Daikin IndustriesDKILF +7.74%90 Return-on-Tangible-Equity is 12.54% as of Mar. 2026, which is 28% below its 10-year median of 17.31. GuruFocus rates DKILF with a GF Score™ of 90/100 and a GF Value™ of $128.71 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 1,704 Construction companies, Daikin Industries ranks better than 61.33% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Daikin Industries's annualized net income for the quarter that ended in Mar. 2026 was $2,013 Mil. Daikin Industries's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $16,052 Mil. Therefore, Daikin Industries's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 12.54%.
The historical rank and industry rank for Daikin Industries's Return-on-Tangible-Equity or its related term are showing as below:
DKILF'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 11.58 Med: 17.31 Max: 28.71
Current: 11.71
During the past 13 years, Daikin Industries's highest Return-on-Tangible-Equity was 28.71%. The lowest was 11.58%. And the median was 17.31%.
DKILF's Return-on-Tangible-Equity is ranked better than 61.33% of 1704
companies
in the Construction industry
Industry Median: 8.22
vs DKILF: 11.71
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Daikin Industries Return-on-Tangible-Equity Related Terms
Daikin Industries Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Daikin Industries's Return-on-Tangible-Equity 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-Equity Comparison
For the Building Products & Equipment subindustry, Daikin Industries's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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-Equity vs Construction Industry
For the Construction industry and Industrials sector, Daikin Industries's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Daikin Industries's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 12.54% mean?
Daikin Industries (DKILF) has a Return-on-Tangible-Equity of 12.54% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Daikin Industries and its competitors. This is 28% below median its historical median of 17.31. Over the past decade, Daikin Industries' Return-on-Tangible-Equity has ranged from 11.58 to 28.71. According to the industry distribution chart, Daikin Industries ranks #659 out of 1704 companies in the Construction industry, placing it in the top 38.7%.
Is Daikin Industries' Return-on-Tangible-Equity too high?
Daikin Industries' current Return-on-Tangible-Equity of 12.54% is 28% below median its 10-year median of 17.31. Over the past 10 years, this metric has ranged from a low of 11.58 to a high of 28.71. The Construction industry median Return-on-Tangible-Equity is 8.22. Daikin Industries' value of 12.54% is 52.6% above this industry median. Based on the distribution chart, Daikin Industries ranks #659 out of 1704 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' Return-on-Tangible-Equity compare to TT and JCI?
According to the Construction industry distribution chart, Daikin Industries ranks #659 out of 1704 companies for Return-on-Tangible-Equity. This puts Daikin Industries in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.22. Daikin Industries' value of 12.54% is 52.6% above this benchmark. Historically, Daikin Industries' own Return-on-Tangible-Equity has ranged from 11.58 to 28.71 over the past decade. While the company's 10-year median is 17.31 vs. the industry median of 8.22, 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-Equity for a Construction company?
The median Return-on-Tangible-Equity among Construction companies is 8.22, based on 1,704 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Daikin Industries's current Return-on-Tangible-Equity of 12.54% is 52.6% 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Daikin Industries and its competitors. For the Construction industry, the median Return-on-Tangible-Equity is 8.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Daikin Industries's current Return-on-Tangible-Equity is 12.54%, which is 28% below median its own 10-year median of 17.31. 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 $128.71, compared to a current price of $155.14 — trading 20.5% above its estimated fair value. The current Return-on-Tangible-Equity is 12.54%, which is 28% below median its 10-year median of 17.31 and 52.6% above the Construction industry median of 8.22. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Daikin Industries (DKILF), the current Return-on-Tangible-Equity is 12.54% 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 $155.14 is trading 20.5% above its estimated GF Value™ of $128.71.
GuruFocus considers Daikin Industries to be Modestly Overvalued.
Key valuation signals for DKILF:
Return-on-Tangible-Equity: 12.54% (28% below median its 10-year median of 17.31)
GF Value™: $128.71 vs. price of $155.14 (20.5% above fair value)
Industry Position: 52.6% above the Construction median (#659 of 1704)
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%.
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