TSE:6367

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Daikin IndustriesLtd

Executive Summary

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


Snowflake Analysis

Excellent balance sheet with limited growth.


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

2.6%

6367

2.5%

JP Building

3.2%

JP Market


1 Year Return

51.1%

6367

28.5%

JP Building

5.3%

JP Market

Return vs Industry: 6367 exceeded the JP Building industry which returned 28.5% over the past year.

Return vs Market: 6367 exceeded the JP Market which returned 5.3% over the past year.


Shareholder returns

6367IndustryMarket
7 Day2.6%2.5%3.2%
30 Day22.3%17.6%12.2%
90 Day18.8%18.2%10.1%
1 Year52.6%51.1%31.0%28.5%7.9%5.3%
3 Year89.8%83.6%33.3%25.4%7.9%0.4%
5 Year187.8%171.2%91.7%73.3%29.3%14.8%

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?

50.96x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 6367 (¥23830) is trading above our estimate of fair value (¥5921.4)

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 (51x) compared to the JP Building industry average (13.4x).

PE vs Market: 6367 is poor value based on its PE Ratio (51x) compared to the JP market (17.3x).


Price to Earnings Growth Ratio

PEG Ratio: 6367 is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: 6367 is overvalued based on its PB Ratio (4.6x) compared to the JP Building industry average (0.7x).


Next Steps

Future Growth

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

17.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6367's forecast earnings growth (17.3% per year) is above the savings rate (0.05%).

Earnings vs Market: 6367's earnings (17.3% per year) are forecast to grow slower than the JP market (17.7% per year).

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

Revenue vs Market: 6367's revenue (6.2% per year) is forecast to grow faster than the JP market (5.5% per year).

High Growth Revenue: 6367's revenue (6.2% 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 (12.6%).


Next Steps

Past Performance

How has Daikin IndustriesLtd performed over the past 5 years?

4.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6367 has high quality earnings.

Growing Profit Margin: 6367's current net profit margins (5.6%) are lower than last year (7.7%).


Past Earnings Growth Analysis

Earnings Trend: 6367's earnings have grown by 4.7% 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 (-29.7%) over the past year, making it difficult to compare to the Building industry average (-12.8%).


Return on Equity

High ROE: 6367's Return on Equity (9.3%) is considered low.


Next Steps

Financial Health

How is Daikin IndustriesLtd's financial position?


Financial Position Analysis

Short Term Liabilities: 6367's short term assets (¥1,616.8B) exceed its short term liabilities (¥672.0B).

Long Term Liabilities: 6367's short term assets (¥1,616.8B) exceed its long term liabilities (¥778.5B).


Debt to Equity History and Analysis

Debt Level: 6367's debt to equity ratio (41%) is considered high.

Reducing Debt: 6367's debt to equity ratio has reduced from 60.5% to 41% over the past 5 years.

Debt Coverage: 6367's debt is well covered by operating cash flow (54.4%).

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


Balance Sheet


Next Steps

Dividend

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

0.67%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 6367's dividend (0.67%) isn’t notable compared to the bottom 25% of dividend payers in the JP market (1.26%).

High Dividend: 6367's dividend (0.67%) is low compared to the top 25% of dividend payers in the JP market (3.03%).


Stability and Growth of Payments

Stable Dividend: 6367 is not paying a notable dividend for the JP market, therefore no need to check if payments are stable.

Growing Dividend: 6367 is not paying a notable dividend for the JP market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 6367 is not paying a notable dividend for the JP market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 6367's dividend in 3 years as they are not forecast to pay a notable one for the JP market.


Next Steps

Management

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

9.4yrs

Average management tenure


CEO

Masanori Togawa (71 yo)

6.42yrs

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 ($USD2.73M) is above average for companies of similar size in the JP market ($USD1.97M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Noriyuki Inoue
Chairman of the Board & Chief Global Group Officer25.5yrsJP¥420.00m0.023%
¥ 1.6b
Masanori Togawa
President6.42yrsJP¥284.00m0.0034%
¥ 238.5m
Ken Tayano
Senior Executive Officer & Director9.42yrsJP¥166.00m0.0017%
¥ 119.2m
Masatsugu Minaka
Senior Executive Officer & Director9.42yrsJP¥137.00m0.0027%
¥ 190.4m
Jiro Tomita
Senior Executive Officer & Director10.42yrsJP¥155.00m0.0017%
¥ 119.2m
Kanwal Jeet Jawa
Non-Resident Director & Senior Associate Officer2.42yrsJP¥107.00mno data
Koichi Takahashi
GM of Finance & Accounting Division and Senior Executive Officerno datano datano data
Yoshihiro Mineno
Senior Executive Officer & GM of Global Operations Divisionno datano datano data
Yuji Yoneda
Executive Officer and GM of Technology & Innovation Centerno datano datano data
Masafumi Yamamoto
GM of the Legal Affairsno datano datano data
Masaki Saji
Executive Officerno datano datano data
Yasushi Yamada
Senior Executive Officerno datano datano data

9.4yrs

Average Tenure

71yo

Average Age

Experienced Management: 6367's management team is seasoned and experienced (9.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Noriyuki Inoue
Chairman of the Board & Chief Global Group Officer25.5yrsJP¥420.00m0.023%
¥ 1.6b
Masanori Togawa
President6.42yrsJP¥284.00m0.0034%
¥ 238.5m
Ken Tayano
Senior Executive Officer & Director9.42yrsJP¥166.00m0.0017%
¥ 119.2m
Masatsugu Minaka
Senior Executive Officer & Director9.42yrsJP¥137.00m0.0027%
¥ 190.4m
Jiro Tomita
Senior Executive Officer & Director10.42yrsJP¥155.00m0.0017%
¥ 119.2m
Kanwal Jeet Jawa
Non-Resident Director & Senior Associate Officer2.42yrsJP¥107.00mno data
Takashi Matsuzaki
Senior Executive Officer & Director12.42yrsJP¥109.00m0.0027%
¥ 190.4m
Akiji Makino
Independent External Director4.33yrsno data0.00068%
¥ 47.4m
Chiyono Terada
Independent External Director18.42yrsno data0.00068%
¥ 47.4m
Tatsuo Kawada
Independent External Director4.42yrsno datano data
Toshio Nakano
Chairman of Daikin Indiano datano datano data
Shingo Torii
Independent External Director0.42yrno data0.00034%
¥ 23.7m

9.4yrs

Average Tenure

71yo

Average Age

Experienced Board: 6367's board of directors are considered experienced (9.4 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¥6.973t
  • Shares outstanding: 292.63m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DKIDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992
6367TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
DKIL.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
6367 NBMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1992
DKIL.YOTCPK (Pink Sheets LLC)UNSPONSORED ADSUSUSDOct 2008
DKIADB (Deutsche Boerse AG)UNSPONSORED ADSDEEUROct 2008

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 Analysis2020/11/30 08:05
End of Day Share Price2020/11/27 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


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.