Dana Incorporated (DAN) AI Stock Analysis

• Market Cap: $3.16B
• Dividend Yield: 1.7%
• Average Volume (3M): 1.80M
• Price to Earnings (P/E): 61.2
• Beta (1Y): 1.37
• Revenue Growth: -18.23%
• EPS Growth: N/A
• Country: US
• Employees: 39,300
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 0.07
• Shares Outstanding: 116,837,364
• 10 Day Avg. Volume: 1,556,562
• 30 Day Avg. Volume: 1,796,574
• PEG Ratio: 0.12
• Price to Book (P/B): 1.26
• Price to Sales (P/S): 0.16
• P/FCF Ratio: 23.98
• Enterprise Value/Market Cap: 1.89
• Enterprise Value/Revenue: 0.70
• Enterprise Value/Gross Profit: 9.06
• Enterprise Value/Ebitda: 11.13
• 1Y Price Target: $27.20
• Price Target Upside: 0.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 2.11
• Revenue Forecast (FY): $7.59B

• Rating: 55 Neutral
• Price Target: $26.00 ▼(-3.92% Downside)

The score is held back primarily by weak financial performance signals, especially cash flow deterioration and declining revenue/margins. Offsetting this, the earnings call and subsequent corporate actions (asset sale and debt reduction) improve the outlook and balance-sheet flexibility, while technicals show a strong uptrend but with overextended momentum. Valuation remains a meaningful headwind due to the very high P/E.

Positive Factors

Balance sheet repair from asset sale

The $2.7B divestiture provides durable capital to materially reshape Dana's leverage. Proceeds funded tender offers and redemptions, reducing near-term maturities and improving capital structure, which enhances financial flexibility to invest in core systems and reduce interest burden.

Cost-savings driving margin recovery

A $310M cost-savings program that has already begun to lift adjusted EBITDA is a structural improvement in operating efficiency. Sustained realization of these savings supports durable margin expansion, higher free cash flow potential, and stronger returns on reinvested capital over the next several quarters.

Sharper strategic focus and capital returns

Exiting Off-Highway sharpens strategy toward light and commercial vehicle systems, including electrified platforms. Combined with a $1B shareholder return plan and large buybacks executed, this reflects disciplined capital allocation and a clearer business mix for sustained product and R&D focus.

Negative Factors

Declining revenue and thin profitability

A double-digit TTM revenue decline and compressed gross margin indicate loss of scale and pricing or mix pressure. With net margin near 0.7%, profitability is fragile; prolonged top-line weakness would limit reinvestment, slow margin recovery, and constrain sustainable earnings growth.

Severely weakened cash generation

Historically weak free cash flow and poor cash conversion mean the business struggled to turn earnings into liquidity. Even with asset-sale proceeds, restoring durable FCF generation is essential to fund capex, service debt, and maintain buybacks without repeating asset sales or heavy refinancing.

End-market and program execution risks

Exposure to cyclical commercial-vehicle demand and cancelled EV programs creates structural revenue and backlog uncertainty. Lost EV work reduces future content wins and scale in electrified systems, increasing execution risk and potentially slowing the company's repositioning in growth segments.

Dana Incorporated Business Overview & Revenue Model

Company Description

Dana Incorporated provides power-conveyance and energy-management solutions for vehicles and machinery in North America, Europe, South America, and the Asia Pacific. It operates in four segments: Light Vehicle Drive Systems, Commercial Vehicle Drive and Motion Systems, Off-Highway Drive and Motion Systems, and Power Technologies. The Light Vehicle Drive Systems segment offers axles, driveshafts, e-axles, electrodynamic and drivetrain components, and transmissions, as well as electric, hybrid, and ICE products for light trucks, sport and crossover utility vehicles, vans, and passenger cars. The Commercial Vehicle Drive and Motion Systems segment provides axles, driveshafts, e-axles, e-transmissions, electrodynamic and drivetrain components, and electric vehicle integration services, as well as software as a service for medium and heavy duty trucks, buses, and specialty vehicles. The Off-Highway Drive and Motion Systems segment offers axles, driveshafts, transmissions, planetary hub drives, e-axles and e-drives, and helical and bevel-helical gearboxes, as well as electrodynamic, hydraulic, and drivetrain components for construction, earth moving, agricultural, mining, forestry, material handling, and industrial stationary markets. The Power Technologies segment offers gaskets and sealing, cover modules, heat shields, thermal management, e-thermal management, cooling, and bipolar fuel cell plates products for light vehicle, medium/heavy vehicle, and off-highway markets. The company was formerly known as Dana Holding Corporation and changed its name to Dana Incorporated in August 2016. Dana Incorporated was founded in 1904 and is headquartered in Maumee, Ohio.

How the Company Makes Money

Dana Incorporated generates revenue primarily through the sale of its core products and services in the automotive and industrial sectors. The major revenue streams include the production of driveline components, such as axles and drive shafts, sealing products for engine and transmission applications, and thermal management systems that optimize vehicle performance. Additionally, the company benefits from long-term contracts and partnerships with key automotive manufacturers, which provide a steady flow of income. Dana also engages in aftermarket services, further diversifying its revenue by catering to maintenance and repair needs. Economic trends in the automotive industry, shifts towards electrification, and advancements in manufacturing processes play significant roles in shaping Dana's earnings potential.

Dana Incorporated Financial Statement Overview

Summary

Dana Incorporated faces challenges with declining revenues and profitability pressures. While the balance sheet shows some improvement in leverage, cash flow issues persist, impacting overall financial health. The company needs to address operational inefficiencies and enhance cash generation to improve its financial standing.

Income Statement

Dana Incorporated's income statement shows declining revenue with a negative growth rate of -12.42% in the TTM period. The gross profit margin has decreased to 6.95% from previous levels, indicating pressure on profitability. The net profit margin is positive at 0.69%, a recovery from previous losses, but still low. EBIT and EBITDA margins have also declined, reflecting operational challenges.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.88 in the TTM, showing improvement from previous years. However, the return on equity is low at 4.39%, indicating limited profitability relative to equity. The equity ratio is stable, suggesting a balanced asset structure.

Cash Flow

Cash flow analysis highlights a significant decline in free cash flow, with a growth rate of -317.24% in the TTM. The operating cash flow to net income ratio is 0.08, indicating weak cash generation relative to net income. The negative free cash flow to net income ratio suggests cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.54B	10.28B	10.55B	10.16B	8.95B	7.11B
Gross Profit	660.00M	876.00M	900.00M	763.00M	837.00M	621.00M
EBITDA	537.00M	743.00M	741.00M	635.00M	742.00M	542.00M
Net Income	55.00M	-57.00M	38.00M	-242.00M	197.00M	-31.00M
Balance Sheet
Total Assets	8.11B	7.49B	7.96B	7.45B	7.63B	7.38B
Cash, Cash Equivalents and Short-Term Investments	414.00M	494.00M	529.00M	425.00M	285.00M	580.00M
Total Debt	3.53B	2.91B	2.98B	2.72B	2.67B	2.65B
Total Liabilities	6.77B	5.90B	6.14B	5.65B	5.46B	5.36B
Stockholders Equity	1.09B	1.33B	1.57B	1.55B	1.92B	1.76B
Cash Flow
Free Cash Flow	102.00M	70.00M	-25.00M	209.00M	-211.00M	60.00M
Operating Cash Flow	408.00M	450.00M	476.00M	649.00M	158.00M	386.00M
Investing Cash Flow	-277.00M	-352.00M	-528.00M	-426.00M	-293.00M	-327.00M
Financing Cash Flow	-145.00M	-90.00M	160.00M	-42.00M	-127.00M	-12.00M

Dana Incorporated Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 27.06 is above the 20-day moving average (MA) of 25.06, above the 50-day MA of 22.99, and above the 200-day MA of 18.54, indicating a bullish trend. The MACD of 1.34 indicates Negative momentum. The RSI at 79.09 is Negative, neither overbought nor oversold. The STOCH value of 85.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DAN.

Dana Incorporated Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LEA	75 Outperform	$6.48B	15.28	8.96%	2.63%	-1.90%	-13.86%
VC	73 Outperform	$2.68B	8.82	23.16%	0.57%	-4.03%	-39.51%
ALSN	72 Outperform	$8.99B	13.22	40.38%	1.07%	-4.21%	-0.45%
GTX	71 Outperform	$3.70B	12.09	―	1.49%	-1.09%	56.16%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DAN	55 Neutral	$3.16B	61.25	-4.82%	1.70%	-18.23%	―
ADNT	53 Neutral	$1.87B	-7.02	-14.41%	―	-1.04%	-1510.41%

Dana Incorporated Corporate Events

Dana Incorporated completes major senior notes redemption

On January 7, 2026, Dana Incorporated and its subsidiary Dana Financing Luxembourg S.à r.l. settled previously announced cash tender offers for multiple tranches of U.S. dollar- and euro-denominated senior notes maturing between 2027 and 2032, purchasing significant portions of these securities at par, with some series subject to proration, and canceling all notes acquired. The transactions, funded with proceeds from the company’s earlier sale of its off-highway business, were followed on January 8, 2026 by the full redemption at par of all remaining 2027 and 2028 notes, leaving no outstanding debt under those two series and marking a substantial step in reshaping Dana’s debt profile and capital structure for stakeholders.

The most recent analyst rating on (DAN) stock is a Hold with a $25.00 price target. To see the full list of analyst forecasts on Dana Incorporated stock, see the DAN Stock Forecast page.

Dana Sells Off-Highway Unit to Refocus Business

On January 1, 2026, Dana Incorporated completed the previously announced sale of its Off-Highway business to Allison Transmission Holdings for approximately $2.7 billion in cash, a deal valued at 7.5 times the unit’s expected 2025 adjusted EBITDA. The divestiture marks a major step in Dana’s ongoing transformation to concentrate on light- and commercial-vehicle customers with traditional and electrified systems, with management highlighting that the proceeds will be used to cut debt by about $2 billion to reach a target net leverage of 1x over the business cycle and to return $1 billion to shareholders through 2027, moves expected to strengthen the balance sheet, improve margins, simplify operations, and support accelerated innovation and growth in the company’s core markets.

The most recent analyst rating on (DAN) stock is a Hold with a $23.00 price target. To see the full list of analyst forecasts on Dana Incorporated stock, see the DAN Stock Forecast page.

Dana Initiates Cash Tender Offers for Debt Reduction

On December 4, 2025, Dana Incorporated and its subsidiary, Dana Financing Luxembourg S.à r.l., initiated cash tender offers for certain outstanding notes, linked to the anticipated sale of Dana’s off-highway business. This move is part of a broader debt reduction strategy, contingent on the completion of the business sale, expected to yield $2.3 billion in cash. The offers, expiring on January 5, 2026, aim to use $1,066 million of the proceeds to purchase the notes, with D.F. King & Co., Inc. acting as the tender agent. Additionally, Dana announced the conditional full redemption of its 2027 and 2028 Notes, set for January 8, 2026, dependent on the asset sale condition.

The most recent analyst rating on (DAN) stock is a Buy with a $28.00 price target. To see the full list of analyst forecasts on Dana Incorporated stock, see the DAN Stock Forecast page.

Dana Incorporated Appoints Hanna Nelligan to Board

On October 22, 2025, Dana Incorporated appointed Hanna Olivia Nelligan to its Board of Directors. Ms. Nelligan, who serves as the executive vice president, chief financial officer, and chief strategy officer of CHS Inc., brings extensive experience in global finance and strategic planning. Her appointment is expected to enhance Dana’s strategic priorities and long-term value creation. The company announced this appointment on October 23, 2025, highlighting Ms. Nelligan’s wealth of expertise as a valuable addition to their board.

The most recent analyst rating on (DAN) stock is a Buy with a $26.00 price target. To see the full list of analyst forecasts on Dana Incorporated stock, see the DAN Stock Forecast page.