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Daikin Industries,Ltd. (JP:6367)
:6367

Daikin (6367) AI Stock Analysis

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JP

Daikin

(OTC:6367)

Rating:75Outperform
Price Target:
¥18,437.00
▲(12.59%Upside)
Daikin's strong financial performance drives the stock's appeal, supported by consistent revenue growth and solid cash flow management. The technical indicators suggest moderate bullish momentum, while the valuation appears fair, making it an attractive option in the construction industry.

Daikin (6367) vs. iShares MSCI Japan ETF (EWJ)

Daikin Business Overview & Revenue Model

Company DescriptionDaikin Industries, Ltd. is a leading global manufacturer and provider of air conditioning and refrigeration solutions, headquartered in Osaka, Japan. The company operates in sectors including residential, commercial, and industrial air conditioning systems, as well as chemicals and electronic systems. Daikin is renowned for its innovative climate control technologies, energy-efficient products, and comprehensive after-sales services, catering to a diverse range of customers worldwide.
How the Company Makes MoneyDaikin 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
87
Very Positive
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
80
Positive
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
75
Positive
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
TTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
4.72T4.40T3.98T3.11T2.49T2.55T
Gross Profit
1.59T1.51T1.33T1.06T864.14B884.90B
EBIT
404.39B392.14B377.03B316.35B238.62B265.51B
EBITDA
641.47B645.76B559.26B464.41B372.22B394.00B
Net Income Common Stockholders
253.17B260.31B257.75B217.71B156.25B170.73B
Balance SheetCash, Cash Equivalents and Short-Term Investments
931.15B737.96B617.66B817.62B736.10B370.79B
Total Assets
5.31T4.88T4.30T3.82T3.24T2.67T
Total Debt
915.90B968.18B887.63B824.81B751.21B553.80B
Net Debt
147.66B230.22B269.96B7.20B15.11B183.01B
Total Liabilities
2.40T2.19T2.02T1.82T1.54T1.20T
Stockholders Equity
2.85T2.64T2.24T1.97T1.67T1.44T
Cash FlowFree Cash Flow
288.91B156.93B-16.18B130.97B269.72B204.07B
Operating Cash Flow
528.71B399.57B158.90B245.07B374.69B302.17B
Investing Cash Flow
-297.43B-226.72B-229.79B-180.79B-159.67B-156.19B
Financing Cash Flow
-142.90B-129.62B-113.09B-48.70B98.94B-169.93B

Daikin Technical Analysis

Technical Analysis Sentiment
Positive
Last Price16375.00
Price Trends
50DMA
16204.81
Positive
100DMA
16709.99
Negative
200DMA
17452.46
Negative
Market Momentum
MACD
44.85
Negative
RSI
55.91
Neutral
STOCH
81.80
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6367, the sentiment is Positive. The current price of 16375 is above the 20-day moving average (MA) of 16204.25, above the 50-day MA of 16204.81, and below the 200-day MA of 17452.46, indicating a neutral trend. The MACD of 44.85 indicates Negative momentum. The RSI at 55.91 is Neutral, neither overbought nor oversold. The STOCH value of 81.80 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6367.

Daikin Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
¥92.81B11.34
4.09%9.75%21.60%
79
Outperform
¥453.42B15.90
2.51%5.03%40.79%
76
Outperform
$1.06T19.0218.79%2.06%8.39%34.99%
75
Outperform
¥4.85T18.119.61%1.86%8.12%1.69%
66
Neutral
$4.49B12.285.32%248.53%4.08%-12.00%
65
Neutral
$162.44B14.497.46%2.75%-5.91%-28.26%
57
Neutral
$465.94B232.920.35%5.12%1.45%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6367
Daikin
16,375.00
-5,876.47
-26.41%
JP:1969
Takasago Thermal Engineering Co., Ltd.
6,713.00
915.23
15.79%
JP:6458
Sinko Industries Ltd.
1,226.00
41.01
3.46%
JP:5929
Sanwa Holdings
5,034.00
2,269.79
82.11%
JP:5938
LIXIL Group
1,622.50
10.29
0.64%
JP:1979
Taikisha
2,471.00
-87.53
-3.42%

Daikin Corporate Events

Daikin Industries Reports Strong Financial Performance with Strategic Expansions
May 21, 2025

Daikin Industries reported a solid financial performance for the fiscal year ended March 31, 2025, with net sales rising by 8.1% to ¥4,752,335 million. The company also saw increases in operating profit and ordinary profit, despite a significant drop in comprehensive income. The announcement highlights Daikin’s strategic moves, including the inclusion of 10 new companies into its consolidation scope, which could strengthen its market position and operational capabilities.

The most recent analyst rating on (JP:6367) stock is a Buy with a Yen25000.00 price target. To see the full list of analyst forecasts on Daikin stock, see the JP:6367 Stock Forecast page.

Daikin Considers Reducing Investment Unit to Boost Share Liquidity
May 8, 2025

Daikin Industries, Ltd. is considering reducing its investment unit to less than JPY 500,000 to enhance share liquidity, improve the investment environment for individual investors, and expand its shareholder base. The company will monitor market trends, share prices, and shareholder composition to carefully evaluate this potential change, reflecting its commitment to addressing important management issues.

Daikin Industries Increases Year-End Dividend Amid Record Sales
May 8, 2025

Daikin Industries has announced a revision in its year-end dividend for the fiscal year ending March 31, 2025, increasing it to 145 yen per share due to record-high net sales and operating income. This decision reflects the company’s commitment to maintaining a stable and continuous dividend policy while celebrating its 100th anniversary with a commemorative dividend.

Daikin Industries Reports Strong Fiscal Year 2025 Results with Increased Dividends
May 8, 2025

Daikin Industries reported an 8.1% increase in net sales for the fiscal year ending March 31, 2025, reaching ¥4,752,335 million. Despite a decrease in comprehensive income, the company saw growth in operating and ordinary profits. The announcement highlights a significant increase in dividends, partly due to a commemorative dividend for Daikin’s 100th anniversary, reflecting a positive outlook for stakeholders. The company also made changes in its scope of consolidation, adding and excluding several companies, which may impact its future operations and market positioning.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.