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Daikin
(6367)
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Rating:63Neutral
Price Target:
¥25,310.00
▲(5.99% Upside)
Action:Downgraded
Date:08/05/26
The score is driven primarily by solid underlying financial performance (growth, profitability, and moderate leverage), partially offset by weaker current technical momentum (below key moving averages with negative MACD). Valuation is moderately expensive for the profile and the dividend yield is modest, which further tempers the overall score.
Positive Factors
Sustained Revenue Expansion
Daikin has delivered substantial multi-year revenue expansion, indicating durable demand for its HVAC and refrigeration systems. Scale across residential, commercial and industrial markets can support continued penetration and recurring replacement demand.
Negative Factors
Margin Compression
The lower net margin shows that revenue growth has not translated fully into bottom-line expansion. Persistent pressure from manufacturing costs, sourcing, currencies or competitive pricing could constrain earnings growth and returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Revenue Expansion
Daikin has delivered substantial multi-year revenue expansion, indicating durable demand for its HVAC and refrigeration systems. Scale across residential, commercial and industrial markets can support continued penetration and recurring replacement demand.
Read all positive factors
Daikin (6367) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥6.10T
Dividend Yield1.63%
Average Volume (3M)1.07M
Price to Earnings (P/E)22.3
Beta (1Y)0.84
Revenue Growth10.88%
EPS Growth-2.59%
CountryJP
Employees104,095
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)942.09
Shares Outstanding293,113,980
10 Day Avg. Volume1,075,890
30 Day Avg. Volume1,073,716
Financial Highlights & Ratios
PEG Ratio5.04
Price to Book (P/B)1.68
Price to Sales (P/S)1.09
P/FCF Ratio21.31
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥27,083.33Price Target Upside13.41% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)1,004.67
Revenue Forecast (FY)¥5.32T
Daikin Business Overview & Revenue Model
Company Description
Daikin Industries, Ltd., founded in 1924 and headquartered in Osaka, Japan, is a global leader specializing in the development, manufacturing, and sale of advanced air-conditioning and refrigeration equipment, as well as various chemical products....
How the Company Makes Money
Daikin primarily makes money by selling HVAC and refrigeration equipment and by supporting those products over their life cycle. The largest revenue stream comes from the sale of air conditioners and HVAC systems (e.g., residential split systems, ...
Daikin Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Neutral
The call conveyed a mixed picture: management reported strong profitability progress in Q1 — including a 10% operating margin, absorbed near-term tariff effects (JPY 7.5 billion) and regionally strong performances (DNA sales +13% local currency, DNA margin +2pp) — while acknowledging persistent demand weakness in key end markets (US housing, China real estate), significant declines in the chemicals business, inventory and tariff uncertainties, and Q1 sales slightly below plan. Management emphasized a clear shift to profit-oriented management, pricing discipline, and continued investment to drive recovery.Positive Updates
Operating Profit Margin Improvement to 10% in Q1
Company achieved an operating profit margin of 10% in Q1, exceeding its internal plan and described as record profit levels. Management expects to further exceed the annual operating profit plan (JPY 435 billion) if progress continues.
Negative Updates
Weak End-Market Demand — US Housing & China Real Estate
Management highlighted a continuing difficult business environment: sluggish US housing market and prolonged real estate recession in China. Estimated industry manufacturer shipments in the US were about 84%–85% in Q1, and China air-conditioning sales in real terms were 93% YoY (Asia 90%), indicating notable demand weakness.
Read all updates
Q1-2026 Updates
Positive
Negative
Operating Profit Margin Improvement to 10% in Q1
Company achieved an operating profit margin of 10% in Q1, exceeding its internal plan and described as record profit levels. Management expects to further exceed the annual operating profit plan (JPY 435 billion) if progress continues.
Read all positive updates
Company Guidance
Management reiterated guidance to “further exceed” its FY2026 operating profit plan of JPY435 billion, saying the May-estimated tariff hit of about JPY47 billion is now expected to be less than JPY47 billion and that Q1’s direct tariff impact of ≈JPY7.5 billion was fully absorbed by ~JPY5.0 billion of price increases and ~JPY2.5 billion of cost reductions; Q1 delivered a 10% operating margin (above plan). Key metrics cited: DNA sales were 113% of prior year (local currency) with DNA operating margin 11% (+2 pp) and DAA margin 9%; air‑conditioning real YoY sales by region were Europe 102%, China 93%, Americas 104%, Asia 90%; chemicals real YoY were Americas 115%, China 95%, Europe 99%; China residential multi‑split sales 99% YoY; heat‑pump heating sales 110% YoY. Management also noted R32 price rises of about 5% in April and 5% in May (selling‑price/product‑mix ~+7 pp to DNA), US industry shipments running ~84–85% in Q1, Win‑Back progress ~45% at end‑June, R410A distribution inventory expected to approach zero by end‑September, inventories slightly up in real terms but overall slightly below internal plan, and a commitment to further price increases, cost reductions, supply/production shifts and six group‑wide initiatives to meet targets.Daikin Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
76
Positive
Cash Flow
69
Positive
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.23T | 5.02T | 4.75T | 4.40T | 3.98T | 3.11T |
| Gross Profit | 1.74T | 1.68T | 1.63T | 1.51T | 1.33T | 1.06T |
| EBITDA | 731.08B | 718.81B | 665.14B | 645.76B | 575.90B | 484.94B |
| Net Income | 273.84B | 275.23B | 264.76B | 260.31B | 257.75B | 217.71B |
Balance Sheet | ||||||
| Total Assets | 5.95T | 5.81T | 5.13T | 4.88T | 4.30T | 3.82T |
| Cash, Cash Equivalents and Short-Term Investments | 925.53B | 933.48B | 802.66B | 737.96B | 617.66B | 817.62B |
| Total Debt | 1.21T | 1.09T | 986.90B | 968.18B | 887.68B | 824.81B |
| Total Liabilities | 2.90T | 2.49T | 2.27T | 2.19T | 2.02T | 1.82T |
| Stockholders Equity | 2.99T | 3.25T | 2.81T | 2.64T | 2.24T | 1.97T |
Cash Flow | ||||||
| Free Cash Flow | 334.61B | 256.77B | 268.46B | 156.93B | -16.18B | 130.97B |
| Operating Cash Flow | 555.31B | 465.85B | 514.45B | 399.57B | 158.90B | 245.07B |
| Investing Cash Flow | -322.98B | -317.82B | -322.29B | -226.72B | -224.19B | -180.79B |
| Financing Cash Flow | -236.58B | -160.79B | -168.58B | -130.09B | -118.69B | -48.70B |
Daikin Technical Analysis
Negative
23880.00
Price Trends
23565.80
Negative
22971.45
Negative
21167.03
Negative
Market Momentum
-882.34
Positive
28.14
Positive
13.46
Positive
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 23880 is above the 20-day moving average (MA) of 22220.00, above the 50-day MA of 23565.80, and above the 200-day MA of 21167.03, indicating a bearish trend. The MACD of -882.34 indicates Positive momentum. The RSI at 28.14 is Positive, neither overbought nor oversold. The STOCH value of 13.46 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6367.
Daikin Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | ¥106.29B | 15.54 | 4.76% | 3.59% | -0.79% | 21.74% | |
72 Outperform | ¥247.05B | 16.70 | 10.28% | 2.44% | -1.29% | 32.72% | |
68 Neutral | ¥597.10B | 16.13 | ― | 2.13% | 2.27% | 2.33% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | ¥6.10T | 22.27 | 9.01% | 1.42% | 10.88% | -2.59% | |
63 Neutral | ¥1.01T | 25.49 | 7.97% | 1.48% | 2.01% | 331.85% | |
50 Neutral | ¥506.06B | 91.26 | 1.26% | 4.96% | 1.71% | -20.26% |
* Industrials Sector Average
JP:6367
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Daikin Corporate Events
Daikin Finalizes Third-Period Adjustment in Fully Committed Share Buyback
Aug 17, 2026
Daikin has finalized the ex post facto adjustment for the third of six periods under its Fully Committed Share Repurchase program, confirming the average share price at ¥23,832.4522 and the number of shares involved. The company acquired 2,41...
Daikin Finalizes Initial Adjustments in Fully Committed Share Repurchase
Aug 6, 2026
Daikin Industries has completed an ex post facto adjustment related to its Fully Committed Share Repurchase program, confirming the finalized number of shares acquired in the first two of six adjustment periods. The adjustments, based on volume-we...
Daikin Posts Strong Sales Growth and Confirms Higher Dividend Plans for FY2027
Aug 4, 2026
Daikin reported consolidated net sales of ¥1.43 trillion for the quarter ended June 30, 2026, up 17.5% year on year, with operating profit rising 7.6% to ¥130.6 billion but profit attributable to owners of parent slipping 1.7% to ¥8...
Daikin Sets Up India R&D Hub to Target Growing Global South HVAC Demand
Jun 26, 2026
Daikin Industries will establish a wholly owned RD subsidiary, Daikin Research and Development India Private Limited, in New Delhi, India, with operations supported by a new RD center to be built in Haryana by June 2028. The unit, capitalized at I...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.