Daikin Industries,Ltd.
Daikin Industries,Ltd. Fundamental Analysis
Daikin Industries,Ltd. (DKILF) shows weak financial fundamentals with a PE ratio of 21.03, profit margin of 5.67%, and ROE of 9.30%. The company generates $4844.4B in annual revenue with moderate year-over-year growth of 8.12%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 63.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze DKILF's fundamental strength across five key dimensions:
Efficiency Score
WeakDKILF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentDKILF trades at attractive valuation levels.
Growth Score
ModerateDKILF shows steady but slowing expansion.
Financial Health Score
ExcellentDKILF maintains a strong and stable balance sheet.
Profitability Score
WeakDKILF struggles to sustain strong margins.
Key Financial Metrics
Is DKILF Expensive or Cheap?
P/E Ratio
DKILF trades at 21.03 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, DKILF's PEG of -0.61 indicates potential undervaluation.
Price to Book
The market values Daikin Industries,Ltd. at 1.83 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.64 times EBITDA. This is generally considered low.
How Well Does DKILF Make Money?
Net Profit Margin
For every $100 in sales, Daikin Industries,Ltd. keeps $5.67 as profit after all expenses.
Operating Margin
Core operations generate 8.11 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.30 in profit for every $100 of shareholder equity.
ROA
Daikin Industries,Ltd. generates $4.84 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Daikin Industries,Ltd. generates limited operating cash flow of $436.12B, signaling weaker underlying cash strength.
Free Cash Flow
Daikin Industries,Ltd. produces free cash flow of $232.60B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $794.32 in free cash annually.
FCF Yield
DKILF converts 4.03% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.03
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.61
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.83
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.19
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.30
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.95
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How DKILF Stacks Against Its Sector Peers
| Metric | DKILF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.03 | 25.96 | Better (Cheaper) |
| ROE | 9.30% | 1263.00% | Weak |
| Net Margin | 5.67% | -41827.00% (disorted) | Weak |
| Debt/Equity | 0.30 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 1.95 | 10.05 | Neutral |
| ROA | 4.84% | -1497918.00% (disorted) | Weak |
DKILF outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Daikin Industries,Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
86.19%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
54.95%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
70.12%
Industry Style: Cyclical, Value, Infrastructure
High Growth