Dana Incorporated (DAN) AI Stock Analysis

• Market Cap: $2.67B
• Dividend Yield: 1.75%
• Average Volume (3M): 1.71M
• Price to Earnings (P/E): 51.7
• Beta (1Y): 1.39
• 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: 1,861,604
• 30 Day Avg. Volume: 1,714,747
• 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: 2.24
• Enterprise Value/Revenue: 0.70
• Enterprise Value/Gross Profit: 9.06
• Enterprise Value/Ebitda: 11.13
• 1Y Price Target: $26.40
• Price Target Upside: 15.69% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: $22.00 ▼(-3.59% Downside)

Dana Incorporated's overall stock score reflects a mix of financial challenges and strategic improvements. The most significant factors are the financial performance struggles, particularly in cash flow, and the positive impact of recent corporate events. Technical analysis and valuation present a neutral to slightly positive outlook, while the earnings call provides cautious optimism for future performance.

Positive Factors

Cost Savings Initiatives

The significant cost savings initiatives enhance operational efficiency and improve margins, supporting long-term profitability.

Debt Reduction Strategy

Reducing debt through asset sales strengthens the balance sheet, providing greater financial flexibility and stability.

Leadership Strength

The addition of experienced leadership supports strategic planning and long-term value creation, enhancing corporate governance.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in market demand and competitive pressures, impacting long-term growth prospects.

Cash Flow Challenges

Weak cash generation limits reinvestment capabilities and could strain liquidity, affecting long-term operational sustainability.

Commercial Vehicle Market Softness

Market softness in key segments can hinder revenue growth and profitability, posing risks to future performance.

Dana Incorporated Business Overview & Revenue Model

Company Description

Dana Incorporated (DAN) is a global leader in power technologies that support the transportation and industrial sectors. Founded in 1904 and headquartered in Maumee, Ohio, the company specializes in the design and manufacture of a wide range of products, including driveline systems, sealing solutions, and thermal management technologies. Dana serves various markets, including light and commercial vehicles, off-highway vehicles, and industrial machinery, offering innovative solutions that enhance efficiency and sustainability.

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: 22.82
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 22.82 is above the 20-day moving average (MA) of 21.98, above the 50-day MA of 20.80, and above the 200-day MA of 17.47, indicating a bullish trend. The MACD of 0.53 indicates Negative momentum. The RSI at 60.02 is Neutral, neither overbought nor oversold. The STOCH value of 77.80 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
LEA	75 Outperform	$5.99B	14.14	8.96%	2.67%	-1.90%	-13.86%
VC	73 Outperform	$2.78B	9.16	23.16%	0.54%	-4.03%	-39.51%
ALSN	71 Outperform	$8.21B	12.08	40.38%	1.10%	-4.21%	-0.45%
GTX	71 Outperform	$3.28B	10.71	―	1.55%	-1.09%	56.16%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DAN	58 Neutral	$2.67B	51.74	-4.82%	1.75%	-18.23%	―
ADNT	53 Neutral	$1.50B	-5.85	-14.41%	―	-1.04%	-1510.41%

Dana Incorporated Corporate Events

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.

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.

Dana Incorporated Extends CEO McDonald’s Tenure

On September 30, 2025, Dana Incorporated announced the extension of R. Bruce McDonald’s tenure as Chairman and CEO as the company advances key initiatives, including cost savings and the divestiture of its Off Highway business. The Board plans to accelerate the search for a successor in early 2026, with McDonald transitioning to Non-Executive Chairman once a new CEO is appointed. His amended employment agreement includes a base salary of $1,300,000 and potential RSUs valued at $9,900,000, contingent on his continued service and performance related to the CEO transition.