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Dana Incorporated (DAN)
NYSE:DAN
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Dana Incorporated
(NYSE:DAN)
Rating:63Neutral
Price Target:―
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.
Earnings
Q4 adjusted EPS of $0.25 beat Visible Alpha consensus of $0.07.
Financial Performance
Management has provided EPS guidance of $1.40-1.90, 32% above consensus at the midpoint.
Negative Factors
Backlog
DAN provided its 3-year backlog of $650M, down from $950M last year.
Market Challenges
Challenges remain in the company's business, particularly in the near term due to end-markets and customer dynamics.
Dana Incorporated (DAN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.42B
Dividend Yield2.4%
Average Volume (3M)1.73M
Price to Earnings (P/E)―
Beta (1Y)1.36
Revenue Growth-7.00%
EPS Growth-366.59%
CountryUS
Employees39,300
SectorConsumer Cyclical
Sector Strength76
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.13
Shares Outstanding145,739,290
10 Day Avg. Volume1,358,146
30 Day Avg. Volume1,729,157
Financial Highlights & Ratios
PEG Ratio-1.69
Price to Book (P/B)1.65
Price to Sales (P/S)0.00
P/FCF Ratio17.51
Enterprise Value/Market Cap2.00
Enterprise Value/Revenue0.12
Enterprise Value/Gross Profit5.75
Enterprise Value/Ebitda1.73
Forecast
1Y Price Target
$18.60Price Target Upside11.85% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
Dana Incorporated Business Overview & Revenue Model
Company DescriptionDana Incorporated is a global leader in the design and manufacturing of highly engineered drivetrain, sealing, and thermal-management technologies. Serving major automakers and leading industrial companies, Dana operates in various sectors including light vehicle, commercial vehicle, and off-highway markets. The company’s core products include axles, driveshafts, transmissions, sealing solutions, thermal-management products, and vehicle electrification systems.
How the Company Makes MoneyDana Incorporated generates revenue primarily through the sale of its products and technologies to original equipment manufacturers (OEMs) and the aftermarket. The company's key revenue streams include sales of axles, driveshafts, and other power-conveyance products for light vehicles, commercial trucks, and off-highway equipment. Dana also earns income from sealing and thermal-management solutions, which are critical for vehicle efficiency and performance. Additionally, Dana is expanding its revenue base by investing in vehicle electrification technologies, catering to the growing demand for electrified and hybrid powertrains. Strategic partnerships with major automotive and industrial companies further bolster Dana's revenue, as these collaborations often lead to long-term supply agreements and joint development projects.
Dana Incorporated Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: 28.91%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted Dana's successful cost-saving measures and cash flow improvements, alongside challenges from declining sales and tariff-related headwinds. The company is managing tariff recovery effectively and sees potential growth in new product lines. However, market uncertainties, particularly in North America, pose challenges.Q1-2025 Updates
Positive Updates
Accelerated Cost Savings Program
Dana successfully accelerated its cost savings plan, increasing the 2025 target from $175 million to $225 million, with a total of $300 million in permanent cost reductions. This includes $41 million in profit from cost savings actions in Q1 alone.
Improved Free Cash Flow
Dana reported a Q1 free cash flow improvement of $67 million year-over-year, despite lower revenues and profitability.
PACE Award Recognition
Dana won its 10th PACE Award for a hybrid transmission product, expected to grow from $25 million in sales to $200-$300 million with a 20% EBITDA margin.
Tariff Management and Recovery
Dana expects to substantially recover steel and aluminum tariff costs through negotiated mechanisms and has already started processing tariff recoveries from customers.
Negative Updates
Revenue Decline
Sales were down $383 million year-over-year in Q1, driven by lower demand across all end markets. Adjusted EBITDA margin decreased by 20 basis points to 8%.
Tariff Headwinds
Dana faced a $6 million headwind from tariffs in Q1, with ongoing volatility in trade regulations impacting future planning and market conditions.
North American Commercial Vehicle Market Softness
Dana experienced a reduction in schedules for North American commercial vehicle customers, reflecting a headwind in this segment.
Company Guidance
In the first quarter of 2025, Dana Incorporated reported sales of $2.4 billion, a decrease of $383 million from the previous year, attributed to reduced demand across end markets. Despite this, the company achieved an adjusted EBITDA of $188 million with a margin of 8%, just 20 basis points lower than the previous year. Net income rose to $25 million, a significant increase from $3 million last year, primarily due to the impact of the previous year's write-down of the hydraulics business. The company faced a $6 million tariff headwind but expects full recovery through customer negotiations. Dana accelerated its cost reduction program, increasing the 2025 target from $175 million to $225 million, with $41 million in savings realized in Q1. The integration of its former power technology segment is projected to contribute $30 million to $35 million towards the $300 million total cost reduction goal. Free cash flow improved with a $67 million year-over-year reduction in outflow, and full-year guidance remains unchanged, with sales expected to exceed the midpoint of the range.Dana Incorporated Financial Statement Overview
Summary
Dana Holding exhibits a challenging financial landscape. While there are some strengths, such as improved free cash flow and moderate operational efficiency, the company faces significant challenges related to profitability and financial stability. Negative net income and a high reliance on debt financing are key areas of concern. Continued focus on cost management and revenue enhancement will be crucial for improving financial health.Income Statement
Dana Holding shows a mixed performance in its income statement. The gross profit margin is around 8.5% TTM, indicating some ability to cover production costs efficiently. However, the net profit margin is negative, which is concerning as it shows a struggle with profitability despite revenue increases. Revenue has decreased by approximately 4% TTM, indicating challenges in maintaining growth. EBIT and EBITDA margins stand at 3.3% and 5.9% TTM, respectively, suggesting moderate operational efficiency but also room for improvement.60
Neutral
Balance Sheet
The balance sheet highlights some financial stability concerns. The debt-to-equity ratio is approximately 0.47 TTM, which shows moderate leverage but improved from previous years. Return on equity is negative due to net losses, highlighting inefficiencies in generating returns for shareholders. The equity ratio is around 17.7%, indicating that a significant portion of the company is financed through debt, which could pose risks in volatile market conditions.55
Neutral
Cash Flow
Cash flow analysis reveals some positive aspects, with a free cash flow growth rate of 85.7% TTM, indicating improved cash generation. The operating cash flow to net income ratio is negative because of negative net income, but the company has managed to maintain positive operating cash flows. Free cash flow to net income ratio is also negative, reflecting challenges in translating earnings into cash.65
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 9.90B | 10.28B | 10.55B | 10.16B | 8.95B | 7.11B | Gross Profit |
| 843.00M | 876.00M | 900.00M | 763.00M | 837.00M | 621.00M | EBIT |
| 328.00M | 352.00M | 341.00M | 287.00M | 404.00M | 218.00M | EBITDA |
| 582.00M | 663.00M | 748.00M | 485.00M | 742.00M | 542.00M | Net Income Common Stockholders |
| -35.00M | -57.00M | 38.00M | -315.00M | 197.00M | -71.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 507.00M | 494.00M | 529.00M | 425.00M | 285.00M | 580.00M | Total Assets |
| 7.80B | 7.49B | 7.96B | 7.45B | 7.63B | 7.38B | Total Debt |
| 3.08B | 2.91B | 2.98B | 2.72B | 2.67B | 2.65B | Net Debt |
| 2.57B | 2.42B | 2.45B | 2.30B | 2.40B | 2.09B | Total Liabilities |
| 6.17B | 5.88B | 6.14B | 5.65B | 5.46B | 5.36B | Stockholders Equity |
| 1.38B | 1.33B | 1.57B | 1.55B | 1.92B | 1.76B |
| Cash Flow | Free Cash Flow | ||||
| 130.00M | 70.00M | -25.00M | 209.00M | -211.00M | 60.00M | Operating Cash Flow |
| 515.00M | 450.00M | 476.00M | 649.00M | 158.00M | 386.00M | Investing Cash Flow |
| -345.00M | -352.00M | -528.00M | -426.00M | -293.00M | -327.00M | Financing Cash Flow |
| -5.00M | -90.00M | 160.00M | -42.00M | -127.00M | -12.00M |
Dana Incorporated Technical Analysis
Positive
16.63
Price Trends
13.87
Positive
14.13
Positive
12.18
Positive
Market Momentum
0.86
Positive
63.79
Neutral
67.07
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DAN, the sentiment is Positive. The current price of 16.63 is above the 20-day moving average (MA) of 15.91, above the 50-day MA of 13.87, and above the 200-day MA of 12.18, indicating a bullish trend. The MACD of 0.86 indicates Positive momentum. The RSI at 63.79 is Neutral, neither overbought nor oversold. The STOCH value of 67.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DAN.
Dana Incorporated Risk Analysis
Dana Incorporated disclosed 33 risk factors in its most recent earnings report. Dana Incorporated reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 2 New Risks
1.
We may not realize any or all of our estimated cost savings, which would have a negative effect on our results of operations. Q4, 2024
2.
We may fail to consummate or realize the value of dispositions and other strategic initiatives and such transactions and initiatives may be disruptive to our operations and adversely impact our results. Q4, 2024
Dana Incorporated Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $14.55B | 11.07 | 15.52% | ― | -2.47% | -43.12% | |
77 Outperform | $8.72B | 11.98 | 50.15% | 0.98% | 3.86% | 16.02% | |
76 Outperform | $7.27B | 26.61 | 5.38% | 1.33% | -8.22% | -52.61% | |
73 Outperform | $7.95B | 11.84 | 28.71% | 2.68% | -2.29% | 35.00% | |
73 Outperform | $4.83B | 10.60 | 10.00% | 3.41% | -3.15% | -6.70% | |
63 Neutral | $2.42B | ― | -2.40% | 2.40% | -7.00% | -366.59% | |
62 Neutral | $6.91B | 11.20 | 2.93% | 3.90% | 2.68% | -25.01% |
* Consumer Cyclical Sector Average
Performance Comparison
DAN
Dana Incorporated
16.51
2.97
21.94%
ALSN
Allison Transmission Holdings
102.01
28.08
37.98%
ALV
Autoliv
101.31
-22.08
-17.89%
BWA
BorgWarner
32.42
-3.01
-8.50%
APTV
Aptiv
65.30
-19.35
-22.86%
LEA
Lear
87.47
-35.37
-28.79%
Dana Incorporated Corporate Events
Executive/Board Changes
Dana Holding Updates Board with Icahn Designees
Neutral
Jan 23, 2025
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.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.