Dana Holding Corp Stock Upgraded (DAN)
NEW YORK (
)
-- Dana
(NYSE:
) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 6.7%. Since the same quarter one year prior, revenues rose by 28.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The current debt-to-equity ratio, 0.52, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.39, which illustrates the ability to avoid short-term cash problems.
- DANA HOLDING CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, DANA HOLDING CORP continued to lose money by earning -$0.22 versus -$4.19 in the prior year. This year, the market expects an improvement in earnings ($1.64 versus -$0.22).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Auto Components industry. The net income increased by 139.1% when compared to the same quarter one year prior, rising from $46.00 million to $110.00 million.
- Net operating cash flow has increased to $106.00 million or 11.57% when compared to the same quarter last year. In addition, DANA HOLDING CORP has also vastly surpassed the industry average cash flow growth rate of -88.22%.
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Dana Holding Corporation engages in the design, manufacture, and supply of products for vehicle manufacturers worldwide. The company has a P/E ratio of 29.2, below the average automotive industry P/E ratio of 37 and above the S&P 500 P/E ratio of 17.7. Dana has a market cap of $2.23 billion and is part of the
sector and
industry. Shares are up 25.6% year to date as of the close of trading on Monday.
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-- Written by a member of TheStreet RatingsStaff
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