DANA INC (DAN)
US2358252052 - Common Stock
DAN gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 42 industry peers in the Automobile Components industry. Both the profitability and financial health of DAN have multiple concerns. DAN is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
DAN had positive earnings in the past year.
DAN had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: DAN reported negative net income in multiple years.
In the past 5 years DAN always reported a positive cash flow from operatings.
1.2 Ratios
DAN has a Return On Assets (0.48%) which is comparable to the rest of the industry.
DAN has a Return On Equity (2.41%) which is comparable to the rest of the industry.
With a Return On Invested Capital value of 5.27%, DAN perfoms like the industry average, outperforming 47.62% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DAN is below the industry average of 9.29%.
The last Return On Invested Capital (5.27%) for DAN is above the 3 year average (5.03%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.48% | ||
| ROE | 2.41% | ||
| ROIC | 5.27% |
ROA(3y)-0.06%
ROA(5y)0.5%
ROE(3y)-0.98%
ROE(5y)1.47%
ROIC(3y)5.03%
ROIC(5y)5.51%
1.3 Margins
DAN has a Profit Margin (0.36%) which is comparable to the rest of the industry.
DAN's Profit Margin has declined in the last couple of years.
DAN has a Operating Margin (3.40%) which is in line with its industry peers.
In the last couple of years the Operating Margin of DAN has declined.
The Gross Margin of DAN (8.53%) is worse than 80.95% of its industry peers.
In the last couple of years the Gross Margin of DAN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.4% | ||
| PM (TTM) | 0.36% | ||
| GM | 8.53% |
OM growth 3Y3.03%
OM growth 5Y-15.84%
PM growth 3YN/A
PM growth 5Y-41.48%
GM growth 3Y-0.82%
GM growth 5Y-9.79%
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 more shares outstanding than it did 1 year ago.
The number of shares outstanding for DAN has been reduced compared to 5 years ago.
The debt/assets ratio for DAN is higher compared to a year ago.
2.2 Solvency
DAN has an Altman-Z score of 1.92. This is not the best score and indicates that DAN is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.92, DAN is in line with its industry, outperforming 45.24% of the companies in the same industry.
DAN has a Debt/Equity ratio of 1.66. This is a high value indicating a heavy dependency on external financing.
DAN has a worse Debt to Equity ratio (1.66) than 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.66 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.92 |
ROIC/WACC0.58
WACC9.12%
2.3 Liquidity
A Current Ratio of 1.58 indicates that DAN should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.58, DAN is doing worse than 66.67% of the companies in the same industry.
DAN has a Quick Ratio of 1.58. This is a bad value and indicates that DAN is not financially healthy enough and could expect problems in meeting its short term obligations.
DAN's Quick ratio of 0.93 is on the low side compared to the rest of the industry. DAN is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.58 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 121.05% over the past year.
DAN shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -22.32% yearly.
Looking at the last year, DAN shows a small growth in Revenue. The Revenue has grown by 3.93% in the last year.
Measured over the past years, DAN shows a small growth in Revenue. The Revenue has been growing by 5.33% on average per year.
EPS 1Y (TTM)121.05%
EPS 3Y29.14%
EPS 5Y-22.32%
EPS growth Q2Q20%
Revenue 1Y (TTM)3.93%
Revenue growth 3Y14.1%
Revenue growth 5Y5.33%
Revenue growth Q2Q-2.39%
3.2 Future
DAN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.25% yearly.
DAN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.60% yearly.
EPS Next Y5.98%
EPS Next 2Y36.96%
EPS Next 3Y26.49%
EPS Next 5Y28.25%
Revenue Next Year2.44%
Revenue Next 2Y3.65%
Revenue Next 3Y4.03%
Revenue Next 5Y3.6%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 14.86 indicates a correct valuation of DAN.
Compared to the rest of the industry, the Price/Earnings ratio of DAN indicates a somewhat cheap valuation: DAN is cheaper than 76.19% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.92, DAN is valued a bit cheaper.
DAN is valuated correctly with a Price/Forward Earnings ratio of 14.02.
Based on the Price/Forward Earnings ratio, DAN is valued a bit cheaper than the industry average as 61.90% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of DAN to the average of the S&P500 Index (21.49), we can say DAN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.86 | ||
| Fwd PE | 14.02 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DAN is valued cheaper than 80.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as DAN's earnings are expected to grow with 26.49% in the coming years.
PEG (NY)2.48
PEG (5Y)N/A
EPS Next 2Y36.96%
EPS Next 3Y26.49%
5. Dividend
5.1 Amount
DAN has a Yearly Dividend Yield of 3.33%.
Compared to an average industry Dividend Yield of 2.79, DAN pays a better dividend. On top of this DAN pays more dividend than 90.48% of the companies listed in the same industry.
DAN's Dividend Yield is a higher than the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
5.2 History
The dividend of DAN has a limited annual growth rate of 0.15%.
DAN has been paying a dividend for at least 10 years, so it has a reliable track record.
DAN has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)0.15%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
DAN pays out 152.63% of its income as dividend. This is not a sustainable payout ratio.
DAN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP152.63%
EPS Next 2Y36.96%
EPS Next 3Y26.49%
DANA INC
NYSE:DAN (4/26/2024, 7:04:00 PM)
After market: 12.48 0 (0%)12.48
+0.24 (+1.96%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.81B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.86 | ||
| Fwd PE | 14.02 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.48
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.48% | ||
| ROE | 2.41% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.4% | ||
| PM (TTM) | 0.36% | ||
| GM | 8.53% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.66 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.58 | ||
| Quick Ratio | 0.93 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)121.05%
EPS 3Y29.14%
EPS 5Y
EPS growth Q2Q
EPS Next Y5.98%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.93%
Revenue growth 3Y14.1%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y