Business Model Strength

DAIKIN's diversified revenue streams from direct sales, service contracts, and partnerships provide a robust business model, ensuring resilience against market fluctuations.

Competitive Advantages

DAIKIN's focus on innovation and energy efficiency strengthens its competitive position, appealing to environmentally-conscious consumers and businesses.

Balance Sheet Health

A strong debt-to-equity ratio indicates prudent leverage management, providing financial stability and flexibility for future growth opportunities.

Negative Factors

Revenue Growth Challenges

Negative revenue growth suggests potential market saturation or competitive pressures, which could hinder long-term expansion if not addressed.

Cash Flow Decline

Declining free cash flow growth may limit DAIKIN's ability to invest in new projects and innovations, impacting future competitiveness and growth.

Profit Margin Pressure

A decreasing net profit margin indicates rising costs or pricing pressures, which could affect profitability and shareholder returns over time.

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

DAIKIN demonstrates solid financial health with efficient cost management and a stable capital structure. However, the recent decline in revenue growth and free cash flow growth could pose challenges. The company maintains operational efficiency, but needs to address the slowdown in sales and cash flow generation to sustain long-term growth.

Income Statement

DAIKIN's income statement shows a solid gross profit margin of 33.59% TTM, indicating efficient cost management. However, the net profit margin has slightly decreased to 6.01% TTM, reflecting some pressure on bottom-line profitability. The revenue growth rate has turned negative at -0.78% TTM, suggesting a potential slowdown in sales. Despite this, the EBIT and EBITDA margins remain stable, indicating operational efficiency.

Balance Sheet

The balance sheet reflects a healthy debt-to-equity ratio of 0.298 TTM, showcasing prudent leverage management. Return on equity stands at 10.15% TTM, indicating effective use of equity to generate profits. The equity ratio is robust, suggesting a strong capital structure. However, the slight decline in stockholders' equity over the periods indicates potential challenges in equity growth.

Cash Flow

DAIKIN's cash flow statement reveals a decline in free cash flow growth at -20.76% TTM, which could impact future investments. The operating cash flow to net income ratio is moderate at 0.276 TTM, indicating reasonable cash generation relative to net income. The free cash flow to net income ratio is 0.496 TTM, suggesting that a significant portion of net income is being converted into free cash flow, albeit with room for improvement.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.72T	4.75T	4.40T	3.98T	3.11T	2.49T
Gross Profit	1.63T	1.63T	1.51T	1.33T	1.06T	864.14B
EBITDA	656.14B	665.14B	645.76B	559.26B	464.41B	372.22B
Net Income	283.18B	264.76B	260.31B	257.75B	217.71B	156.25B
Balance Sheet
Total Assets	5.14T	5.13T	4.88T	4.30T	3.82T	3.24T
Cash, Cash Equivalents and Short-Term Investments	775.52B	802.66B	737.96B	617.66B	817.62B	736.10B
Total Debt	841.60B	986.85B	968.18B	887.63B	824.81B	751.21B
Total Liabilities	2.26T	2.27T	2.19T	2.02T	1.82T	1.54T
Stockholders Equity	2.82T	2.81T	2.64T	2.24T	1.97T	1.67T
Cash Flow
Free Cash Flow	212.74B	268.46B	156.93B	-16.18B	130.97B	269.72B
Operating Cash Flow	428.59B	514.45B	399.57B	158.90B	245.07B	374.69B
Investing Cash Flow	-328.74B	-337.41B	-227.19B	-229.79B	-180.79B	-159.67B
Financing Cash Flow	-185.17B	-153.47B	-129.62B	-113.09B	-48.70B	98.94B

DAIKIN Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DKILY, the sentiment is Positive. The current price of 12.85 is above the 20-day moving average (MA) of 12.49, above the 50-day MA of 12.06, and above the 200-day MA of 11.82, indicating a bullish trend. The MACD of 0.16 indicates Positive momentum. The RSI at 57.96 is Neutral, neither overbought nor oversold. The STOCH value of 36.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DKILY.

DAIKIN Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DKILY	72 Outperform	$37.06B	20.06	9.46%	1.31%	2.61%	7.11%
JCI	70 Outperform	$71.07B	23.11	11.86%	1.30%	-10.19%	100.65%
CSL	69 Neutral	$13.21B	17.88	32.36%	1.33%	0.14%	3.88%
TT	67 Neutral	$93.05B	32.30	37.07%	0.87%	8.58%	20.37%
LII	64 Neutral	$17.30B	20.82	92.25%	0.99%	3.77%	12.46%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CARR	63 Neutral	$45.78B	21.82	9.44%	1.66%	-7.93%	-35.00%