Daikin Industries

DKILF

Industrial - Machinery · Industrials

Price

$131.13

+1.97 (+1.53%)

Market Cap

$36.50B

Exchange

Other OTC

Winston Score

Winston is curious

Mixed quality — meaningful strengths and weaknesses.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Mixed

Growth

Mixed

Cash Flow

Strong

Stability

Strong

Valuation

Good

Dividends

Good

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Winston Score History

The full picture

Daikin Industries is a Japanese company that makes heating, ventilation, and air conditioning (HVAC) equipment. Its main products include air conditioners, heat pumps, refrigerants, and related parts sold to homeowners, businesses, and large commercial buildings. Daikin is the largest air conditioning manufacturer in the world by revenue.

Daikin earns money primarily by selling HVAC hardware and replacement parts, with additional revenue from chemicals like refrigerants and some aftermarket services. The company operates globally, with major markets in Japan, China, Europe, and North America, and generates well over $20 billion in annual revenue. Its competitive edge comes from deep engineering expertise, a broad patent portfolio, and strong distribution networks built over decades. The key growth driver is rising global demand for energy-efficient heat pumps, especially in Europe, but the company faces risks from slowing construction activity, currency fluctuations between the yen and other currencies, and tightening regulations around certain refrigerant chemicals.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+17.1% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+3.1% YoY

YoY Growth Rate

Slow EPS growth

R&D Spend

¥0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

19.3%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

¥1.1T cash & investments

Quarterly Free Cash Flow

→ Burn rate stable

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Daikin Industries is a rare growth stock that's already generating positive cash flow while growing at 17%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Share count broadly stable

+0.1% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 292.8M (2022) → 293.1M (2026)

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

33.6%

Modest — 33.6% gross margin

Profit after running costs

Operating Margin

9.2%

Modest — 9.2% operating margin

Return on the money invested

ROCE

10.2%

Below par — 10.2% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth

Sales YoY

+11.2%

Steady sales growth (+11.2% YoY)

Profit growth

EPS YoY

-2.1%

Earnings shrinking (-2.1% YoY)

Slight earnings drop. Typical near a cyclical low.

How steady the profit is

EPS Consistency

5/8 quarters

Mixed — about half the quarters showed growth

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Cash Flow

Profit that turns into cash

Cash Conversion

203%

Turns 203% of profit into real cash

Spare cash per sale

FCF Margin

6.4%

Modest free cash flow (6.4%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns

Debt / Equity

0.40

Conservative — low debt load (0.40)

Covers its interest

Interest Cover

10.30x

Comfortably covers interest (10.3x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

22.0x

Growth-priced — P/E 22.0

P/E above the market average. People are paying up for expected growth.

Cheaper or dearer next year

P/E vs Forward

+6.0

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (22.0 → 16.0)

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Dividends

Dividend

Dividend Yield

1.59%

Small dividend — 1.59% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend record

Dividend Growth

+14.1%

Dividend growing fast (14.1% YoY)

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