One-glance verdict
Overvalued
$24.24 our estimate vs market $27.05
Wall Street consensus: $38.67 (59.5% higher than our fair-value estimate)
12% above our estimate, beyond the bull case
Fundamentals snapshot
Dana Incorporated
DAN · NYQ · Consumer Cyclical · Auto Parts
Current price
$27.05
52-week range
$18.96 - $39.56
Market cap
$2.91B
Balance sheet
Stretched
1.18x Concerning
Net debt $1.17B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 2.2% last year.
- Reward Free cash flow was positive in 9/10 years.
- Risk Net debt grew 32.8% over 3 years.
- Risk Return on equity was -1.6% last year — the company lost money on shareholders' equity.
What this company does
Dana Incorporated
Dana Incorporated makes parts for vehicles that help move power and manage energy, like axles and transmissions, for trucks and cars. Most of its money comes from selling these parts to big car and truck makers around the world. This is important because Dana's success is tied to how many new vehicles are being built and sold.
How the company got here
Dana Incorporated has a long history, tracing its roots back to 1904 when Clarence Spicer invented the encased universal joint, a crucial component for early automobiles. Initially known as Spicer Manufacturing Company, it was renamed Dana Corporation in 1946 to honor Charles A. Dana, who guided the company for over 50 years. Throughout its history, Dana has been a key supplier of drivetrain, sealing, and thermal-management technologies for various vehicles. The company has grown through both internal development and strategic acquisitions, adapting to the evolving automotive industry, including experiencing periods of restructuring and bankruptcy. In recent years, Dana has focused on streamlining its operations and portfolio, including the divestiture of its Off-Highway business to concentrate on light and commercial vehicle markets, with a strong emphasis on both traditional and electrified vehicles.
What it actually does
Dana Incorporated designs and manufactures highly efficient propulsion and energy-management solutions for vehicles. They provide critical components like axles, driveshafts, and transmissions that are essential for transferring power from the engine to the wheels. Dana also offers advanced technologies in areas such as sealing, thermal management (controlling heat), and electrodynamics (related to electricity and magnetism), which are increasingly important for both traditional combustion engines and new electric vehicle powertrains. Their products are used by nearly every major vehicle manufacturer globally, serving both the original equipment market (new vehicles) and the aftermarket (replacement parts).
Light Vehicle Drive Systems
This segment is Dana's largest source of revenue and focuses on providing components for passenger cars, light trucks, SUVs, and vans. They supply essential parts like axles and driveshafts that are critical for the vehicle's drivetrain, which is the system that delivers power to the wheels. This part of Dana's business also includes advanced components for hybrid and electric vehicles, such as e-axles (electric drive axles) and e-transmissions, catering to the growing demand for cleaner and more efficient transportation. These products are sold directly to car manufacturers (OEMs - Original Equipment Manufacturers) for use in new vehicles.
Commercial Vehicle Drive and Motion Systems
This segment provides similar drivetrain components, such as axles and driveshafts, but specifically for medium and heavy-duty trucks and other commercial vehicles. These components are built to be extremely durable and reliable to handle the demanding use of commercial transport. Dana also offers specialized solutions for electric and hybrid commercial vehicles within this segment, supporting the transition to more sustainable logistics. Like the Light Vehicle segment, these products are primarily sold to truck manufacturers for their new vehicle production lines.
What management is betting on now
Dana's current strategy, often referred to as 'Dana 2030,' centers on accelerating profitable growth and strengthening its competitive position. A key focus is on expanding its offerings in electrified propulsion systems, such as integrated e-axles and electric drive units, recognizing the significant shift towards electric vehicles. Management is also prioritizing operational efficiency, cost reduction, and strengthening cash generation to improve overall profitability and financial health. The company aims to increase its annual sales and improve its profit margins (the percentage of revenue left after costs) by focusing on higher-margin new business and disciplined investments in technology and manufacturing.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$-11.00M
FY2024 Q4
$149.00M
FY2025 Q1
$-112.00M
FY2025 Q2
$3.00M
FY2025 Q3
$62.00M
FY2025 Q4
$345.00M
FY2026 Q1
$-257.00M
FY2026 Q2
$-33.00M
Revenue
$2.01B
Net income
$-5.00M
Diluted EPS
-0.05
Operating cash flow
$109.00M
Free cash flow
$-33.00M
Fetching…
Sources
Revenue
$1.87B
Net income
$1.09B
Diluted EPS
9.89
Operating cash flow
$-195.00M
Free cash flow
$-257.00M
Fetching…
Sources
Revenue
$1.87B
Net income
$-50.00M
Diluted EPS
-0.43
Operating cash flow
$406.00M
Free cash flow
$345.00M
Fetching…
Sources
Revenue
$1.92B
Net income
$83.00M
Diluted EPS
0.64
Operating cash flow
$111.00M
Free cash flow
$62.00M
Fetching…
Sources
Revenue
$1.94B
Net income
$27.00M
Diluted EPS
0.19
Operating cash flow
$32.00M
Free cash flow
$3.00M
Fetching…
Sources
Revenue
$2.35B
Net income
$25.00M
Diluted EPS
0.17
Operating cash flow
$-37.00M
Free cash flow
$-112.00M
Fetching…
Sources
Revenue
$1.77B
Net income
$-80.00M
Diluted EPS
-0.55
Operating cash flow
$302.00M
Free cash flow
$149.00M
Fetching…
Sources
Revenue
$2.48B
Net income
$4.00M
Diluted EPS
0.03
Operating cash flow
$35.00M
Free cash flow
$-11.00M
Fetching…
Sources
Is it cheap or expensive?
Fair value $24.24 vs current price $27.05
Wall Street consensus is the average analyst price target: $38.67 (59.5% higher than our fair-value estimate).
Our most-likely fair value is $24.24 a share — about 10.4% below today's price of $27.05, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Stretched
Net debt $1.2B. Interest coverage 1.2x.
Net debt
$1.17B
Interest coverage
1.18x
Dana Incorporated's profit covers its interest bill about 1.2 times over. which is weaker than most peers shown here.
Stretched
Worse cushion
Baseline
Better cushion
DAN
BASELINE
Dana Incorporated
Total debt $1.50B Interest coverage 1.18x This is the baseline the peer rows are being compared against.
Total debt $4.06B Interest coverage 13.36x +1,036% vs DAN Carries about 11.4x more debt cushion than DAN.
Total debt $3.52B Interest coverage 7.71x +555% vs DAN Carries about 6.6x more debt cushion than DAN.
Total debt $459.00M Interest coverage 25.38x +2,057% vs DAN Carries about 21.6x more debt cushion than DAN.
What you should know
The case for and against DAN
3 Rewards
2 Risks
Rewards
-
Revenue grew 2.2% last year.
-
Free cash flow was positive in 9/10 years.
-
Dividend yield is 1.8% with 15-year payout history.
Risks
-
Net debt grew 32.8% over 3 years.
-
Return on equity was -1.6% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
6.15x
P/B
1.52x
P/S
0.38x
EV/EBITDA
6.19x
PEG ratio
4.21x
Profitability
How much profit each dollar creates
Gross margin
9.5%
Operating margin
5.1%
Net margin
14.6%
ROE
-1.6%
ROA
2.8%
Health
Liquidity and balance-sheet strength
Debt / equity
0.76x
Current ratio
1.49x
Quick ratio
0.87x
Total debt
$1.50B
Total cash
$331.00M
Growth
How the business has been compounding
Revenue TTM
$7.66B
Revenue 5Y CAGR
-4.3%
EPS TTM
-0.36
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$431.00M
Free CF TTM
$298.00M
FCF margin
3.9%
Dividend
Shareholder payout
Yield
1.8%
Payout ratio
59.7%
Last ex-div date
2026-11-06