DAIKIN (DKILY) AI Stock Analysis

• Market Cap: $38.45B
• Dividend Yield: 1.29%
• Average Volume (3M): 5.47K
• Price to Earnings (P/E): 20.9
• 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): 0.07
• 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: 150.70
• Enterprise Value/Revenue: 1.19
• Enterprise Value/Gross Profit: 3.49
• Enterprise Value/Ebitda: 8.57
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.6
• Revenue Forecast (FY): $31.43B

• Rating: 62 Neutral
• Price Target: $14.00 ▲(10.32% Upside)
• Action: Reiterated Date: 02/06/26
• Date: Action: Reiterated 02/06/26

The score is driven primarily by solid fundamentals (growth and balance-sheet strength) but is held back by uneven cash-flow quality and weak technicals (price below key moving averages with negative momentum). Valuation is fair with a modest dividend, providing some support but not enough to overcome the current bearish trend.

Positive Factors

Revenue Growth Trajectory

Sustained multi-year revenue expansion indicates durable demand for HVAC and related solutions across markets. Consistent top-line growth supports scale benefits, aftermarket recurring revenue and continued investment in product and service capabilities over the next several months to years.

Balance Sheet Strength

Improving leverage and a stronger equity base provide financial flexibility to fund capex, R&D and strategic initiatives, absorb cyclical downturns, and pursue M&A or share-support actions without excessive refinancing risk over a multi-month horizon.

Healthy Gross Margins & Diversification

Mid-30% gross margins reflect product and cost structure strength across equipment, services and chemicals. A diversified mix—including fluorochemicals and aftermarket services—supports margin resilience and reduces dependence on any single product cycle over time.

Negative Factors

Thin Net Margins

Mid-single-digit net margins limit retained earnings and reduce the cushion against cost inflation or input shocks. Persistent weak net margin expansion constrains long-term EPS upside and the ability to ramp shareholder returns while funding growth initiatives.

Volatile Free Cash Flow

Inconsistent FCF generation—including a negative year and recent TTM decline—weakens predictability of funding for dividends, capex, and strategic investment. Volatility suggests working-capital swings or lumpy investments that can impede steady capital allocation plans.

Moderate Operating Profitability & Slower Recent Pace

High-single-digit operating margins plus decelerating recent growth limit operating leverage and margin expansion potential. This combination can cap return on invested capital and makes the business more sensitive to competitive pricing or rising input costs over the medium term.

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

Strong multi-year revenue growth and a strengthening balance sheet with manageable leverage support the score. Offsetting factors are relatively thin net margins and mixed/volatile free-cash-flow conversion (including a recent TTM decline), which reduces cash-quality confidence.

Income Statement

Revenue has expanded strongly over the last several years (with the latest year still positive), showing a solid growth trajectory despite a slower pace in the most recent periods. Profitability is steady and healthy at the gross level (roughly mid-30% gross margin), while operating profitability is moderate (high-single-digit operating margin). The main weakness is that bottom-line profitability is comparatively thin (mid-single-digit net margin) and has not clearly expanded, which limits operating leverage despite higher sales.

Balance Sheet

Leverage looks conservative to moderate, with debt-to-equity improving versus prior years, supporting financial flexibility. Equity has grown materially over time and total assets have risen steadily, indicating balance-sheet expansion alongside the business. Return on equity is solid but not exceptional (roughly high-single to low-double digits), suggesting decent efficiency but room for improvement relative to the company’s scale.

Cash Flow

Cash generation is positive with meaningful operating cash flow and free cash flow in the latest periods, and free cash flow is now covering a little over half of net income. However, cash flow quality is somewhat mixed: free cash flow has been volatile (including a negative year and a recent decline in TTM (Trailing-Twelve-Months)), and operating cash flow conversion versus reported profit is only moderate, implying variability in working capital and/or investment needs.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	4.87T	4.75T	4.40T	3.98T	3.11T	2.49T
Gross Profit	1.66T	1.63T	1.51T	1.33T	1.06T	864.14B
EBITDA	675.86B	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	5.67T	5.13T	4.88T	4.30T	3.82T	3.24T
Cash, Cash Equivalents and Short-Term Investments	986.38B	802.66B	737.96B	617.66B	817.62B	736.10B
Total Debt	948.63B	986.85B	968.18B	887.63B	824.81B	751.21B
Total Liabilities	2.45T	2.27T	2.19T	2.02T	1.82T	1.54T
Stockholders Equity	3.16T	2.81T	2.64T	2.24T	1.97T	1.67T
Cash Flow
Free Cash Flow	235.58B	268.46B	156.93B	-16.18B	130.97B	269.72B
Operating Cash Flow	441.08B	514.45B	399.57B	158.90B	245.07B	374.69B
Investing Cash Flow	-262.93B	-337.41B	-227.19B	-229.79B	-180.79B	-159.67B
Financing Cash Flow	-121.56B	-153.47B	-129.62B	-113.09B	-48.70B	98.94B

DAIKIN Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 12.69
• 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 Neutral. The current price of 12.69 is above the 20-day moving average (MA) of 12.45, above the 50-day MA of 12.54, and above the 200-day MA of 12.26, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 50.72 is Neutral, neither overbought nor oversold. The STOCH value of 66.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DKILY.

DAIKIN Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TT	78 Outperform	$102.64B	35.73	36.86%	0.95%	8.58%	20.37%
CSL	77 Outperform	$16.67B	23.78	35.05%	1.28%	0.14%	3.88%
JCI	69 Neutral	$88.57B	27.22	13.15%	1.27%	-10.19%	100.65%
CARR	69 Neutral	$53.10B	36.38	10.44%	1.65%	-7.93%	-35.00%
LII	67 Neutral	$19.43B	24.53	78.10%	0.96%	3.77%	12.46%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DKILY	62 Neutral	$38.45B	20.90	9.46%	1.29%	2.61%	7.11%