Dana Incorporated (DAN) AI Stock Analysis

• Market Cap: $2.50B
• Dividend Yield: 2.33%
• Average Volume (3M): 1.85M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.27
• Revenue Growth: -7.00%
• EPS Growth: -366.59%
• Country: US
• Employees: 39,300
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Auto - Parts
• EPS (TTM): 0.13
• Shares Outstanding: 145,739,290
• 10 Day Avg. Volume: 2,671,495
• 30 Day Avg. Volume: 1,847,491
• PEG Ratio: -0.25
• Price to Book (P/B): 1.40
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.42
• Enterprise Value/Market Cap: 1.87
• Enterprise Value/Revenue: 0.11
• Enterprise Value/Gross Profit: 5.53
• Enterprise Value/Ebitda: 1.66
• 1Y Price Target: $21.83
• Price Target Upside: 27.44% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 61 Neutral
• Price Target: $18.00 ▲(5.08%Upside)

Dana Holding's stock score is mainly impacted by financial performance challenges, including profitability and debt concerns. Despite this, positive technical momentum and strategic corporate actions, like the business sale, provide some support. The valuation remains a significant issue due to the negative P/E ratio.

Positive Factors

Earnings

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

Financial Stability

The sale supports Dana’s goal to focus on light and commercial vehicles, which strengthens financial stability.

Stock Buyback

Dana will buy back $550M in stock, which is approximately 21% of market cap, more than offsetting the valuation shortfall.

Negative Factors

Backlog Reduction

DAN also provided its 3-year backlog of $650M, down from $950M last year.

Cost Savings

The outlook heavily relies on the $300M in cost-saving targets, which are considered aggressive.

Proceeds Shortfall

Net proceeds from the sale were $2.4B, which fell short of the $2.9B estimate due to a lower multiple and tax/transaction costs.

Dana Incorporated Business Overview & Revenue Model

Company Description

Dana 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 Money

Dana 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 Financial Statement Overview

Summary

Dana Holding shows a mixed financial performance. The company has moderate operational efficiency and improved free cash flow, but faces challenges with profitability and financial stability due to negative net income and a high reliance on debt financing.

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.

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.

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.

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
EBITDA	582.00M	663.00M	748.00M	485.00M	742.00M	542.00M
Net Income	-35.00M	-57.00M	38.00M	-315.00M	197.00M	-71.00M
Balance Sheet
Total Assets	7.80B	7.49B	7.96B	7.45B	7.63B	7.38B
Cash, Cash Equivalents and Short-Term Investments	507.00M	494.00M	529.00M	425.00M	285.00M	580.00M
Total Debt	3.08B	2.91B	2.98B	2.72B	2.67B	2.65B
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

• Technical Analysis Sentiment: Positive
• Last Price: 17.13
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 17.13 is above the 20-day moving average (MA) of 17.08, above the 50-day MA of 15.59, and above the 200-day MA of 12.81, indicating a bullish trend. The MACD of 0.37 indicates Positive momentum. The RSI at 55.74 is Neutral, neither overbought nor oversold. The STOCH value of 32.02 is Neutral, 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
ALSN	80 Outperform	$7.98B	10.96	50.15%	1.14%	3.86%	16.02%
APTV	79 Outperform	$14.98B	11.40	15.52%	―	-2.47%	-43.12%
BWA	76 Outperform	$7.38B	27.02	5.38%	1.31%	-8.22%	-52.61%
LEA	75 Outperform	$5.04B	11.06	10.00%	3.26%	-3.15%	-6.70%
ALV	75 Outperform	$8.74B	13.03	28.71%	2.48%	-2.29%	35.00%
Sector *	62 Neutral	$16.72B	10.85	-7.48%	3.11%	1.66%	-24.52%
DAN	61 Neutral	$2.50B	―	-2.40%	2.33%	-7.00%	-366.59%

Dana Incorporated Corporate Events

Dana Incorporated Terminates Agreement with Icahn Group

Dana Incorporated, a company involved in the automotive industry, has mutually agreed with the Icahn Group to terminate their Director Appointment and Nomination Agreement, effective June 17, 2025. On the same date, Dana repurchased 14,268,505 shares of its common stock from the Icahn Group at $17.58 per share, marking the exit of the Icahn Group from its ownership in Dana. This move was unanimously approved by Dana’s Board, excluding directors appointed by the Icahn Group, potentially impacting the company’s governance and shareholder structure.

The most recent analyst rating on (DAN) stock is a Sell with a $6.00 price target. To see the full list of analyst forecasts on Dana Incorporated stock, see the DAN Stock Forecast page.

Dana Incorporated Agrees to Sell Off-Highway Business

On June 11, 2025, Dana Incorporated announced its agreement to sell its off-highway business to Allison Transmission Holdings, Inc. for approximately $2.732 billion, subject to adjustments. The transaction, expected to close in the fourth quarter of 2025, is contingent on regulatory approvals and customary conditions. This strategic move allows Dana to focus on its core operations while providing Allison Transmission an opportunity to expand its market presence. The agreement includes a non-compete clause for five years post-closing and outlines indemnification terms for potential breaches.

The most recent analyst rating on (DAN) stock is a Sell with a $6.00 price target. To see the full list of analyst forecasts on Dana Incorporated stock, see the DAN Stock Forecast page.