Daikin (6367) AI Stock Analysis

• Market Cap: ¥4.85T
• Dividend Yield: 1.86%
• Average Volume (3M): 956.14K
• Price to Earnings (P/E): 18.1
• Beta (1Y): 1.09
• Revenue Growth: 8.12%
• EPS Growth: 1.69%
• Country: JP
• Employees: 98,162
• Sector: Industrials
• Sector Strength: 93
• Industry: Construction
• EPS (TTM): 266.55
• Shares Outstanding: 293,113,980
• 10 Day Avg. Volume: 943,930
• 30 Day Avg. Volume: 956,136
• 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: ¥18,999.71
• Price Target Upside: 16.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 75 Outperform
• 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 Business Overview & Revenue Model

Company Description

Daikin 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 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: Positive
• Last Price: 16375.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6458	79 Outperform	¥92.81B	11.34		4.09%	9.75%	21.60%
1969	79 Outperform	¥453.42B	15.90		2.51%	5.03%	40.79%
5929	76 Outperform	$1.06T	19.02	18.79%	2.06%	8.39%	34.99%
6367	75 Outperform	¥4.85T	18.11	9.61%	1.86%	8.12%	1.69%
Sector *	66 Neutral	$4.49B	12.28	5.32%	248.53%	4.08%	-12.00%
1979	65 Neutral	$162.44B	14.49	7.46%	2.75%	-5.91%	-28.26%
5938	57 Neutral	$465.94B	232.92	0.35%	5.12%	1.45%	―

Daikin Corporate Events

Daikin Industries Reports Strong Financial Performance with Strategic Expansions

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

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

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

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.