Daikin IndustriesDKILF -0.51%90 Gross Margin % is 33.90% as of Mar. 2026, which is 2% below its 10-year median of 34.61. GuruFocus rates DKILF with a GF Score™ of 90/100 and a GF Value™ of $130.78 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 1,724 Construction companies, Daikin Industries ranks better than 75.75% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Daikin Industries had a gross margin of 33.90% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Daikin Industries Gross Margin % Related Terms
Daikin Industries Gross Margin % Historical Data
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The historical data trend for Daikin Industries's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Building Products & Equipment subindustry, Daikin Industries's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Daikin Industries Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, Daikin Industries's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Daikin Industries's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Daikin Industries (DKILF) has a Gross Margin % of 33.90% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Daikin Industries and its competitors. This is near median its historical median of 34.61. Over the past decade, Daikin Industries' Gross Margin % has ranged from 33.44 to 35.76. According to the industry distribution chart, Daikin Industries ranks #418 out of 1724 companies in the Construction industry, placing it in the top 24.2%.
Is Daikin Industries' Gross Margin % too high?
Daikin Industries' current Gross Margin % of 33.90% is near median its 10-year median of 34.61. Over the past 10 years, this metric has ranged from a low of 33.44 to a high of 35.76. The Construction industry median Gross Margin % is 20.71. Daikin Industries' value of 33.90% is 63.7% above this industry median. Based on the distribution chart, Daikin Industries ranks #418 out of 1724 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Daikin Industries has a GF Score™ of 90/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Daikin Industries' Gross Margin % compare to TT and JCI?
According to the Construction industry distribution chart, Daikin Industries ranks #418 out of 1724 companies for Gross Margin %. This places Daikin Industries in the top 24% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 20.71. Daikin Industries' value of 33.90% is 63.7% above this benchmark. Historically, Daikin Industries' own Gross Margin % has ranged from 33.44 to 35.76 over the past decade. While the company's 10-year median is 34.61 vs. the industry median of 20.71, Daikin Industries has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Construction company?
The median Gross Margin % among Construction companies is 20.71, based on 1,724 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Daikin Industries's current Gross Margin % of 33.90% is 63.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Daikin Industries and its competitors. For the Construction industry, the median Gross Margin % is 20.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Daikin Industries's current Gross Margin % is 33.90%, which is near median its own 10-year median of 34.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Daikin Industries stock overvalued right now?
Based on GuruFocus' analysis, Daikin Industries (DKILF) is currently considered Modestly Overvalued. The stock's GF Value™ is $130.78, compared to a current price of $145.79 — trading 11.5% above its estimated fair value. The current Gross Margin % is 33.90%, which is near median its 10-year median of 34.61 and 63.7% above the Construction industry median of 20.71. Daikin Industries' overall GF Score™ is 90/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Daikin Industries (DKILF), the current Gross Margin % is 33.90% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Daikin Industries (DKILF) Overvalued in 2026?
Based on GuruFocus' analysis, Daikin Industries stock appears to be overvalued.
The current stock price of $145.79 is trading 11.5% above its estimated GF Value™ of $130.78.
GuruFocus considers Daikin Industries to be Modestly Overvalued.
Key valuation signals for DKILF:
Gross Margin %: 33.90% (near median its 10-year median of 34.61)
GF Value™: $130.78 vs. price of $145.79 (11.5% above fair value)
Industry Position: 63.7% above the Construction median (#418 of 1724)
No single metric tells the full story. See the DKILF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Established in Osaka, Japan, in 1924, Daikin Industries is one of the world's largest residential and commercial heating, ventilation, and air conditioning product and service companies. North America, Japan, China, and Europe are Daikin's four biggest regional markets, with North America accounting for over 30% of the company's revenue over the years. The air conditioning segment represents about 90% of Daikin's revenue and operating income, while chemicals and others account for the remaining 10%.
90GF Score
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