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

• Market Cap: €2.26B
• Dividend Yield: 0.91%
• Average Volume (3M): 69.98K
• Price to Earnings (P/E): 6.8
• Beta (1Y): 0.69
• Revenue Growth: 1.26%
• EPS Growth: 37.35%
• Country: IT
• Employees: 10,128
• Sector: Industrials
• Sector Strength: 91
• Industry: Industrial - Machinery
• EPS (TTM): 4.98
• Shares Outstanding: 40,879,530
• 10 Day Avg. Volume: 64,816
• 30 Day Avg. Volume: 69,980
• PEG Ratio: -1.19
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €42.50
• Price Target Upside: 25.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

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 Business Overview & Revenue Model

Company Description

Danieli & C. Officine Meccaniche S.p.A. designs, builds, and sells plants for the iron and steel industry in Europe, Russia, the Middle East, the Americas, and South East Asia. It operates through two segments, Plant Making and Steel Making. The company designs and builds plants for various process areas, including mines; pellet production plants; blast furnaces; direct reduction; scrap shredders; steelworks for production of liquid steel; and continuous casting for blooms and billets, slabs, and thin slabs. It also designs and builds rolling mills for long products and seamless tubes; lines for welded tubes; hot and cold rolling mills for flat products; process lines for flat products; and plants for dimensional checking and for non-destructive quality control, and conditioning plants. In addition, the company offers plants for secondary processing, such as peeling, straightening, 2-roll reeling, and drawing machines; forging presses and manipulators, and forging plants; extrusion presses for ferrous and non-ferrous materials; plants for longitudinal cutting and for transversal cutting; plant automation systems; and cranes and lifting equipment. Further, it is involved in the production and sale of special steel comprising ingots, blooms, billets, and forged and rolled products; and structural steel comprising high carbon steel, as well as case-hardened, hardened and tempered, and surface hardened steel for use in various engineering components. The company was founded in 1914 and is based in Buttrio, Italy.

How the Company Makes Money

Danieli & 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

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

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

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 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
4.35B	3.91B	3.47B	3.04B	2.38B
	Gross Profit
1.29B	902.23M	630.98M	770.74M	715.40M
	EBIT
220.78M	137.61M	209.56M	143.88M	91.61M
	EBITDA
477.30M	445.90M	444.71M	243.09M	219.80M
	Net Income Common Stockholders
240.80M	243.64M	218.72M	80.19M	62.89M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.62B	2.21B	2.07B	1.66B	1.57B
	Total Assets
7.49B	6.54B	6.16B	5.45B	5.08B
	Total Debt
605.05M	313.63M	561.11M	585.26M	601.71M
	Net Debt
-1.54B	-1.44B	-954.96M	-487.61M	-388.73M
	Total Liabilities
4.86B	4.13B	3.94B	3.44B	3.14B
	Stockholders Equity
2.63B	2.40B	2.22B	2.01B	1.94B
Cash Flow		Free Cash Flow
156.08M	478.80M	166.47M	138.42M	16.40M
	Operating Cash Flow
331.84M	638.39M	279.39M	279.71M	191.79M
	Investing Cash Flow
-194.30M	-92.12M	-24.63M	-231.61M	-191.69M
	Financing Cash Flow
289.92M	-280.31M	168.56M	26.50M	-111.16M

Danieli & C.Officine Meccaniche SPA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 33.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 33.8 is above the 20-day moving average (MA) of 31.71, above the 50-day MA of 30.48, and above the 200-day MA of 27.96, indicating a bullish trend. The MACD of 1.31 indicates Negative momentum. The RSI at 69.70 is Neutral, neither overbought nor oversold. The STOCH value of 88.96 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IG	77 Outperform	€5.66B	12.46	20.21%	5.08%	-3.34%	8.87%
ENEL	76 Outperform	€81.39B	11.48	25.20%	5.37%	-7.85%	63.65%
DAN	75 Outperform	€2.26B	6.85	10.20%	0.91%	1.26%	37.35%
TEN	74 Outperform	€17.31B	9.60	10.53%	4.25%	-14.41%	-44.84%
PRY	71 Outperform	€15.80B	22.34	15.32%	1.46%	20.34%	25.32%
Sector *	64 Neutral	$4.44B	11.99	5.16%	249.23%	4.01%	-11.87%