Dauch Corp (DCH) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

EV/EBITDA above its 5-year median

Dauch's EV/EBITDA of 6.4 is above its 5-year median of 4.7.

P/B below the industry

Dauch's price-to-book of 0.73 is below the Motor Vehicles and Motor Vehicle Equipment median of 1.56.

Trading below fair value

The share price of $4.63 is below our fair value estimate of $6.11.

Margin of safety over 20%

The price is 24.2% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 0.2% 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 faster than the industry

Revenue grew 65.0% over the last twelve months; the Motor Vehicles and Motor Vehicle Equipment median is 5.5%.

Guidance raised

Dauch raised its full year 2026 Sales outlook on Aug 7, 2026.

Gross margin slipping

Gross margin was 10.2% over the last twelve months, against 12.3% a year earlier.

Return on equity under 15%

Return on equity was -19.8% over the last twelve months and averaged 2.1% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 2.0%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

Dauch's return on equity of -19.8% is below 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 below its 5-year average

Net margin was -2.3% over the last twelve months, against a 5-year average of 0.2%.

Net margin below the industry

Dauch's net margin of -2.3% is below the Motor Vehicles and Motor Vehicle Equipment median of 1.9%.

High debt

Debt is 332% of shareholders' equity, above the 40% we consider low.

Debt falling against equity

Debt to equity fell from 945% five years ago to 332%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 6.3% of total debt; we look for at least 20%.

Interest not well covered

Operating income covers interest expense 0.3 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 1.39 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 1.04; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Dauch has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.