Dana Holding (DAN) AI Stock Analysis

• Market Cap: $1.74B
• Dividend Yield: 3.34%
• Average Volume (3M): 1.60M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.60
• Revenue Growth: -2.57%
• EPS Growth: -248.28%
• Country: US
• Employees: 39,600
• Sector: Consumer Cyclical
• Sector Strength: 55
• Industry: Auto - Parts
• EPS (TTM): -0.39
• Shares Outstanding: 145,724,470
• 10 Day Avg. Volume: 1,775,252
• 30 Day Avg. Volume: 1,600,420
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.20
• Price to Cash Flow (P/CF): 1.70
• P/FCF Ratio: 1.20
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $17.00
• Price Target Upside: 59.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

Dana Holding's financial performance and valuation challenges are significant factors influencing the score, with profitability and equity concerns weighing heavily. Technical analysis suggests potential short-term pressure, but some long-term support remains. Optimistic future guidance from the earnings call provides a positive outlook, yet immediate market and economic challenges persist.

Positive Factors

Debt Management

The sale of the OH business could convert the company from a net debt to a net cash position, significantly enhancing its financial standing.

Electrification Opportunity

Dana stands to benefit from the increasing electrification of commercial vehicles, which could present a significant opportunity over conventional vehicles.

Financial Performance

Q4 adjusted EPS of $0.25 beat Visible Alpha consensus of $0.07.

Negative Factors

Debt and Cash Flow Concerns

The low free cash flow is a concern given DAN has $2.7B in debt, with possible calls on cash due to pending settlements.

Management Stability

The sudden departure of a CEO without a permanent replacement raises concerns.

Revenue and Earnings Guidance

Management lowered their outlook for full-year revenue and EBITDA to ranges which at the midpoint are below what the Street was looking for.

Dana Holding Business Overview & Revenue Model

Company Description

Dana Holding Corporation, also known as Dana Incorporated, is a global leader in the design and manufacturing of highly engineered driveline, sealing, and thermal-management technologies for a wide range of vehicles. The company serves the automotive, commercial truck, and off-highway equipment markets, offering a comprehensive portfolio of products and services that enhance the efficiency, performance, and sustainability of vehicles. Its core products include axles, driveshafts, sealing and thermal products, and electronic components.

How the Company Makes Money

Dana Incorporated generates revenue through the sale of its diverse range of products and services to original equipment manufacturers (OEMs) and the aftermarket sector. The company's key revenue streams include the sale of driveline systems such as axles and driveshafts, sealing products, thermal-management solutions, and electronic components used in passenger cars, commercial trucks, and off-highway vehicles. Additionally, Dana benefits from strategic partnerships and long-term contracts with leading automotive and industrial companies, which help ensure steady demand for its products. The company also invests in research and development to innovate and expand its product offerings, further contributing to its revenue growth.

Dana Holding Financial Statement Overview

Summary

Dana Holding faces mixed financial performance. While the company has managed to maintain cash flow strength, profitability and equity stability present concerns. The absence of debt in 2024 is notable, yet the lack of equity and net losses highlight potential financial vulnerabilities. Continued focus on improving profitability and equity is crucial for future resilience.

Income Statement

Dana Holding's revenue has shown some fluctuations, with a slight decrease from 2023 to 2024. The gross profit margin has remained fairly stable. However, the company experienced a negative net income in 2024, indicating challenges in profitability. EBIT and EBITDA margins have also declined slightly, reflecting reduced operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved due to the elimination of total debt in 2024, although this is due to a lack of reported equity, indicating potential issues. The return on equity calculation is not feasible for 2024 due to zero equity reported. Historically, equity ratios have been declining, suggesting increased leverage over previous periods.

Cash Flow

Operating cash flow has remained positive, and free cash flow showed significant improvement in 2024, recovering from a negative position in prior years. The operating cash flow to net income ratio is favorable, indicating Dana Holding's ability to generate cash despite reporting a net loss.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
10.28B	10.55B	10.16B	8.95B	7.11B
	Gross Profit
876.00M	900.00M	763.00M	837.00M	621.00M
	EBIT
352.00M	341.00M	287.00M	404.00M	218.00M
	EBITDA
663.00M	748.00M	485.00M	742.00M	542.00M
	Net Income Common Stockholders
-57.00M	38.00M	-315.00M	197.00M	-71.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
494.00M	529.00M	425.00M	285.00M	580.00M
	Total Assets
7.49B	7.96B	7.45B	7.63B	7.38B
	Total Debt
2.91B	2.98B	2.72B	2.67B	2.65B
	Net Debt
2.42B	2.45B	2.30B	2.40B	2.09B
	Total Liabilities
5.90B	6.14B	5.65B	5.46B	5.36B
	Stockholders Equity
1.33B	1.57B	1.55B	1.92B	1.76B
Cash Flow		Free Cash Flow
70.00M	-25.00M	209.00M	-211.00M	60.00M
	Operating Cash Flow
450.00M	476.00M	649.00M	158.00M	386.00M
	Investing Cash Flow
-352.00M	-528.00M	-426.00M	-293.00M	-327.00M
	Financing Cash Flow
-90.00M	160.00M	-42.00M	-127.00M	-12.00M

Dana Holding Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.63
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DAN, the sentiment is Negative. The current price of 10.63 is below the 20-day moving average (MA) of 13.23, below the 50-day MA of 14.45, and below the 200-day MA of 11.75, indicating a bearish trend. The MACD of -0.30 indicates Positive momentum. The RSI at 38.69 is Neutral, neither overbought nor oversold. The STOCH value of 17.57 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DAN.

Dana Holding Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALSN	80 Outperform	$7.88B	11.09	50.69%	1.21%	6.26%	12.62%
APTV	70 Outperform	$12.49B	7.92	17.57%	―	-1.69%	-33.56%
ALV	66 Neutral	$6.45B	10.36	26.69%	3.60%	-0.80%	39.95%
LEA	64 Neutral	$4.44B	9.24	10.81%	4.10%	-0.70%	-7.27%
BWA	62 Neutral	$5.91B	17.88	6.46%	1.64%	-11.10%	-46.32%
Sector *	59 Neutral	$11.76B	10.11	-0.70%	3.92%	1.27%	-16.30%
DAN	57 Neutral	$1.74B	―	-3.92%	3.34%	-2.57%	-248.28%

Dana Holding Corporate Events

Dana Holding Updates Board with Icahn Designees

On January 23, 2025, Dana Incorporated amended its Director Appointment and Nomination Agreement with Carl C. Icahn and the Icahn Group, resulting in the appointment of Brett Icahn and Christian Garcia to its board of directors. This amendment, which was prompted by the resignations of Gary Hu and Steven Miller, also adjusts the standstill term under the agreement, linking it to the company’s business objectives and future annual meetings. The Icahn Designees are set to join various board committees, ensuring continuity and alignment with the company’s strategic goals.