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

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

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Danieli & C.Officine Meccaniche SPA

(LSE:DAN)

Rating:75Outperform
Price Target:
€35.00
▲(5.26%Upside)
Danieli & C.Officine Meccaniche SPA's strong financial performance and attractive valuation significantly contribute to its overall stock score. However, the technical analysis indicates bearish momentum, which could pose short-term challenges. The absence of earnings call data and corporate events does not impact the score calculation.

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. designs, builds, and sells plants for the iron and steel industry in Europe, Russia, the Middle East, the Americas, and South East Asia. It operates through two segments, Plant Making and Steel Making. The company designs and builds plants for various process areas, including mines; pellet production plants; blast furnaces; direct reduction; scrap shredders; steelworks for production of liquid steel; and continuous casting for blooms and billets, slabs, and thin slabs. It also designs and builds rolling mills for long products and seamless tubes; lines for welded tubes; hot and cold rolling mills for flat products; process lines for flat products; and plants for dimensional checking and for non-destructive quality control, and conditioning plants. In addition, the company offers plants for secondary processing, such as peeling, straightening, 2-roll reeling, and drawing machines; forging presses and manipulators, and forging plants; extrusion presses for ferrous and non-ferrous materials; plants for longitudinal cutting and for transversal cutting; plant automation systems; and cranes and lifting equipment. Further, it is involved in the production and sale of special steel comprising ingots, blooms, billets, and forged and rolled products; and structural steel comprising high carbon steel, as well as case-hardened, hardened and tempered, and surface hardened steel for use in various engineering components. The company was founded in 1914 and is based in Buttrio, Italy.
How the Company Makes MoneyDanieli & C. Officine Meccaniche S.p.A. generates revenue primarily through the sale and installation of industrial machinery and equipment for the metals industry. The company offers comprehensive solutions, including the design, engineering, and commissioning of full-scale production plants, which are custom-tailored to client specifications. In addition to machinery sales, Danieli provides after-sales services, maintenance, and technical support, contributing to recurring revenue streams. The company also benefits from strategic partnerships and long-term contracts with major players in the steel and metals sectors, which help to secure a stable income base. Furthermore, Danieli invests in research and development to innovate and expand its product offerings, ensuring competitiveness and the ability to meet evolving industry demands.

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 Price33.25
Price Trends
50DMA
33.06
Positive
100DMA
31.20
Positive
200DMA
28.31
Positive
Market Momentum
MACD
-0.30
Positive
RSI
52.44
Neutral
STOCH
80.85
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 33.25 is above the 20-day moving average (MA) of 33.07, above the 50-day MA of 33.06, and above the 200-day MA of 28.31, indicating a bullish trend. The MACD of -0.30 indicates Positive momentum. The RSI at 52.44 is Neutral, neither overbought nor oversold. The STOCH value of 80.85 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 (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
ITDAN
75
Outperform
€2.12B6.4810.20%0.96%1.26%37.35%
65
Neutral
$10.65B15.525.51%1.92%2.72%-26.34%
€203.33M51.541.43%0.47%
€3.73B17.2811.06%0.80%
€162.15M28.053.89%3.47%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IT:DAN
Danieli & C.Officine Meccaniche SPA
33.25
-2.01
-5.70%
GB:0DUK
Biesse SPA
7.05
-3.34
-32.15%
GB:0EWD
Interpump Group SPA
35.08
-6.13
-14.88%
GB:0NIG
Sabaf Technology and Safety
14.50
-4.73
-24.60%
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: Jun 24, 2025