TSE:6367

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Daikin IndustriesLtd

Market Cap

JP¥6.1t

Last Updated

2021/06/20 08:01 UTC

Data Sources

Company Financials +

Executive Summary

Daikin Industries, Ltd. manufactures, distributes, and sells air-conditioning and refrigeration equipment, and chemical products. More Details

Rewards

Earnings are forecast to grow 13.33% per year

Risk Analysis

No risks detected for 6367 from our risk checks.


Snowflake Analysis

Flawless balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Daikin IndustriesLtd's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 6367 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 6367's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

3.2%

6367

1.9%

JP Building

-0.4%

JP Market


1 Year Return

25.6%

6367

27.6%

JP Building

21.8%

JP Market

Return vs Industry: 6367 underperformed the JP Building industry which returned 27.6% over the past year.

Return vs Market: 6367 exceeded the JP Market which returned 21.8% over the past year.


Shareholder returns

6367IndustryMarket
7 Day3.2%1.9%-0.4%
30 Day0.02%0.2%2.6%
90 Day-6.4%-8.2%-2.8%
1 Year26.5%25.6%29.5%27.6%24.4%21.8%
3 Year58.0%53.3%34.6%27.0%19.4%11.3%
5 Year170.3%155.7%115.6%96.1%79.6%59.9%

Long-Term Price Volatility Vs. Market

How volatile is Daikin IndustriesLtd's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Daikin IndustriesLtd undervalued compared to its fair value and its price relative to the market?

38.96x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 6367 (¥20805) is trading above our estimate of fair value (¥15668.89)

Significantly Below Fair Value: 6367 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 6367 is poor value based on its PE Ratio (39x) compared to the JP Building industry average (12.9x).

PE vs Market: 6367 is poor value based on its PE Ratio (39x) compared to the JP market (16.2x).


Price to Earnings Growth Ratio

PEG Ratio: 6367 is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: 6367 is overvalued based on its PB Ratio (3.7x) compared to the JP Building industry average (0.8x).


Future Growth

How is Daikin IndustriesLtd forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

13.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6367's forecast earnings growth (13.3% per year) is above the savings rate (0%).

Earnings vs Market: 6367's earnings (13.3% per year) are forecast to grow faster than the JP market (12.8% per year).

High Growth Earnings: 6367's earnings are forecast to grow, but not significantly.

Revenue vs Market: 6367's revenue (5.7% per year) is forecast to grow faster than the JP market (5.2% per year).

High Growth Revenue: 6367's revenue (5.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 6367's Return on Equity is forecast to be low in 3 years time (12.3%).


Past Performance

How has Daikin IndustriesLtd performed over the past 5 years?

1.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6367 has high quality earnings.

Growing Profit Margin: 6367's current net profit margins (6.3%) are lower than last year (6.7%).


Past Earnings Growth Analysis

Earnings Trend: 6367's earnings have grown by 1.2% per year over the past 5 years.

Accelerating Growth: 6367's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 6367 had negative earnings growth (-8.5%) over the past year, making it difficult to compare to the Building industry average (-7%).


Return on Equity

High ROE: 6367's Return on Equity (9.6%) is considered low.


Financial Health

How is Daikin IndustriesLtd's financial position?


Financial Position Analysis

Short Term Liabilities: 6367's short term assets (¥1,733.4B) exceed its short term liabilities (¥766.0B).

Long Term Liabilities: 6367's short term assets (¥1,733.4B) exceed its long term liabilities (¥775.2B).


Debt to Equity History and Analysis

Debt Level: 6367's debt to equity ratio (39.2%) is considered satisfactory.

Reducing Debt: 6367's debt to equity ratio has reduced from 58.4% to 39.2% over the past 5 years.

Debt Coverage: 6367's debt is well covered by operating cash flow (56.3%).

Interest Coverage: 6367 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Daikin IndustriesLtd current dividend yield, its reliability and sustainability?

0.86%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 6367's dividend (0.87%) isn’t notable compared to the bottom 25% of dividend payers in the JP market (1.32%).

High Dividend: 6367's dividend (0.87%) is low compared to the top 25% of dividend payers in the JP market (3.01%).


Stability and Growth of Payments

Stable Dividend: 6367's dividends per share have been stable in the past 10 years.

Growing Dividend: 6367's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30%), 6367's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

10.0yrs

Average management tenure


CEO

Masanori Togawa (71 yo)

7yrs

Tenure

JP¥284,000,000

Compensation

Mr. Masanori Togawa serves as the Chief Executive Officer and President of Daikin Industries Ltd since June 2011 and June 2014 respectively. Mr. Togawa served as a Chief Operating Officer, General Manager ...


CEO Compensation Analysis

Compensation vs Market: Masanori's total compensation ($USD2.58M) is above average for companies of similar size in the JP market ($USD1.81M).

Compensation vs Earnings: Masanori's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: 6367's management team is seasoned and experienced (10 years average tenure).


Board Members

Experienced Board: 6367's board of directors are seasoned and experienced ( 10 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Daikin Industries,Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Daikin Industries,Ltd.
  • Ticker: 6367
  • Exchange: TSE
  • Founded: 1924
  • Industry: Building Products
  • Sector: Capital Goods
  • Market Cap: JP¥6.088t
  • Shares outstanding: 292.64m
  • Website: https://www.daikin.com

Number of Employees


Location

  • Daikin Industries,Ltd.
  • Umeda Center Building
  • 2-4-12, Nakazaki-Nishi
  • Osaka
  • 530-8323
  • Japan

Listings


Biography

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...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/20 08:01
End of Day Share Price2021/06/18 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.