Daikin (6367) AI Stock Analysis

• Market Cap: $5.72T
• Dividend Yield: 1.58%
• Average Volume (3M): 1.07M
• Price to Earnings (P/E): 20.9
• Beta (1Y): 1.02
• Revenue Growth: 1.60%
• EPS Growth: 5.80%
• Country: JP
• Employees: 98,162
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 271.18
• Shares Outstanding: 293,113,980
• 10 Day Avg. Volume: 1,075,890
• 30 Day Avg. Volume: 1,073,716
• PEG Ratio: 10.15
• Price to Book (P/B): 1.68
• Price to Sales (P/S): 0.99
• P/FCF Ratio: 17.60
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 1.07
• Enterprise Value/Gross Profit: 3.11
• Enterprise Value/Ebitda: 7.52
• 1Y Price Target: $23,133.32
• Price Target Upside: 15.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥21,590.00 ▲(7.95% Upside)

Daikin's overall stock score reflects strong financial performance and stable long-term technical indicators. While the stock shows potential overvaluation, its solid financial foundation and positive cash flow generation support its growth trajectory. The absence of earnings call and corporate events data limits the analysis to these core components.

Positive Factors

Revenue Growth

Strong revenue growth indicates Daikin's expanding market presence and product demand, supporting long-term business sustainability.

Profitability

Healthy profit margins reflect efficient operations and pricing power, which are crucial for sustaining profitability over time.

Balance Sheet Health

A stable balance sheet with manageable leverage enhances financial stability and provides flexibility for future investments.

Negative Factors

Cash Flow Efficiency

Suboptimal cash flow efficiency may limit Daikin's ability to reinvest in growth opportunities and manage financial obligations effectively.

Cash Conversion

Moderate cash conversion efficiency could impact Daikin's ability to quickly convert earnings into cash, affecting liquidity and operational flexibility.

Free Cash Flow Growth

While cash generation is improving, the growth rate may not be sufficient to support aggressive expansion or buffer against economic downturns.

Daikin Business Overview & Revenue Model

Company Description

Daikin Industries, Ltd. (6367) is a leading global manufacturer of air conditioning, heating, and refrigeration systems. Headquartered in Osaka, Japan, the company operates across multiple sectors, including residential, commercial, and industrial HVAC solutions. Daikin is renowned for its innovative technologies, energy-efficient products, and a wide range of offerings that include air conditioners, heat pumps, chillers, and refrigerants, catering to diverse customer needs worldwide.

How the Company Makes Money

Daikin generates revenue primarily through the sale of its HVAC systems and equipment, which includes residential air conditioners, commercial air conditioning units, and industrial chillers. The company also earns income from service and maintenance contracts associated with its products. Key revenue streams include direct sales to consumers, partnerships with distributors and contractors, and providing installation services. Additionally, Daikin benefits from recurring revenue through the sale of replacement parts and refrigerants. Strategic partnerships with construction firms and real estate developers also enhance its market reach and contribute significantly to its earnings.

Daikin Financial Statement Overview

Summary

Daikin demonstrates solid financial health with strong gross margins and a stable balance sheet. However, declining revenue growth and free cash flow are areas of concern. The company maintains a balanced leverage position and effective use of equity, but improving profitability and cash generation will be crucial for future growth.

Income Statement

Daikin's income statement shows a strong gross profit margin of 33.59% TTM, indicating efficient cost management. However, the net profit margin is relatively low at 6.01% TTM, suggesting room for improvement in profitability. The revenue growth rate has declined by 0.78% TTM, which is a concern, but historical growth rates have been positive. EBIT and EBITDA margins are stable, reflecting consistent operational efficiency.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.298 TTM, indicating a balanced approach to leveraging. Return on equity is healthy at 10.15% TTM, showcasing effective use of shareholder funds. The equity ratio stands at 54.85% TTM, suggesting a strong equity base relative to total assets, which enhances financial stability.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by 20.76% TTM, raising concerns about cash generation. The operating cash flow to net income ratio is 0.276 TTM, indicating moderate cash conversion efficiency. The free cash flow to net income ratio is 0.496 TTM, reflecting a reasonable level of cash flow relative to earnings.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.74T	4.75T	4.40T	3.98T	3.11T	2.49T
Gross Profit	1.62T	1.58T	1.51T	1.33T	1.06T	864.14B
EBITDA	671.81B	665.14B	645.76B	575.90B	484.94B	372.22B
Net Income	274.03B	264.76B	260.31B	257.75B	217.71B	156.25B
Balance Sheet
Total Assets	5.37T	5.13T	4.88T	4.30T	3.82T	3.24T
Cash, Cash Equivalents and Short-Term Investments	876.25B	802.66B	737.96B	617.66B	817.62B	736.10B
Total Debt	862.35B	1.03T	968.18B	887.63B	824.81B	751.21B
Total Liabilities	2.32T	2.27T	2.19T	2.02T	1.82T	1.54T
Stockholders Equity	2.99T	2.81T	2.64T	2.24T	1.97T	1.67T
Cash Flow
Free Cash Flow	231.57B	268.46B	156.93B	-16.18B	130.97B	269.72B
Operating Cash Flow	439.33B	514.45B	399.57B	158.90B	245.07B	374.69B
Investing Cash Flow	-334.85B	-322.29B	-226.72B	-229.79B	-180.79B	-159.67B
Financing Cash Flow	-132.00B	-168.58B	-129.62B	-113.09B	-48.70B	98.94B

Daikin Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 20000.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Positive. The current price of 20000 is above the 20-day moving average (MA) of 19811.00, above the 50-day MA of 18909.70, and above the 200-day MA of 17522.71, indicating a bullish trend. The MACD of 194.57 indicates Positive momentum. The RSI at 56.61 is Neutral, neither overbought nor oversold. The STOCH value of 38.21 is Neutral, 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
1969	79 Outperform	¥608.61B	14.61	―	2.03%	15.98%	82.99%
6458	79 Outperform	¥97.37B	12.16	―	3.65%	8.96%	-0.82%
1979	76 Outperform	¥217.35B	16.51	8.53%	2.50%	5.14%	-10.92%
6367	72 Outperform	$5.72T	20.90	9.46%	1.58%	1.60%	5.80%
5929	68 Neutral	¥835.31B	14.14	18.61%	2.98%	2.90%	36.64%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5938	49 Neutral	$496.45B	53.42	1.44%	4.93%	0.68%	―

Daikin Corporate Events

Daikin Industries Reports Stable Profits Amid Slight Sales Decline

Daikin Industries reported its consolidated business results for the six months ending September 30, 2025, showing a slight decrease in net sales by 0.6% to ¥2,478,798 million, while operating profit remained stable. The company experienced a notable increase in ordinary profit by 7.9% and profit attributable to owners of the parent by 6.1%, indicating improved profitability. The equity ratio also improved slightly, reflecting a stronger financial position. Daikin’s forecast for the fiscal year ending March 31, 2026, anticipates a modest growth in net sales and a significant increase in operating and ordinary profits, suggesting positive future prospects. The company has also made significant changes in its scope of consolidation, adding five new companies and excluding 30 others, which may impact its strategic direction.