Daikin IndustriesTSE:6367 -0.59%92 Operating Margin % is 7.94% as of Mar. 2026, which is 20% below its 10-year median of 9.87. GuruFocus rates TSE:6367 with a GF Score™ of 92/100 and a GF Value™ of 円21,282.04 (Fairly Valued). The stock has 8 warning signs investors should review. Among 1,767 Construction companies, Daikin Industries ranks better than 63.27% on this metric.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Daikin Industries Operating Margin % Related Terms
Daikin Industries Operating Margin % Historical Data
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The historical data trend for Daikin Industries's Operating 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.
TSE:6367 vs TT, JCI, CARR: Operating Margin % Comparison
For the Building Products & Equipment subindustry, Daikin Industries's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, Daikin Industries's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Daikin Industries's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Daikin Industries's Operating Margin % for the fiscal year that ended in Mar. 2026 is calculated as
* 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 (TSE:6367) has a Operating Margin % of 7.94% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Daikin Industries and its competitors. This is 20% below median its historical median of 9.87. Over the past decade, Daikin Industries' Operating Margin % has ranged from 8.27 to 11.29. According to the industry distribution chart, Daikin Industries ranks #649 out of 1767 companies in the Construction industry, placing it in the top 36.7%.
Is Daikin Industries' Operating Margin % too high?
Daikin Industries' current Operating Margin % of 7.94% is 20% below median its 10-year median of 9.87. Over the past 10 years, this metric has ranged from a low of 8.27 to a high of 11.29. The Construction industry median Operating Margin % is 5.89. Daikin Industries' value of 7.94% is 34.8% above this industry median. Based on the distribution chart, Daikin Industries ranks #649 out of 1767 companies in the Construction industry, which is above the industry midpoint. Overall, Daikin Industries has a GF Score™ of 92/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Daikin Industries' Operating Margin % compare to TT and JCI?
According to the Construction industry distribution chart, Daikin Industries ranks #649 out of 1767 companies for Operating Margin %. This puts Daikin Industries in the upper half of its industry. The industry median Operating Margin % is 5.89. Daikin Industries' value of 7.94% is 34.8% above this benchmark. Historically, Daikin Industries' own Operating Margin % has ranged from 8.27 to 11.29 over the past decade. While the company's 10-year median is 9.87 vs. the industry median of 5.89, 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 Operating Margin % for a Construction company?
The median Operating Margin % among Construction companies is 5.89, based on 1,767 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Daikin Industries's current Operating Margin % of 7.94% is 34.8% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Daikin Industries and its competitors. For the Construction industry, the median Operating Margin % is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Daikin Industries's current Operating Margin % is 7.94%, which is 20% below median its own 10-year median of 9.87. 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 (TSE:6367) is currently considered Fairly Valued. The stock's GF Value™ is 円21,282.04, compared to a current price of 円23,490.00 — trading 10.4% above its estimated fair value. The current Operating Margin % is 7.94%, which is 20% below median its 10-year median of 9.87 and 34.8% above the Construction industry median of 5.89. Daikin Industries' overall GF Score™ is 92/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Daikin Industries (TSE:6367), the current Operating Margin % is 7.94% 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 (TSE:6367) Overvalued in 2026?
Based on GuruFocus' analysis, Daikin Industries stock appears to be overvalued.
The current stock price of 円23,490.00 is trading 10.4% above its estimated GF Value™ of 円21,282.04.
GuruFocus considers Daikin Industries to be Fairly Valued.
Key valuation signals for TSE:6367:
Operating Margin %: 7.94% (20% below median its 10-year median of 9.87)
GF Value™: 円21,282.04 vs. price of 円23,490.00 (10.4% above fair value)
Industry Position: 34.8% above the Construction median (#649 of 1767)
No single metric tells the full story. See the TSE:6367 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%.
92GF Score
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