Dana Incorporated (DAN) AI Stock Analysis

• Market Cap: $3.41B
• Dividend Yield: 1.7%
• Average Volume (3M): 1.47M
• Price to Earnings (P/E): 38.9
• 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): 0.10
• Shares Outstanding: 108,642,940
• 10 Day Avg. Volume: 1,439,576
• 30 Day Avg. Volume: 1,469,112
• PEG Ratio: -0.15
• Price to Book (P/B): 3.84
• Price to Sales (P/S): 0.44
• P/FCF Ratio: 11.10
• Enterprise Value/Market Cap: 2.12
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: 14.68
• 1Y Price Target: $36.60
• Price Target Upside: 16.63% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 2.52
• Revenue Forecast (FY): $7.63B

• Rating: 59 Neutral
• Price Target: $36.00 ▲(14.72% Upside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

The score reflects mixed fundamentals: weakening recent revenue and thin/volatile profitability with historically elevated leverage constrain the outlook, even as cash flow has been relatively resilient. Offsetting this, the latest earnings call points to meaningful margin and free-cash-flow improvement driven by cost savings and deleveraging, and the stock’s technical trend is strong. Valuation remains a headwind given the very high P/E and modest dividend yield.

Positive Factors

Strong free cash flow generation

Consistently positive operating cash flow and a company-record free cash flow in 2025 signal durable cash conversion. That strengthens liquidity for debt paydown, targeted capex, and buybacks, improving financial flexibility through industry cycles.

Material deleveraging and liquidity

The Off‑Highway sale materially improved capital structure and liquidity, lowering near-term maturities and net leverage under 1x. A cleaner balance sheet reduces refinancing risk, lowers interest burden, and supports strategic investments and shareholder returns over the medium term.

Sustained cost savings and margin improvement

Large, delivered cost reductions and an expanding run rate point to structural operating-leverage gains. If sustained, these savings raise true margin potential, support higher adjusted EBITDA and FCF conversion, and underpin management's multi-year profitability targets.

Negative Factors

Recent revenue decline

Two consecutive years of meaningful top-line contraction reflect weakening end-market volumes and mix. Durable recovery depends on OEM demand normalization and new program conversions; prolonged softness would limit operating leverage and make margin gains harder to sustain.

EV program volatility

Electrification exposure is strategic but carries program award and volume risk. Cancellations or reduced EV content can materially curtail future revenue growth and derail expected content-per-vehicle improvements critical to reaching 2030 targets and higher-margin mix.

Historically elevated leverage

Although recent actions lowered debt, the history of high leverage and prior elevated interest expense highlights structural risk. If cash flow falls short due to cyclical demand, residual leverage could constrain capital allocation and make execution of growth initiatives more difficult.

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

Overall fundamentals are mixed. Revenue has been pressured (down ~2.6% in 2024 and ~12.2% in 2025) and profitability is thin/volatile with recent modest losses, while historical leverage has been elevated (debt-to-equity ~1.4x–2.2x in 2020–2024). Offsetting this, operating cash flow has remained positive and free cash flow is positive in most years with improvement in 2024–2025.

Income Statement

Revenue has been pressured recently, declining about 2.6% in 2024 and a steeper 12.2% in 2025, signaling weakening demand/mix. Profitability is thin: gross margin is consistently high-single-digits (~7.5%–9.4%), but earnings have swung between small profits and losses (net margin ranging from +2.2% in 2021 to -2.4% in 2022; modest losses again in 2024–2025). While EBITDA was solid in 2021–2024 (~6%–8% of revenue), the overall trajectory shows deteriorating earnings quality and limited pricing/operating leverage, leaving results vulnerable to cost inflation and volume softness.

Balance Sheet

Leverage is meaningfully elevated: debt-to-equity ran around ~1.4x–2.2x from 2020–2024, which reduces flexibility in a low-margin environment. Equity returns have also been volatile, moving from strong positive levels in 2021 to negative in 2022 and 2024, consistent with inconsistent profitability. The 2025 balance sheet fields show total debt and equity as zero (likely missing/invalid for that year), so the leverage assessment relies primarily on 2020–2024 data; based on that history, balance-sheet risk remains a key constraint despite a sizable asset base.

Cash Flow

Cash generation is a relative bright spot. Operating cash flow has been consistently positive (roughly $386M–$649M in 2020–2024 and $329M in 2025), and free cash flow is positive in most years (notably $209M in 2022 and $115M in 2025), though it did turn negative in 2021 and 2023. Free cash flow improved in 2024 (+3.8%) and 2025 (+12.7%), suggesting better working-capital or spending discipline, but the variability indicates cash conversion can be choppy through the cycle.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.50B	10.28B	10.55B	10.16B	8.95B
Gross Profit	602.00M	876.00M	900.00M	763.00M	837.00M
EBITDA	570.00M	743.00M	741.00M	635.00M	742.00M
Net Income	85.00M	-57.00M	38.00M	-242.00M	197.00M
Balance Sheet
Total Assets	7.81B	7.49B	7.96B	7.45B	7.63B
Cash, Cash Equivalents and Short-Term Investments	476.00M	494.00M	529.00M	425.00M	285.00M
Total Debt	3.52B	2.91B	2.98B	2.72B	2.67B
Total Liabilities	6.89B	5.90B	6.14B	5.65B	5.46B
Stockholders Equity	861.00M	1.33B	1.57B	1.55B	1.92B
Cash Flow
Free Cash Flow	298.00M	70.00M	-25.00M	209.00M	-211.00M
Operating Cash Flow	512.00M	450.00M	476.00M	649.00M	158.00M
Investing Cash Flow	-222.00M	-352.00M	-528.00M	-426.00M	-293.00M
Financing Cash Flow	-371.00M	-90.00M	160.00M	-42.00M	-127.00M

Dana Incorporated Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 31.38
• 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 Neutral. The current price of 31.38 is below the 20-day moving average (MA) of 33.66, above the 50-day MA of 30.71, and above the 200-day MA of 22.10, indicating a neutral trend. The MACD of 0.30 indicates Positive momentum. The RSI at 42.68 is Neutral, neither overbought nor oversold. The STOCH value of 27.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DAN.

Dana Incorporated Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALSN	74 Outperform	$9.34B	13.20	34.97%	1.07%	-4.21%	-0.45%
LEA	72 Outperform	$5.79B	14.06	8.79%	2.63%	-1.90%	-13.86%
VC	72 Outperform	$2.39B	12.87	13.90%	0.57%	-4.03%	-39.51%
GTX	63 Neutral	$3.34B	11.23	-39.65%	1.49%	-1.09%	56.16%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DAN	59 Neutral	$3.41B	38.91	-2.91%	1.70%	-18.23%	―
ADNT	48 Neutral	$1.55B	-17.14	-17.47%	―	-1.04%	-1510.41%

Dana Incorporated Corporate Events

Dana Incorporated Announces CEO Transition to Byron Foster

On February 12, 2026, Dana Incorporated announced that its board has appointed Byron Foster as president and chief executive officer, effective July 1, 2026, marking a planned leadership transition at the mobility supplier. Foster was simultaneously elected to the board of directors effective February 11, 2026, while current CEO R. Bruce McDonald will remain chairman of the board after handing over the chief executive role.

Foster, currently senior vice president and president of Dana’s Light Vehicle Systems unit, has led strong sales growth and margin improvement in the company’s largest business and brings more than two decades of senior leadership experience from Johnson Controls and Adient. The appointment underscores Dana’s intent to build on its recent operational gains and transformation efforts, positioning the company for its next phase of growth in propulsion and energy-management solutions across light and commercial vehicle markets.

The most recent analyst rating on (DAN) stock is a Hold with a $30.00 price target. To see the full list of analyst forecasts on Dana Incorporated stock, see the DAN Stock Forecast page.

Dana Sets New Long-Term Performance-Based Stock Incentives

On February 6, 2026, Dana Incorporated’s board approved a grant of performance-vested restricted stock units to eligible participants, including the company’s named executive officers other than CEO Bruce McDonald, under its 2021 Omnibus Incentive Plan. The stock units will vest, if performance conditions are met, based on the company’s achievement of preset stock price targets during a four-year period from January 1, 2026, through December 31, 2029, and continued employment, with potential payouts ranging from zero to three times target and any earned shares to be delivered in two equal installments in early 2030 and early 2031, aligning executive compensation more closely with long-term shareholder value and stock performance.

The most recent analyst rating on (DAN) stock is a Hold with a $30.00 price target. To see the full list of analyst forecasts on Dana Incorporated stock, see the DAN Stock Forecast page.

Dana Announces Strong 2025 Results and 2026 Outlook

On January 21, 2026, Dana Incorporated reported preliminary full-year 2025 financial results at the high end of its expectations, including approximately $7.5 billion in sales, about $600 million in adjusted EBITDA (8% of sales), and roughly $315 million in adjusted free cash flow. During 2025 the company completed the $2.7 billion enterprise-value sale of its Off-Highway business, achieved around $250 million in cost savings, returned $704 million to shareholders, and repurchased 34 million shares, reducing shares outstanding to 112.3 million and signaling an aggressive capital return and portfolio-streamlining strategy. Dana also used proceeds from the divestiture to reduce debt by $1.9 billion, raised its cumulative cost-savings target to $325 million, and announced a $750 million three-year new business backlog, including $200 million of incremental revenue expected in 2026 from next-generation vehicle platforms. For 2026, the company issued preliminary guidance of $7.30–$7.70 billion in sales, $750–$850 million in adjusted EBITDA with implied margins of 10–11%, and $250–$350 million in adjusted free cash flow, underscoring a shift toward higher profitability, a stronger balance sheet, and continued shareholder returns, and it plans to further detail its strategy at a Capital Markets Day on March 25, 2026.

The most recent analyst rating on (DAN) stock is a Buy with a $31.00 price target. To see the full list of analyst forecasts on Dana Incorporated stock, see the DAN Stock Forecast page.

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.