BIT:DAN

Stock Analysis Report

Danieli & C. Officine Meccaniche

Executive Summary

Danieli & C. Officine Meccaniche S.p.A. designs, constructs, and sells plants for the iron and steel industry worldwide.

Rewards

Trading at 19.9% below its fair value

Earnings are forecast to grow 23.17% per year

Earnings grew by 14.8% over the past year

Risk Analysis

No risks detected for DAN from our risk checks.


Snowflake Analysis

Undervalued with excellent balance sheet.

Share Price & News

How has Danieli & C. Officine Meccaniche's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DAN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.6%

DAN

0.3%

IT Machinery

-0.04%

IT Market


1 Year Return

-2.3%

DAN

-2.7%

IT Machinery

16.6%

IT Market

Return vs Industry: DAN matched the Italian Machinery industry which returned -2% over the past year.

Return vs Market: DAN underperformed the Italian Market which returned 18.6% over the past year.


Shareholder returns

DANIndustryMarket
7 Day-4.6%0.3%-0.04%
30 Day-4.4%0.8%-0.5%
90 Day-1.9%4.5%5.0%
1 Year-1.4%-2.3%-1.0%-2.7%21.8%16.6%
3 Year-19.4%-21.0%23.9%18.7%24.1%5.8%
5 Year-22.3%-24.8%57.7%47.6%23.3%-18.3%

Price Volatility Vs. Market

How volatile is Danieli & C. Officine Meccaniche's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Danieli & C. Officine Meccaniche undervalued compared to its fair value and its price relative to the market?

21.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DAN (€16.28) is trading below our estimate of fair value (€20.34)

Significantly Below Fair Value: DAN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: DAN is poor value based on its PE Ratio (18.1x) compared to the Machinery industry average (17.5x).

PE vs Market: DAN is good value based on its PE Ratio (18.1x) compared to the Italian market (18.7x).


Price to Earnings Growth Ratio

PEG Ratio: DAN is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: DAN is good value based on its PB Ratio (0.6x) compared to the IT Machinery industry average (1.9x).


Next Steps

Future Growth

How is Danieli & C. Officine Meccaniche forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

22.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DAN's forecast earnings growth (23.2% per year) is above the savings rate (1.2%).

Earnings vs Market: DAN's earnings (23.2% per year) are forecast to grow faster than the Italian market (8.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: DAN's revenue (7.5% per year) is forecast to grow faster than the Italian market (3.8% per year).

High Growth Revenue: DAN's revenue (7.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DAN's Return on Equity is forecast to be low in 3 years time (6.3%).


Next Steps

Past Performance

How has Danieli & C. Officine Meccaniche performed over the past 5 years?

-27.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DAN has high quality earnings.

Growing Profit Margin: DAN's current net profit margins (2.5%) are higher than last year (2.2%).


Past Earnings Growth Analysis

Earnings Trend: DAN's earnings have declined by -27.6% per year over the past 5 years.

Accelerating Growth: DAN's earnings growth over the past year (14.8%) exceeds its 5-year average (-27.6% per year).

Earnings vs Industry: DAN earnings growth over the past year (14.8%) exceeded the Machinery industry -7.6%.


Return on Equity

High ROE: DAN's Return on Equity (3.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Danieli & C. Officine Meccaniche's financial position?


Financial Position Analysis

Short Term Liabilities: DAN's short term assets (€4.0B) exceed its short term liabilities (€2.8B).

Long Term Liabilities: DAN's short term assets (€4.0B) exceed its long term liabilities (€379.2M).


Debt to Equity History and Analysis

Debt Level: DAN's debt to equity ratio (27.7%) is considered satisfactory.

Reducing Debt: DAN's debt to equity ratio has increased from 25.4% to 27.7% over the past 5 years.

Debt Coverage: DAN's debt is well covered by operating cash flow (29.3%).

Interest Coverage: DAN earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: DAN has a high level of physical assets or inventory.

Debt Coverage by Assets: DAN's debt is covered by short term assets (assets are 7.6x debt).


Next Steps

Dividend

What is Danieli & C. Officine Meccaniche's current dividend yield, its reliability and sustainability?

0.95%

Current Dividend Yield


Dividend Yield vs Market

company0.9%marketbottom25%2.0%markettop25%4.2%industryaverage2.1%forecastin3Years1.1%

Current dividend yield vs market & industry

Notable Dividend: DAN's dividend (0.92%) isn’t notable compared to the bottom 25% of dividend payers in the Italian market (1.97%).

High Dividend: DAN's dividend (0.92%) is low compared to the top 25% of dividend payers in the Italian market (4.19%).


Stability and Growth of Payments

Stable Dividend: DAN is not paying a notable dividend for the Italian market, therefore no need to check if payments are stable.

Growing Dividend: DAN is not paying a notable dividend for the Italian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: DAN is not paying a notable dividend for the Italian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DAN's dividend in 3 years as they are not forecast to pay a notable one for the Italian market.


Next Steps

Management

What is the CEO of Danieli & C. Officine Meccaniche's salary, the management and board of directors tenure and is there insider trading?

2.0yrs

Average management tenure


CEO

Gianpietro Benedetti (77yo)

0yrs

Tenure

€664,000

Compensation

Mr. Gianpietro Benedetti serves as Chairman of Group Executive Board, Chairman of the Board and Chief Executive Officer at Danieli & C. Officine Meccaniche S.p.A. and has been its Member of Managing Board  ...


CEO Compensation Analysis

Compensation vs Market: Gianpietro's total compensation ($USD0.00) is below average for companies of similar size in the Italian market ($USD1.05M).

Compensation vs Earnings: Gianpietro's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.0yrs

Average Tenure

Experienced Management: DAN's management team is considered experienced (2 years average tenure).


Board Age and Tenure

11.0yrs

Average Tenure

59yo

Average Age

Experienced Board: DAN's board of directors are seasoned and experienced ( 11 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Gianpietro Benedetti (77yo)

    Chairman

    • Compensation: €664.00k
  • Luca Ferraresi

    Chief Group Controller

    • Alessandro Brussi

      Member of Group Executive Board & Director

      • Giacomo Danieli (39yo)

        CEO, Member of Group Executive Board & Director

        • Tenure: 11yrs
        • Compensation: €14.00k
      • Alessandro Trivillin

        CEO & Director

        • Nico Bleijendaal

          Member of Executive Board

          • Tenure: 0.4yrs
        • Camilla Benedetti

          Deputy Chairman & Executive VP of HR

          • Rolando Paolone

            Member of Group Executive Board

            • Antonello Mordeglia

              Member of Group Executive Board

              • Tenure: 3yrs
            • Michele Marinutti

              Member of Group Executive Board

              • Tenure: 1yrs

            Board Members

            • Carla de Colle (76yo)

              Director

              • Tenure: 19.3yrs
              • Compensation: €14.00k
            • Gianpietro Benedetti (77yo)

              Chairman

              • Compensation: €664.00k
            • Alessandro Brussi

              Member of Group Executive Board & Director

              • Gaetano Terrin (59yo)

                Standing Auditor

                • Compensation: €35.00k
              • Chiara Mio (55yo)

                Independent Director

                • Compensation: €35.00k
              • Giacomo Danieli (39yo)

                CEO, Member of Group Executive Board & Director

                • Tenure: 11yrs
                • Compensation: €14.00k
              • Alessandro Trivillin

                CEO & Director

                • Camilla Benedetti

                  Deputy Chairman & Executive VP of HR

                  • Giulio Capocaccia

                    Director

                    • Davide Barbieri

                      President of Board of Statutory Auditors

                      • Tenure: 2yrs

                    Company Information

                    Danieli & C. Officine Meccaniche S.p.A.'s company bio, employee growth, exchange listings and data sources


                    Key Information

                    • Name: Danieli & C. Officine Meccaniche S.p.A.
                    • Ticker: DAN
                    • Exchange: BIT
                    • Founded: 1914
                    • Industry: Industrial Machinery
                    • Sector: Capital Goods
                    • Market Cap: €952.962m
                    • Shares outstanding: 74.40m
                    • Website: https://www.danieli.com

                    Number of Employees


                    Location

                    • Danieli & C. Officine Meccaniche S.p.A.
                    • Via Nazionale, 41
                    • Buttrio
                    • Udine
                    • 33042
                    • Italy

                    Listings

                    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
                    DASDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
                    DANBIT (Borsa Italiana)YesOrdinary SharesITEURJan 1992
                    0APMLSE (London Stock Exchange)YesOrdinary SharesGBEURJan 1992
                    DANMBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 1992
                    DANRBIT (Borsa Italiana)Saving SharesITEURJan 1992
                    0N4ILSE (London Stock Exchange)Saving SharesGBEURJan 1992
                    DANRMBATS-CHIXE (BATS 'Chi-X Europe')Saving SharesGBEURJan 1992
                    DNIY.YOTCPK (Pink Sheets LLC)ADR RPSTG 1 SHUSUSDApr 2010

                    Biography

                    Danieli & C. Officine Meccaniche S.p.A. designs, constructs, and sells plants for the iron and steel industry worldwide. It operates in two segments, Plant Making and Steel Making. The company designs and builds plants for various process areas, including mines; pellet production plants; blast furnaces; direct reduction; scrap shredders; steelworks for production of liquid steel; and continuous casting for blooms and billets, slabs, and thin slabs. It also designs and builds rolling mills for long products and seamless tubes; lines for welded tubes; hot and cold rolling mills for flat products; process lines for flat products; and plants for dimensional checking and for non-destructive quality control, and conditioning plants. In addition, the company offers plants for secondary processing, such as peeling, straightening, 2-roll reeling, and drawing machines; forging presses and manipulators, and forging plants; extrusion presses for ferrous and non-ferrous materials; plants for longitudinal cutting and for transversal cutting; plant automation systems; and cranes and lifting equipment. Further, it is involved in the production and sale of special steel comprising ingots, blooms, billets, and forged and rolled products; and structural steel comprising high carbon steel, as well as case-hardened, hardened and tempered, and surface hardened steel for use in various engineering components. The company was founded in 1914 and is headquartered in Buttrio, Italy. 


                    Company Analysis and Financial Data Status

                    All financial data provided by Standard & Poor's Capital IQ.
                    DataLast Updated (UTC time)
                    Company Analysis2020/01/23 20:50
                    End of Day Share Price2020/01/23 00:00
                    Earnings2019/06/30
                    Annual Earnings2019/06/30


                    Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.