DANA Inc (DAN) stock analysis

P/E below its 5-year median

DANA's P/E of 2.4 is below its own 5-year median of 17.4.

P/E below the industry

DANA's P/E of 2.4 is below the Motor Vehicles and Motor Vehicle Equipment median of 18.7.

EV/EBITDA below its 5-year median

DANA's EV/EBITDA of 15.3 is below its 5-year median of 21.4.

P/B below the industry

DANA's price-to-book of 1.45 is below the Motor Vehicles and Motor Vehicle Equipment median of 1.56.

Trading above fair value

The share price of $23.19 is above our fair value estimate of $19.85.

Margin of safety under 20%

The price is 16.8% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew -9.6% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew 5.1% over the last twelve months; the Motor Vehicles and Motor Vehicle Equipment median is 5.5%.

Guidance raised

DANA raised its 2026 Implied adjusted EBITDA margin outlook on Oct 28, 2026.

Gross margin improving

Gross margin was 9.8% over the last twelve months, against 6.1% a year earlier.

Return on equity under 15%

Return on equity was 74.5% over the last twelve months and averaged 0.6% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 3.6%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

DANA's return on equity of 74.5% is above the Motor Vehicles and Motor Vehicle Equipment median of 3.5%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin above its 5-year average

Net margin was 13.5% over the last twelve months, against a 5-year average of 0.1%.

Net margin above the industry

DANA's net margin of 13.5% is above the Motor Vehicles and Motor Vehicle Equipment median of 1.9%.

High debt

Debt is 91.8% of shareholders' equity, above the 40% we consider low.

Debt falling against equity

Debt to equity fell from 140% five years ago to 91.8%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 26.8% of total debt.

Interest not well covered

Operating income covers interest expense 2.2 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 1.13 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.13; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

DANA paid dividends worth 1.6% of the share price over the last twelve months.

Yield below Treasuries

The 1.6% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; DANA yields 1.6%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Covered by earnings

Dividends take 4.9% of net income.

Covered by free cash flow

Dividends take 58.6% of free cash flow.