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

Tokyo Electron Ltd.

Daifuku Co., Ltd.

DISCO Corp.

DAIKIN INDUSTRIES Ltd.

Hitachi Ltd.

FANUC Corp.

SMC Corp. (Japan)

Toyota Industries Corp.

YASKAWA Electric Corp.

OMRON Corp.

TOSHIBA Corp.

Why is DAIKIN INDUSTRIES Ltd. ?

Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 15.06%

Healthy long term growth as Net Sales has grown by an annual rate of 14.61%
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 19.93

With ROCE of 12.55%, it has a fair valuation with a 2.21 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 13.52%, its profits have risen by 2.3% ; the PEG ratio of the company is 10.6
At the current price, the company has a high dividend yield of 0

Majority shareholders : FIIs

Real-Time Research Report

Verdict Report

How much should you buy?

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.

13.52%

497.39

34.28%

Japan Nikkei 225

59.79%

2.03

29.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.61%

EBIT Growth (5y)

10.16%

EBIT to Interest (avg)

16.63

Debt to EBITDA (avg)

0.12

Net Debt to Equity (avg)

0.02

Sales to Capital Employed (avg)

1.25

Tax Ratio

29.06%

Dividend Payout Ratio

36.17%

Pledged Shares

Institutional Holding

0.22%

ROCE (avg)

14.66%

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

2.19

EV to EBIT

17.60

EV to EBITDA

10.46

EV to Capital Employed

2.21

EV to Sales

1.43

PEG Ratio

10.61

Dividend Yield

ROCE (Latest)

12.55%

ROE (Latest)

8.91%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 555,312 MM

CASH AND EQV(HY)

Highest at JPY 1,859,018 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 3.09 times

NET SALES(Q)

Highest at JPY 1,426,810 MM

OPERATING PROFIT(Q)

Highest at JPY 205,491 MM

PRE-TAX PROFIT(Q)

Highest at JPY 120,886 MM

EPS(Q)

Highest at JPY 280.37

-4What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 9.39 %

INTEREST(Q)

Highest at JPY 12,198 MM

Here's what is working for DAIKIN INDUSTRIES Ltd.

Operating Cash Flow

Highest at JPY 555,312 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Net Sales

Highest at JPY 1,426,810 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Sales

At JPY 1,426,810 MM has Grown at 13.8%

over average net sales of the previous four periods of JPY 1,253,759 MM

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 205,491 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Pre-Tax Profit

Highest at JPY 120,886 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

EPS

Highest at JPY 280.37

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 1,859,018 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 3.09 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Depreciation

Highest at JPY 74,929 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.

Interest

At JPY 12,198 MM has Grown at 26.47%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 12,198 MM

in the last five periods and Increased by 26.47% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at 9.39 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio