📊 DAN Key Takeaways
Is DANA Inc (DAN) a Good Investment?
Dana Inc exhibits critical financial distress with negative operating cash flow of -$195M and free cash flow of -$257M despite reported positive earnings, indicating either significant one-time gains or underlying operational deterioration. Interest coverage of 0.9x signals inability to service debt from core operations, while declining revenue (-3% YoY) and 1% operating margin reflect structural weakness in the automotive parts business.
Dana's fundamentals show a business that remains operationally viable but structurally fragile. Positive free cash flow and improved EPS are offset by extremely thin margins, weak interest coverage below 1x, and heavy leverage, leaving limited room for execution errors or cyclical pressure. Until profitability normalizes materially and balance-sheet risk declines, the fundamental profile remains unattractive.
DANA Inc Key Strengths (DAN)
- Cash position of $477M provides near-term liquidity buffer to manage operational challenges
- Moderate leverage at 0.63x debt-to-equity ratio limits financial distress risk compared to peers
- Current ratio of 1.57x indicates adequate short-term working capital management
- Positive operating cash flow and free cash flow provide some internal funding capacity
- Revenue base remains large at $7.50B, supporting scale and customer relevance
- ROE is positive and diluted EPS improved sharply year over year
DAN Stock Risks: DANA Inc Investment Risks
- Interest coverage of 0.9x is critical distress signal - operating income cannot cover interest expense, creating immediate refinancing and covenant violation risk
- Negative operating cash flow of -$195M and FCF of -$257M are unsustainable; cash position will deplete within ~2 years at current burn rate
- Revenue declining 3% YoY with 1% operating margins indicates weak competitive position and pricing power in challenged automotive parts market; 58.2% net margin likely driven by non-operating gains masking core weakness
- Gross, operating, and net margins are very thin, indicating poor earnings resilience
- Debt burden is high with debt/equity of 3.05x and long-term debt of $2.57B
- Interest coverage of 0.8x suggests earnings are not comfortably covering financing costs
Key Metrics to Watch
- Operating cash flow trajectory - must return to positive to validate business viability
- Interest coverage ratio - requires improvement above 1.5x to eliminate refinancing risk
- Revenue trend and operating margin expansion - core profitability measures currently signaling operational distress
- Operating margin and gross margin recovery
- Interest coverage and net debt reduction
DANA Inc (DAN) Financial Metrics & Key Ratios
💡 AI Analyst Insight
DANA Inc presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
DAN Profit Margin, ROE & Profitability Analysis
DAN vs Automotive Sector: How DANA Inc Compares
How DANA Inc compares to Automotive sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is DANA Inc Stock Overvalued? DAN Valuation Analysis 2026
Based on fundamental analysis, DANA Inc appears fundamentally strong relative to the Automotive sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
DANA Inc Balance Sheet: DAN Debt, Cash & Liquidity
DAN Revenue & Earnings Growth: 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 Revenue Growth, EPS Growth & YoY Performance
DAN Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $1.8B | $25.0M | $0.17 |
| 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 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
DANA Inc Dividends, Buybacks & Capital Allocation
DAN SEC Filings: Latest 10-K & 10-Q Analysis
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 a Combined AI Grade of C from Claude (D) and ChatGPT (C) with 86% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are DAN's key strengths?
Claude: Cash position of $477M provides near-term liquidity buffer to manage operational challenges. Moderate leverage at 0.63x debt-to-equity ratio limits financial distress risk compared to peers. ChatGPT: Positive operating cash flow and free cash flow provide some internal funding capacity. Revenue base remains large at $7.50B, supporting scale and customer relevance.
What are the risks of investing in DAN?
Claude: Interest coverage of 0.9x is critical distress signal - operating income cannot cover interest expense, creating immediate refinancing and covenant violation risk. Negative operating cash flow of -$195M and FCF of -$257M are unsustainable; cash position will deplete within ~2 years at current burn rate. ChatGPT: Gross, operating, and net margins are very thin, indicating poor earnings resilience. Debt burden is high with debt/equity of 3.05x and long-term debt of $2.57B.
What is DAN's revenue and growth?
DANA Inc reported revenue of $1.9B.
Does DAN pay dividends?
DANA Inc pays dividends, with $13.0M 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 $9.89.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is DAN's fundamental grade?
Based on our AI fundamental analysis in June 2026, DANA Inc has a C grade with 86% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is DAN stock overvalued or undervalued?
Valuation metrics for DAN: ROE of 55.6% (sector avg: 12%), net margin of 58.2% (sector avg: 6%). Higher ROE suggests strong returns relative to peers.
What is DAN's AI grade for 2026?
Our dual AI analysis gives DANA Inc a combined C grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is DAN's free cash flow?
DANA Inc's operating cash flow is $-195.0M, with capital expenditures of $62.0M. FCF margin is -13.8%.
How does DAN compare to other Automotive stocks?
Vs Automotive sector averages: Net margin 58.2% (avg: 6%), ROE 55.6% (avg: 12%), current ratio 1.57 (avg: 1.2).
Why is DAN's return on equity (ROE) so high?
DANA Inc has a return on equity of 55.6%, significantly above the Automotive sector average of 12%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 58.2% net margin.