DANIELI & CO (DAN.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:DAN - IT0000076502 - Common Stock
64.4 EUR
+0.3 (+0.47%)
DAN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 111 industry peers in the Machinery industry. Both the profitability and the financial health of DAN get a neutral evaluation. Nothing too spectacular is happening here. While showing a medium growth rate, DAN is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- In the past year DAN was profitable.
- DAN had a positive operating cash flow in the past year.
- Each year in the past 5 years DAN has been profitable.
- 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 52.25% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 9.68%, DAN is in the better half of the industry, outperforming 60.36% of the companies in the same industry.
- DAN has a Return On Invested Capital of 5.48%. This is comparable to the rest of the industry: DAN outperforms 48.65% of its industry peers.
| 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 65.77% of its industry peers.
- DAN's Profit Margin has improved in the last couple of years.
- DAN has a Operating Margin (6.11%) which is comparable to the rest of the industry.
- DAN's Operating Margin has improved in the last couple of years.
- DAN has a Gross Margin (45.29%) which is comparable to the rest of the industry.
- DAN's Gross Margin has declined in the last couple of years.
| 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DAN is destroying value.
- There is no outstanding debt for DAN. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
- DAN has an Altman-Z score of 2.12. 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 (2.12) which is in line with its industry peers.
- 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.
- Looking at the Debt to FCF ratio, with a value of 8.62, DAN is doing worse than 61.26% of the companies in the same industry.
- 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 63.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 8.62 | ||
| Altman-Z | 2.12 |
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.
- The Current ratio of DAN (1.46) is comparable to the rest of the industry.
- A Quick Ratio of 1.23 indicates that DAN should not have too much problems paying its short term obligations.
- DAN has a Quick ratio of 1.23. This is in the better half of the industry: DAN outperforms 69.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
- The earnings per share for DAN have decreased by -8.64% in the last year.
- DAN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 28.71% yearly.
- 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.
- The Revenue is expected to grow by 2.19% on average over the next years.
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
- The EPS growth rate is decreasing: in the next years the growth will be less 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
- The Price/Earnings ratio is 21.68, which indicates a rather expensive current valuation of DAN.
- DAN's Price/Earnings ratio is a bit cheaper when compared to the industry. DAN is cheaper than 62.16% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.82, DAN is valued a bit cheaper.
- With a Price/Forward Earnings ratio of 17.91, DAN is valued on the expensive side.
- The rest of the industry has a similar Price/Forward Earnings ratio as DAN.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.95, DAN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.68 | ||
| Fwd PE | 17.91 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, DAN is valued cheaply inside the industry as 97.30% of the companies are valued more expensively.
- DAN's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. DAN is more expensive than 72.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 73.13 | ||
| EV/EBITDA | 1.08 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.03
PEG (5Y)0.76
EPS Next 2Y9.58%
EPS Next 3Y5.84%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.49%, DAN is not a good candidate for dividend investing.
- DAN's Dividend Yield is slightly below the industry average, which is at 1.48.
- Compared to an average S&P500 Dividend Yield of 1.82, DAN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
5.2 History
- The dividend of DAN is nicely growing with an annual growth rate of 23.78%!
Dividend Growth(5Y)23.78%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- DAN pays out 8.87% of its income as dividend. This is a sustainable payout ratio.
- The dividend of DAN is growing, but the earnings are growing slower. 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 3 / 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 5 / 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%.