# Daikin Industries (6367.JP)

Canonical: https://gigainvestors.com/s/6367.JP

Analysis as of: 2026-10-15T07:10:55.678Z. Financial observations: FY2013–FY2026.

Listing currency: JPY. Reporting currency: JPY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: JPY 21,310.00 per share; close as of 2026-10-15.

Estimated value: low JPY 13,625.25 per share, central JPY 17,527.98 per share, high JPY 20,054.55 per share. Buy at or below the central value JPY 17,527.98 per share. Valuation as of 2026-10-15T07:10:55.678Z; scenarios are not confidence intervals.

Expected annual return: 8.6% at the stated quote. About 8.6% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; JP 10-year bond 2.9% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.11×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.11×

- FY2018: 0.11×

- FY2019: 0.11×

- FY2020: 0.10×

- FY2021: 0.10×

- FY2022: 0.10×

- FY2023: 0.09×

- FY2024: 0.09×

- FY2025: 0.08×

- FY2026: 0.08×

### moat: fail

- ROIC median below threshold

- ROIC, median of available years: 13.2%

- ROIC, second-lowest year: 10.8%

- Typical minus recent gross margin: 0.3 pp

- Typical gross margin (annual median): 34.6%

- Recent gross margin (lower of latest and 3-year median): 34.3%

- Years with nonpositive capital: 0

- Capital spending / revenue: 4.2%

- ROIC including acquisitions, ten-year median: 8.8%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 15.3%

- FY2018: 16.6%

- FY2019: 15.1%

- FY2020: 14.6%

- FY2021: 12.3%

- FY2022: 13.6%

- FY2023: 12.9%

- FY2024: 11.4%

- FY2025: 10.8%

- FY2026: 9.4%

### economics: fail

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.83×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: JPY 1.06T

- Net income, five-year total: JPY 1.28T

- Return on incremental invested capital: 10.3%

- Working capital / revenue, annual change: 1.0 pp

- Working capital / revenue, change between three-year averages: 7.0 pp

- Working capital / revenue, final three-year average: 34.0%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 0.88×

- FY2023: 0.84×

- FY2024: 0.82×

- FY2025: 0.79×

- FY2026: 0.82×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 15.3% vs 10.8%

- Per-share earnings: 526.81 to 904.27 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.0%

- Ordinary dilution, 5-year annual growth: 0.0%

- Market cap gain: JPY 2.20T

- Cumulative retained earnings: JPY 1.41T

- Diluted shares, 10-year annual growth: 0.0%

- Diluted shares, 5-year annual growth: 0.0%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 7.0%

- Per-share value change: JPY 377.46

- Per-share value, starting three-year median: JPY 526.81

- Per-share value, ending three-year median: JPY 904.27

- Buyback history: 0 years

- Debt-funded buybacks: No

- Acquisition spending: JPY 293B

- Cumulative net income, 10 years: JPY 2.13T

- ROIC, first three-year median: 15.3%

- ROIC, last three-year median: 10.8%

Chart: Earnings per share; fiscal year observations.

- FY2017: JPY 526.81

- FY2018: JPY 646.53

- FY2019: JPY 646.39

- FY2020: JPY 583.61

- FY2021: JPY 533.97

- FY2022: JPY 743.88

- FY2023: JPY 880.59

- FY2024: JPY 889.22

- FY2025: JPY 904.27

- FY2026: JPY 939.92

### accounting: pass

- Sloan accruals: -3.3%

- Receivables to sales index (DSRI): 1.12×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.69×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.21×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -4.8%

- FY2018: -1.4%

- FY2019: -2.3%

- FY2020: -4.9%

- FY2021: -6.7%

- FY2022: -0.7%

- FY2023: 2.3%

- FY2024: -2.9%

- FY2025: -4.9%

- FY2026: -3.3%

## Holders

## Price story

Down 27% since Jun 2023 · sales +5.5%

Story as of 2026-10-16T10:00:14.445Z; price observation 2026-10-15.

Price needs cash profits to grow 8.2% a year for ten years

### Sales · FY2025–2026

sales +5.5%; source https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YFQL.pdf; observed 2026-06-24.

- FY2017: JPY 2.04T 

- FY2018: JPY 2.29T 

- FY2019: JPY 2.48T 

- FY2020: JPY 2.55T 

- FY2021: JPY 2.49T 

- FY2022: JPY 3.11T 

- FY2023: JPY 3.98T 

- FY2024: JPY 4.40T 

- FY2025: JPY 4.75T 

- FY2026: JPY 5.02T 

### Gross margin · FY2026

gross margin 34.5%; source https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YFQL.pdf; observed 2026-06-24.

- FY2017: 35.8% 

- FY2018: 34.9% 

- FY2019: 35.0% 

- FY2020: 34.7% 

- FY2021: 34.7% 

- FY2022: 34.0% 

- FY2023: 33.4% 

- FY2024: 34.3% 

- FY2025: 34.2% 

- FY2026: 34.5% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Annual sales are JPY 5 trillion.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YFQL.pdf (filed 2026-06-24); FY2026: revenue 5015036000000; grossProfit 1732516000000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 34.2% to 34.5% during 2024–26; it earns 13.2% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-24); FY2024: grossProfit / revenue = 34.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-24); FY2025: grossProfit / revenue = 34.2%.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YFQL.pdf (filed 2026-06-24); FY2026: grossProfit / revenue = 34.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-24); 10-year return on capital observations [[2017,0.15298032740828674],[2018,0.1657973999050142],[2019,0.15097942448003582],[2020,0.1457304344515479],[2021,0.12279598215152267],[2022,0.1355097221940207],[2023,0.12925970068490175],[2024,0.11419317622535485],[2025,0.10818828776578454],[2026,0.09387495485221323]]; median 0.13238471143946123. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 34% gross margin through 2022 cost inflation.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YFQL.pdf (filed 2026-06-24); Gross margin observations: [[2021,0.3465712890021842],[2022,0.3400778230140754],[2023,0.33440912120772215]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-24); FY2017: growth capex 54864083.068374634; upkeep 88280135916.93163; owner earnings 124951864083.06837. Growth capex / owner earnings = 0.0004390817493679072.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-24); FY2018: growth capex 19026000000; upkeep 66653000000; owner earnings 189051000000. Growth capex / owner earnings = 0.10063950997349921.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-24); FY2019: growth capex 13164000000; upkeep 72323000000; owner earnings 187528000000. Growth capex / owner earnings = 0.07019751717076916.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-24); FY2020: growth capex 292000000; upkeep 97802000000; owner earnings 149813000000. Growth capex / owner earnings = 0.001949096540353641.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-24); FY2021: growth capex 0; upkeep 104971000000; owner earnings 126736000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-24); FY2022: growth capex 0; upkeep 114106000000; owner earnings 191474000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-24); FY2023: growth capex 32348000000; upkeep 142728000000; owner earnings 216801000000. Growth capex / owner earnings = 0.14920595384707636.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-24); FY2024: growth capex 72654000000; upkeep 169979000000; owner earnings 213122000000. Growth capex / owner earnings = 0.3409033323636227.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-24); FY2025: growth capex 48542000000; upkeep 197443000000; owner earnings 208684000000. Growth capex / owner earnings = 0.23261007072894904.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YFQL.pdf (filed 2026-06-24); FY2026: growth capex 0; upkeep 209081000000; owner earnings 226293000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-24); Dividend observations: [[2017,36518000000],[2018,39473000000],[2019,42407000000],[2020,49730000000],[2021,46721000000],[2022,49746000000],[2023,61468000000],[2024,76083000000],[2025,92192000000],[2026,90749000000]]. Zero only counted when supported by a complete cash-flow statement.

### What the price says

The price assumes cash profits grow 8.2% yearly over ten years; actual growth was 6.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-24); Ten-year compound average after fade. Initial solved rate 0.10464557494903504. Price 21310; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 419.4666438518692 → FY2026 772.8012548096312. Closing-price date 2026-10-15.

## Monthly share-price history (JPY per share)

- 2016-11: JPY 10,715.00 per share

- 2016-12: JPY 10,735.00 per share

- 2017-01: JPY 11,225.00 per share

- 2017-02: JPY 10,665.00 per share

- 2017-03: JPY 11,185.00 per share

- 2017-04: JPY 10,825.00 per share

- 2017-05: JPY 10,855.00 per share

- 2017-06: JPY 11,470.00 per share

- 2017-07: JPY 11,700.00 per share

- 2017-08: JPY 10,995.00 per share

- 2017-09: JPY 11,395.00 per share

- 2017-10: JPY 12,470.00 per share

- 2017-11: JPY 12,920.00 per share

- 2017-12: JPY 13,335.00 per share

- 2018-01: JPY 13,095.00 per share

- 2018-02: JPY 12,650.00 per share

- 2018-03: JPY 11,735.00 per share

- 2018-04: JPY 12,805.00 per share

- 2018-05: JPY 12,580.00 per share

- 2018-06: JPY 13,270.00 per share

- 2018-07: JPY 13,320.00 per share

- 2018-08: JPY 14,170.00 per share

- 2018-09: JPY 15,125.00 per share

- 2018-10: JPY 13,125.00 per share

- 2018-11: JPY 12,610.00 per share

- 2018-12: JPY 11,695.00 per share

- 2019-01: JPY 11,765.00 per share

- 2019-02: JPY 12,090.00 per share

- 2019-03: JPY 12,970.00 per share

- 2019-04: JPY 14,100.00 per share

- 2019-05: JPY 13,230.00 per share

- 2019-06: JPY 14,065.00 per share

- 2019-07: JPY 13,585.00 per share

- 2019-08: JPY 13,155.00 per share

- 2019-09: JPY 14,180.00 per share

- 2019-10: JPY 15,230.00 per share

- 2019-11: JPY 15,745.00 per share

- 2019-12: JPY 15,450.00 per share

- 2020-01: JPY 15,635.00 per share

- 2020-02: JPY 14,725.00 per share

- 2020-03: JPY 13,170.00 per share

- 2020-04: JPY 14,005.00 per share

- 2020-05: JPY 15,850.00 per share

- 2020-06: JPY 17,335.00 per share

- 2020-07: JPY 18,450.00 per share

- 2020-08: JPY 19,965.00 per share

- 2020-09: JPY 19,300.00 per share

- 2020-10: JPY 19,480.00 per share

- 2020-11: JPY 23,665.00 per share

- 2020-12: JPY 22,920.00 per share

- 2021-01: JPY 22,105.00 per share

- 2021-02: JPY 20,720.00 per share

- 2021-03: JPY 22,320.00 per share

- 2021-04: JPY 21,930.00 per share

- 2021-05: JPY 21,605.00 per share

- 2021-06: JPY 20,690.00 per share

- 2021-07: JPY 22,665.00 per share

- 2021-08: JPY 27,405.00 per share

- 2021-09: JPY 24,460.00 per share

- 2021-10: JPY 24,890.00 per share

- 2021-11: JPY 23,150.00 per share

- 2021-12: JPY 26,090.00 per share

- 2022-01: JPY 23,825.00 per share

- 2022-02: JPY 21,205.00 per share

- 2022-03: JPY 22,410.00 per share

- 2022-04: JPY 20,045.00 per share

- 2022-05: JPY 20,685.00 per share

- 2022-06: JPY 21,750.00 per share

- 2022-07: JPY 23,250.00 per share

- 2022-08: JPY 24,485.00 per share

- 2022-09: JPY 22,295.00 per share

- 2022-10: JPY 22,385.00 per share

- 2022-11: JPY 22,405.00 per share

- 2022-12: JPY 20,200.00 per share

- 2023-01: JPY 22,470.00 per share

- 2023-02: JPY 23,345.00 per share

- 2023-03: JPY 23,655.00 per share

- 2023-04: JPY 24,620.00 per share

- 2023-05: JPY 26,560.00 per share

- 2023-06: JPY 29,265.00 per share

- 2023-07: JPY 28,690.00 per share

- 2023-08: JPY 25,225.00 per share

- 2023-09: JPY 23,475.00 per share

- 2023-10: JPY 21,630.00 per share

- 2023-11: JPY 22,155.00 per share

- 2023-12: JPY 22,985.00 per share

- 2024-01: JPY 23,885.00 per share

- 2024-02: JPY 21,175.00 per share

- 2024-03: JPY 20,610.00 per share

- 2024-04: JPY 21,745.00 per share

- 2024-05: JPY 22,945.00 per share

- 2024-06: JPY 22,370.00 per share

- 2024-07: JPY 21,905.00 per share

- 2024-08: JPY 18,510.00 per share

- 2024-09: JPY 20,075.00 per share

- 2024-10: JPY 18,650.00 per share

- 2024-11: JPY 18,095.00 per share

- 2024-12: JPY 18,660.00 per share

- 2025-01: JPY 18,370.00 per share

- 2025-02: JPY 15,700.00 per share

- 2025-03: JPY 16,140.00 per share

- 2025-04: JPY 16,295.00 per share

- 2025-05: JPY 16,585.00 per share

- 2025-06: JPY 17,025.00 per share

- 2025-07: JPY 18,625.00 per share

- 2025-08: JPY 18,600.00 per share

- 2025-09: JPY 17,080.00 per share

- 2025-10: JPY 17,975.00 per share

- 2025-11: JPY 20,285.00 per share

- 2025-12: JPY 20,080.00 per share

- 2026-01: JPY 18,585.00 per share

- 2026-02: JPY 19,915.00 per share

- 2026-03: JPY 18,685.00 per share

- 2026-04: JPY 21,965.00 per share

- 2026-05: JPY 23,285.00 per share

- 2026-06: JPY 24,685.00 per share

- 2026-07: JPY 23,295.00 per share

- 2026-08: JPY 21,155.00 per share

- 2026-09: JPY 20,925.00 per share

- 2026-10: JPY 21,495.00 per share

## Annual estimated value (JPY per share)

- FY2020: low JPY 6,918.20 per share, central JPY 7,721.35 per share, high JPY 8,790.51 per share

- FY2021: low JPY 8,038.75 per share, central JPY 8,823.78 per share, high JPY 9,868.81 per share

- FY2022: low JPY 9,732.21 per share, central JPY 10,718.18 per share, high JPY 12,030.71 per share

- FY2023: low JPY 12,701.40 per share, central JPY 17,356.58 per share, high JPY 20,067.30 per share

- FY2024: low JPY 13,335.15 per share, central JPY 18,098.02 per share, high JPY 20,871.44 per share

- FY2025: low JPY 13,633.10 per share, central JPY 18,439.54 per share, high JPY 21,238.34 per share

- FY2026: low JPY 13,625.25 per share, central JPY 17,527.98 per share, high JPY 20,054.55 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original EDINET filing](https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YFQL.pdf); period 2026-03-31, filed 2026-06-24.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations