ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Daikin Industries's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 7.81%.
As of today (2026-06-29), Daikin Industries's WACC % is 5.12%. Daikin Industries's ROIC % is 7.13% (calculated using TTM income statement data).
Daikin Industries generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Daikin Industries (TSE:6367) ROIC % Explanation
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROIC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Daikin Industries's WACC % is 5.12%. Daikin Industries's ROIC % is 7.13% (calculated using TTM income statement data).
Daikin Industries generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Be Aware
Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Daikin Industries ROIC % Related Terms
Daikin Industries ROIC % Historical Data
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The historical data trend for Daikin Industries's ROIC % 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.
For the Building Products & Equipment subindustry, Daikin Industries's ROIC %, along with its competitors' market caps and ROIC % 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 ROIC % vs Construction Industry
For the Construction industry and Industrials sector, Daikin Industries's ROIC % distribution charts can be found below:
* The bar in red indicates where Daikin Industries's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* 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 ROIC % of 7.81% as of Mar. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Daikin Industries and its competitors.
Is Daikin Industries' ROIC % too high?
Daikin Industries' current ROIC % is 7.81%. The Construction industry median ROIC % is 4.66. Daikin Industries' value of 7.81% is 67.6% above this industry median. Overall, Daikin Industries has a GF Score™ of 93/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Daikin Industries' ROIC % compare to TT and JCI?
Daikin Industries' ROIC % of 7.81% can be compared against companies in the Construction industry. The industry median ROIC % is 4.66. Daikin Industries' value of 7.81% is 67.6% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for a Construction company?
The median ROIC % among Construction companies is 4.66, based on 1,750 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Daikin Industries's current ROIC % of 7.81% is 67.6% 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 ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Daikin Industries and its competitors. For the Construction industry, the median ROIC % is 4.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Daikin Industries's current ROIC % is 7.81%. 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 (TSE:6367) is currently considered Modestly Overvalued. The stock's GF Value™ is 円21,284.60, compared to a current price of 円24,460.00 — trading 14.9% above its estimated fair value. The current ROIC % is 7.81% and 67.6% above the Construction industry median of 4.66. Daikin Industries' overall GF Score™ is 93/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROIC % calculated?
ROIC % is calculated from a company's financial statements. For Daikin Industries (TSE:6367), the current ROIC % is 7.81% 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24,460.00 is trading 14.9% above its estimated GF Value™ of 円21,284.60.
GuruFocus considers Daikin Industries to be Modestly Overvalued.
Key valuation signals for TSE:6367:
ROIC %: 7.81%
GF Value™: 円21,284.60 vs. price of 円24,460.00 (14.9% above fair value)
Industry Position: 67.6% above the Construction median
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%.
93GF Score
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