DAIKIN AI Stock Analysis
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DAIKIN (DKILY) AI Stock Analysis
DAIKIN
(Other OTC:DKILY)
The score is primarily driven by solid overall financial performance (profitable operations, steady growth, and improving TTM free cash flow), tempered by margin compression, a recent uptick in leverage, and historically variable cash flow. Technicals add modest support with a generally positive trend and moderate momentum. Valuation is a mild headwind due to a P/E around 23 alongside only a modest dividend yield.
DAIKIN (DKILY) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $40.53B
- Dividend Yield
- 1.37%
- Average Volume (3M)
- 285.71K
- Price to Earnings (P/E)
- 23.2
- Beta (1Y)
- 0.33
- Revenue Growth
- 8.72%
- EPS Growth
- 0.90%
- Country
- US
- Employees
- 104,095
- Sector
- Industrials
- Sector Strength
- 63
- Industry
- Industrial - Machinery
DAIKIN Business Overview & Revenue Model
Company Description
Daikin Industries, Ltd., a global enterprise headquartered in Osaka, Japan, and established in 1924, is primarily engaged in the development, manufacturing, and worldwide distribution of a diverse array of products. Its core business revolves around...
DAIKIN Earnings Call Summary
The call presented a mixed picture: Q1 delivered encouraging profit improvement (10% operating margin), successful absorption of the immediate tariff hit (JPY7.5 billion) through price and cost actions, DNA margin gains and targeted growth in high value-added products and specific chemical applications. However, demand headwinds persist—weak US housing market, elevated distribution inventories, notable declines in the chemicals business, ASEAN slowdown and weak heat pump recovery in Europe—which create uncertainty around volume recovery and the full-year outlook. Management is shifting to profit-oriented budget discipline, believes the full-year tariff impact will be less than previously guided (JPY47 billion), and is accelerating cost, price and operational measures. Overall, the positives on profitability and management action balance the significant demand and inventory challenges, leading to cautious optimism but remaining risks to volume-driven growth.
Q1-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Management guided that Q1 momentum and countermeasures should allow operating profit to further exceed the annual plan of JPY435.0 billion, noting Q1 operating profit margin was 10% (sales slightly below plan but profit slightly above), and that the direct Q1 tariff hit of ~JPY7.5 billion was fully absorbed by selling price increases (~JPY5.0 billion) and cost reductions (~JPY2.5 billion); the previously announced fiscal‑year tariff impact of JPY47.0 billion is now expected to be less than JPY47.0 billion and will be mitigated by further price increases, cost cuts and supply adjustments. Key metrics cited include air‑conditioning real YoY sales by region: Europe 102%, China 93%, Americas 104%, Asia 90%; chemicals real YoY sales: Americas 115%, China 95%, Europe 99%; DNA sales at 113% (local currency) with an 11% operating margin (up 2ppt YoY), DAA margin 9%, China residential multi‑split sales 99% YoY, European heat‑pump heating sales 110% YoY, Win‑Back progress ~45% at end‑June, industry shipments in the US at ~84–85% in Q1, inventories slightly up YoY but slightly below internal plan, and no changes to full‑year capex, depreciation or R&D plans.
DAIKIN Financial Statement Overview
Summary
Financials are solid but not exceptional. Income statement strength is supported by steady TTM revenue growth (~4.6%) and healthy profitability (TTM gross margin ~33%, EBITDA margin ~14%), though there is mild margin compression and net margin is modest (~5.2%). The balance sheet is generally sound with manageable leverage (debt ~0.40x equity) but leverage has ticked up versus the last annual period. Cash flow is improving with strong TTM FCF growth (~30%), but cash conversion is only moderate and historical FCF volatility (including negative FCF in 2023) reduces confidence in consistency.
Income Statement
74PositiveBalance Sheet
71PositiveCash Flow
67Positive| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.87T | 4.75T | 5.32T | 4.40T | 3.98T | 3.11T |
| Gross Profit | 1.66T | 1.63T | 1.78T | 1.51T | 1.33T | 1.06T |
| EBITDA | 675.86B | 665.14B | 732.88B | 645.76B | 559.26B | 464.41B |
| Net Income | 275.42B | 264.76B | 291.83B | 260.31B | 257.75B | 217.71B |
Balance Sheet | ||||||
| Total Assets | 5.67T | 5.13T | 5.83T | 4.88T | 4.30T | 3.82T |
| Cash, Cash Equivalents and Short-Term Investments | 986.38B | 802.66B | 937.53B | 737.96B | 617.66B | 817.62B |
| Total Debt | 948.63B | 986.85B | 1.10T | 968.18B | 887.63B | 824.81B |
| Total Liabilities | 2.45T | 2.27T | 2.50T | 2.19T | 2.02T | 1.82T |
| Stockholders Equity | 3.16T | 2.81T | 3.27T | 2.64T | 2.24T | 1.97T |
Cash Flow | ||||||
| Free Cash Flow | 235.58B | 268.46B | 272.25B | 156.93B | -16.18B | 130.97B |
| Operating Cash Flow | 441.08B | 514.45B | 493.94B | 399.57B | 158.90B | 245.07B |
| Investing Cash Flow | -262.93B | -337.41B | -336.99B | -227.19B | -229.79B | -180.79B |
| Financing Cash Flow | -121.56B | -153.47B | -170.49B | -129.62B | -113.09B | -48.70B |
DAIKIN Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DKILY, the sentiment is Positive. The current price of 14.54 is above the 20-day moving average (MA) of 13.63, above the 50-day MA of 13.42, and above the 200-day MA of 13.66, indicating a bullish trend. The MACD of 0.20 indicates Negative momentum. The RSI at 75.78 is Negative, neither overbought nor oversold. The STOCH value of 100.29 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DKILY.
DAIKIN Peers Comparison
Overall Rating
TT71Outperform- DKILY68Neutral
MOD68Neutral
LII66Neutral
AAON61Neutral
CARR61Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| TT | 71Outperform | $92.12B | 29.88 | 36.01% | 0.96% | 10.34% | 8.80% |
| DKILY | 68Neutral | $42.00B | 23.15 | 9.28% | 1.37% | 8.72% | 0.90% |
| MOD | 68Neutral | $5.48B | 44.63 | 10.96% | ― | 35.08% | -31.08% |
| LII | 66Neutral | $11.90B | 16.21 | 60.10% | 1.52% | 1.92% | -9.14% |
| Sector * | 63Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
| AAON | 61Neutral | $6.19B | 31.67 | 20.13% | 0.52% | 72.27% | 102.41% |
| CARR | 61Neutral | $43.37B | -24.73 | -14.28% | 1.76% | 3.33% | -187.15% |
* Industrials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| DKILY | Daikin Industries, Ltd. Unsponsored ADR | 14.54 | 1.06 | 7.91% | |
| AAON | Aaon Inc | 76.33 | -18.43 | -19.45% | |
| TT | Trane Technologies Plc | 424.84 | 13.85 | 3.37% | |
| LII | Lennox International | 350.73 | -120.36 | -25.55% | |
| MOD | Modine Manufacturing | 106.67 | -17.83 | -14.32% | |
| CARR | Carrier Global Corp. | 54.58 | 0.28 | 0.52% |
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.
Date of analysis: Nov 07, 2026