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.

Snowflake

Fundamentals

Good value with adequate 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


Market Performance


7 Day Return

1.2%

BIT:DAN

0.3%

IT Machinery

-0.1%

IT Market


1 Year Return

-26.3%

BIT:DAN

-23.5%

IT Machinery

-3.6%

IT Market

DAN underperformed the Machinery industry which returned -22.4% over the past year.

DAN underperformed the Market in Italy which returned -1.5% over the past year.


Share holder returns

DANIndustryMarket
7 Day1.2%0.3%-0.1%
30 Day-1.9%-7.2%-4.7%
90 Day-5.5%-10.6%-1.7%
1 Year-25.9%-26.3%-22.1%-23.5%0.5%-3.6%
3 Year-15.7%-17.2%33.5%28.1%20.4%4.0%
5 Year-29.6%-32.3%61.5%51.5%7.2%-36.1%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Danieli & C. Officine Meccaniche's share price is below the future cash flow value, and at a moderate discount (> 20%).

Danieli & C. Officine Meccaniche's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Danieli & C. Officine Meccaniche is overvalued based on earnings compared to the IT Machinery industry average.

Danieli & C. Officine Meccaniche is overvalued based on earnings compared to the Italy market.


Price Based on Expected Growth

Danieli & C. Officine Meccaniche is good value based on expected growth next year.


Price Based on Value of Assets

Danieli & C. Officine Meccaniche is good value based on assets compared to the IT Machinery industry average.


Next Steps

Future Growth

How is Danieli & C. Officine Meccaniche expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

19.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Danieli & C. Officine Meccaniche's revenue is expected to grow by 5.8% yearly, however this is not considered high growth (20% yearly).

Danieli & C. Officine Meccaniche's earnings are expected to grow by 19.8% yearly, however this is not considered high growth (20% yearly).

Danieli & C. Officine Meccaniche's revenue growth is expected to exceed the Italy market average.

Danieli & C. Officine Meccaniche's earnings growth is expected to exceed the Italy market average.

Danieli & C. Officine Meccaniche's earnings growth is expected to exceed the low risk savings rate of 2.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Danieli & C. Officine Meccaniche is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

-27.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Danieli & C. Officine Meccaniche's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Danieli & C. Officine Meccaniche's 1-year earnings growth exceeds its 5-year average (109.2% vs -27.2%)

Danieli & C. Officine Meccaniche's earnings growth has exceeded the IT Machinery industry average in the past year (109.2% vs -2.5%).


Return on Equity

Danieli & C. Officine Meccaniche has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Danieli & C. Officine Meccaniche used its assets less efficiently than the IT Machinery industry average last year based on Return on Assets.


Return on Capital Employed

Danieli & C. Officine Meccaniche's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

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


Financial Position Analysis

Danieli & C. Officine Meccaniche is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Danieli & C. Officine Meccaniche's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Danieli & C. Officine Meccaniche's level of debt (28.1%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (27.5% vs 28.1% today).

Debt is not well covered by operating cash flow (14.9%, less than 20% of total debt).

Danieli & C. Officine Meccaniche earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 7.2x debt.


Next Steps

Dividend

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

1.11%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Danieli & C. Officine Meccaniche's pays a lower dividend yield than the bottom 25% of dividend payers in Italy (2.11%).

Danieli & C. Officine Meccaniche's dividend is below the markets top 25% of dividend payers in Italy (4.57%).

Danieli & C. Officine Meccaniche is not paying a notable dividend for Italy, therefore no need to check if the payments are stable.

Danieli & C. Officine Meccaniche is not paying a notable dividend for Italy, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of Danieli & C. Officine Meccaniche's dividends as it is not paying a notable one for Italy.


Future Payout to Shareholders

No need to calculate the sustainability of Danieli & C. Officine Meccaniche's dividends in 3 years as they are not expected to pay a notable one for Italy.


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?

2.6yrs

Average management tenure


CEO

Gianpietro Benedetti (77yo)

0.0yrs

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

Gianpietro's remuneration is higher than average for companies of similar size in Italy.

Gianpietro's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.6yrs

Average Tenure

The tenure for the Danieli & C. Officine Meccaniche management team is about average.


Board Age and Tenure

10.6yrs

Average Tenure

59yo

Average Age

The average tenure for the Danieli & C. Officine Meccaniche board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Gianpietro Benedetti (77yo)

    Chairman

    • Tenure: 0.0yrs
    • Compensation: €664.00k
  • Luca Ferraresi

    Chief Group Controller

    • Tenure: 0.0yrs
  • Alessandro Brussi

    Member of Group Executive Board & Director

    • Tenure: 0.0yrs
  • Giacomo Danieli (39yo)

    CEO, Member of Group Executive Board & Director

    • Tenure: 10.6yrs
    • Compensation: €14.00k
  • Alessandro Trivillin

    CEO, Member of Group Executive Board & Director

    • Tenure: 0.0yrs
  • Rolando Paolone

    Member of Group Executive Board

    • Tenure: 0.0yrs
  • Antonello Mordeglia

    Member of Group Executive Board

    • Tenure: 2.6yrs
  • Michele Marinutti

    Member of Group Executive Board

    • Tenure: 0.6yrs

Board Members

  • Carla de Colle (76yo)

    Director

    • Tenure: 18.8yrs
    • Compensation: €14.00k
  • Gianpietro Benedetti (77yo)

    Chairman

    • Tenure: 0.0yrs
    • Compensation: €664.00k
  • Alessandro Brussi

    Member of Group Executive Board & Director

    • Tenure: 0.0yrs
  • Gaetano Terrin (59yo)

    Standing Auditor

    • Tenure: 0.0yrs
    • Compensation: €35.00k
  • Chiara Mio (55yo)

    Director

    • Tenure: 0.0yrs
    • Compensation: €35.00k
  • Giacomo Danieli (39yo)

    CEO, Member of Group Executive Board & Director

    • Tenure: 10.6yrs
    • Compensation: €14.00k
  • Alessandro Trivillin

    CEO, Member of Group Executive Board & Director

    • Tenure: 0.0yrs
  • Camilla Benedetti

    Deputy Chairman

    • Tenure: 0.0yrs
  • Giulio Capocaccia

    Director

    • Tenure: 0.0yrs
  • Davide Barbieri

    President of Board of Statutory Auditors

    • Tenure: 1.6yrs

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: €931.642m
  • 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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/20 20:43
End of Day Share Price2019/08/20 00:00
Earnings2018/12/31
Annual Earnings2018/06/30


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.