Daikin IndustriesDKILF +1.82%90 Interest Coverage is 11.10 as of Mar. 2026, which is 52% below its 10-year median of 23.30. 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 1,354 Construction companies, Daikin Industries ranks better than 57.31% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Daikin Industries's
Operating Income
for the
three
months ended in Mar. 2026 was $675 Mil. Daikin Industries's Interest Expense for the
three
months ended in Mar. 2026 was $-61 Mil.
Daikin Industries's interest coverage for the quarter that ended in Mar. 2026 was 11.10.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Daikin Industries's Interest Coverage or its related term are showing as below:
DKILF'
s Interest Coverage Range Over the Past 10 Years
Min: 8.73 Med: 23.3 Max: 35.85
Current: 10.65
DKILF's Interest Coverage is ranked better than 57.31% of 1354
companies
in the Construction industry
Industry Median: 7.865
vs DKILF: 10.65
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Daikin Industries Interest Coverage Related Terms
Daikin Industries Interest Coverage Historical Data
* Premium members only.
The historical data trend for Daikin Industries's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
DKILF vs TT, JCI, CARR: Interest Coverage Comparison
For the Building Products & Equipment subindustry, Daikin Industries's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Construction Industry
For the Construction industry and Industrials sector, Daikin Industries's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Daikin Industries's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
Daikin Industries (DKILF) has a Interest Coverage of 11.10 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Daikin Industries and its competitors. This is 52% below median its historical median of 23.30. Over the past decade, Daikin Industries' Interest Coverage has ranged from 8.73 to 35.85. According to the industry distribution chart, Daikin Industries ranks #578 out of 1354 companies in the Construction industry, placing it in the top 42.7%.
Is Daikin Industries' Interest Coverage too high?
Daikin Industries' current Interest Coverage of 11.10 is 52% below median its 10-year median of 23.30. Over the past 10 years, this metric has ranged from a low of 8.73 to a high of 35.85. The Construction industry median Interest Coverage is 7.87. Daikin Industries' value of 11.10 is 41.1% above this industry median. Based on the distribution chart, Daikin Industries ranks #578 out of 1354 companies in the Construction industry, which is above the industry midpoint. 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' Interest Coverage compare to TT and JCI?
According to the Construction industry distribution chart, Daikin Industries ranks #578 out of 1354 companies for Interest Coverage. This puts Daikin Industries in the upper half of its industry. The industry median Interest Coverage is 7.87. Daikin Industries' value of 11.10 is 41.1% above this benchmark. Historically, Daikin Industries' own Interest Coverage has ranged from 8.73 to 35.85 over the past decade. While the company's 10-year median is 23.30 vs. the industry median of 7.87, 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 Interest Coverage for a Construction company?
The median Interest Coverage among Construction companies is 7.87, based on 1,354 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Daikin Industries's current Interest Coverage of 11.10 is 41.1% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Daikin Industries and its competitors. For the Construction industry, the median Interest Coverage is 7.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Daikin Industries's current Interest Coverage is 11.10, which is 52% below median its own 10-year median of 23.30. 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 $149.21 — trading 14.1% above its estimated fair value. The current Interest Coverage is 11.10, which is 52% below median its 10-year median of 23.30 and 41.1% above the Construction industry median of 7.87. 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Daikin Industries (DKILF), the current Interest Coverage is 11.10 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 $149.21 is trading 14.1% above its estimated GF Value™ of $130.78.
GuruFocus considers Daikin Industries to be Modestly Overvalued.
Key valuation signals for DKILF:
Interest Coverage: 11.10 (52% below median its 10-year median of 23.30)
GF Value™: $130.78 vs. price of $149.21 (14.1% above fair value)
Industry Position: 41.1% above the Construction median (#578 of 1354)
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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