Danieli & C. Officine Meccaniche (BIT:DAN) - Share price, News & Analysis

DAN fundamental analysis
Snowflake Score
Valuation	6/6
Future Growth	3/6
Past Performance	5/6
Financial Health	6/6
Dividends	0/6

DAN Stock Overview

Danieli & C. Officine Meccaniche S.p.A. designs, builds, and sells plants for the iron and steel industry in Europe, Russia, the Middle East, the Americas, and South East Asia.

Rewards

Trading at 25% below our estimate of its fair value

Earnings are forecast to grow 18.49% per year

Earnings grew by 124.6% over the past year

Risk Analysis

No risks detected for DAN from our risk checks.

Danieli & C. Officine Meccaniche Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Danieli & C. Officine Meccaniche
Historical stock prices
Current Share Price	€20.35
52 Week High	€29.85
52 Week Low	€16.26
Beta	1.31
1 Month Change	-10.35%
3 Month Change	2.78%
1 Year Change	-10.55%
3 Year Change	26.24%
5 Year Change	-4.68%
Change since IPO	454.12%

Recent News & Updates

Jun 23

Is Danieli & C. Officine Meccaniche (BIT:DAN) Using Too Much Debt?

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Jun 03

Estimating The Intrinsic Value Of Danieli & C. Officine Meccaniche S.p.A. (BIT:DAN)

How far off is Danieli & C. Officine Meccaniche S.p.A. ( BIT:DAN ) from its intrinsic value? Using the most recent...

May 19

What Is Danieli & C. Officine Meccaniche S.p.A.'s (BIT:DAN) Share Price Doing?

While Danieli & C. Officine Meccaniche S.p.A. ( BIT:DAN ) might not be the most widely known stock at the moment, it...

Shareholder Returns

	DAN	IT Machinery	IT Market
7D	-3.1%	-0.1%	1.1%
1Y	-10.5%	-24.8%	-15.6%

Return vs Industry: DAN exceeded the Italian Machinery industry which returned -24.8% over the past year.

Return vs Market: DAN exceeded the Italian Market which returned -15.6% over the past year.

Price Volatility

Is DAN's price volatile compared to industry and market?
DAN volatility
DAN Average Weekly Movement	6.0%
Machinery Industry Average Movement	5.6%
Market Average Movement	5.1%
10% most volatile stocks in IT Market	7.1%
10% least volatile stocks in IT Market	3.3%

Stable Share Price: DAN is not significantly more volatile than the rest of Italian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: DAN's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1914	8,745	Giacomo Danieli	https://www.danieli.com

Danieli & C. Officine Meccaniche S.p.A. designs, builds, and sells plants for the iron and steel industry in Europe, Russia, the Middle East, the Americas, and South East Asia. It operates through 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.

Danieli & C. Officine Meccaniche Fundamentals Summary

How do Danieli & C. Officine Meccaniche's earnings and revenue compare to its market cap?
DAN fundamental statistics
Market Cap	€1.28b
Earnings (TTM)	€125.72m
Revenue (TTM)	€3.41b

12.0x

P/E Ratio

0.4x

P/S Ratio

Is DAN overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
DAN income statement (TTM)
Revenue	€3.41b
Cost of Revenue	€1.99b
Gross Profit	€1.42b
Other Expenses	€1.30b
Earnings	€125.72m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	1.70
Gross Margin	41.73%
Net Profit Margin	3.69%
Debt/Equity Ratio	31.5%

How did DAN perform over the long term?

See historical performance and comparison

Dividends

0.8%

Current Dividend Yield

10%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is DAN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for DAN?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for DAN. This is calculated by dividing DAN's market cap by their current preferred multiple.
What is DAN's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	€1.28b

DAN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.06x
Enterprise Value/EBITDA	0.9x
PEG Ratio	0.6x

Price to Earnings Ratio vs Peers

How does DAN's PE Ratio compare to its peers?

DAN PE Ratio vs Peers

The above table shows the PE ratio for DAN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	27.9x

Forward PE

Price-To-Earnings vs Peers: DAN is good value based on its Price-To-Earnings Ratio (12x) compared to the peer average (27.9x).

Price to Earnings Ratio vs Industry

How does DAN's PE Ratio compare vs other companies in the Italian Machinery Industry?

Price-To-Earnings vs Industry: DAN is good value based on its Price-To-Earnings Ratio (12x) compared to the Italian Machinery industry average (14.9x)

Price to Earnings Ratio vs Fair Ratio

What is DAN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DAN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	12x
Fair PE Ratio	26.1x

Price-To-Earnings vs Fair Ratio: DAN is good value based on its Price-To-Earnings Ratio (12x) compared to the estimated Fair Price-To-Earnings Ratio (26.1x).

Share Price vs Fair Value

What is the Fair Price of DAN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DAN (€20.35) is trading below our estimate of fair value (€27.13)

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

Price to Earnings Growth Ratio

PEG Ratio: DAN is good value based on its PEG Ratio (0.6x)

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Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

18.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: DAN's forecast earnings growth (18.5% per year) is above the savings rate (1.7%).

Earnings vs Market: DAN's earnings (18.5% per year) are forecast to grow faster than the Italian market (10.2% per year).

High Growth Earnings: DAN's earnings are forecast to grow, but not significantly.

Revenue vs Market: DAN's revenue (4.3% per year) is forecast to grow faster than the Italian market (0.3% per year).

High Growth Revenue: DAN's revenue (4.3% 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 (7.2%).

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Past Performance

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

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

9.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: DAN has high quality earnings.

Growing Profit Margin: DAN's current net profit margins (3.7%) are higher than last year (2.5%).

Past Earnings Growth Analysis

Earnings Trend: DAN's earnings have grown by 9.8% per year over the past 5 years.

Accelerating Growth: DAN's earnings growth over the past year (124.6%) exceeds its 5-year average (9.8% per year).

Earnings vs Industry: DAN earnings growth over the past year (124.6%) exceeded the Machinery industry 65.2%.

Return on Equity

High ROE: DAN's Return on Equity (6.1%) is considered low.

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Financial Health

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

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: DAN's short term assets (€4.3B) exceed its short term liabilities (€3.2B).

Long Term Liabilities: DAN's short term assets (€4.3B) exceed its long term liabilities (€381.5M).

Debt to Equity History and Analysis

Debt Level: DAN has more cash than its total debt.

Reducing Debt: DAN's debt to equity ratio has reduced from 31.8% to 31.5% over the past 5 years.

Debt Coverage: DAN's debt is well covered by operating cash flow (24.8%).

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

Balance Sheet

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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.83%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: DAN's dividend (0.84%) isn’t notable compared to the bottom 25% of dividend payers in the Italian market (1.71%).

High Dividend: DAN's dividend (0.84%) is low compared to the top 25% of dividend payers in the Italian market (5.19%).

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.

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

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

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Management

How experienced are the management team and are they aligned to shareholders interests?

3.9yrs

Average management tenure

CEO

Giacomo Danieli (41 yo)

5.42yrs

Tenure

€14,000

Compensation

Mr. Giacomo Mareschi Danieli serves as Group Chief Executive Officer, Member of Group Executive Board and Director of Danieli & C. Officine Meccaniche S.p.A since 2020 and also served as Chief Executive Of...

Leadership Team

Experienced Management: DAN's management team is considered experienced (3.9 years average tenure).

Board Members

Experienced Board: DAN's board of directors are considered experienced (3 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/25 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2021/12/31
Annual Earnings	2021/06/30