DANA INC (DAN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DAN - US2358252052 - Common Stock
30.54 USD
-0.47 (-1.52%)
30.54 USD
0 (0%)
DAN gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 42 industry peers in the Automobile Components industry. DAN has a bad profitability rating. Also its financial health evaluation is rather negative. DAN has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year DAN was profitable.
- In the past year DAN had a positive cash flow from operations.
- The reported net income has been mixed in the past 5 years: DAN reported negative net income in multiple years.
- Each year in the past 5 years DAN had a positive operating cash flow.
1.2 Ratios
- DAN has a Return On Assets (0.68%) which is in line with its industry peers.
- The Return On Equity of DAN (5.03%) is better than 69.05% of its industry peers.
- The Return On Invested Capital of DAN (1.87%) is comparable to the rest of the industry.
- The Average Return On Invested Capital over the past 3 years for DAN is below the industry average of 9.10%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.68% | ||
| ROE | 5.03% | ||
| ROIC | 1.87% |
ROA(3y)-1.18%
ROA(5y)-0.27%
ROE(3y)-5.82%
ROE(5y)-1.8%
ROIC(3y)5.11%
ROIC(5y)4.79%
1.3 Margins
- Looking at the Profit Margin, with a value of 0.69%, DAN is in line with its industry, outperforming 54.76% of the companies in the same industry.
- With a Operating Margin value of 1.66%, DAN perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
- DAN's Operating Margin has declined in the last couple of years.
- DAN has a worse Gross Margin (6.95%) than 83.33% of its industry peers.
- DAN's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.66% | ||
| PM (TTM) | 0.69% | ||
| GM | 6.95% |
OM growth 3Y-6.44%
OM growth 5Y-14.06%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.08%
GM growth 5Y-8.28%
2. Health
2.1 Basic Checks
- DAN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
- The debt/assets ratio for DAN is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.54, we must say that DAN is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of DAN (1.54) is worse than 66.67% of its industry peers.
- The Debt to FCF ratio of DAN is 31.54, which is on the high side as it means it would take DAN, 31.54 years of fcf income to pay off all of its debts.
- DAN has a Debt to FCF ratio (31.54) which is in line with its industry peers.
- A Debt/Equity ratio of 2.92 is on the high side and indicates that DAN has dependencies on debt financing.
- With a Debt to Equity ratio value of 2.92, DAN is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.92 | ||
| Debt/FCF | 31.54 | ||
| Altman-Z | 1.54 |
ROIC/WACC0.22
WACC8.66%
2.3 Liquidity
- DAN has a Current Ratio of 1.31. 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 1.31 is on the low side compared to the rest of the industry. DAN is outperformed by 73.81% of its industry peers.
- DAN has a Quick Ratio of 1.31. This is a bad value and indicates that DAN is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.96, DAN is doing worse than 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
- DAN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 171.93%, which is quite impressive.
- DAN shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -21.71% yearly.
- Looking at the last year, DAN shows a very negative growth in Revenue. The Revenue has decreased by -23.70% in the last year.
- The Revenue has been growing slightly by 3.59% on average over the past years.
EPS 1Y (TTM)171.93%
EPS 3Y-18.46%
EPS 5Y-21.71%
EPS Q2Q%575%
Revenue 1Y (TTM)-23.7%
Revenue growth 3Y4.76%
Revenue growth 5Y3.59%
Sales Q2Q%-22.58%
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 22.40% on average per year.
- DAN is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -5.05% yearly.
EPS Next Y-11.34%
EPS Next 2Y64.97%
EPS Next 3Y47.94%
EPS Next 5Y22.4%
Revenue Next Year-23.3%
Revenue Next 2Y-13.69%
Revenue Next 3Y-8.42%
Revenue Next 5Y-5.05%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 19.70, which indicates a rather expensive current valuation of DAN.
- The rest of the industry has a similar Price/Earnings ratio as DAN.
- The average S&P500 Price/Earnings ratio is at 27.21. DAN is valued slightly cheaper when compared to this.
- A Price/Forward Earnings ratio of 12.47 indicates a correct valuation of DAN.
- DAN's Price/Forward Earnings is on the same level as the industry average.
- When comparing the Price/Forward Earnings ratio of DAN to the average of the S&P500 Index (25.98), we can say DAN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.7 | ||
| Fwd PE | 12.47 |
4.2 Price Multiples
- DAN's Enterprise Value to EBITDA ratio is in line with the industry average.
- DAN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.98 | ||
| EV/EBITDA | 11.59 |
4.3 Compensation for Growth
- A more expensive valuation may be justified as DAN's earnings are expected to grow with 47.94% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y64.97%
EPS Next 3Y47.94%
5. Dividend
5.1 Amount
- DAN has a Yearly Dividend Yield of 1.29%.
- Compared to an average industry Dividend Yield of 0.61, DAN pays a bit more dividend than its industry peers.
- Compared to the average S&P500 Dividend Yield of 1.81, DAN is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
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
- 103.64% of the earnings are spent on dividend by DAN. This is not a sustainable payout ratio.
DP103.64%
EPS Next 2Y64.97%
EPS Next 3Y47.94%
DANA INC / DAN FAQ
What is the ChartMill fundamental rating of DANA INC (DAN) stock?
ChartMill assigns a fundamental rating of 3 / 10 to DAN.
Can you provide the valuation status for DANA INC?
ChartMill assigns a valuation rating of 4 / 10 to DANA INC (DAN). This can be considered as Fairly Valued.
What is the profitability of DAN stock?
DANA INC (DAN) has a profitability rating of 3 / 10.
How financially healthy is DANA INC?
The financial health rating of DANA INC (DAN) is 1 / 10.
Can you provide the dividend sustainability for DAN stock?
The dividend rating of DANA INC (DAN) is 3 / 10 and the dividend payout ratio is 103.64%.