Core Viewpoint - Dana Incorporated is focusing on streamlining operations and enhancing efficiency, which has positively impacted investor confidence and led to a 23% increase in share price year-to-date, outperforming its industry and competitors [1][4]. Financial Performance - In 2024, Dana reported sales of $10.3 billion, a decrease of 2.8% year-over-year due to reduced demand for electric vehicle (EV) and internal combustion engine (ICE) programs [5]. - Despite the revenue decline, EBITDA increased by 4.7% to $885 million, with EBITDA margins improving by 60 basis points to 8.6% [6]. - The company achieved a free cash flow (FCF) of $70 million, a significant turnaround from a $25 million outflow in 2023 [6]. Sales Backlog and Earnings Estimates - Dana has a three-year net new sales backlog of $650 million, with expectations of $150 million in 2025, $300 million in 2026, and $200 million in 2027 [7]. - The Zacks Consensus Estimate for Dana's 2025 and 2026 EPS indicates year-over-year growth of 70% and 31%, respectively, with upward revisions noted [17]. Strategic Initiatives - Dana is implementing a cost-reduction plan targeting $300 million in savings by 2026, which includes reducing complexity and overhead costs [10]. - The company plans to sell its Off-Highway business, which generated $2.76 billion in sales in 2024, to focus on light and commercial vehicles [11]. - Dana will restructure into two core segments: Light Vehicle Systems and Commercial Vehicle Systems, integrating the Power Technologies business to enhance efficiency [12]. 2025 Outlook - For 2025, Dana anticipates revenues of $9.77 billion, reflecting a 5% decline from 2024, primarily due to lower demand and unfavorable currency exchange rates [13]. - Adjusted EBITDA is projected at $975 million, an increase of $90 million from 2024, with FCF expected to rise to $225 million [16]. Valuation and Market Position - Dana trades at 0.21X forward sales, which is lower than some peers, indicating a relatively better valuation [19]. - The company has a long-term debt-to-capital ratio of 65%, higher than the industry average of 21%, but is taking steps to improve financial health through cost-cutting and portfolio optimization [21].

Core Viewpoint - Dana (DAN) has shown a downtrend recently, losing 8.3% over the past week, but a hammer chart pattern suggests a potential trend reversal as buying interest may be emerging to counteract selling pressure [1][2]. Technical Analysis - The hammer chart pattern indicates a possible bottoming out, suggesting that selling pressure may be subsiding, which is a bullish signal for the stock [2][4]. - A hammer pattern forms when there is a small candle body with a long lower wick, indicating that despite a downtrend, buyers are starting to emerge [3][4]. - This pattern can occur across various timeframes and is utilized by both short-term and long-term investors [4]. Fundamental Analysis - There has been a notable upward trend in earnings estimate revisions for Dana, which is a bullish indicator as it correlates strongly with near-term stock price movements [6]. - The consensus EPS estimate for the current year has increased by 23.1% over the last 30 days, indicating strong agreement among analysts regarding the company's potential for better earnings [7]. - Dana currently holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks, which typically outperform the market [8].

Company Performance - Dana (DAN) has shown a year-to-date performance increase of approximately 33.9%, significantly outperforming the average return of -15.1% for the Auto-Tires-Trucks sector [4] - The Zacks Consensus Estimate for Dana's full-year earnings has increased by 26.9% over the past quarter, indicating improved analyst sentiment and a more positive earnings outlook [4] - Dana currently holds a Zacks Rank of 1 (Strong Buy), suggesting it is poised to outperform the broader market in the near term [3] Industry Context - Dana is part of the Automotive - Original Equipment industry, which consists of 50 companies and currently ranks 173 in the Zacks Industry Rank [6] - The Automotive - Original Equipment industry has experienced an average gain of 6.5% this year, indicating that Dana is performing better than the industry average [6] - Another stock in the Auto-Tires-Trucks sector, Garrett Motion (GTX), has also outperformed the sector with a year-to-date return of 9.1% and holds a Zacks Rank of 2 (Buy) [5]

Core Insights - Investors in the Automotive - Original Equipment sector may consider Dana (DAN) or Gentex (GNTX) for potential value opportunities [1] - A strong Zacks Rank combined with a favorable Value grade is essential for identifying valuable investment opportunities [2] Company Analysis - Dana (DAN) holds a Zacks Rank of 1 (Strong Buy), indicating a positive earnings outlook, while Gentex (GNTX) has a Zacks Rank of 5 (Strong Sell) [3] - The Zacks Rank emphasizes companies with positive earnings estimate revisions, suggesting that DAN is likely experiencing a more favorable earnings outlook compared to GNTX [3] Valuation Metrics - Dana has a forward P/E ratio of 10.47, while Gentex has a forward P/E of 12.17, indicating that DAN may be undervalued relative to GNTX [5] - Dana's PEG ratio is 0.70, compared to Gentex's PEG ratio of 0.85, suggesting that DAN offers better value when considering expected earnings growth [5] - Dana's P/B ratio is 1.63, while Gentex's P/B ratio is 2.24, further supporting the notion that DAN is more attractively valued [6] - These valuation metrics contribute to Dana receiving a Value grade of A, while Gentex has a Value grade of C, indicating that value investors may prefer DAN over GNTX [6]

Group 1: The Greenbrier Companies (GBX) - The Greenbrier Companies is a leading supplier of transportation equipment and services to the railroad and related industries [1] - The company has a Zacks Rank of 1 (Strong Buy) and has seen a 13.5% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1][2] - The PEG ratio for The Greenbrier Companies is 0.79, compared to 1.45 for the industry, and it possesses a Growth Score of A [2] Group 2: Dana (DAN) - Dana is a provider of technology driveline, sealing, and thermal-management products [2] - The company also carries a Zacks Rank of 1 (Strong Buy) and has experienced a 15.4% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Dana has a PEG ratio of 0.70, compared to 1.83 for the industry, and it possesses a Growth Score of A [2] Group 3: Patria Investments Limited (PAX) - Patria Investments Limited is a private market investment firm primarily focused on Latin America, offering asset management services for various funds [3] - The company holds a Zacks Rank of 1 and has seen a 1.4% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3][4] - The PEG ratio for Patria Investments Limited is 0.66, compared to 0.90 for the industry, and it possesses a Growth Score of B [4]

Core Viewpoint - Patria Investments Limited is highlighted as a strong investment opportunity with a Zacks Rank of 1 (Strong Buy) and an increase in earnings estimates, indicating positive market sentiment [1] Company Summary - Patria Investments Limited focuses on private market investments primarily in Latin America, offering various asset management services including private equity funds, infrastructure development funds, co-investments funds, constructivist equity funds, and real estate and credit funds [1] - The company has a price-to-earnings ratio (P/E) of 8.46, significantly lower than the industry average of 12.80, suggesting strong value characteristics [2] - Patria Investments Limited has achieved a Value Score of A, further emphasizing its attractiveness to value-oriented investors [2] Earnings Estimate - The Zacks Consensus Estimate for Patria Investments Limited's current year earnings has increased by 1.4% over the last 60 days, reflecting improved financial expectations [1]

Group 1: Patria Investments Limited (PAX) - Patria Investments Limited is a private market investment firm focused on Latin America, offering asset management services in various sectors including private equity and real estate [1] - The Zacks Consensus Estimate for its current year earnings has increased by 1.4% over the last 60 days [1] Group 2: Dana (DAN) - Dana is a provider of technology driveline, sealing, and thermal-management products [2] - The Zacks Consensus Estimate for its current year earnings has increased nearly 15.4% over the last 60 days [2] - Dana has a dividend yield of 2.6%, compared to the industry average of 0.0% [2] Group 3: SouthState Corporation (SSB) - SouthState Corporation provides consumer, commercial, mortgage, and wealth management solutions across several states including Florida and Virginia [3] - The Zacks Consensus Estimate for its current year earnings has increased nearly 7% over the last 60 days [3] - SouthState Corporation has a dividend yield of 2.2%, compared to the industry average of 0.0% [3]

The U.S. stock market took a hit on Friday as a wave of troubling economic news sent all major indexes tumbling. The S&P 500 suffered its worst drop in two months, sinking 1.7%, while the Dow and Nasdaq fell 1.7% and 2.2%, respectively.Consumer confidence slid sharply, with the University of Michigan’s sentiment index dropping to 64.7 from 71.7 in January. Rising inflation fears, weaker home sales and a slowdown in services activity signal economic cooling.Business activity hit a 17-month low, reflecting gr ...

Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today:Dana (DAN) : Thiscompany which is a provider of technology driveline, sealing and thermal-management products, has seen the Zacks Consensus Estimate for its current year earnings increasing 15.4% over the last 60 day.SouthState Corporation (SSB) : This financial services company which provides consumer, commercial, mortgage and wealth management solutions throughout Florida, Alabama, Georgia, the Carolinas and Virginia, has seen the Zac ...

Financial Performance - Total consolidated sales for 2024 were $10,284 million, a decrease of 2.6% from $10,555 million in 2023[18]. - The company's 2024 net sales were $10,284 million, a decrease of $271 million or 2% from 2023[143]. - Adjusted EBITDA for 2024 was $885 million, up from $845 million in 2023[170]. - The adjusted EBITDA outlook for 2025 is projected to be between $925 million and $1,025 million, reflecting a 140 basis-point improvement over 2024[140]. - Free cash flow improved to $70 million in 2024, compared to a negative $25 million in 2023[173]. - The company anticipates free cash flow of $225 million at the midpoint of its guidance range for 2025, benefiting from higher adjusted EBITDA and improved working capital efficiency[140]. Sales by Segment - Light Vehicle segment sales increased to $4,224 million, representing 41.1% of total sales, up from 38.2% in 2023[18]. - Commercial Vehicle segment sales decreased by 3% to $2,005 million in 2024, with EBITDA margin declining from 4.2% to 3.3%[160]. - Off-Highway segment sales decreased to $2,767 million, accounting for 26.9% of total sales, down from 30.2% in 2023[18]. - Power Technologies segment generated $1,288 million in sales, representing 12.5% of total sales, an increase from 11.8% in 2023[18]. - Sales by operating segment were Light Vehicle – 41%, Commercial Vehicle – 19%, Off-Highway – 27%, and Power Technologies – 13%[118]. Cost and Expenses - Research and development costs were $229 million in 2024, a slight decrease from $237 million in 2023[32]. - Total engineering expenses, including research and development, were $360 million in 2024, down from $369 million in 2023[32]. - The gross margin for 2024 was $876 million, maintaining 8.5% as a percentage of sales, despite a decrease of $24 million from 2023[147]. - Net restructuring charges increased significantly from $25 million in 2023 to $76 million in 2024[150]. - Interest income decreased from $17 million in 2023 to $15 million in 2024, while interest expense rose from $154 million to $161 million[155]. Market and Economic Conditions - Rising interest rates could negatively affect demand for products and the financial condition of customers[51]. - The company is exposed to risks associated with public health crises, which could disrupt operations and financial performance[49]. - The global construction equipment market declined by 5% in 2024, with a continued outlook for market weakness in 2025[134]. - South America saw a 41% increase in medium- and heavy-duty truck production in 2024 compared to 2023, driven by improved economic conditions[133]. Strategic Focus and Investments - The company is focused on enhancing the efficiency, performance, and safety of transportation solutions, investing in both internal combustion and electric vehicle technologies[33]. - The company has invested in SuccessFactors for integrated performance management and learning development[40]. - Dana plans to divest its Off-Highway business to focus on core on-highway markets and improve efficiency[122]. - The Power Technologies segment will be integrated into the Light Vehicle and Commercial Vehicle segments in Q1 2025[129]. Cash Flow and Liquidity - As of December 31, 2024, the company had consolidated debt obligations of $2.63 billion, cash and cash equivalents of $494 million, and unused revolving credit capacity of $1.14 billion[94]. - Cash provided by operating activities in 2024 was $450 million, a decrease from $476 million in 2023[180]. - The company expects to meet its cash requirements for capital expenditures, working capital, and debt obligations over the next twelve months based on current liquidity[178]. - Long-term debt obligations total $2,529 million, with $200 million due in 2025 and $1,191 million due after 2029[188]. Regulatory and Compliance - The company is subject to substantial government regulation regarding fuel economy and greenhouse gas emissions, which could impact financial performance[59]. - The company is subject to environmental laws and regulations, and compliance costs may increase, potentially impacting financial performance[76]. - The cost of environmental compliance did not have a material adverse effect on earnings or competitive position in 2024[42]. Workforce and Talent Management - The company employed approximately 39,600 people across 30 countries as of December 31, 2024[34]. - The company’s ability to attract and retain talent is critical for developing competitive products in a rapidly changing technological landscape[90]. Risks and Challenges - The company faces volatility in commodity, labor, transportation, and energy costs, which have pressured profit margins[66]. - A significant portion of the annual cost of sales is driven by the purchase of goods and services, with a dependency on single sources for some components, increasing supply chain risk[67]. - The company may experience production delays if critical components are in short supply, adversely affecting sales and profitability[68]. - Warranty costs are estimated and accrued at the time of sale, requiring significant judgment regarding potential warranty exposure[213].