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

• Market Cap: €2.12B
• Dividend Yield: 1.32%
• Average Volume (3M): 76.13K
• Price to Earnings (P/E): 5.0
• Beta (1Y): 0.71
• Revenue Growth: 1.26%
• EPS Growth: 37.35%
• Country: IT
• Employees: 10,128
• Sector: Industrials
• Sector Strength: 87
• Industry: Industrial - Machinery
• EPS (TTM): 4.98
• Shares Outstanding: 40,425,034
• 10 Day Avg. Volume: 44,997
• 30 Day Avg. Volume: 76,132
• PEG Ratio: 0.82
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.92
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €32.00
• Price Target Upside: 27.49% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• Price Target: €27.00 ▲(7.57%Upside)

Danieli & C. Officine Meccaniche SPA benefits from a strong financial foundation with solid margins and low leverage. However, technical analysis reveals bearish signals, dragging down the overall score. Valuation metrics suggest potential undervaluation, which could be appealing to value investors. The lack of recent earnings call information and notable corporate events limits additional insights.

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

Company Description

Danieli & C. Officine Meccaniche S.p.A. (DANR) is a leading global engineering company headquartered in Italy, specializing in the design and manufacturing of machinery and plants for the steel industry. The company operates in various sectors including the production of steelmaking equipment, providing a comprehensive range of products and services such as turnkey plants, automation systems, and specialized machinery for steel production, processing, and finishing. Danieli is recognized for its technological innovation and commitment to delivering efficient and sustainable solutions to the steel industry worldwide.

How the Company Makes Money

Danieli & C. Officine Meccaniche S.p.A. generates revenue primarily through the sale of its machinery and plant solutions to steel producers around the world. The company's key revenue streams include the design, engineering, and construction of complete steel plants, as well as the provision of automation systems and equipment for steel production and processing. Additionally, Danieli offers after-sales services, spare parts, and technical support, contributing to recurring revenue. Significant partnerships with global steel producers and ongoing investments in research and development enhance its product offerings and market competitiveness, further driving its earnings.

Danieli & C.Officine Meccaniche SPA Financial Statement Overview

Summary

Danieli & C.Officine Meccaniche SPA shows strong financial performance with robust revenue growth, efficient cost management, and solid profitability margins. The balance sheet is strong with low leverage, and the company maintains adequate cash generation despite a decline in operating cash flow.

Income Statement

The income statement reveals strong revenue growth with a 11.2% increase from 2023 to 2024. Gross profit margin improved to 29.6%, indicating efficient cost management. The net profit margin is slightly lower at 5.5%, reflecting moderate profitability. EBIT and EBITDA margins are healthy at 5.1% and 11.0% respectively, showcasing solid operational efficiency.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio of 0.23, highlighting low financial leverage. The equity ratio stands at 35.0%, indicating strong equity financing. Return on equity is moderate at 9.2%, suggesting efficient use of equity capital.

Cash Flow

Operating cash flow has decreased significantly, but the company maintains positive free cash flow of 156 million. The free cash flow to net income ratio is 0.65, showing adequate cash generation relative to earnings. The operating cash flow to net income ratio is 1.38, indicating healthy cash flow from operations.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	4.35B	3.91B	3.47B	3.04B	2.38B
Gross Profit	1.29B	902.23M	630.98M	770.74M	715.40M
EBITDA	477.30M	445.90M	444.71M	243.09M	219.80M
Net Income	240.80M	243.64M	218.72M	80.19M	62.89M
Balance Sheet
Total Assets	7.49B	6.54B	6.16B	5.45B	5.08B
Cash, Cash Equivalents and Short-Term Investments	2.62B	2.21B	2.07B	1.66B	1.57B
Total Debt	605.05M	313.63M	561.11M	585.26M	601.71M
Total Liabilities	4.86B	4.13B	3.94B	3.44B	3.14B
Stockholders Equity	2.63B	2.40B	2.22B	2.01B	1.94B
Cash Flow
Free Cash Flow	156.08M	478.80M	166.47M	138.42M	16.40M
Operating Cash Flow	331.84M	638.39M	279.39M	279.71M	191.79M
Investing Cash Flow	-194.30M	-92.12M	-24.63M	-231.61M	-191.69M
Financing Cash Flow	289.92M	-280.31M	168.56M	26.50M	-111.16M

Danieli & C.Officine Meccaniche SPA Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 25.10
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:DANR, the sentiment is Neutral. The current price of 25.1 is below the 20-day moving average (MA) of 26.20, below the 50-day MA of 25.66, and above the 200-day MA of 21.87, indicating a neutral trend. The MACD of -0.38 indicates Positive momentum. The RSI at 41.00 is Neutral, neither overbought nor oversold. The STOCH value of 13.98 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IT:DANR.

Danieli & C.Officine Meccaniche SPA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IP	70 Outperform	€3.77B	17.48	11.06%	0.80%	-6.36%	-15.46%
Sector *	68 Neutral	€2.80B	16.30	9.89%	2.84%	-0.64%	-28.31%
DANR	66 Neutral	€2.12B	5.04	10.20%	1.32%	1.26%	37.35%
SAB	64 Neutral	€162.15M	27.95	3.89%	3.48%	16.53%	-20.56%
TES	58 Neutral	€31.95M	―	1.52%	―	-4.80%	-237.04%
BSS	56 Neutral	€203.33M	54.24	1.43%	0.47%	-3.86%	-69.97%