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Dana Incorporated
(NYSE:DAN)
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Rating:52Neutral
Price Target:
$30.00
▼(-19.05% Downside)
Action:Reiterated
Date:06/12/26
The score is held back primarily by weak financial performance (sharp 2025 revenue decline, thin/volatile profitability) and high leverage. Offsetting this, management’s earnings-call messaging and recent deal activity point to improving margins, cost savings, and strategic scale benefits, though the stock’s technical trend remains bearish and valuation is hard to judge with a negative P/E.
Positive Factors
Scale and Strategic Combination
The Reverse Morris Trust tie-up with Eaton's mobility business materially increases scale, product breadth and purchasing power. Capturing ~$250M of run-rate synergies within 24 months can structurally improve margins and competitive positioning, enabling higher-margin programs and stronger long-term industry presence.
Negative Factors
Elevated Leverage
Very high leverage materially raises refinancing, interest expense and covenant risk, reducing balance sheet flexibility for capex, electrification investment and integration spend. Elevated debt makes the firm sensitive to cyclical downturns and lengthens the timeline required to reach targeted net-debt/EBITDA goals.
Read all positive and negative factors
Positive Factors
Negative Factors
Scale and Strategic Combination
The Reverse Morris Trust tie-up with Eaton's mobility business materially increases scale, product breadth and purchasing power. Capturing ~$250M of run-rate synergies within 24 months can structurally improve margins and competitive positioning, enabling higher-margin programs and stronger long-term industry presence.
Read all positive factors
Dana Incorporated Key Performance Indicators (KPIs)
Any
Revenue by Geography
Shows sales by region, revealing how much Dana depends on specific markets and where growth is concentrated. Useful for spotting exposure to regional economic cycles, currency and trade risks, and opportunities from faster-growing markets.
Shows sales by region, revealing how much Dana depends on specific markets and where growth is concentrated. Useful for spotting exposure to regional economic cycles, currency and trade risks, and opportunities from faster-growing markets.
Data provided by:
The Fly
The FlyDana Incorporated (DAN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.14B
Dividend Yield1.7%
Average Volume (3M)1.46M
Price to Earnings (P/E)―
Beta (1Y)1.28
Revenue Growth-23.37%
EPS Growth-131.29%
CountryUS
Employees39,300
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)-1.36
Shares Outstanding107,574,700
10 Day Avg. Volume2,396,322
30 Day Avg. Volume1,457,607
Financial Highlights & Ratios
PEG Ratio-0.14
Price to Book (P/B)3.84
Price to Sales (P/S)0.44
P/FCF Ratio11.10
Enterprise Value/Market Cap1.46
Enterprise Value/Revenue-9.50
Enterprise Value/Gross Profit-70.72
Enterprise Value/Ebitda10.82
Forecast
1Y Price Target
$40.83Price Target Upside10.18% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)2.4
Revenue Forecast (FY)$7.66B
Dana Incorporated Business Overview & Revenue Model
Company Description
Dana Incorporated is a global provider of power transmission and energy management systems for vehicles and industrial machinery, operating across North America, Europe, South America, and Asia Pacific. The company organizes its business into four...
How the Company Makes Money
Dana primarily makes money by selling engineered components and complete drivetrain/motion systems to original equipment manufacturers (OEMs) and, to a lesser extent, through its aftermarket business. Its core revenue stream is product sales tied ...
Dana Incorporated Earnings Call Summary
Earnings Call Date:Apr 29, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 24, 2026
Earnings Call Sentiment Positive
The call contained multiple strong operational and financial positives: clear margin expansion (400 bps YoY in Q1), large adjusted EBITDA improvement, meaningful cost savings execution, sizable share repurchases, an important $250M/year new program (RAM Dakota) and improved secured backlog and 2030 visibility. Offsetting items were near-term cash flow pressure driven by working capital and one-time lease buyouts, ongoing commodity and regional volume headwinds (notably in EV battery cooling, medium‑duty trucks and Brazil), and timing volatility from tariffs and indexed recoveries. On balance, the company demonstrated durable margin and profitability momentum and upgraded visibility on growth while acknowledging short-term cash/working capital headwinds and some market softness.Positive Updates
Revenue Growth
First quarter sales of $1.868 billion versus $1.781 billion a year ago, an increase of approximately 4.9% year-over-year despite softer end-market demand.
Negative Updates
Quarterly Adjusted Free Cash Flow Use
Adjusted free cash flow was a use of $195 million in Q1, driven by working capital and the loss of discontinued operations’ contribution following the Off‑Highway sale.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth
First quarter sales of $1.868 billion versus $1.781 billion a year ago, an increase of approximately 4.9% year-over-year despite softer end-market demand.
Read all positive updates
Company Guidance
Management kept 2026 guidance unchanged but said results should land toward the upper end of the ranges: revenue about $7.5 billion at the midpoint, adjusted EBITDA roughly $800 million (≈10–11% margin, ~10.6% midpoint, ~250 bps improvement versus 2025’s $610M/8.1%), diluted adjusted EPS ≈ $2.50 (using 109 million shares, excluding future buybacks), and adjusted free cash flow of about $300 million. They expect net interest ≈ $70 million, taxes ≈ $100 million, capex ≈ $325 million, working capital to be a $25 million source, and one‑time costs ~ $30–40 million lower year‑over‑year; drivers called out include ~ $20 million EBITDA from volume/mix, ~ $100 million from performance (including ~$40 million stranded cost eliminations), ~$65 million from cost savings, a $10 million tariff tailwind and a $15 million commodity headwind, and sales drivers of −$95 million volume/mix, −$30 million performance, +$50 million tariffs, +$60 million currency and +$15 million commodities. They reiterated buyback and capital deployment plans (Q1 repurchases $125M/4.4M shares; $300M target for 2026; $775M to date; $2B through 2030), cost‑save pacing ($35M in Q1; $65M target for 2026; $325M program total), and Dana 2030 goals of ~$10B revenue, 14–15% adjusted EBITDA margin and ~6% free cash flow margin (FCF rising from ~$300M today to ~$600M by 2030).Dana Incorporated Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
32
Negative
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | -484.00M | 7.50B | 10.28B | 10.55B | 10.16B | 8.95B |
| Gross Profit | -65.00M | 602.00M | 876.00M | 900.00M | 763.00M | 837.00M |
| EBITDA | 425.00M | 538.00M | 743.00M | 741.00M | 635.00M | 742.00M |
| Net Income | -162.00M | 85.00M | -57.00M | 38.00M | -242.00M | 197.00M |
Balance Sheet | ||||||
| Total Assets | 6.08B | 7.81B | 7.49B | 7.96B | 7.45B | 7.63B |
| Cash, Cash Equivalents and Short-Term Investments | 483.00M | 476.00M | 494.00M | 529.00M | 425.00M | 285.00M |
| Total Debt | 1.53B | 3.52B | 2.91B | 2.98B | 2.72B | 2.67B |
| Total Liabilities | 4.06B | 6.89B | 5.90B | 6.14B | 5.65B | 5.46B |
| Stockholders Equity | 1.96B | 861.00M | 1.33B | 1.57B | 1.55B | 1.92B |
Cash Flow | ||||||
| Free Cash Flow | 153.00M | 298.00M | 138.00M | -25.00M | 209.00M | -211.00M |
| Operating Cash Flow | 354.00M | 512.00M | 450.00M | 476.00M | 649.00M | 158.00M |
| Investing Cash Flow | 2.15B | -222.00M | -352.00M | -528.00M | -426.00M | -293.00M |
| Financing Cash Flow | -2.57B | -371.00M | -90.00M | 160.00M | -42.00M | -127.00M |
Dana Incorporated Technical Analysis
Negative
37.06
Price Trends
34.19
Negative
33.71
Negative
28.00
Positive
Market Momentum
-1.81
Positive
33.66
Neutral
14.36
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DAN, the sentiment is Negative. The current price of 37.06 is above the 20-day moving average (MA) of 32.26, above the 50-day MA of 34.19, and above the 200-day MA of 28.00, indicating a neutral trend. The MACD of -1.81 indicates Positive momentum. The RSI at 33.66 is Neutral, neither overbought nor oversold. The STOCH value of 14.36 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DAN.
Dana Incorporated Risk Analysis
Dana Incorporated disclosed 33 risk factors in its most recent earnings report. Dana Incorporated reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Dana Incorporated Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $6.86B | 13.56 | 10.41% | 2.63% | 2.86% | 17.30% | |
69 Neutral | $2.75B | 16.76 | 11.08% | 0.57% | -2.04% | -43.19% | |
64 Neutral | $9.94B | 18.55 | 29.49% | 1.07% | 13.99% | -25.70% | |
63 Neutral | $6.57B | 19.95 | -42.77% | 1.49% | 7.36% | 34.94% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
57 Neutral | $1.57B | 28.18 | 3.37% | ― | 3.85% | ― | |
52 Neutral | $3.14B | ― | -12.67% | 1.70% | -23.37% | -131.29% |
* Consumer Cyclical Sector Average
DAN
Dana Incorporated
28.13
11.27
66.89%
ALSN
Allison Transmission Holdings
119.84
25.92
27.60%
LEA
Lear
136.84
44.28
47.84%
VC
Visteon
103.08
10.91
11.83%
ADNT
Adient
20.01
0.55
2.83%
GTX
Garrett Motion
35.11
24.77
239.42%
Dana Incorporated Corporate Events
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Dana, Eaton Form SpinCo in Reverse Morris Trust
Positive
Jun 11, 2026
On June 10, 2026, Dana Incorporated and Eaton Corporation entered into definitive agreements for a Reverse Morris Trust transaction that will combine Dana with Eaton’s Vehicle and eMobility business, to be transferred into a new Eaton subsid...
Business Operations and StrategyM&A Transactions
Dana to Combine with Eaton Mobility in $10B Deal
Positive
Jun 11, 2026
On June 11, 2026, Dana Incorporated announced a definitive agreement to combine with Eaton Corporation’s Vehicle and eMobility segments in a Reverse Morris Trust transaction valuing Eaton Mobility at about $5.1 billion and the combined compa...
Executive/Board ChangesShareholder Meetings
Dana Shareholders Reaffirm Board, Pay, and Auditor Choices
Positive
Apr 23, 2026
At its April 22, 2026 annual meeting, Dana Incorporated reported that roughly 90% of outstanding shares were represented, and shareholders elected eight directors to one-year terms with strong majority support. Investors also backed the company...
Business Operations and StrategyStock Buyback
Dana Unveils 2030 Growth and Profitability Strategy
Positive
Mar 25, 2026
On March 25, 2026, Dana Incorporated hosted its 2026 Capital Markets Day in New York City, where senior leadership outlined “Dana 2030,” a long-term plan aimed at accelerating profitable growth and reinforcing its competitive position....
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.