Daikin IndustriesDKILF -0.51%90 Pretax Margin % is 7.69% as of Mar. 2026, which is 22% below its 10-year median of 9.81. GuruFocus rates DKILF with a GF Score™ of 90/100 and a GF Value™ of $129.02 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 1,758 Construction companies, Daikin Industries ranks better than 63.94% on this metric.
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Daikin Industries Pretax Margin % Related Terms
Daikin Industries Pretax Margin % Historical Data
* Premium members only.
The historical data trend for Daikin Industries's Pretax 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.
DKILF vs TT, JCI, CARR: Pretax Margin % Comparison
For the Building Products & Equipment subindustry, Daikin Industries's Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Construction Industry
For the Construction industry and Industrials sector, Daikin Industries's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Daikin Industries's Pretax 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.
Daikin Industries (DKILF) has a Pretax Margin % of 7.69% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Daikin Industries and its competitors. This is 22% below median its historical median of 9.81. Over the past decade, Daikin Industries' Pretax Margin % has ranged from 7.91 to 11.28. According to the industry distribution chart, Daikin Industries ranks #634 out of 1758 companies in the Construction industry, placing it in the top 36.1%.
Is Daikin Industries' Pretax Margin % too high?
Daikin Industries' current Pretax Margin % of 7.69% is 22% below median its 10-year median of 9.81. Over the past 10 years, this metric has ranged from a low of 7.91 to a high of 11.28. The Construction industry median Pretax Margin % is 5.52. Daikin Industries' value of 7.69% is 39.4% above this industry median. Based on the distribution chart, Daikin Industries ranks #634 out of 1758 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' Pretax Margin % compare to TT and JCI?
According to the Construction industry distribution chart, Daikin Industries ranks #634 out of 1758 companies for Pretax Margin %. This puts Daikin Industries in the upper half of its industry. The industry median Pretax Margin % is 5.52. Daikin Industries' value of 7.69% is 39.4% above this benchmark. Historically, Daikin Industries' own Pretax Margin % has ranged from 7.91 to 11.28 over the past decade. While the company's 10-year median is 9.81 vs. the industry median of 5.52, 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 Pretax Margin % for a Construction company?
The median Pretax Margin % among Construction companies is 5.52, based on 1,758 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Daikin Industries's current Pretax Margin % of 7.69% is 39.4% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Daikin Industries and its competitors. For the Construction industry, the median Pretax Margin % is 5.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Daikin Industries's current Pretax Margin % is 7.69%, which is 22% below median its own 10-year median of 9.81. 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 $129.02, compared to a current price of $145.79 — trading 13% above its estimated fair value. The current Pretax Margin % is 7.69%, which is 22% below median its 10-year median of 9.81 and 39.4% above the Construction industry median of 5.52. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Daikin Industries (DKILF), the current Pretax Margin % is 7.69% 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 13% above its estimated GF Value™ of $129.02.
GuruFocus considers Daikin Industries to be Modestly Overvalued.
Key valuation signals for DKILF:
Pretax Margin %: 7.69% (22% below median its 10-year median of 9.81)
GF Value™: $129.02 vs. price of $145.79 (13% above fair value)
Industry Position: 39.4% above the Construction median (#634 of 1758)
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
Get the complete analysis for DKILF
Pretax Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
DKILF has been successfully added to your 
