DANIELI & CO (DAN.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:DAN - IT0000076502 - Common Stock
63 EUR
+5.5 (+9.57%)
We assign a fundamental rating of 4 out of 10 to DAN. DAN was compared to 115 industry peers in the Machinery industry. DAN has an average financial health and profitability rating. DAN is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year DAN was profitable.
- DAN had a positive operating cash flow in the past year.
- DAN had positive earnings in each of the past 5 years.
- Each year in the past 5 years DAN had a positive operating cash flow.
1.2 Ratios
- With a Return On Assets value of 3.52%, DAN perfoms like the industry average, outperforming 53.04% of the companies in the same industry.
- DAN has a better Return On Equity (9.68%) than 60.87% of its industry peers.
- DAN has a Return On Invested Capital (5.48%) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.52% | ||
| ROE | 9.68% | ||
| ROIC | 5.48% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- DAN has a Profit Margin of 6.35%. This is in the better half of the industry: DAN outperforms 66.09% of its industry peers.
- DAN's Profit Margin has improved in the last couple of years.
- DAN's Operating Margin of 6.11% is in line compared to the rest of the industry. DAN outperforms 48.70% of its industry peers.
- In the last couple of years the Operating Margin of DAN has grown nicely.
- DAN has a Gross Margin of 45.29%. This is in the better half of the industry: DAN outperforms 60.87% of its industry peers.
- In the last couple of years the Gross Margin of DAN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.11% | ||
| PM (TTM) | 6.35% | ||
| GM | 45.29% |
OM growth 3Y6.04%
OM growth 5Y13.12%
PM growth 3Y-6.41%
PM growth 5Y14.27%
GM growth 3Y-1.22%
GM growth 5Y-1.88%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DAN is destroying value.
- DAN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- An Altman-Z score of 2.06 indicates that DAN is not a great score, but indicates only limited risk for bankruptcy at the moment.
- With a Altman-Z score value of 2.06, DAN perfoms like the industry average, outperforming 51.30% of the companies in the same industry.
- The Debt to FCF ratio of DAN is 8.62, which is on the high side as it means it would take DAN, 8.62 years of fcf income to pay off all of its debts.
- DAN has a Debt to FCF ratio (8.62) which is in line with its industry peers.
- A Debt/Equity ratio of 0.22 indicates that DAN is not too dependend on debt financing.
- DAN has a Debt to Equity ratio of 0.22. This is in the better half of the industry: DAN outperforms 64.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 8.62 | ||
| Altman-Z | 2.06 |
ROIC/WACC0.67
WACC8.23%
2.3 Liquidity
- DAN has a Current Ratio of 1.46. This is a normal value and indicates that DAN is financially healthy and should not expect problems in meeting its short term obligations.
- DAN's Current ratio of 1.46 is in line compared to the rest of the industry. DAN outperforms 46.96% of its industry peers.
- A Quick Ratio of 1.23 indicates that DAN should not have too much problems paying its short term obligations.
- The Quick ratio of DAN (1.23) is better than 68.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
- DAN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.64%.
- Measured over the past years, DAN shows a very strong growth in Earnings Per Share. The EPS has been growing by 28.71% on average per year.
- DAN shows a decrease in Revenue. In the last year, the revenue decreased by -1.69%.
- DAN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.43% yearly.
EPS 1Y (TTM)-8.64%
EPS 3Y0.19%
EPS 5Y28.71%
EPS Q2Q%-33.44%
Revenue 1Y (TTM)-1.69%
Revenue growth 3Y7.06%
Revenue growth 5Y12.43%
Sales Q2Q%-2.53%
3.2 Future
- Based on estimates for the next years, DAN will show a small growth in Earnings Per Share. The EPS will grow by 5.84% on average per year.
- DAN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.19% yearly.
EPS Next Y10.7%
EPS Next 2Y9.58%
EPS Next 3Y5.84%
EPS Next 5YN/A
Revenue Next Year0.07%
Revenue Next 2Y3.26%
Revenue Next 3Y2.19%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 21.21 indicates a rather expensive valuation of DAN.
- 68.70% of the companies in the same industry are more expensive than DAN, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 27.32. DAN is valued slightly cheaper when compared to this.
- With a Price/Forward Earnings ratio of 17.52, DAN is valued on the expensive side.
- DAN's Price/Forward Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.32, DAN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.21 | ||
| Fwd PE | 17.52 |
4.2 Price Multiples
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of DAN indicates a slightly more expensive valuation: DAN is more expensive than 73.04% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 71.54 | ||
| EV/EBITDA | -0.31 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DAN does not grow enough to justify the current Price/Earnings ratio.
- The decent profitability rating of DAN may justify a higher PE ratio.
PEG (NY)1.98
PEG (5Y)0.74
EPS Next 2Y9.58%
EPS Next 3Y5.84%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.54%, DAN is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 1.50, DAN is paying slightly less dividend.
- With a Dividend Yield of 0.54, DAN pays less dividend than the S&P500 average, which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
5.2 History
- On average, the dividend of DAN grows each year by 23.78%, which is quite nice.
Dividend Growth(5Y)23.78%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 8.87% of the earnings are spent on dividend by DAN. This is a low number and sustainable payout ratio.
- DAN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP8.87%
EPS Next 2Y9.58%
EPS Next 3Y5.84%
DANIELI & CO / DAN.MI FAQ
What is the ChartMill fundamental rating of DANIELI & CO (DAN.MI) stock?
ChartMill assigns a fundamental rating of 4 / 10 to DAN.MI.
Can you provide the valuation status for DANIELI & CO?
ChartMill assigns a valuation rating of 2 / 10 to DANIELI & CO (DAN.MI). This can be considered as Overvalued.
What is the profitability of DAN stock?
DANIELI & CO (DAN.MI) has a profitability rating of 6 / 10.
How financially healthy is DANIELI & CO?
The financial health rating of DANIELI & CO (DAN.MI) is 4 / 10.
Can you provide the dividend sustainability for DAN stock?
The dividend rating of DANIELI & CO (DAN.MI) is 3 / 10 and the dividend payout ratio is 8.87%.