Dana (DAN) is back in focus after a delayed 10-Q filing on May 12 was followed by first quarter results on May 15, featuring sales of US$1,868 million and net income of US$1,087 million.
See our latest analysis for Dana.
The stock has eased 10.2% on a 1 month share price return basis but remains materially higher, with a year to date share price return of 33.4% and a very large 1 year total shareholder return of 111.6%. This suggests that recent earnings and the earlier filing delay have become key drivers of sentiment.
If this kind of turnaround story has your attention, it could be a good moment to broaden your search and review the 35 power grid technology and infrastructure stocks
With the stock up sharply over the past year and trading below some stated value estimates, the key question now is whether Dana is still on sale or if the market is already pricing in all the future growth.
Most Popular Narrative: 18.2% Undervalued
At a last close of $33.29 versus a narrative fair value of $40.71, Dana is framed as undervalued, with the story built around future margin and cash flow shifts.
The company's robust new business wins and three-year sales backlog, anchored by major electrified and light vehicle programs (e.g., JLR, Ford Super Duty, Wrangler), position Dana to capitalize on the accelerating shift toward electric and next-generation mobility, supporting higher recurring revenues and potential share gains.
Want to see what sits behind that fair value? The narrative leans heavily on future revenue growth, margin repair, and a different earnings profile than today. The exact mix of assumptions might surprise you.
Result: Fair Value of $40.71 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, the narrative can quickly be challenged if cost savings are harder to deliver than expected or if concentrated light vehicle exposure amplifies any downturn in key customer demand.
Find out about the key risks to this Dana narrative.
Another Angle on Valuation
The fair value story so far leans on implied future cash flows and margin repair, but the current P/S of 0.5x also matters. That is above a fair ratio of 0.4x, yet below the 0.6x industry average and 0.9x peer average, which points to mixed signals on how much safety is really priced in.
See what the numbers say about this price — find out in our valuation breakdown.
Next Steps
With sentiment split between turnaround potential and execution risks, this is a good time to look through the data yourself and decide where you stand. You can start with 3 key rewards and 1 important warning sign
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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