DANA INC (DAN) Stock Fundamental Analysis
NYSE:DAN - New York Stock Exchange, Inc. - US2358252052 - Common Stock - Currency: USD
Overall DAN gets a fundamental rating of 2 out of 10. We evaluated DAN against 80 industry peers in the Automobile Components industry. Both the profitability and financial health of DAN have multiple concerns. DAN has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
In the past 5 years DAN always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.45%, DAN is doing worse than 75.00% of the companies in the same industry.
With a Return On Equity value of -2.54%, DAN is not doing good in the industry: 73.75% of the companies in the same industry are doing better.
With a Return On Invested Capital value of 4.95%, DAN is not doing good in the industry: 78.75% of the companies in the same industry are doing better.
DAN had an Average Return On Invested Capital over the past 3 years of 5.02%. This 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
The Operating Margin of DAN (3.23%) is worse than 78.75% of its industry peers.
DAN's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 8.61%, DAN is doing worse than 88.75% of the companies in the same industry.
In the last couple of years the Gross Margin of DAN has declined.
| 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
DAN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
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's Altman-Z score of 1.86 is on the low side compared to the rest of the industry. DAN is outperformed by 78.75% 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.
DAN has a Debt to FCF ratio of 21.33. This is in the lower half of the industry: DAN underperforms 75.00% 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.
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
DAN has a Current Ratio of 1.43. This is a normal value and indicates that DAN is financially healthy and should not expect problems in meeting its short term obligations.
DAN has a Current ratio of 1.43. This is amonst the worse of the industry: DAN underperforms 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.
DAN shows a decrease in Revenue. In the last year, the revenue decreased by -7.00%.
DAN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.59% yearly.
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 Y57.78%
EPS Next 2Y47.02%
EPS Next 3Y36.44%
EPS Next 5Y28.77%
Revenue Next Year-5.79%
Revenue Next 2Y-3.9%
Revenue Next 3Y-2.18%
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.
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
A Price/Earnings ratio of 20.80 indicates a rather expensive valuation of DAN.
DAN's Price/Earnings is on the same level as the industry average.
DAN is valuated rather cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 8.66, the valuation of DAN can be described as very reasonable.
62.50% of the companies in the same industry are more expensive than DAN, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.76. DAN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.8 | ||
| Fwd PE | 8.66 |
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 | 18.89 | ||
| EV/EBITDA | 6.23 |
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.
DAN's earnings are expected to grow with 36.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.36
PEG (5Y)N/A
EPS Next 2Y47.02%
EPS Next 3Y36.44%
5. Dividend
5.1 Amount
DAN has a Yearly Dividend Yield of 2.32%. Purely for dividend investing, there may be better candidates out there.
DAN's Dividend Yield is comparable with the industry average which is at 4.21.
DAN's Dividend Yield is comparable with the S&P500 average which is at 2.35.
| 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
DAN has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-165.71%
EPS Next 2Y47.02%
EPS Next 3Y36.44%
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)11.11%
PT rev (3m)8.33%
EPS NQ rev (1m)-1.41%
EPS NQ rev (3m)1.45%
EPS NY rev (1m)7.06%
EPS NY rev (3m)-6.45%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)2.2%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)1.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.8 | ||
| Fwd PE | 8.66 | ||
| P/S | 0.25 | ||
| P/FCF | 18.89 | ||
| P/OCF | 4.77 | ||
| P/B | 1.78 | ||
| P/tB | 2.52 | ||
| EV/EBITDA | 6.23 |
EPS(TTM)0.81
EY4.81%
EPS(NY)1.95
Fwd EY11.54%
FCF(TTM)0.89
FCFY5.29%
OCF(TTM)3.53
OCFY20.97%
SpS67.94
BVpS9.46
TBVpS6.68
PEG (NY)0.36
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 Y57.78%
EPS Next 2Y47.02%
EPS Next 3Y36.44%
EPS Next 5Y28.77%
Revenue 1Y (TTM)-7%
Revenue growth 3Y4.76%
Revenue growth 5Y3.59%
Sales Q2Q%-14%
Revenue Next Year-5.79%
Revenue Next 2Y-3.9%
Revenue Next 3Y-2.18%
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%