DANA INC (DAN) Stock Fundamental Analysis
NYSE:DAN - New York Stock Exchange, Inc. - US2358252052 - Common Stock - Currency: USD
DAN gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 81 industry peers in the Automobile Components industry. DAN may be in some trouble as it scores bad on both profitability and health. DAN has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
DAN had positive earnings in the past year.
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.
DAN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DAN has a Return On Assets of -0.76%. This is in the lower half of the industry: DAN underperforms 79.01% of its industry peers.
With a Return On Equity value of -4.28%, DAN is not doing good in the industry: 77.78% of the companies in the same industry are doing better.
DAN has a Return On Invested Capital of 5.30%. This is in the lower half of the industry: DAN underperforms 75.31% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DAN is below the industry average of 9.51%.
The last Return On Invested Capital (5.30%) for DAN is above the 3 year average (5.02%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.76% | ||
| ROE | -4.28% | ||
| ROIC | 5.3% |
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
With a Operating Margin value of 3.22%, DAN is not doing good in the industry: 77.78% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of DAN has declined.
With a Gross Margin value of 8.52%, DAN is not doing good in the industry: 87.65% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of DAN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.22% | ||
| PM (TTM) | N/A | ||
| GM | 8.52% |
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.
DAN has more shares outstanding than it did 1 year ago.
DAN has more shares outstanding than it did 5 years ago.
DAN has a worse debt/assets ratio than last year.
2.2 Solvency
DAN has an Altman-Z score of 1.94. 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.
The Altman-Z score of DAN (1.94) is worse than 75.31% of its industry peers.
DAN has a debt to FCF ratio of 37.30. This is a negative value and a sign of low solvency as DAN would need 37.30 years to pay back of all of its debts.
DAN has a Debt to FCF ratio of 37.30. This is in the lower half of the industry: DAN underperforms 76.54% of its industry peers.
DAN has a Debt/Equity ratio of 1.80. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.80, DAN is not doing good in the industry: 90.12% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | 37.3 | ||
| Altman-Z | 1.94 |
ROIC/WACC0.59
WACC8.95%
2.3 Liquidity
A Current Ratio of 1.45 indicates that DAN should not have too much problems paying its short term obligations.
DAN's Current ratio of 1.45 is on the low side compared to the rest of the industry. DAN is outperformed by 83.95% of its industry peers.
DAN has a Quick Ratio of 1.45. 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 (0.84) is worse than 83.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.45 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
DAN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.14%.
The earnings per share for DAN have been decreasing by -21.71% on average. This is quite bad
DAN shows a decrease in Revenue. In the last year, the revenue decreased by -2.57%.
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)7.14%
EPS 3Y-18.46%
EPS 5Y-21.71%
EPS Q2Q%412.5%
Revenue 1Y (TTM)-2.57%
Revenue growth 3Y4.76%
Revenue growth 5Y3.59%
Sales Q2Q%-6.38%
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 26.75% on average per year.
Based on estimates for the next years, DAN will show a small growth in Revenue. The Revenue will grow by 1.34% on average per year.
EPS Next Y34.39%
EPS Next 2Y50.06%
EPS Next 3Y16.25%
EPS Next 5Y26.75%
Revenue Next Year-6.34%
Revenue Next 2Y-0.38%
Revenue Next 3Y-1.46%
Revenue Next 5Y1.34%
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
With a Price/Earnings ratio of 15.54, DAN is valued correctly.
DAN's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 29.35, DAN is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 11.57, the valuation of DAN can be described as reasonable.
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 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.54 | ||
| Fwd PE | 11.57 |
4.2 Price Multiples
60.49% of the companies in the same industry are more expensive than DAN, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DAN indicates a slightly more expensive valuation: DAN is more expensive than 72.84% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.99 | ||
| EV/EBITDA | 5.5 |
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 16.25% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.45
PEG (5Y)N/A
EPS Next 2Y50.06%
EPS Next 3Y16.25%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.80%, DAN has a reasonable but not impressive dividend return.
DAN's Dividend Yield is comparable with the industry average which is at 3.99.
DAN's Dividend Yield is a higher than the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.8% |
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
DAN has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-101.75%
EPS Next 2Y50.06%
EPS Next 3Y16.25%
13.99
-0.29 (-2.03%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners105.02%
Inst Owner Change2.53%
Ins Owners0.35%
Ins Owner Change9.2%
Market Cap2.03B
Analysts72.31
Price Target20.4 (45.82%)
Short Float %3.67%
Short Ratio3.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.8% |
Yearly Dividend0.4
Dividend Growth(5Y)-0.02%
DP-101.75%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)38.62%
Min EPS beat(2)-47.77%
Max EPS beat(2)125.02%
EPS beat(4)3
Avg EPS beat(4)25.99%
Min EPS beat(4)-47.77%
Max EPS beat(4)125.02%
EPS beat(8)6
Avg EPS beat(8)56.77%
EPS beat(12)8
Avg EPS beat(12)23.61%
EPS beat(16)10
Avg EPS beat(16)14.18%
Revenue beat(2)0
Avg Revenue beat(2)-2.96%
Min Revenue beat(2)-5.02%
Max Revenue beat(2)-0.89%
Revenue beat(4)1
Avg Revenue beat(4)-1.81%
Min Revenue beat(4)-5.02%
Max Revenue beat(4)0.89%
Revenue beat(8)2
Avg Revenue beat(8)-1.5%
Revenue beat(12)6
Avg Revenue beat(12)0.3%
Revenue beat(16)10
Avg Revenue beat(16)1.67%
PT rev (1m)13.21%
PT rev (3m)81.82%
EPS NQ rev (1m)-17.83%
EPS NQ rev (3m)-27.39%
EPS NY rev (1m)8.62%
EPS NY rev (3m)2.64%
Revenue NQ rev (1m)-6.26%
Revenue NQ rev (3m)-16.06%
Revenue NY rev (1m)-1.74%
Revenue NY rev (3m)-6.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.54 | ||
| Fwd PE | 11.57 | ||
| P/S | 0.2 | ||
| P/FCF | 28.99 | ||
| P/OCF | 4.51 | ||
| P/B | 1.52 | ||
| P/tB | 2.17 | ||
| EV/EBITDA | 5.5 |
EPS(TTM)0.9
EY6.43%
EPS(NY)1.21
Fwd EY8.65%
FCF(TTM)0.48
FCFY3.45%
OCF(TTM)3.1
OCFY22.18%
SpS70.9
BVpS9.19
TBVpS6.43
PEG (NY)0.45
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.76% | ||
| ROE | -4.28% | ||
| ROCE | 6.72% | ||
| ROIC | 5.3% | ||
| ROICexc | 5.89% | ||
| ROICexgc | 6.48% | ||
| OM | 3.22% | ||
| PM (TTM) | N/A | ||
| GM | 8.52% | ||
| FCFM | 0.68% |
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 Turnover1.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | 37.3 | ||
| Debt/EBITDA | 3.18 | ||
| Cap/Depr | 90.05% | ||
| Cap/Sales | 3.7% | ||
| Interest Coverage | 2.08 | ||
| Cash Conversion | 59.76% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.45 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 1.94 |
F-Score4
WACC8.95%
ROIC/WACC0.59
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)7.14%
EPS 3Y-18.46%
EPS 5Y-21.71%
EPS Q2Q%412.5%
EPS Next Y34.39%
EPS Next 2Y50.06%
EPS Next 3Y16.25%
EPS Next 5Y26.75%
Revenue 1Y (TTM)-2.57%
Revenue growth 3Y4.76%
Revenue growth 5Y3.59%
Sales Q2Q%-6.38%
Revenue Next Year-6.34%
Revenue Next 2Y-0.38%
Revenue Next 3Y-1.46%
Revenue Next 5Y1.34%
EBIT growth 1Y-7.8%
EBIT growth 3Y-3.68%
EBIT growth 5Y-11.9%
EBIT Next Year112.2%
EBIT Next 3Y30.62%
EBIT Next 5Y27.86%
FCF growth 1Y380%
FCF growth 3YN/A
FCF growth 5Y-19.8%
OCF growth 1Y-5.46%
OCF growth 3Y41.75%
OCF growth 5Y-6.71%