Dana Incorporated (DAN) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Dana Incorporated (DAN) Consumer Business Overview

Dana Incorporated (DAN) is a global leader in power-conveyance and energy-management solutions for vehicles and machinery. Operating across light vehicle, commercial vehicle, off-highway, and power technology segments, Dana serves diverse markets with a comprehensive product portfolio and a significant global footprint, positioning it as a key player in the automotive parts industry.

What Is the Investment Thesis for DAN?

Dana Incorporated presents a notable research candidate within the automotive parts sector, driven by its diverse product portfolio and global market reach. The company's focus on power-conveyance and energy-management solutions positions it to capitalize on the increasing demand for both electric and traditional vehicle components. With a market capitalization of $3.83B and a dividend yield of 1.27%, Dana offers a blend of growth and income potential. Key growth catalysts include the expansion of its e-axle and e-drive offerings, as well as continued penetration into the off-highway and commercial vehicle markets. The company's beta of 2.04 indicates higher volatility compared to the market, which could present opportunities for investors with a higher risk tolerance. However, potential risks include fluctuations in raw material costs and the cyclical nature of the automotive industry. Overall, Dana's strategic positioning and diversified business model support a positive long-term outlook.

Based on FMP financials and quantitative analysis

DAN Key Highlights

Dana Incorporated operates in four segments: Light Vehicle Drive Systems, Commercial Vehicle Drive and Motion Systems, Off-Highway Drive and Motion Systems, and Power Technologies, diversifying its revenue streams.

• The company serves a global market, with operations in North America, Europe, South America, and the Asia Pacific, mitigating regional economic risks.
• Dana offers solutions for both electric and internal combustion engine (ICE) vehicles, positioning it to benefit from the transition to electric mobility.
• Dana's product portfolio includes axles, driveshafts, transmissions, and thermal management solutions, addressing critical vehicle performance needs.
• With a market capitalization of $3.83B and a dividend yield of 1.27%, Dana offers a blend of growth and income potential for investors.

Who Are DAN's Competitors?

DAN is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance This table mixes two scoring engines — compare a number only with others carrying the same tag.

What Are DAN's Key Strengths?

Diversified product portfolio serving multiple vehicle markets.

• Global manufacturing and distribution network.
• Engineering expertise and innovation capabilities.
• Established relationships with major vehicle manufacturers.

What Are DAN's Weaknesses?

Exposure to cyclical fluctuations in the automotive industry.

• Dependence on raw material prices.
• Potential impact from changing regulations and emission standards.
• Intense competition in the automotive parts market.

What Could Drive DAN Stock Higher?

Increasing demand for electric vehicle components, driving growth in Dana's e-axle and e-drive offerings.

• Expansion of Dana's presence in the off-highway market, supported by infrastructure development and agricultural mechanization.
• Electrification of commercial vehicles, creating opportunities for Dana's electric vehicle integration services.
• Growing demand for advanced thermal management solutions, benefiting Dana's Power Technologies segment.

What Are the Key Risks for DAN?

Financial-distress signal — its Altman Z-Score of 1.06 sits in the distress zone (elevated bankruptcy risk).

• Negative return on equity (-12.7%) — the business is not currently generating profit on shareholder capital.
• Inconsistent delivery — missed Wall Street EPS estimates in 7 of the last 8 reported quarters.
• Economic downturns impacting vehicle sales and demand for automotive parts.
• Disruptive technologies and new market entrants challenging Dana's market position.
• Increased competition from low-cost manufacturers, putting pressure on pricing and margins.
• Supply chain disruptions and raw material shortages impacting production and profitability.
• Fluctuations in raw material prices, affecting Dana's cost structure and profitability.

What Are the Growth Opportunities for DAN?

• Growth opportunity 1: Expansion of E-Axle and E-Drive Offerings: The increasing adoption of electric vehicles presents a significant growth opportunity for Dana. The global e-axle market is projected to reach $25 billion by 2030, driven by stricter emission regulations and growing consumer demand for EVs. Dana's expertise in developing e-axles and e-drives positions it to capture a substantial share of this market. By investing in research and development and expanding its production capacity, Dana can capitalize on the growing demand for electric vehicle components and enhance its competitive advantage.
• Growth opportunity 2: Penetration into the Off-Highway Market: The off-highway market, including construction, agriculture, and mining equipment, offers a stable and growing revenue stream for Dana. The global off-highway vehicle market is expected to reach $150 billion by 2028, driven by infrastructure development and increasing demand for agricultural machinery. Dana's existing product portfolio and established customer relationships provide a strong foundation for expanding its presence in this market. By developing customized solutions and leveraging its engineering expertise, Dana can further penetrate the off-highway market and drive revenue growth.
• Growth opportunity 3: Commercial Vehicle Electrification: The electrification of commercial vehicles, including trucks and buses, is gaining momentum, driven by government incentives and corporate sustainability initiatives. The global electric commercial vehicle market is projected to reach $100 billion by 2030. Dana's expertise in electric vehicle integration and software as a service positions it to capitalize on this trend. By partnering with commercial vehicle manufacturers and developing innovative solutions, Dana can capture a significant share of the electric commercial vehicle market and enhance its long-term growth prospects.
• Growth opportunity 4: Thermal Management Solutions: The increasing complexity of vehicle systems and the growing demand for energy efficiency are driving the need for advanced thermal management solutions. The global thermal management market is expected to reach $40 billion by 2027. Dana's Power Technologies segment offers a range of thermal management products, including gaskets, sealing, and cooling solutions. By investing in research and development and expanding its product portfolio, Dana can capitalize on the growing demand for thermal management solutions and enhance its competitive position.
• Growth opportunity 5: Strategic Acquisitions and Partnerships: Dana can pursue strategic acquisitions and partnerships to expand its product offerings, enter new markets, and enhance its technological capabilities. By acquiring companies with complementary technologies or established customer relationships, Dana can accelerate its growth and strengthen its competitive advantage. Potential acquisition targets include companies specializing in electric vehicle components, advanced materials, or software solutions. Strategic partnerships can also provide access to new markets and technologies, enabling Dana to stay ahead of the competition.

What Are DAN's Competitive Advantages?

• Established relationships with major vehicle manufacturers.
• Diversified product portfolio serving multiple vehicle markets.
• Global manufacturing and distribution network.
• Engineering expertise and innovation capabilities.

What Does DAN Do?

Founded in 1904 and headquartered in Maumee, Ohio, Dana Incorporated has evolved into a leading provider of power-conveyance and energy-management solutions for vehicles and machinery. Originally known as Dana Holding Corporation, the company rebranded in August 2016 to Dana Incorporated. The company operates through four primary segments: Light Vehicle Drive Systems, Commercial Vehicle Drive and Motion Systems, Off-Highway Drive and Motion Systems, and Power Technologies. The Light Vehicle Drive Systems segment offers a range of products including axles, driveshafts, e-axles, electrodynamic and drivetrain components, and transmissions for light trucks, SUVs, vans, and passenger cars, catering to both electric and internal combustion engine (ICE) vehicles. The Commercial Vehicle Drive and Motion Systems segment provides similar solutions for medium and heavy-duty trucks, buses, and specialty vehicles, including electric vehicle integration services and software as a service. The Off-Highway Drive and Motion Systems segment serves construction, agriculture, mining, and other industrial sectors with axles, driveshafts, transmissions, and related components. The Power Technologies segment focuses on gaskets, sealing, thermal management, and fuel cell plates for various vehicle markets. Dana's global presence spans North America, Europe, South America, and the Asia Pacific, allowing it to serve a diverse customer base and adapt to regional market demands. With a workforce of approximately 39,300 employees, Dana continues to innovate and expand its product offerings to meet the evolving needs of the automotive and industrial sectors.

What Products and Services Does DAN Offer?

• Designs and manufactures power-conveyance and energy-management solutions.
• Supplies axles, driveshafts, and transmissions for light vehicles.
• Provides drivetrain components for commercial vehicles.
• Offers solutions for off-highway vehicles used in construction and agriculture.
• Develops thermal management products for various vehicle markets.
• Provides electric vehicle integration services and software solutions.

How Does DAN Make Money?

• Generates revenue by selling power-conveyance and energy-management solutions to vehicle manufacturers.
• Offers aftermarket parts and services to support its installed base.
• Provides engineering and integration services for electric vehicle applications.
• Partners with vehicle manufacturers to develop customized solutions.

What Industry Does DAN Operate In?

Dana Incorporated operates within the automotive parts industry, a sector undergoing significant transformation driven by the shift towards electric vehicles and advanced technologies. The industry is characterized by intense competition, with companies vying for market share through innovation and cost efficiency. Market trends include increasing demand for lightweight and efficient components, as well as integrated systems that enhance vehicle performance and fuel economy. Dana's focus on power-conveyance and energy-management solutions aligns with these trends, positioning it to capitalize on the growing demand for both traditional and electric vehicle components. Competitors such as Garrett Motion Inc. and Ermenegildo Zegna N.V. also operate in related segments, but Dana's diversified product portfolio and global presence provide a competitive advantage.

Who Are DAN's Key Customers?

• Light vehicle manufacturers (e.g., automakers producing cars, trucks, and SUVs).
• Commercial vehicle manufacturers (e.g., companies producing trucks, buses, and specialty vehicles).
• Off-highway equipment manufacturers (e.g., companies producing construction, agriculture, and mining equipment).
• Aftermarket distributors and service providers.

Dana Incorporated (DAN) Valuation Context

Valued at $3.83B, DAN is classified as a mid-cap stock. Analyst price targets span from $33.00 to $39.00, with a consensus of $36.40. At the current price of $30.67, that implies approximately 19% upside potential. Relative to its peer group, DAN's quantitative score of 34/100 is below the peer average of 64/100.

DAN Revenue & Earnings Trend

In Q2 FY2026, DAN generated $2.01B in top-line revenue, marking a sequential increase of 7.6%. The company recorded a net loss of $5.0M, with diluted EPS of $-0.05. Revenue has increased across the last three reported quarters, suggesting sustained momentum for this mid-cap Consumer Cyclical company. Across the four most recent quarters, DAN averaged $-0.40 in diluted EPS.

Company Profile

Dana Incorporated operates in the Auto - Parts industry within the Consumer Cyclical sector. It is headquartered in Maumee, US. The company is led by CEO Byron S. Foster. DAN has traded publicly since 2008.

Return on equity for Dana Incorporated stands at -12.7%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is -2.7%, showing how much profit it generates from its asset base. Its free cash flow yield is 4.5%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.57 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is -5.4%, the inverse of the P/E and a quick read on earnings relative to price.

Dana Incorporated's Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 1.06 places it in the distress zone, a signal of elevated financial risk.

Dana Incorporated has missed Wall Street's EPS estimate in 7 of its last 8 reported quarters — a recurring pattern of falling short of estimates. Reported results have landed about 20.0% below estimates on average.

Over the past six months, Dana Incorporated insiders filed 50 SEC Form 4 transactions — 6 sales and 44 purchases. On net that is roughly 242K shares acquired (about $294K) — insiders putting money in tends to read as conviction.

DAN Financials

DAN Latest News

DAN Analyst Consensus

DAN MoonshotScore

What Investors Ask About Dana Incorporated (DAN) — Consumer Cyclical

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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