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Danieli & C.Officine Meccaniche SPA (IT:DAN)
:DAN

Danieli & C.Officine Meccaniche SPA (DAN) AI Stock Analysis

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Danieli & C.Officine Meccaniche SPA

(LSE:DAN)

75Outperform
Danieli & C.Officine Meccaniche SPA shows strong financial performance with solid revenue growth and profitability. The valuation metrics suggest the stock is undervalued, offering a low P/E ratio and a reasonable dividend yield. However, technical analysis reflects a negative trend as the stock trades below its key moving averages. Improving cash flow metrics will be crucial for sustaining growth. The overall score reflects a balanced view of the company's current strengths and areas for improvement.

Danieli & C.Officine Meccaniche SPA (DAN) vs. S&P 500 (SPY)

Danieli & C.Officine Meccaniche SPA Business Overview & Revenue Model

Company DescriptionDanieli & C. Officine Meccaniche S.p.A. (DAN) is a leading global engineering company headquartered in Italy, specializing in the design, manufacturing, and installation of machinery and plants for the metals industry. The company operates in sectors such as steelmaking, metalworking, and non-ferrous metals production. Danieli offers a wide range of products and services, including turnkey plants, production lines, and automation systems, catering to the needs of metal producers worldwide.
How the Company Makes MoneyDanieli & C. Officine Meccaniche S.p.A. generates revenue primarily through the sale and installation of industrial machinery and equipment for the metals industry. The company offers comprehensive solutions, including the design, engineering, and commissioning of full-scale production plants, which are custom-tailored to client specifications. In addition to machinery sales, Danieli provides after-sales services, maintenance, and technical support, contributing to recurring revenue streams. The company also benefits from strategic partnerships and long-term contracts with major players in the steel and metals sectors, which help to secure a stable income base. Furthermore, Danieli invests in research and development to innovate and expand its product offerings, ensuring competitiveness and the ability to meet evolving industry demands.

Danieli & C.Officine Meccaniche SPA Financial Statement Overview

Summary
Danieli & C.Officine Meccaniche SPA exhibits strong revenue growth and profitability, supported by an efficient cost structure. The balance sheet is solid with low leverage and a strong equity base, though there is room to enhance returns on equity. Cash flow challenges are noted, particularly in free cash flow generation, but overall cash operations remain robust. The company is well-positioned for future growth, though improving cash flow metrics will be key to sustaining its financial health.
Income Statement
85
Very Positive
The company demonstrates strong revenue growth with a 11.2% increase from the previous year, indicating a positive trend. Gross profit margin is robust at 29.7%, reflecting efficient production and pricing strategies. Net profit margin is healthy at 5.5%, supported by a strong EBIT margin of 5.1% and an EBITDA margin of 11.0%. Overall, the income statement suggests solid profitability and growth potential.
Balance Sheet
78
Positive
The balance sheet is stable with a low debt-to-equity ratio of 0.23, indicating conservative leverage practices. The equity ratio stands at 35.0%, showing a solid base of stockholder equity relative to total assets. Return on equity is relatively modest at 9.2%, suggesting room for improved efficiency in using equity to generate profits.
Cash Flow
72
Positive
Cash flow analysis reveals a decrease in free cash flow by 67.4%, which is a concern. However, the operating cash flow to net income ratio is favorable at 1.38, indicating strong cash generation relative to reported profits. The free cash flow to net income ratio is 0.65, which shows some challenges in converting net income into free cash flow.
Breakdown
Jun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
4.35B3.91B3.47B3.04B2.38B
Gross Profit
1.29B902.23M630.98M770.74M715.40M
EBIT
220.78M137.61M209.56M143.88M91.61M
EBITDA
477.30M445.90M444.71M243.09M219.80M
Net Income Common Stockholders
240.80M243.64M218.72M80.19M62.89M
Balance SheetCash, Cash Equivalents and Short-Term Investments
2.62B2.21B2.07B1.66B1.57B
Total Assets
7.49B6.54B6.16B5.45B5.08B
Total Debt
605.05M313.63M561.11M585.26M601.71M
Net Debt
-1.54B-1.44B-954.96M-487.61M-388.73M
Total Liabilities
4.86B4.13B3.94B3.44B3.14B
Stockholders Equity
2.63B2.40B2.22B2.01B1.94B
Cash FlowFree Cash Flow
156.08M478.80M166.47M138.42M16.40M
Operating Cash Flow
331.84M638.39M279.39M279.71M191.79M
Investing Cash Flow
-194.30M-92.12M-24.63M-231.61M-191.69M
Financing Cash Flow
289.92M-280.31M168.56M26.50M-111.16M

Danieli & C.Officine Meccaniche SPA Technical Analysis

Technical Analysis Sentiment
Positive
Last Price32.30
Price Trends
50DMA
29.76
Positive
100DMA
27.37
Positive
200DMA
28.09
Positive
Market Momentum
MACD
0.34
Negative
RSI
68.47
Neutral
STOCH
95.98
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:DAN, the sentiment is Positive. The current price of 32.3 is above the 20-day moving average (MA) of 28.37, above the 50-day MA of 29.76, and above the 200-day MA of 28.09, indicating a bullish trend. The MACD of 0.34 indicates Negative momentum. The RSI at 68.47 is Neutral, neither overbought nor oversold. The STOCH value of 95.98 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:DAN.

Danieli & C.Officine Meccaniche SPA Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
ITIG
77
Outperform
€5.33B11.1220.21%4.86%-3.34%8.87%
ITDAN
75
Outperform
€2.14B6.4910.20%0.96%1.26%37.35%
73
Outperform
€71.04B10.4427.10%5.63%-17.34%104.14%
ITTEN
69
Neutral
€17.40B8.8310.53%4.23%-15.83%-45.83%
64
Neutral
$4.28B11.805.33%250.46%4.10%-9.26%
ITPRY
62
Neutral
€14.83B19.6816.44%1.58%10.89%32.38%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IT:DAN
Danieli & C.Officine Meccaniche SPA
32.30
-0.98
-2.96%
IT:TEN
Tenaris
14.74
-0.54
-3.55%
IT:IG
Italgas S.p.A.
7.16
2.21
44.76%
IT:PRY
Prysmian SpA
50.96
-0.15
-0.30%
IT:ENEL
Enel S.p.A.
7.68
1.74
29.25%
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.