- Dana has been hit hard as unrecoverable input cost inflation and production disruptions have delivered serious blows to near-term profitability.
- The EV case is as strong as ever, with Dana's e-Direct Drive, e-transmission, e-axle, and thermal management products giving the company strong leverage to vehicle electrification across the next decade.
- Given the nature of vehicle supplier-OEM relationships, there's not a lot that Dana can likely do to offset cost inflation, and margin leverage looks limited until 2023.
- While the short-term outlook is lackluster, the valuation is too extreme, as low-single-digit revenue growth and EV-assisted margin leverage down the line can drive attractive returns from here.
For further details see:
Serious Margin Challenges At Dana Prove Too Spicy For The Street