📊 DAN Key Takeaways
Investment Thesis
Dana Inc faces significant financial stress with deteriorating operational metrics despite flat net income. The company exhibits dangerously low margins (2.8% gross, 1.9% operating), inadequate interest coverage (0.8x), and elevated leverage (3.05x debt/equity), indicating limited financial flexibility. While positive free cash flow provides some buffer, margin compression and revenue decline signal competitive pressures that outweigh near-term liquidity comfort.
DAN Strengths
- Positive free cash flow of $298M provides operating flexibility
- Adequate cash position of $469M offers near-term liquidity cushion
- Strong insider filing activity (32 Form 4s) suggests management engagement with capital deployment
DAN Risks
- Dangerous interest coverage ratio of 0.8x indicates insufficient earnings to service debt obligations
- Razor-thin operating margin of 1.9% leaves minimal room for operational errors or sector downturns
- Revenue decline of 3.0% YoY combined with margin compression signals loss of competitive positioning in motor vehicle parts sector
- Debt-to-equity ratio of 3.05x represents heavy leverage with limited covenant flexibility
- Current ratio of 1.17x and quick ratio of 0.86x indicate tight working capital management
Key Metrics to Watch
- Operating margin trend and gross margin stability
- Interest coverage ratio improvement toward sustainable levels (>2.0x)
- Revenue growth inflection and customer retention
- Free cash flow sustainability and debt reduction progress
- Debt-to-equity ratio trajectory toward industry norms
DAN Financial Metrics
💡 AI Analyst Insight
The relatively thin 4.0% FCF margin may limit capital allocation flexibility.
DAN Profitability Ratios
DAN vs Default Sector
How DANA Inc compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
DAN Balance Sheet & Liquidity
DAN 5-Year Financial Trend
5-Year Trend Summary: DANA Inc's revenue has declined by 14% over the 5-year period, indicating business contraction. The most recent EPS of $0.26 reflects profitable operations.
DAN Growth Metrics (YoY)
DAN Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $1.9B | $4.0M | $0.03 |
| Q2 2025 | $1.9B | $16.0M | $0.11 |
| Q1 2025 | $2.4B | $3.0M | $0.02 |
| Q3 2024 | $2.5B | $4.0M | $0.03 |
| Q2 2024 | $2.7B | $16.0M | $0.11 |
| Q1 2024 | $2.6B | $3.0M | $0.02 |
| Q3 2023 | $2.5B | $19.0M | $0.13 |
| Q2 2023 | $2.6B | $8.0M | $0.06 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
DAN Capital Allocation
DAN SEC Filings
Access official SEC EDGAR filings for DANA Inc (CIK: 0000026780)
📋 Recent SEC Filings
❓ Frequently Asked Questions about DAN
What is the AI rating for DAN?
DANA Inc (DAN) has an AI rating of SELL with 75% confidence, based on fundamental analysis of SEC EDGAR filings.
What are DAN's key strengths?
Positive free cash flow of $298M provides operating flexibility. Adequate cash position of $469M offers near-term liquidity cushion.
What are the risks of investing in DAN?
Dangerous interest coverage ratio of 0.8x indicates insufficient earnings to service debt obligations. Razor-thin operating margin of 1.9% leaves minimal room for operational errors or sector downturns.
What is DAN's revenue and growth?
DANA Inc reported revenue of $7.5B.
Does DAN pay dividends?
DANA Inc pays dividends, with $54.0M distributed to shareholders in the trailing twelve months.
Where can I find DAN SEC filings?
Official SEC filings for DANA Inc (CIK: 0000026780) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is DAN's EPS?
DANA Inc has a diluted EPS of $0.64.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.