Dana Incorporated (DAN) AI Stock Analysis

• Market Cap: $2.64B
• Dividend Yield: 1.98%
• Average Volume (3M): 2.13M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.29
• Revenue Growth: -14.46%
• EPS Growth: -2170.83%
• Country: US
• Employees: 39,300
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Auto - Parts
• EPS (TTM): 0.27
• Shares Outstanding: 131,153,630
• 10 Day Avg. Volume: 1,723,445
• 30 Day Avg. Volume: 2,125,484
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.13
• Enterprise Value/Revenue: 0.62
• Enterprise Value/Gross Profit: 7.66
• Enterprise Value/Ebitda: 12.57
• 1Y Price Target: $22.38
• Price Target Upside: 10.25% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 48 Neutral
• Price Target: $19.00 ▼(-6.40% Downside)

Dana Incorporated's overall stock score is primarily influenced by its challenging financial performance, with declining revenue and profitability. The positive aspects from the earnings call, including strategic initiatives and improved guidance, provide some optimism. However, the lack of technical analysis data and a negative P/E ratio weigh heavily on the score.

Positive Factors

Earnings Performance

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

Financial Stability

The debt paydown from the sale proceeds strengthens Dana's financial stability.

Share Buyback

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

Negative Factors

Backlog

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

Cost Savings Targets

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

Sale Proceeds

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 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 sales of its advanced driveline and sealing products to original equipment manufacturers (OEMs) and the aftermarket sector. Key revenue streams include the supply of components for passenger cars, commercial trucks, and off-highway vehicles, as well as thermal and sealing solutions for various industrial applications. The company also benefits from long-term partnerships with major automotive manufacturers, which provide a stable customer base and recurring revenue opportunities. Additionally, Dana's focus on innovation and sustainability enables it to adapt to market trends, such as the increasing demand for electric and hybrid vehicles, further contributing to its earnings.

Dana Incorporated Financial Statement Overview

Summary

Dana Incorporated faces significant financial challenges, with declining revenue and profitability, high leverage, and constrained cash flow. The company needs to focus on improving operational efficiency, managing costs, and enhancing cash generation to stabilize its financial position and support future growth.

Income Statement

Dana Incorporated's income statement reveals a challenging environment with declining revenue and profitability. The TTM (Trailing-Twelve-Months) data shows a negative net profit margin of -0.26%, indicating losses. The revenue growth rate has been negative, with a significant drop of 8.11% in the latest period. Gross profit margin is low at 8.08%, and EBIT and EBITDA margins have also decreased, reflecting operational inefficiencies. The company needs to focus on cost management and revenue growth to improve profitability.

Balance Sheet

The balance sheet shows a moderate financial position with a debt-to-equity ratio of 0.69 in the latest TTM period, which is an improvement from previous years. However, the return on equity is negative at -1.78%, indicating that the company is not generating sufficient returns on shareholders' equity. The equity ratio stands at 14.80%, suggesting a moderate reliance on equity financing. The company should focus on improving profitability to enhance shareholder returns.

Cash Flow

Dana Incorporated's cash flow statement highlights significant challenges, with a drastic decline in free cash flow growth of -97.69% in the TTM period. The operating cash flow to net income ratio is low at 9.97%, indicating limited cash generation relative to net income. The free cash flow to net income ratio is also low at 0.98%, suggesting constrained free cash flow. The company needs to enhance its cash generation capabilities to support operations and investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.10B	10.28B	10.55B	10.16B	8.95B	7.11B
Gross Profit	735.00M	876.00M	900.00M	763.00M	837.00M	621.00M
EBITDA	448.00M	663.00M	748.00M	485.00M	764.00M	490.00M
Net Income	-24.00M	-57.00M	38.00M	-242.00M	197.00M	-31.00M
Balance Sheet
Total Assets	8.14B	7.49B	7.96B	7.45B	7.63B	7.38B
Cash, Cash Equivalents and Short-Term Investments	486.00M	494.00M	529.00M	425.00M	285.00M	580.00M
Total Debt	833.00M	2.91B	2.98B	2.72B	2.67B	2.65B
Total Liabilities	6.68B	5.88B	6.14B	5.65B	5.46B	5.36B
Stockholders Equity	1.20B	1.33B	1.57B	1.55B	1.92B	1.76B
Cash Flow
Free Cash Flow	29.00M	70.00M	-25.00M	209.00M	-211.00M	60.00M
Operating Cash Flow	332.00M	450.00M	476.00M	649.00M	158.00M	386.00M
Investing Cash Flow	-235.00M	-352.00M	-528.00M	-426.00M	-293.00M	-327.00M
Financing Cash Flow	-59.00M	-90.00M	160.00M	-42.00M	-127.00M	-12.00M

Dana Incorporated Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 20.30
• 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 20.3 is above the 20-day moving average (MA) of 19.10, above the 50-day MA of 17.62, and above the 200-day MA of 14.58, indicating a bullish trend. The MACD of 0.90 indicates Negative momentum. The RSI at 71.93 is Negative, neither overbought nor oversold. The STOCH value of 81.40 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
ALV	79 Outperform	$9.53B	13.61	29.99%	2.23%	-0.98%	21.64%
APTV	79 Outperform	$17.32B	13.18	15.52%	―	-2.47%	-43.12%
LEA	76 Outperform	$5.85B	12.85	9.51%	2.84%	-3.12%	-8.23%
ALSN	70 Neutral	$7.34B	9.96	47.08%	1.20%	2.70%	15.17%
BWA	67 Neutral	$9.23B	45.55	3.66%	1.16%	-2.12%	-69.42%
Sector *	61 Neutral	$17.59B	13.29	-4.88%	3.05%	1.25%	-14.67%
DAN	48 Neutral	$2.64B	―	-5.00%	1.98%	-14.46%	-2170.83%

Dana Incorporated Corporate Events

Dana Incorporated Announces New $250 Million Credit Facility

On July 31, 2025, Dana Incorporated announced the execution of Amendment No. 7 to its Credit and Guaranty Agreement, introducing a new $250 million term A facility. This facility is set to mature either five business days after the divestiture of Dana’s off-highway business or 364 days post-amendment effectiveness. The facility, secured by first-priority liens on Dana’s assets, requires quarterly amortization payments starting December 31, 2025, and is guaranteed by Dana’s wholly owned domestic subsidiaries.

The most recent analyst rating on (DAN) stock is a Sell with a $10.00 price target. To see the full list of analyst forecasts on Dana Incorporated stock, see the DAN Stock Forecast page.

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.