Dana Incorporated (DAN) AI Stock Analysis

• Market Cap: $2.41B
• Dividend Yield: 2.43%
• Average Volume (3M): 1.72M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.36
• Revenue Growth: -7.00%
• EPS Growth: -366.59%
• Country: US
• Employees: 39,300
• Sector: Consumer Cyclical
• Sector Strength: 73
• Industry: Auto - Parts
• EPS (TTM): 0.13
• Shares Outstanding: 145,739,290
• 10 Day Avg. Volume: 1,418,999
• 30 Day Avg. Volume: 1,721,904
• PEG Ratio: -1.69
• Price to Book (P/B): 1.65
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.51
• Enterprise Value/Market Cap: 2.02
• Enterprise Value/Revenue: 0.12
• Enterprise Value/Gross Profit: 5.75
• Enterprise Value/Ebitda: 1.73
• 1Y Price Target: $18.60
• Price Target Upside: 13.14% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 63 Neutral
• Price Target: ―

Dana Holding's overall stock score of 63 reflects its mixed financial performance, with positive cash flow improvements but significant profitability and stability challenges. Technical indicators suggest potential upward momentum, though caution is advised due to overbought signals. Valuation concerns due to a negative P/E and reliance on debt affect the score, despite some relief from a modest dividend yield. Earnings call analysis adds a positive dimension with effective cost management and growth potential, balancing out some of the financial and market challenges.

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 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 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 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.

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
	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

• Technical Analysis Sentiment: Positive
• Last Price: 16.44
• 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 16.44 is above the 20-day moving average (MA) of 16.12, above the 50-day MA of 13.96, and above the 200-day MA of 12.24, indicating a bullish trend. The MACD of 0.77 indicates Positive momentum. The RSI at 61.59 is Neutral, neither overbought nor oversold. The STOCH value of 57.03 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
APTV	81 Outperform	$14.22B	11.08	15.52%	―	-2.47%	-43.12%
ALSN	77 Outperform	$8.59B	11.81	50.15%	1.02%	3.86%	16.02%
BWA	76 Outperform	$7.17B	26.24	5.38%	1.35%	-8.22%	-52.61%
ALV	73 Outperform	$7.83B	11.67	28.71%	2.71%	-2.29%	35.00%
LEA	73 Outperform	$4.68B	10.26	10.00%	3.45%	-3.15%	-6.70%
DAN	63 Neutral	$2.41B	―	-2.40%	2.43%	-7.00%	-366.59%
Sector *	62 Neutral	$6.90B	11.24	2.93%	3.89%	2.68%	-24.71%

Dana Incorporated 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.