DAIKIN (DKILY) AI Stock Analysis

• Market Cap: $32.18B
• Dividend Yield: 1.52%
• Average Volume (3M): 10.58K
• Price to Earnings (P/E): 18.6
• Beta (1Y): 0.79
• Revenue Growth: 2.87%
• EPS Growth: -3.21%
• Country: US
• Employees: 98,162
• Sector: Industrials
• Sector Strength: 84
• Industry: Construction
• EPS (TTM): 0.18
• Shares Outstanding: 2,931,139,600
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 10,584
• PEG Ratio: 0.15
• Price to Book (P/B): 0.31
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -42.98
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: ―

DAIKIN's strong financial performance and robust cash flow generation are key strengths, indicating a well-managed company with low financial risk. The technical analysis shows moderate market sentiment, while the valuation suggests a reasonably priced stock with a modest dividend yield.

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 makes money primarily through the sale of HVAC products, which include air conditioners, heat pumps, and ventilation systems. The company's revenue streams are diversified across different segments, with a significant portion coming from residential and commercial air conditioning systems. Daikin also generates revenue through its chemical division, which produces fluorochemicals, and its electronics business. The company benefits from its extensive global distribution network and strategic partnerships, which help expand its market reach and enhance its competitive edge. Additionally, Daikin invests in research and development to continually innovate and improve its product offerings, which supports sustained revenue growth.

DAIKIN Financial Statement Overview

Summary

DAIKIN demonstrates strong financial performance with consistent revenue growth, stable margins, a healthy balance sheet, and robust cash flow generation. While the net profit margin is modest, the overall financial stability and operational efficiency position the company well for future growth.

Income Statement

DAIKIN has demonstrated strong revenue growth with a CAGR of around 12% over the past five years. The gross profit margin is stable at approximately 34%, indicating effective cost management. The EBIT and EBITDA margins have also shown resilience, suggesting operational efficiency. However, the net profit margin is modest, slightly over 5%, indicating room for improvement in terms of net profitability.

Balance Sheet

The company maintains a healthy equity ratio of around 54%, indicating a strong equity base relative to total assets. The debt-to-equity ratio is moderate at 0.37, reflecting a balanced approach to leverage. Return on equity is satisfactory, consistently around 10%, but there's potential for boosting ROE through improved net income. Generally, the balance sheet shows stability and low financial risk.

Cash Flow

DAIKIN's cash flow from operations has been robust, with a significant increase in free cash flow over the last year, indicating improved cash generation capabilities. The free cash flow to net income ratio is strong, showing efficient conversion of earnings into cash. The operating cash flow to net income ratio is also healthy, underscoring the company's strong cash flow fundamentals.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
4.55T	4.40T	3.98T	3.11T	2.49T	2.55T
	Gross Profit
1.54T	1.51T	1.33T	1.06T	864.14B	884.90B
	EBIT
389.66B	392.14B	377.03B	316.35B	238.62B	265.51B
	EBITDA
615.65B	645.76B	559.26B	464.41B	372.22B	394.00B
	Net Income Common Stockholders
243.15B	260.31B	257.75B	217.71B	156.25B	170.73B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
367.78B	737.96B	617.66B	817.62B	736.10B	370.79B
	Total Assets
2.70T	4.88T	4.30T	3.82T	3.24T	2.67T
	Total Debt
585.64B	968.18B	887.63B	824.81B	751.21B	553.80B
	Net Debt
217.86B	230.22B	269.96B	7.20B	15.11B	183.01B
	Total Liabilities
1.25T	2.19T	2.02T	1.82T	1.54T	1.20T
	Stockholders Equity
1.42T	2.64T	2.24T	1.97T	1.67T	1.44T
Cash Flow		Free Cash Flow
263.28B	156.93B	-16.18B	130.97B	269.72B	204.07B
	Operating Cash Flow
507.98B	399.57B	158.90B	245.07B	374.69B	302.17B
	Investing Cash Flow
-233.49B	-227.19B	-229.79B	-180.79B	-159.67B	-156.19B
	Financing Cash Flow
-211.83B	-129.62B	-113.09B	-48.70B	98.94B	-169.93B

DAIKIN Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.01
• 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 11.01 is below the 20-day moving average (MA) of 11.30, below the 50-day MA of 11.29, and below the 200-day MA of 11.73, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 42.31 is Neutral, neither overbought nor oversold. The STOCH value of 9.22 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	81 Outperform	$93.60B	34.92	38.45%	0.90%	11.43%	28.49%
CARR	81 Outperform	$59.89B	16.03	25.69%	1.28%	0.14%	202.13%
CSL	78 Outperform	$15.34B	9.69	33.11%	1.13%	-0.14%	135.52%
DKILY	76 Outperform	$32.18B	18.55	9.61%	1.52%	2.87%	-3.21%
JCI	74 Outperform	$67.29B	27.27	14.92%	1.45%	-8.39%	51.56%
LII	74 Outperform	$19.52B	24.52	131.48%	0.84%	7.78%	30.10%
Sector *	66 Neutral	$4.44B	12.06	5.34%	6.22%	4.17%	-11.81%