📊 DAN Key Takeaways
Is DANA Inc (DAN) a Good Investment?
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.
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.
Why Buy DANA Inc Stock? DAN Key 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
- 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
- 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
- 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 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
- Operating margin and gross margin recovery
- Interest coverage and net debt reduction
DANA Inc (DAN) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 4.0% FCF margin may limit capital allocation flexibility.
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 has mixed fundamental signals 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 |
|---|---|---|---|
| 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.
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 Rating of SELL from Claude (SELL) and ChatGPT (SELL) with 80% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are DAN's key strengths?
Claude: Positive free cash flow of $298M provides operating flexibility. Adequate cash position of $469M offers near-term liquidity cushion. 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: 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. 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 $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?
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 rating reflects both perspectives for balanced insights.
Is DAN a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, DANA Inc has a SELL rating with 80% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is DAN stock overvalued or undervalued?
Valuation metrics for DAN: ROE of 10.1% (sector avg: 12%), net margin of 1.1% (sector avg: 6%). Compare these metrics with sector averages to assess valuation.
Should I buy DAN stock in 2026?
Our dual AI analysis gives DANA Inc a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is DAN's free cash flow?
DANA Inc's operating cash flow is $512.0M, with capital expenditures of $214.0M. FCF margin is 4.0%.
How does DAN compare to other Automotive stocks?
Vs Automotive sector averages: Net margin 1.1% (avg: 6%), ROE 10.1% (avg: 12%), current ratio 1.17 (avg: 1.2).
Is DANA Inc carrying too much debt?
DAN has a debt-to-equity ratio of 3.05x, which is above the Automotive sector average of 1x. However, the current ratio of 1.17 suggests adequate short-term liquidity.