DANA INC (DAN) Stock Fundamental Analysis
NYSE:DAN - New York Stock Exchange, Inc. - US2358252052 - Common Stock - Currency: USD
DAN gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 81 industry peers in the Automobile Components industry. DAN may be in some trouble as it scores bad on both profitability and health. DAN is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year DAN was profitable.
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.
DAN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.45%, DAN is doing worse than 74.07% of the companies in the same industry.
DAN has a Return On Equity of -2.54%. This is in the lower half of the industry: DAN underperforms 72.84% of its industry peers.
DAN's Return On Invested Capital of 4.95% is on the low side compared to the rest of the industry. DAN is outperformed by 77.78% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DAN is below the industry average of 9.04%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.45% | ||
| ROE | -2.54% | ||
| ROIC | 4.95% |
ROA(3y)-1.18%
ROA(5y)-0.27%
ROE(3y)-5.82%
ROE(5y)-1.8%
ROIC(3y)5.02%
ROIC(5y)4.73%
1.3 Margins
Looking at the Operating Margin, with a value of 3.23%, DAN is doing worse than 77.78% of the companies in the same industry.
DAN's Operating Margin has declined in the last couple of years.
DAN has a Gross Margin of 8.61%. This is amonst the worse of the industry: DAN underperforms 87.65% of its industry peers.
DAN's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.23% | ||
| PM (TTM) | N/A | ||
| GM | 8.61% |
OM growth 3Y-8.06%
OM growth 5Y-14.95%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.08%
GM growth 5Y-8.28%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DAN is destroying value.
The number of shares outstanding for DAN has been increased compared to 1 year ago.
The number of shares outstanding for DAN has been increased compared to 5 years ago.
Compared to 1 year ago, DAN has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.86 indicates that DAN is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of DAN (1.86) is worse than 76.54% of its industry peers.
DAN has a debt to FCF ratio of 21.33. This is a negative value and a sign of low solvency as DAN would need 21.33 years to pay back of all of its debts.
The Debt to FCF ratio of DAN (21.33) is worse than 74.07% of its industry peers.
A Debt/Equity ratio of 1.85 is on the high side and indicates that DAN has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.85, DAN is doing worse than 90.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | 21.33 | ||
| Altman-Z | 1.86 |
ROIC/WACC0.51
WACC9.71%
2.3 Liquidity
A Current Ratio of 1.43 indicates that DAN should not have too much problems paying its short term obligations.
The Current ratio of DAN (1.43) is worse than 83.95% of its industry peers.
DAN has a Quick Ratio of 1.43. This is a bad value and indicates that DAN is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.85, DAN is not doing good in the industry: 85.19% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
DAN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by 0.00%.
DAN shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -21.71% yearly.
DAN shows a decrease in Revenue. In the last year, the revenue decreased by -7.00%.
Measured over the past years, DAN shows a small growth in Revenue. The Revenue has been growing by 3.59% on average per year.
EPS 1Y (TTM)0%
EPS 3Y-18.46%
EPS 5Y-21.71%
EPS Q2Q%-40.91%
Revenue 1Y (TTM)-7%
Revenue growth 3Y4.76%
Revenue growth 5Y3.59%
Sales Q2Q%-14%
3.2 Future
The Earnings Per Share is expected to grow by 28.77% on average over the next years. This is a very strong growth
DAN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.50% yearly.
EPS Next Y47.38%
EPS Next 2Y43.59%
EPS Next 3Y33.96%
EPS Next 5Y28.77%
Revenue Next Year-5.85%
Revenue Next 2Y-1.05%
Revenue Next 3Y-1.27%
Revenue Next 5Y1.5%
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 accelerating.
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
DAN is valuated rather expensively with a Price/Earnings ratio of 21.27.
DAN's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.31. DAN is around the same levels.
Based on the Price/Forward Earnings ratio of 9.29, the valuation of DAN can be described as reasonable.
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 22.13, DAN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.27 | ||
| Fwd PE | 9.29 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DAN is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as DAN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.32 | ||
| EV/EBITDA | 6.34 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as DAN's earnings are expected to grow with 33.96% in the coming years.
PEG (NY)0.45
PEG (5Y)N/A
EPS Next 2Y43.59%
EPS Next 3Y33.96%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.30%, DAN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.23, DAN has a dividend in line with its industry peers.
DAN's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
5.2 History
The dividend of DAN decreases each year by -0.02%.
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)-0.02%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
DAN has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-165.71%
EPS Next 2Y43.59%
EPS Next 3Y33.96%
17.23
-0.15 (-0.86%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners106.72%
Inst Owner Change1.48%
Ins Owners0.44%
Ins Owner Change9.2%
Market Cap2.51B
Analysts73.85
Price Target19.89 (15.44%)
Short Float %5%
Short Ratio3.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
Yearly Dividend0.4
Dividend Growth(5Y)-0.02%
DP-165.71%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)51.52%
Min EPS beat(2)-21.99%
Max EPS beat(2)125.02%
EPS beat(4)2
Avg EPS beat(4)16.62%
Min EPS beat(4)-47.77%
Max EPS beat(4)125.02%
EPS beat(8)5
Avg EPS beat(8)36.01%
EPS beat(12)7
Avg EPS beat(12)19.66%
EPS beat(16)9
Avg EPS beat(16)10.37%
Revenue beat(2)1
Avg Revenue beat(2)0.22%
Min Revenue beat(2)-0.89%
Max Revenue beat(2)1.34%
Revenue beat(4)1
Avg Revenue beat(4)-1.7%
Min Revenue beat(4)-5.02%
Max Revenue beat(4)1.34%
Revenue beat(8)2
Avg Revenue beat(8)-1.62%
Revenue beat(12)6
Avg Revenue beat(12)-0.43%
Revenue beat(16)10
Avg Revenue beat(16)1.07%
PT rev (1m)6.36%
PT rev (3m)-2.5%
EPS NQ rev (1m)2.9%
EPS NQ rev (3m)-3.62%
EPS NY rev (1m)-0.29%
EPS NY rev (3m)9.67%
Revenue NQ rev (1m)1.66%
Revenue NQ rev (3m)1.79%
Revenue NY rev (1m)0.43%
Revenue NY rev (3m)0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.27 | ||
| Fwd PE | 9.29 | ||
| P/S | 0.25 | ||
| P/FCF | 19.32 | ||
| P/OCF | 4.88 | ||
| P/B | 1.82 | ||
| P/tB | 2.58 | ||
| EV/EBITDA | 6.34 |
EPS(TTM)0.81
EY4.7%
EPS(NY)1.86
Fwd EY10.77%
FCF(TTM)0.89
FCFY5.18%
OCF(TTM)3.53
OCFY20.51%
SpS67.94
BVpS9.46
TBVpS6.68
PEG (NY)0.45
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.45% | ||
| ROE | -2.54% | ||
| ROCE | 6.44% | ||
| ROIC | 4.95% | ||
| ROICexc | 5.5% | ||
| ROICexgc | 6.03% | ||
| OM | 3.23% | ||
| PM (TTM) | N/A | ||
| GM | 8.61% | ||
| FCFM | 1.31% |
ROA(3y)-1.18%
ROA(5y)-0.27%
ROE(3y)-5.82%
ROE(5y)-1.8%
ROIC(3y)5.02%
ROIC(5y)4.73%
ROICexc(3y)5.54%
ROICexc(5y)5.19%
ROICexgc(3y)6.12%
ROICexgc(5y)5.83%
ROCE(3y)6.38%
ROCE(5y)6.02%
ROICexcg growth 3Y-0.28%
ROICexcg growth 5Y-11.5%
ROICexc growth 3Y1.52%
ROICexc growth 5Y-10.28%
OM growth 3Y-8.06%
OM growth 5Y-14.95%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.08%
GM growth 5Y-8.28%
F-Score4
Asset Turnover1.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | 21.33 | ||
| Debt/EBITDA | 3.47 | ||
| Cap/Depr | 92.33% | ||
| Cap/Sales | 3.89% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 69.88% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.43 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | 1.86 |
F-Score4
WACC9.71%
ROIC/WACC0.51
Cap/Depr(3y)107.96%
Cap/Depr(5y)101.61%
Cap/Sales(3y)4.26%
Cap/Sales(5y)4.3%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)0%
EPS 3Y-18.46%
EPS 5Y-21.71%
EPS Q2Q%-40.91%
EPS Next Y47.38%
EPS Next 2Y43.59%
EPS Next 3Y33.96%
EPS Next 5Y28.77%
Revenue 1Y (TTM)-7%
Revenue growth 3Y4.76%
Revenue growth 5Y3.59%
Sales Q2Q%-14%
Revenue Next Year-5.85%
Revenue Next 2Y-1.05%
Revenue Next 3Y-1.27%
Revenue Next 5Y1.5%
EBIT growth 1Y-14.89%
EBIT growth 3Y-3.68%
EBIT growth 5Y-11.9%
EBIT Next Year115.65%
EBIT Next 3Y34.36%
EBIT Next 5Y28.72%
FCF growth 1Y-16.67%
FCF growth 3YN/A
FCF growth 5Y-19.8%
OCF growth 1Y-14.17%
OCF growth 3Y41.75%
OCF growth 5Y-6.71%