DANA INC (DAN) Stock Fundamental Analysis
NYSE:DAN - New York Stock Exchange, Inc. - US2358252052 - Common Stock - Currency: USD
We assign a fundamental rating of 2 out of 10 to DAN. DAN was compared to 80 industry peers in the Automobile Components industry. DAN has a bad profitability rating. Also its financial health evaluation is rather negative. DAN has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
DAN had positive earnings in the past year.
In the past year DAN had a positive cash flow from operations.
In multiple years DAN reported negative net income over the last 5 years.
Each year in the past 5 years DAN had a positive operating cash flow.
1.2 Ratios
DAN has a worse Return On Assets (-0.45%) than 75.00% of its industry peers.
DAN has a Return On Equity of -2.54%. This is in the lower half of the industry: DAN underperforms 73.75% of its industry peers.
DAN has a Return On Invested Capital of 4.95%. This is in the lower half of the industry: DAN underperforms 78.75% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DAN is below the industry average of 9.12%.
| 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
DAN has a Operating Margin of 3.23%. This is in the lower half of the industry: DAN underperforms 78.75% of its industry peers.
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 88.75% 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.
Compared to 1 year ago, DAN has more shares outstanding
The number of shares outstanding for DAN has been increased compared to 5 years ago.
DAN has a worse debt/assets ratio than last year.
2.2 Solvency
DAN has an Altman-Z score of 1.86. 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.
DAN has a Altman-Z score of 1.86. This is in the lower half of the industry: DAN underperforms 77.50% 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 75.00% of its industry peers.
DAN has a Debt/Equity ratio of 1.85. This is a high value indicating a heavy dependency on external financing.
DAN has a Debt to Equity ratio of 1.85. This is amonst the worse of the industry: DAN underperforms 91.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | 21.33 | ||
| Altman-Z | 1.86 |
ROIC/WACC0.54
WACC9.22%
2.3 Liquidity
A Current Ratio of 1.43 indicates that DAN should not have too much problems paying its short term obligations.
DAN has a worse Current ratio (1.43) than 83.75% 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.
The Quick ratio of DAN (0.85) is worse than 86.25% of its industry peers.
| 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.
The Revenue has decreased by -7.00% in the past year.
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
Based on estimates for the next years, DAN will show a very strong growth in Earnings Per Share. The EPS will grow by 28.77% on average per year.
DAN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.50% yearly.
EPS Next Y52.78%
EPS Next 2Y46.46%
EPS Next 3Y35.32%
EPS Next 5Y28.77%
Revenue Next Year-5.95%
Revenue Next 2Y-2.72%
Revenue Next 3Y-1.07%
Revenue Next 5Y1.5%
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
DAN is valuated rather expensively with a Price/Earnings ratio of 20.80.
DAN's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.30, DAN is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 8.73, the valuation of DAN can be described as reasonable.
DAN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DAN is cheaper than 62.50% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, DAN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.8 | ||
| Fwd PE | 8.73 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DAN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.89 | ||
| EV/EBITDA | 6.31 |
4.3 Compensation for Growth
DAN's 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 35.32% in the coming years.
PEG (NY)0.39
PEG (5Y)N/A
EPS Next 2Y46.46%
EPS Next 3Y35.32%
5. Dividend
5.1 Amount
DAN has a Yearly Dividend Yield of 2.32%.
Compared to an average industry Dividend Yield of 4.30, DAN has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, DAN has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
5.2 History
The dividend of DAN decreases each year by -0.02%.
DAN has paid a dividend for at least 10 years, which is 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
The earnings of DAN are negative and hence is the payout ratio. DAN will probably not be able to sustain this dividend level.
DP-165.71%
EPS Next 2Y46.46%
EPS Next 3Y35.32%
16.85
-0.4 (-2.32%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners106.72%
Inst Owner Change-0.01%
Ins Owners0.44%
Ins Owner Change9.2%
Market Cap2.46B
Analysts73.85
Price Target22.1 (31.16%)
Short Float %4.17%
Short Ratio3.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
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)18.18%
PT rev (3m)8.33%
EPS NQ rev (1m)1.06%
EPS NQ rev (3m)-6.01%
EPS NY rev (1m)3.66%
EPS NY rev (3m)-9.41%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)1.67%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.8 | ||
| Fwd PE | 8.73 | ||
| P/S | 0.25 | ||
| P/FCF | 18.89 | ||
| P/OCF | 4.77 | ||
| P/B | 1.78 | ||
| P/tB | 2.52 | ||
| EV/EBITDA | 6.31 |
EPS(TTM)0.81
EY4.81%
EPS(NY)1.93
Fwd EY11.46%
FCF(TTM)0.89
FCFY5.29%
OCF(TTM)3.53
OCFY20.97%
SpS67.94
BVpS9.46
TBVpS6.68
PEG (NY)0.39
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
WACC9.22%
ROIC/WACC0.54
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 Y52.78%
EPS Next 2Y46.46%
EPS Next 3Y35.32%
EPS Next 5Y28.77%
Revenue 1Y (TTM)-7%
Revenue growth 3Y4.76%
Revenue growth 5Y3.59%
Sales Q2Q%-14%
Revenue Next Year-5.95%
Revenue Next 2Y-2.72%
Revenue Next 3Y-1.07%
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%