Daikin (6367) AI Stock Analysis

• Market Cap: $4.73T
• Dividend Yield: 1.99%
• Average Volume (3M): 1.06M
• Price to Earnings (P/E): 17.9
• Beta (1Y): 1.11
• Revenue Growth: 10.92%
• EPS Growth: 4.32%
• Country: JP
• Employees: 98,162
• Sector: Industrials
• Sector Strength: 83
• Industry: Construction
• EPS (TTM): 266.55
• Shares Outstanding: 293,113,980
• 10 Day Avg. Volume: 945,240
• 30 Day Avg. Volume: 1,061,630
• PEG Ratio: -8.27
• Price to Book (P/B): 1.65
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.22
• 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: $20,657.36
• Price Target Upside: 27.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Daikin's strong financial performance is the key driver of its overall score, reflecting robust revenue growth and efficient operations. Technical analysis presents mixed signals, suggesting caution in the short term. The valuation is reasonable, with a competitive P/E ratio and moderate dividend yield. Overall, Daikin is well-positioned for continued growth, though investors should monitor technical indicators closely.

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 air conditioning and refrigeration products, which constitute the bulk of its revenue. The company's key revenue streams include residential air conditioning units, commercial HVAC systems, and industrial refrigeration solutions. Additionally, Daikin generates income from its chemical segment, which produces fluorochemicals and resins. The company also benefits from strategic partnerships and acquisitions that expand its market presence and enhance its product offerings. After-sales services, such as maintenance and repairs, provide recurring revenue and strengthen customer relationships, contributing to the company's overall earnings.

Daikin Financial Statement Overview

Summary

Daikin exhibits strong financial performance with significant revenue and profit growth, a robust balance sheet, and solid cash generation capabilities. The company's operations are efficient, and its financial structure is stable with manageable leverage.

Income Statement

Daikin exhibits strong revenue growth with a 53.9% increase from 2022 to TTM (Trailing-Twelve-Months). The gross profit margin has remained robust at around 33.6% in TTM, and the net profit margin is healthy at 5.4%. The EBIT and EBITDA margins are consistent, demonstrating strong operational efficiency. The consistent growth in revenue and profitability indicates a positive financial trajectory.

Balance Sheet

The company maintains a solid equity ratio of 53.6% in TTM, indicating a stable financial structure. The debt-to-equity ratio stands at 0.32, reflecting manageable leverage levels. Return on Equity (ROE) is healthy at 8.9%, showcasing effective use of equity to generate profits. Overall, Daikin's balance sheet reflects strong financial health with a balanced mix of debt and equity.

Cash Flow

Daikin's free cash flow has shown significant growth, increasing by 84.1% from 2023 to TTM. The operating cash flow to net income ratio is 2.09, indicating strong cash generation capabilities. However, the free cash flow to net income ratio of 1.14 suggests room for improvement in converting earnings into free cash flow. The company demonstrates a strong ability to generate cash, supporting its operational and strategic activities.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
4.72T	4.40T	3.98T	3.11T	2.49T	2.55T
	Gross Profit
1.59T	1.51T	1.33T	1.06T	864.14B	884.90B
	EBIT
404.39B	392.14B	377.03B	316.35B	238.62B	265.51B
	EBITDA
641.47B	645.76B	559.26B	464.41B	372.22B	394.00B
	Net Income Common Stockholders
253.17B	260.31B	257.75B	217.71B	156.25B	170.73B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
931.15B	737.96B	617.66B	817.62B	736.10B	370.79B
	Total Assets
5.31T	4.88T	4.30T	3.82T	3.24T	2.67T
	Total Debt
915.90B	968.18B	887.63B	824.81B	751.21B	553.80B
	Net Debt
147.66B	230.22B	269.96B	7.20B	15.11B	183.01B
	Total Liabilities
2.40T	2.19T	2.02T	1.82T	1.54T	1.20T
	Stockholders Equity
2.85T	2.64T	2.24T	1.97T	1.67T	1.44T
Cash Flow		Free Cash Flow
288.91B	156.93B	-16.18B	130.97B	269.72B	204.07B
	Operating Cash Flow
528.71B	399.57B	158.90B	245.07B	374.69B	302.17B
	Investing Cash Flow
-297.43B	-226.72B	-229.79B	-180.79B	-159.67B	-156.19B
	Financing Cash Flow
-142.90B	-129.62B	-113.09B	-48.70B	98.94B	-169.93B

Daikin Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 16150.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6367, the sentiment is Negative. The current price of 16150 is below the 20-day moving average (MA) of 16223.25, below the 50-day MA of 16324.94, and below the 200-day MA of 17891.30, indicating a bearish trend. The MACD of 58.81 indicates Negative momentum. The RSI at 47.88 is Neutral, neither overbought nor oversold. The STOCH value of 28.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6367.

Daikin Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6367	76 Outperform	$4.73T	17.86	9.61%	1.99%	10.92%	4.32%
Sector *	64 Neutral	$4.30B	11.88	5.23%	249.82%	4.12%	-10.27%

Daikin Corporate Events

Daikin Industries Reports Sales Growth Amid Profit Decline

Daikin Industries reported a 10.1% increase in net sales for the nine months ending December 31, 2024, achieving 3,593,224 million yen. Despite this growth, the profit attributable to owners decreased by 3.7% to 186,712 million yen, reflecting challenges in maintaining profit margins amidst increased sales. The company also announced a significant dividend increase, commemorating its 100th anniversary, which may attract investor interest and strengthen its market position. The inclusion of eight new companies and the exclusion of four in its consolidation scope indicates a strategic realignment to optimize operations.

Daikin Reports 2024 Nine-Month Financial Results with Increased Sales but Lower Profits

Daikin Industries reported consolidated business results for the nine months ending December 31, 2024, with net sales increasing by 10.1% year-over-year to ¥3,593,224 million. Despite the rise in sales, the profit attributable to owners fell by 3.7% to ¥186,712 million, reflecting a challenging market environment. Daikin’s financial position showed an increase in total assets to ¥5,306,961 million. The company has revised its dividend forecast for the fiscal year ending March 31, 2025, intending to pay a total dividend of ¥320.00 per share, including a commemorative dividend for its 100th anniversary. The company has also included eight new companies in its consolidated scope and excluded four.