Daikin (6367) AI Stock Analysis

• Market Cap: $5.67T
• Dividend Yield: 1.45%
• Average Volume (3M): 1.08M
• Price to Earnings (P/E): 20.5
• Beta (1Y): 1.08
• Revenue Growth: 3.59%
• EPS Growth: 16.45%
• Country: JP
• Employees: 98,162
• Sector: Industrials
• Sector Strength: 78
• Industry: Construction
• EPS (TTM): 278.43
• Shares Outstanding: 293,113,980
• 10 Day Avg. Volume: 905,270
• 30 Day Avg. Volume: 1,082,240
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 1.08
• Enterprise Value/Gross Profit: 3.19
• Enterprise Value/Ebitda: 7.78
• 1Y Price Target: $20,250.41
• Price Target Upside: 8.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 76 Outperform
• Price Target: ¥20,484.00 ▲(9.25% Upside)

Daikin's strong financial fundamentals and positive technical indicators drive a favorable stock score. The company demonstrates robust financial health with consistent growth and profitability. While the stock is technically strong, overbought signals suggest a potential pullback. Valuation metrics indicate fair pricing, balancing growth potential with current market expectations.

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 Industries makes money primarily through the sale of its air conditioning and refrigeration systems. The company's key revenue streams include residential air conditioners, commercial and industrial HVAC systems, and after-sales services such as maintenance and repairs. Daikin's business model also encompasses the production and sale of chemical products, including fluorochemicals, which support its HVAC operations and are sold to other industries. Additionally, the company benefits from strategic partnerships and collaborations that enhance its product offerings and expand its market reach. Factors such as technological innovation, energy efficiency, and a strong global distribution network contribute significantly to Daikin's earnings.

Daikin Financial Statement Overview

Summary

Daikin exhibits strong financial performance across its income statement, balance sheet, and cash flow metrics. Consistent revenue growth and profitability are supported by a solid equity foundation and efficient cash flow management. Improvement in operational margins and leverage management could enhance its financial standing further.

Income Statement

Daikin has demonstrated consistent revenue and profit growth over recent years. The gross profit margin has remained strong, with 33.2% in the most recent year. Net profit margin stands at 5.6%, indicating stable profitability. The revenue growth rate of 8.12% from the previous year is a positive indicator of market demand and operational efficiency. However, the EBIT margin is relatively modest at 8.5%, suggesting room for improvement in operational efficiency.

Balance Sheet

The balance sheet reflects a solid financial position with a debt-to-equity ratio of 0.35, indicating moderate leverage. The return on equity is robust at 9.4%, showcasing effective use of equity to generate profits. The equity ratio of 54.7% reveals a solid equity foundation, which is crucial for long-term stability. While the overall balance sheet is strong, there is room for improving debt management to further enhance financial health.

Cash Flow

Daikin's cash flow analysis reveals a healthy operating cash flow to net income ratio of 1.94, indicating efficient cash generation from operations. The free cash flow to net income ratio is also strong at 1.01, demonstrating effective conversion of profits into cash. The free cash flow growth rate is impressive at 71.02%, indicating successful expansion and reinvestment strategies. However, continued attention to capital expenditures will be important to maintain cash flow strength.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.75T	4.40T	3.98T	3.11T	2.49T
Gross Profit	1.58T	1.51T	1.33T	1.06T	864.14B
EBITDA	665.14B	645.76B	559.26B	464.41B	372.22B
Net Income	264.76B	260.31B	257.75B	217.71B	156.25B
Balance Sheet
Total Assets	5.13T	4.88T	4.30T	3.82T	3.24T
Cash, Cash Equivalents and Short-Term Investments	802.66B	737.96B	617.66B	817.62B	736.10B
Total Debt	986.85B	968.18B	887.63B	824.81B	751.21B
Total Liabilities	2.27T	2.19T	2.02T	1.82T	1.54T
Stockholders Equity	2.81T	2.64T	2.24T	1.97T	1.67T
Cash Flow
Free Cash Flow	268.46B	156.93B	-16.18B	130.97B	269.72B
Operating Cash Flow	514.45B	399.57B	158.90B	245.07B	374.69B
Investing Cash Flow	-322.29B	-226.72B	-229.79B	-180.79B	-159.67B
Financing Cash Flow	-168.58B	-129.62B	-113.09B	-48.70B	98.94B

Daikin Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 18750.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6367, the sentiment is Neutral. The current price of 18750 is below the 20-day moving average (MA) of 19446.50, above the 50-day MA of 18446.80, and above the 200-day MA of 17442.06, indicating a neutral trend. The MACD of 211.02 indicates Positive momentum. The RSI at 43.65 is Neutral, neither overbought nor oversold. The STOCH value of 8.62 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$5.67T	20.48	10.29%	1.45%	3.59%	16.45%
Sector *	64 Neutral	$10.95B	16.37	8.81%	1.96%	2.68%	-15.33%
JSGCF	―	$3.72B	82.66	1.08%	4.68%	―	―
SNWAF	―	$6.73B	18.41	19.96%	4.73%	―	―
TKIAF	―	$1.31B	16.55	8.06%	―	―	―
6458	80 Outperform	¥95.85B	12.03		3.97%	7.20%	5.74%
1969	72 Outperform	¥578.75B	16.19		1.70%	14.04%	75.99%

Daikin Corporate Events

Daikin Industries Reports Increased Profitability Despite Sales Dip

Daikin Industries reported a slight decrease in net sales by 3% for the quarter ending June 30, 2025, compared to the previous year, while operating profit and ordinary profit saw increases of 5.1% and 13%, respectively. The company’s profit attributable to owners rose significantly by 29.2%, indicating improved profitability despite lower sales. The financial position remains stable with a slight increase in total assets and net assets. The company has also revised its dividend forecast for the fiscal year ending March 31, 2026, maintaining a total dividend of 330 yen per share, reflecting confidence in its ongoing financial performance.

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 Finalizes Stock Option Issuance Details

Daikin Industries has finalized the details for issuing share acquisition rights as stock options, a decision made by its Board of Directors. This move involves issuing 842 stock options, with specific allocations to board members, executive officers, associate officers, and honorary officers, aiming to align incentives with company performance.

The most recent analyst rating on (JP:6367) stock is a Hold with a Yen18900.00 price target. To see the full list of analyst forecasts on Daikin stock, see the JP:6367 Stock Forecast page.

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.