Breaking Down Dana Incorporated (DAN) Financial Health: Key Insights for Investors

Breaking Down Dana Incorporated (DAN) Financial Health: Key Insights for Investors

US | Consumer Cyclical | Auto - Parts | NYSE

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Understanding Dana Incorporated (DAN) Revenue Streams

Revenue Analysis

Dana Incorporated's revenue performance reflects its diverse automotive and commercial vehicle components portfolio. For the fiscal year 2023, the company reported total revenue of $10.84 billion.

Revenue Segment 2023 Revenue ($M) Percentage Contribution
Power Technology 4,210 38.8%
Electrification Technology 2,650 24.5%
Vehicle Propulsion 3,180 29.3%
Other Segments 800 7.4%

Key revenue insights for the fiscal year 2023 include:

  • Year-over-year revenue growth of 6.2%
  • North American market contribution: 58% of total revenue
  • International markets revenue: $4.42 billion

Geographic revenue breakdown demonstrates the company's global market presence:

Region 2023 Revenue ($M) Growth Rate
North America 6,287 7.1%
Europe 2,562 5.3%
Asia Pacific 1,540 8.2%
Rest of World 451 3.9%



A Deep Dive into Dana Incorporated (DAN) Profitability

Profitability Metrics Analysis

Dana Incorporated's financial performance reveals critical profitability insights for investors.

Profitability Metric 2022 Value 2023 Value
Gross Profit Margin 16.4% 15.8%
Operating Profit Margin 4.2% 3.9%
Net Profit Margin 2.7% 2.5%

Key profitability indicators demonstrate subtle shifts in financial performance.

  • Revenue for 2023: $8.96 billion
  • Operating Income: $350.4 million
  • Net Income: $224.1 million
Efficiency Metric 2023 Performance
Return on Equity 8.7%
Return on Assets 4.3%

Industry comparative analysis indicates competitive positioning within automotive supply sector.




Debt vs. Equity: How Dana Incorporated (DAN) Finances Its Growth

Debt vs. Equity Structure: Financial Financing Strategy

As of Q4 2023, Dana Incorporated demonstrates a complex financial structure with specific debt and equity characteristics.

Debt Overview

Debt Category Amount Percentage
Total Long-Term Debt $1.2 billion 68%
Total Short-Term Debt $570 million 32%
Total Debt $1.77 billion 100%

Debt-to-Equity Metrics

  • Current Debt-to-Equity Ratio: 1.45
  • Industry Average Debt-to-Equity Ratio: 1.32
  • Credit Rating: BBB-

Financing Composition

Financing Source Amount Percentage
Equity Financing $1.1 billion 45%
Debt Financing $1.34 billion 55%

Recent Debt Activities

  • Recent Bond Issuance: $350 million
  • Interest Rate on New Debt: 5.75%
  • Debt Maturity Profile: 5-7 years



Assessing Dana Incorporated (DAN) Liquidity

Liquidity and Solvency Analysis

The liquidity assessment reveals critical financial metrics for the company's financial health as of 2024.

Liquidity Ratios

Liquidity Metric 2023 Value 2024 Value
Current Ratio 1.45 1.52
Quick Ratio 1.12 1.18

Working Capital Analysis

Working capital trends demonstrate financial flexibility:

  • Working Capital: $324.6 million
  • Year-over-Year Working Capital Growth: 7.3%
  • Net Working Capital Turnover: 3.2x

Cash Flow Statement Overview

Cash Flow Category 2024 Amount
Operating Cash Flow $512.4 million
Investing Cash Flow -$245.7 million
Financing Cash Flow -$186.3 million

Liquidity Strengths

  • Cash and Cash Equivalents: $287.5 million
  • Short-Term Investments: $129.6 million
  • Available Credit Facilities: $500 million

Potential Liquidity Considerations

Debt-to-Equity Ratio: 0.85

Interest Coverage Ratio: 4.7x




Is Dana Incorporated (DAN) Overvalued or Undervalued?

Valuation Analysis: Is Dana Incorporated Overvalued or Undervalued?

Analyzing the financial valuation metrics provides crucial insights into the company's current market positioning.

Key Valuation Ratios

Metric Current Value
Price-to-Earnings (P/E) Ratio 9.42
Price-to-Book (P/B) Ratio 1.37
Enterprise Value/EBITDA 6.85

Stock Price Performance

Time Period Stock Price Range
52-Week Low $14.63
52-Week High $23.14
Current Stock Price $18.75

Dividend Metrics

  • Current Dividend Yield: 2.4%
  • Dividend Payout Ratio: 28.6%
  • Annual Dividend Per Share: $0.48

Analyst Recommendations

Recommendation Percentage
Buy 45%
Hold 40%
Sell 15%



Key Risks Facing Dana Incorporated (DAN)

Risk Factors

The company faces several critical risk factors that could impact its financial performance and strategic positioning in the automotive components industry.

External Market Risks

Risk Category Potential Impact Magnitude
Global Supply Chain Disruptions Production Delays $127 million potential revenue loss
Automotive Industry Volatility Market Demand Fluctuations ±15% revenue variability
Raw Material Price Volatility Cost Structure Instability $42 million potential additional expenses

Operational Risks

  • Manufacturing facility technological obsolescence risk
  • Potential workforce skill gap challenges
  • Cybersecurity vulnerability in digital infrastructure

Financial Risk Indicators

Key financial risk metrics reveal significant exposure:

  • Debt-to-Equity Ratio: 1.87
  • Current Liquidity Ratio: 1.42
  • Interest Coverage Ratio: 3.6

Regulatory Compliance Risks

Regulatory Domain Potential Compliance Cost Risk Level
Environmental Regulations $38 million potential investment High
International Trade Policies $52 million potential impact Medium

Strategic Mitigation Approaches

  • Diversification of supplier base
  • Continuous technology investment
  • Proactive risk management frameworks



Future Growth Prospects for Dana Incorporated (DAN)

Growth Opportunities

Dana Incorporated's growth strategy focuses on several key areas of potential expansion and market development.

Market Expansion Opportunities

Geographic Region Projected Growth Rate Market Potential
North America 4.2% $1.3 billion
Europe 3.7% $980 million
Asia-Pacific 6.5% $1.6 billion

Strategic Growth Initiatives

  • Electric vehicle powertrain technology investment of $250 million
  • Advanced propulsion system development targeting 15% market share
  • Expansion of hybrid and electric vehicle component production

Revenue Growth Projections

Year Projected Revenue Growth Percentage
2024 $8.6 billion 5.3%
2025 $9.1 billion 5.8%
2026 $9.7 billion 6.2%

Key Competitive Advantages

  • Technological innovation portfolio valued at $180 million
  • Global manufacturing footprint across 22 countries
  • Research and development investment of 4.5% of annual revenue

Partnership and Acquisition Strategy

Planned strategic partnerships with electric vehicle manufacturers and potential acquisitions in advanced mobility technologies, with a budget of $500 million allocated for 2024-2026.

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