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Daikin IndustriesDKILF -4.77%91 Return-on-Tangible-Asset is 6.26% as of Mar. 2026, which is 16% below its 10-year median of 7.41. GuruFocus rates DKILF with a GF Score™ of 91/100 and a GF Value™ of $137.10 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 1,783 Construction companies, Daikin Industries ranks better than 67.41% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Daikin Industries's annualizedNet Income for the quarter that ended in Mar. 2026 was $2,013 Mil. Daikin Industries's average total tangible assets for the quarter that ended in Mar. 2026 was $32,174 Mil. Therefore, Daikin Industries's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 6.26%.
The historical rank and industry rank for Daikin Industries's Return-on-Tangible-Asset or its related term are showing as below:
DKILF'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 5.71 Med: 7.41 Max: 10.01
Current: 5.77
During the past 13 years, Daikin Industries's highest Return-on-Tangible-Asset was 10.01%. The lowest was 5.71%. And the median was 7.41%.
DKILF's Return-on-Tangible-Asset is ranked better than 67.41% of 1783
companies
in the Construction industry
Industry Median: 3.04
vs DKILF: 5.77
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Daikin Industries Return-on-Tangible-Asset Related Terms
Daikin Industries Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Daikin Industries's Return-on-Tangible-Asset 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: Return-on-Tangible-Asset Comparison
For the Building Products & Equipment subindustry, Daikin Industries's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Construction Industry
For the Construction industry and Industrials sector, Daikin Industries's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Daikin Industries's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 6.26% mean?
Daikin Industries (DKILF) has a Return-on-Tangible-Asset of 6.26% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Daikin Industries and its competitors. This is 16% below median its historical median of 7.41. Over the past decade, Daikin Industries' Return-on-Tangible-Asset has ranged from 5.71 to 10.01. According to the industry distribution chart, Daikin Industries ranks #581 out of 1783 companies in the Construction industry, placing it in the top 32.6%.
Is Daikin Industries' Return-on-Tangible-Asset too high?
Daikin Industries' current Return-on-Tangible-Asset of 6.26% is 16% below median its 10-year median of 7.41. Over the past 10 years, this metric has ranged from a low of 5.71 to a high of 10.01. The Construction industry median Return-on-Tangible-Asset is 3.04. Daikin Industries' value of 6.26% is 105.9% above this industry median. Based on the distribution chart, Daikin Industries ranks #581 out of 1783 companies in the Construction industry, which is above the industry midpoint. Overall, Daikin Industries has a GF Score™ of 91/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Daikin Industries' Return-on-Tangible-Asset compare to TT and JCI?
According to the Construction industry distribution chart, Daikin Industries ranks #581 out of 1783 companies for Return-on-Tangible-Asset. This puts Daikin Industries in the upper half of its industry. The industry median Return-on-Tangible-Asset is 3.04. Daikin Industries' value of 6.26% is 105.9% above this benchmark. Historically, Daikin Industries' own Return-on-Tangible-Asset has ranged from 5.71 to 10.01 over the past decade. While the company's 10-year median is 7.41 vs. the industry median of 3.04, 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 Return-on-Tangible-Asset for a Construction company?
The median Return-on-Tangible-Asset among Construction companies is 3.04, based on 1,783 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Daikin Industries's current Return-on-Tangible-Asset of 6.26% is 105.9% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Daikin Industries and its competitors. For the Construction industry, the median Return-on-Tangible-Asset is 3.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Daikin Industries's current Return-on-Tangible-Asset is 6.26%, which is 16% below median its own 10-year median of 7.41. 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 $137.10, compared to a current price of $152.40 — trading 11.2% above its estimated fair value. The current Return-on-Tangible-Asset is 6.26%, which is 16% below median its 10-year median of 7.41 and 105.9% above the Construction industry median of 3.04. Daikin Industries' overall GF Score™ is 91/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Daikin Industries (DKILF), the current Return-on-Tangible-Asset is 6.26% 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 $152.40 is trading 11.2% above its estimated GF Value™ of $137.10.
GuruFocus considers Daikin Industries to be Modestly Overvalued.
Key valuation signals for DKILF:
Return-on-Tangible-Asset: 6.26% (16% below median its 10-year median of 7.41)
GF Value™: $137.10 vs. price of $152.40 (11.2% above fair value)
Industry Position: 105.9% above the Construction median (#581 of 1783)
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%.
91GF Score
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Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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