DAIKIN (DKILY) AI Stock Analysis

• Market Cap: $34.23B
• Dividend Yield: 0.77%
• Average Volume (3M): 20.02K
• Price to Earnings (P/E): 18.4
• Beta (1Y): 0.72
• Revenue Growth: 2.61%
• EPS Growth: 7.11%
• Country: US
• Employees: 98,162
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 0.19
• Shares Outstanding: 2,931,139,600
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 20,015
• 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: 1.03
• 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): 0.63
• Revenue Forecast (FY): $32.44B

• Rating: 72 Outperform
• Price Target: $14.50 ▲(22.36% 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.

DAIKIN Business Overview & Revenue Model

Company Description

DAIKIN Industries, Ltd. (DKILY) is a global leader in air conditioning and refrigeration systems, known for its innovative and energy-efficient solutions. The company operates in various sectors, including residential, commercial, and industrial air conditioning, as well as refrigerants and related products. DAIKIN's core offerings include a wide range of HVAC systems, heat pumps, chillers, and air purification technologies, catering to the needs of diverse markets worldwide.

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: 11.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 11.85 is below the 20-day moving average (MA) of 11.92, below the 50-day MA of 11.94, and above the 200-day MA of 11.75, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 67.01 is Neutral, neither overbought nor oversold. The STOCH value of 66.43 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
TT	78 Outperform	$96.59B	33.52	37.07%	0.84%	8.58%	20.37%
DKILY	72 Outperform	$34.23B	18.41	9.46%	0.77%	2.61%	7.11%
JCI	70 Outperform	$79.09B	24.03	11.86%	1.24%	-10.19%	100.65%
CSL	69 Neutral	$13.76B	18.63	32.36%	1.26%	0.14%	3.88%
CARR	68 Neutral	$47.64B	22.70	9.44%	1.56%	-7.93%	-35.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
LII	61 Neutral	$17.19B	20.68	92.25%	1.00%	3.77%	12.46%