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Danieli & C.Officine Meccaniche SPA (IT:DAN)
:DAN
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Danieli & C.Officine Meccaniche SPA (DAN) AI Stock Analysis

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IT:DAN

Danieli & C.Officine Meccaniche SPA

(LSE:DAN)

Rating:79Outperform
Price Target:
€40.00
▲(7.38%Upside)
The overall stock score reflects strong financial performance and attractive valuation, despite some challenges in cash flow. Technical indicators support a positive momentum, though potential overbought conditions warrant caution. The stock's low P/E ratio contributes significantly to its attractiveness.

Danieli & C.Officine Meccaniche SPA (DAN) vs. iShares MSCI Italy ETF (EWI)

Danieli & C.Officine Meccaniche SPA Business Overview & Revenue Model

Company DescriptionDanieli & C. Officine Meccaniche S.p.A. is a leading Italian engineering company that specializes in the design, construction, and sale of equipment and plants for the steel industry. Founded in 1914, the company operates in two main sectors: Plant Making and Steel Making. The Plant Making sector focuses on providing advanced technology and solutions for steel production, while the Steel Making sector involves the production and sale of special steels. Danieli is renowned for its innovation and technological expertise in delivering a wide range of products and services, including turnkey plants, equipment, and automation systems for steelmakers worldwide.
How the Company Makes MoneyDanieli & C. Officine Meccaniche S.p.A. generates revenue primarily through its Plant Making and Steel Making sectors. In the Plant Making segment, the company designs, manufactures, and sells machinery and technology solutions for the steel industry, including rolling mills, continuous casting machines, and processing lines. Revenue is generated through the sale of these products, as well as through contracts for plant engineering and construction services. The Steel Making segment contributes to revenue through the production and sale of special steels, catering to various industrial applications. Additionally, Danieli's earnings are supported by after-sales services, including maintenance, spare parts, and technical support for its installations. The company benefits from strategic partnerships with steel producers and continuous investment in research and development, which enhances its competitive position in the global market.

Danieli & C.Officine Meccaniche SPA Financial Statement Overview

Summary
Danieli & C.Officine Meccaniche SPA exhibits strong revenue growth and profitability, supported by an efficient cost structure. The balance sheet is solid with low leverage and a strong equity base, though there is room to enhance returns on equity. Cash flow challenges are noted, particularly in free cash flow generation, but overall cash operations remain robust. The company is well-positioned for future growth, though improving cash flow metrics will be key to sustaining its financial health.
Income Statement
85
Very Positive
The company demonstrates strong revenue growth with a 11.2% increase from the previous year, indicating a positive trend. Gross profit margin is robust at 29.7%, reflecting efficient production and pricing strategies. Net profit margin is healthy at 5.5%, supported by a strong EBIT margin of 5.1% and an EBITDA margin of 11.0%. Overall, the income statement suggests solid profitability and growth potential.
Balance Sheet
78
Positive
The balance sheet is stable with a low debt-to-equity ratio of 0.23, indicating conservative leverage practices. The equity ratio stands at 35.0%, showing a solid base of stockholder equity relative to total assets. Return on equity is relatively modest at 9.2%, suggesting room for improved efficiency in using equity to generate profits.
Cash Flow
72
Positive
Cash flow analysis reveals a decrease in free cash flow by 67.4%, which is a concern. However, the operating cash flow to net income ratio is favorable at 1.38, indicating strong cash generation relative to reported profits. The free cash flow to net income ratio is 0.65, which shows some challenges in converting net income into free cash flow.
BreakdownJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue4.35B3.91B3.47B3.04B2.38B
Gross Profit1.29B902.23M630.98M770.74M715.40M
EBITDA477.30M445.90M444.71M243.09M219.80M
Net Income240.80M243.64M218.72M80.19M62.89M
Balance Sheet
Total Assets7.49B6.54B6.16B5.45B5.08B
Cash, Cash Equivalents and Short-Term Investments2.62B2.21B2.07B1.66B1.57B
Total Debt605.05M313.63M561.11M585.26M601.71M
Total Liabilities4.86B4.13B3.94B3.44B3.14B
Stockholders Equity2.63B2.40B2.22B2.01B1.94B
Cash Flow
Free Cash Flow156.08M478.80M166.47M138.42M16.40M
Operating Cash Flow331.84M638.39M279.39M279.71M191.79M
Investing Cash Flow-194.30M-92.12M-24.63M-231.61M-191.69M
Financing Cash Flow289.92M-280.31M168.56M26.50M-111.16M

Danieli & C.Officine Meccaniche SPA Technical Analysis

Technical Analysis Sentiment
Positive
Last Price37.25
Price Trends
50DMA
34.14
Positive
100DMA
32.25
Positive
200DMA
28.88
Positive
Market Momentum
MACD
0.88
Negative
RSI
72.02
Negative
STOCH
91.20
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:DAN, the sentiment is Positive. The current price of 37.25 is above the 20-day moving average (MA) of 34.48, above the 50-day MA of 34.14, and above the 200-day MA of 28.88, indicating a bullish trend. The MACD of 0.88 indicates Negative momentum. The RSI at 72.02 is Negative, neither overbought nor oversold. The STOCH value of 91.20 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:DAN.

Danieli & C.Officine Meccaniche SPA Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
€2.45B7.3810.20%0.83%1.26%37.35%
76
Outperform
€3.81B17.6511.06%0.93%-6.36%-15.46%
68
Neutral
€2.78B22.937.73%2.84%-1.29%-31.61%
67
Neutral
€159.35M27.373.89%4.08%16.53%-20.56%
60
Neutral
€213.47M57.971.43%0.51%-3.86%-69.97%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IT:DAN
Danieli & C.Officine Meccaniche SPA
37.25
3.08
9.00%
IT:IP
Interpump Group SPA
35.50
-4.28
-10.76%
IT:SAB
Sabaf Technology and Safety
14.20
-3.12
-18.02%
IT:BSS
Biesse SPA
7.79
-2.03
-20.66%
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.Date of analysis: Jul 11, 2025