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

• Market Cap: €2.30B
• Dividend Yield: 1.23%
• Average Volume (3M): 54.31K
• Price to Earnings (P/E): 5.4
• Beta (1Y): 0.74
• Revenue Growth: 1.26%
• EPS Growth: 37.35%
• Country: IT
• Employees: 10,128
• Sector: Industrials
• Sector Strength: 89
• Industry: Industrial - Machinery
• EPS (TTM): 4.98
• Shares Outstanding: 40,425,034
• 10 Day Avg. Volume: 53,470
• 30 Day Avg. Volume: 54,311
• 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: 18.87% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: €29.00 ▲(7.73%Upside)

Danieli & C.Officine Meccaniche SPA demonstrates strong financial performance with robust revenue growth and profitability margins. The valuation is compelling due to a low P/E ratio, indicating the stock may be undervalued. However, technical indicators are neutral, suggesting no immediate momentum, which tempers the overall score.

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

Company Description

Danieli & 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 Money

Danieli & C.Officine Meccaniche SPA generates revenue through its two primary business segments: Plantmaking and Steelmaking. The Plantmaking division is a significant revenue driver, where the company earns money by designing, manufacturing, and installing machinery and plants for the steel industry. This includes providing turnkey solutions that cover all phases of metal production, from raw material processing to finished products. Danieli's expertise in providing customized, high-efficiency solutions is a key competitive advantage in this segment. The Steelmaking division contributes to revenue by producing and selling steel products, leveraging the company's own production facilities. Danieli's steel products meet a wide range of industrial needs, offering high quality and reliability. The company's earnings are further supported by its global presence, allowing it to serve a diversified clientele across different regions. Strategic partnerships and long-term contracts with major steel producers also play a crucial role in sustaining Danieli's revenue streams.

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: Positive
• Last Price: 26.92
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:DANR, the sentiment is Positive. The current price of 26.92 is above the 20-day moving average (MA) of 25.99, above the 50-day MA of 26.48, and above the 200-day MA of 22.24, indicating a bullish trend. The MACD of 0.30 indicates Negative momentum. The RSI at 57.21 is Neutral, neither overbought nor oversold. The STOCH value of 76.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
DANR	74 Outperform	€2.30B	5.41	10.20%	1.23%	1.26%	37.35%
Sector *	63 Neutral	kr59.62B	12.52	1.88%	2.34%	0.31%	-4.90%
0DUK	―	€209.90M	56.51	1.43%	0.52%	―	―
0EWD	―	€3.69B	16.98	11.06%	0.95%	―	―
0NIG	―	€161.59M	28.05	3.89%	4.03%	―	―
0MVJ	―	€39.23M	―	1.52%	―	―	―
ESAU	―	€39.14M	43.04		1.65%	―	―