Dana Incorporated (DAN) AI Stock Analysis

• Market Cap: $2.56B
• Dividend Yield: 2.28%
• Average Volume (3M): 2.44M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.30
• Revenue Growth: -7.00%
• EPS Growth: -366.59%
• Country: US
• Employees: 39,300
• Sector: Consumer Cyclical
• Sector Strength: 72
• Industry: Auto - Parts
• EPS (TTM): 0.27
• Shares Outstanding: 145,739,290
• 10 Day Avg. Volume: 2,371,143
• 30 Day Avg. Volume: 2,443,618
• 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: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $21.88
• Price Target Upside: 24.74% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 60 Neutral
• Price Target: $17.50 ▼(-0.23% Downside)

Dana's overall stock score reflects a challenging financial landscape with significant risks due to negative profitability and high debt reliance. Positive strategic moves and improved guidance from the earnings call provide some optimism, but technical and valuation concerns weigh down the score.

Positive Factors

Earnings Performance

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

Cost-Saving Targets

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

Net 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 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 with some strengths such as improved free cash flow and moderate operational efficiency. However, significant challenges exist, including negative net income and high reliance on debt financing, which pose risks to financial stability.

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: 17.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 17.54 is above the 20-day moving average (MA) of 16.41, above the 50-day MA of 16.80, and above the 200-day MA of 13.68, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 63.04 is Neutral, neither overbought nor oversold. The STOCH value of 83.93 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	75 Outperform	$8.63B	12.30	29.99%	2.47%	-0.98%	21.64%
ALSN	73 Outperform	$7.34B	9.96	47.08%	1.19%	2.70%	15.17%
BWA	72 Outperform	$8.34B	41.15	3.66%	1.14%	-2.12%	-69.42%
APTV	71 Outperform	$14.57B	11.08	15.52%	―	-2.47%	-43.12%
LEA	68 Neutral	$5.10B	11.20	9.51%	3.21%	-3.12%	-8.23%
Sector *	61 Neutral	kr10.55B	17.01	8.94%	3.08%	-0.68%	-21.31%
DAN	60 Neutral	$2.56B	―	-2.40%	2.28%	-7.00%	-366.59%

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.