DANA INC (DAN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DAN - US2358252052 - Common Stock
31.01 USD
+0.04 (+0.13%)
31.2735 USD
+0.26 (+0.85%)
We assign a fundamental rating of 3 out of 10 to DAN. DAN was compared to 42 industry peers in the Automobile Components industry. Both the profitability and financial health of DAN have multiple concerns. DAN has a correct valuation and a medium growth rate.
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.
- 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
- The Return On Assets of DAN (0.68%) is comparable to the rest of the industry.
- The Return On Equity of DAN (5.03%) is better than 69.05% of its industry peers.
- DAN has a Return On Invested Capital of 1.87%. This is comparable to the rest of the industry: DAN outperforms 42.86% of its industry peers.
- 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
- With a Profit Margin value of 0.69%, DAN perfoms like the industry average, outperforming 54.76% of the companies in the same industry.
- Looking at the Operating Margin, with a value of 1.66%, DAN is in line with its industry, 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DAN is destroying value.
- DAN has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, DAN has more shares outstanding
- The debt/assets ratio for DAN is higher compared to a year ago.
2.2 Solvency
- DAN has an Altman-Z score of 1.54. This is a bad value and indicates that DAN is not financially healthy and even has some risk of bankruptcy.
- DAN has a worse Altman-Z score (1.54) than 66.67% of its industry peers.
- DAN has a debt to FCF ratio of 31.54. This is a negative value and a sign of low solvency as DAN would need 31.54 years to pay back of all of its debts.
- DAN has a Debt to FCF ratio of 31.54. This is comparable to the rest of the industry: DAN outperforms 47.62% of 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/WACC0.21
WACC8.98%
2.3 Liquidity
- A Current Ratio of 1.31 indicates that DAN should not have too much problems paying 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.
- A Quick Ratio of 0.96 indicates that DAN may have some problems paying its short term obligations.
- The Quick ratio of DAN (0.96) is worse than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 171.93% over the past year.
- Measured over the past years, DAN shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -21.71% on average per year.
- Looking at the last year, DAN shows a very negative growth in Revenue. The Revenue has decreased by -23.70% in the last year.
- DAN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.59% yearly.
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
- The Earnings Per Share is expected to grow by 22.40% on average over the next years. This is a very strong growth
- The Revenue is expected to decrease by -5.05% on average over the next years.
EPS Next Y-11.34%
EPS Next 2Y62.05%
EPS Next 3Y47.94%
EPS Next 5Y22.4%
Revenue Next Year-24.07%
Revenue Next 2Y-13.87%
Revenue Next 3Y-8.53%
Revenue Next 5Y-5.05%
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.
- 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
- DAN is valuated rather expensively with a Price/Earnings ratio of 20.01.
- DAN's Price/Earnings ratio is in line with the industry average.
- DAN is valuated rather cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 13.12, the valuation of DAN can be described as correct.
- The rest of the industry has a similar Price/Forward Earnings ratio as DAN.
- DAN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.01 | ||
| Fwd PE | 13.12 |
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.
- DAN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.52 | ||
| EV/EBITDA | 11.58 |
4.3 Compensation for Growth
- DAN's earnings are expected to grow with 47.94% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y62.05%
EPS Next 3Y47.94%
5. Dividend
5.1 Amount
- DAN has a Yearly Dividend Yield of 1.44%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.61, DAN pays a better dividend. On top of this DAN pays more dividend than 80.95% of the companies listed in the same industry.
- Compared to the average S&P500 Dividend Yield of 1.82, DAN is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
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
- 103.64% of the earnings are spent on dividend by DAN. This is not a sustainable payout ratio.
DP103.64%
EPS Next 2Y62.05%
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%.