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Dana Holding (DAN)
NYSE:DAN
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Dana Holding
(NYSE:DAN)64Neutral
Positive Factors
Earnings
Q4 adjusted EPS of $0.25 beat Visible Alpha consensus of $0.07.
Financial Standing
The sale of the OH business could convert the company from a net debt to a net cash position, significantly enhancing its financial standing.
Negative Factors
Management Concerns
The sudden departure of a CEO without a permanent replacement raises concerns.
Dana Holding (DAN) vs. S&P 500 (SPY)
Market Cap
$2.00B
Dividend Yield2.9%
Average Volume (3M)1.75M
Price to Earnings (P/E)―
Beta (1Y)1.71
Revenue Growth-2.57%
EPS Growth-248.28%
CountryUS
Employees41,800
SectorConsumer Cyclical
Sector Strength53
IndustryVehicles
Share Statistics
EPS (TTM)-0.39
Shares Outstanding145,037,400
10 Day Avg. Volume1,631,714
30 Day Avg. Volume1,746,041
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.20
Price to Cash Flow (P/CF)1.70
P/FCF Ratio1.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$18.29Price Target Upside26.75% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
Dana Holding Business Overview & Revenue Model
Company DescriptionDana, Inc. engages in the manufacture, distribution, and sale of technology drive and motion products, sealing solutions, thermal-management technologies, and fluid-power products. It operates through the following segments: Light Vehicle, Commercial Vehicle, Off-Highway, and Power Technologies. The Light Vehicle segment includes drivetrain systems and components for passenger cars, crossovers, sport utility vehicles, vans, and light trucks. The Commercial Vehicle segment comprises of drivetrain and tire-pressure management systems, as well as genuine service parts, for medium and heavy-duty commercial vehicles. The Off-Highway segment offers drivetrain systems and individual product solutions under Spicer brand, and motion systems for associated machine working functions and stationary industrial equipment under Brevini brand. The Power Technologies segment consists of sealing solutions and thermal management technologies for reducing fuel consumption and emissions. The company was founded by Clarence W. Spicer on April 1, 1904 and is headquartered in Maumee, OH.
How the Company Makes MoneyDana Incorporated generates revenue through the sale of its diverse range of products and services to original equipment manufacturers (OEMs) and the aftermarket sector. The company's key revenue streams include the sale of driveline systems such as axles and driveshafts, sealing products, thermal-management solutions, and electronic components used in passenger cars, commercial trucks, and off-highway vehicles. Additionally, Dana benefits from strategic partnerships and long-term contracts with leading automotive and industrial companies, which help ensure steady demand for its products. The company also invests in research and development to innovate and expand its product offerings, further contributing to its revenue growth.
Dana Holding Financial Statement Overview
Summary
Dana Holding shows mixed financials with stable cash flow but problematic profitability and equity. Absence of debt is offset by net losses and zero equity in 2024, highlighting vulnerabilities.Income Statement
Dana Holding's revenue has shown some fluctuations, with a slight decrease from 2023 to 2024. The gross profit margin has remained fairly stable. However, the company experienced a negative net income in 2024, indicating challenges in profitability. EBIT and EBITDA margins have also declined slightly, reflecting reduced operational efficiency.67
Positive
Balance Sheet
The company's debt-to-equity ratio has improved due to the elimination of total debt in 2024, although this is due to a lack of reported equity, indicating potential issues. The return on equity calculation is not feasible for 2024 due to zero equity reported. Historically, equity ratios have been declining, suggesting increased leverage over previous periods.55
Neutral
Cash Flow
Operating cash flow has remained positive, and free cash flow showed significant improvement in 2024, recovering from a negative position in prior years. The operating cash flow to net income ratio is favorable, indicating Dana Holding's ability to generate cash despite reporting a net loss.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 10.28B | 10.55B | 10.16B | 8.95B | 7.11B | Gross Profit |
| 876.00M | 900.00M | 763.00M | 837.00M | 621.00M | EBIT |
| 352.00M | 341.00M | 287.00M | 404.00M | 218.00M | EBITDA |
| 663.00M | 748.00M | 485.00M | 742.00M | 542.00M | Net Income Common Stockholders |
| -57.00M | 38.00M | -315.00M | 197.00M | -71.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 494.00M | 529.00M | 425.00M | 285.00M | 580.00M | Total Assets |
| 7.49B | 7.96B | 7.45B | 7.63B | 7.38B | Total Debt |
| 2.91B | 2.98B | 2.72B | 2.67B | 2.65B | Net Debt |
| 2.42B | 2.45B | 2.30B | 2.40B | 2.09B | Total Liabilities |
| 5.90B | 6.14B | 5.65B | 5.46B | 5.36B | Stockholders Equity |
| 1.33B | 1.57B | 1.55B | 1.92B | 1.76B |
| Cash Flow | Free Cash Flow | |||
| 70.00M | -25.00M | 209.00M | -211.00M | 60.00M | Operating Cash Flow |
| 450.00M | 476.00M | 649.00M | 158.00M | 386.00M | Investing Cash Flow |
| -352.00M | -528.00M | -426.00M | -293.00M | -327.00M | Financing Cash Flow |
| -90.00M | 160.00M | -42.00M | -127.00M | -12.00M |
Dana Holding Technical Analysis
Positive
14.43
Price Trends
13.98
Positive
12.00
Positive
11.71
Positive
Market Momentum
0.01
Positive
44.73
Neutral
16.44
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DAN, the sentiment is Positive. The current price of 14.43 is below the 20-day moving average (MA) of 15.55, above the 50-day MA of 13.98, and above the 200-day MA of 11.71, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 44.73 is Neutral, neither overbought nor oversold. The STOCH value of 16.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DAN.
Dana Holding Risk Analysis
Dana Holding disclosed 31 risk factors in its most recent earnings report. Dana Holding reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Dana Holding Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $480.65M | 2.97 | 11.02% | 9.21% | -11.02% | -51.66% | |
71 Outperform | $4.79B | 9.95 | 17.69% | 3.45% | -0.70% | -7.27% | |
64 Neutral | $2.00B | ― | -4.28% | 2.90% | -2.57% | -248.28% | |
62 Neutral | $534.99M | 15.82 | 6.22% | ― | 0.75% | ― | |
62 Neutral | $6.15B | 18.70 | 6.11% | 1.53% | -11.10% | -46.32% | |
60 Neutral | $13.01B | 10.45 | 0.79% | 3.53% | 1.60% | -22.47% | |
59 Neutral | $5.45B | 13.60 | 16.69% | 2.00% | 0.61% | -4.04% |
* Consumer Cyclical Sector Average
Performance Comparison
DAN
Dana Holding
14.43
2.46
20.55%
AXL
American Axle
4.67
-1.99
-29.88%
BWA
BorgWarner
29.19
-2.33
-7.39%
GNTX
Gentex
24.62
-11.75
-32.31%
LEA
Lear
94.11
-42.17
-30.94%
TEN
Tsakos Energy Navigation
15.91
-6.06
-27.58%
Dana Holding Earnings Call Summary
Earnings Call Date: Feb 20, 2025 | % Change Since: -11.42% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Neutral
Dana Incorporated's earnings call reflected a mix of positive achievements in cost reduction and cash flow improvements, but also challenges in sales decline, net losses, and difficulties in the commercial vehicle market. While the company is optimistic about future performance and cost savings, immediate concerns remain with market softness and external economic factors.Highlights
Cost Reduction Success
Dana Incorporated successfully actioned $100 million of their $300 million cost reduction program, resulting in improved margins and operating performance.
Improved Free Cash Flow
Free cash flow improved from a slightly negative position in 2023 to $70 million in 2024, with expectations to more than triple in 2025.
Strong Operating Margins
Adjusted EBITDA was $40 million higher than the previous year, with an overall improvement of 60 basis points in operating margins.
Light Vehicle and Power Technologies Growth
The majority of the backlog is in light vehicle and power technologies, indicating strong growth potential in these segments.
Lowlights
Decline in Full-Year Sales
Sales for the full year were down nearly $300 million, reflecting softness in the EV market and weak markets in off highway.
Net Loss for the Year
Dana reported a net loss of $57 million for the full year compared to a net income of $38 million last year, primarily due to restructuring charges and divestiture expenses.
Currency and Commodity Headwinds
Foreign currency translation and falling commodity prices negatively impacted sales and profits, with a $49 million decrease in sales and a $40 million reduction in profit.
Challenges in Commercial Vehicle Market
Commercial vehicle market faced a bit of weakness with adjustments for bad debt and inventory impacting the fourth-quarter results.
Company Guidance
During the Dana Incorporated fourth quarter and full year 2024 earnings call, the company provided several key metrics and guidance for 2025. For the full year 2024, Dana reported sales of $10.28 billion, a decrease of $271 million from the previous year, with adjusted EBITDA increasing by $40 million to $885 million, resulting in a profit margin of 8.6%. Free cash flow improved to $70 million, up from a slightly negative position in 2023. Looking ahead to 2025, Dana expects sales to be about $9.75 billion at the midpoint, with adjusted EBITDA anticipated to rise to $975 million, implying a profit margin of 10%. Free cash flow is projected to more than triple to $225 million, driven by $175 million in cost-saving actions and a shift in capital expenditure strategy. The company also aims to achieve new Dana margins between 8.1% and 8.6% in 2025, with further improvements targeted towards double digits in 2026.Dana Holding Corporate Events
Executive/Board Changes
Dana Holding Updates Board with Icahn Designees
Neutral
Jan 23, 2025
On January 23, 2025, Dana Incorporated amended its Director Appointment and Nomination Agreement with Carl C. Icahn and the Icahn Group, resulting in the appointment of Brett Icahn and Christian Garcia to its board of directors. This amendment, which was prompted by the resignations of Gary Hu and Steven Miller, also adjusts the standstill term under the agreement, linking it to the company’s business objectives and future annual meetings. The Icahn Designees are set to join various board committees, ensuring continuity and alignment with the company’s strategic goals.
Executive/Board ChangesBusiness Operations and Strategy
Dana Holding Appoints Nora LaFreniere to Board
Positive
Dec 11, 2024
Dana Incorporated announced the appointment of Nora LaFreniere to its board of directors, effective immediately. Ms. LaFreniere brings extensive experience in industrial business strategy and complex M&A transactions, which Dana’s CEO, R. Bruce McDonald, believes will be crucial as the company implements its transformation plans to accelerate value creation.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.