DAIKIN INDUSTRIES Ltd. (6367) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Hitachi Ltd.

Daifuku Co., Ltd.

DAIKIN INDUSTRIES Ltd.

Tokyo Electron Ltd.

FANUC Corp.

DISCO Corp.

TOSHIBA Corp.

YASKAWA Electric Corp.

SMC Corp. (Japan)

Toyota Industries Corp.

OMRON Corp.

Why is DAIKIN INDUSTRIES Ltd. ?

High Management Efficiency with a high ROCE of 15.06%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 19.93

Negative results in Dec 25

ROCE(HY) Lowest at 9.11%
INVENTORY TURNOVER RATIO(HY) Lowest at 2.81 times
OPERATING PROFIT(Q) Lowest at JPY 132,777 MM

With ROCE of 14.05%, it has a very attractive valuation with a 1.70 Enterprise value to Capital Employed

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 13.68%, its profits have fallen by -1%
At the current price, the company has a high dividend yield of 0

Majority shareholders : FIIs

Underperformed the market in the last 1 year

The stock has generated a return of 13.68% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 45.07%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to DAIKIN INDUSTRIES Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is DAIKIN INDUSTRIES Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

DAIKIN INDUSTRIES Ltd.

14.33%

469.23

30.89%

Japan Nikkei 225

43.6%

1.63

27.61%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.26%

EBIT Growth (5y)

8.63%

EBIT to Interest (avg)

19.93

Debt to EBITDA (avg)

0.12

Net Debt to Equity (avg)

0.02

Sales to Capital Employed (avg)

1.26

Tax Ratio

26.76%

Dividend Payout Ratio

36.49%

Pledged Shares

Institutional Holding

0.23%

ROCE (avg)

15.06%

ROE (avg)

10.77%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.71

EV to EBIT

12.08

EV to EBITDA

7.49

EV to Capital Employed

1.70

EV to Sales

1.02

PEG Ratio

Dividend Yield

0.01%

ROCE (Latest)

14.05%

ROE (Latest)

9.83%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

No Trend

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

2What is working for the Company

CASH AND EQV(HY)

Highest at JPY 1,861,959 MM

DEBT-EQUITY RATIO (HY)

Lowest at -1.2 %

-11What is not working for the Company

ROCE(HY)

Lowest at 9.11%

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.81 times

OPERATING PROFIT(Q)

Lowest at JPY 132,777 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 11.18 %

PRE-TAX PROFIT(Q)

Lowest at JPY 62,783 MM

NET PROFIT(Q)

Lowest at JPY 34,493.11 MM

EPS(Q)

Lowest at JPY 117.49

Here's what is working for DAIKIN INDUSTRIES Ltd.

Cash and Eqv

Highest at JPY 1,861,959 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -1.2 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Depreciation

Highest at JPY 71,469 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for DAIKIN INDUSTRIES Ltd.

Net Profit

At JPY 34,493.11 MM has Fallen at -48.95%

over average net sales of the previous four periods of JPY 67,569.05 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Operating Profit

Lowest at JPY 132,777 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 11.18 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 62,783 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

At JPY 62,783 MM has Fallen at -34.98%

over average net sales of the previous four periods of JPY 96,566 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 34,493.11 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 117.49

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Inventory Turnover Ratio

Lowest at 2.81 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Non Operating Income

Highest at JPY 0.16 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income