Danieli & C.Officine Meccaniche SPA (DAN) AI Stock Analysis

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Danieli & C.Officine Meccaniche SPA

(Milan:DAN)

Select Model

Rating:67Neutral

Price Target:EUR 54.00▲(6.61% Upside)

Action:downgraded

Date:10/27/26

The score is driven primarily by solid financial performance—strong revenue growth, conservative leverage, and strong free cash flow versus earnings—balanced by a clearly weak technical setup with the stock trading below major moving averages and negative momentum. Valuation is supportive with a reasonable P/E, but the low dividend yield limits income-based upside.

Positive Factors

Strong Revenue ExpansionThe approximately 40% FY2026 revenue increase indicates strong demand and effective project execution across Danieli’s industrial engineering activities. Sustained expansion can broaden its customer base, support operating scale, and reinforce its position in global metallurgical plant and equipment markets.

Negative Factors

Gross Margin VolatilityThe wide movement in gross margin indicates that project mix, pricing, or costs can materially affect profitability from year to year. Such variability makes earnings quality less predictable and reduces confidence that recent revenue growth will translate consistently into durable margin expansion.

Danieli & C.Officine Meccaniche SPA (DAN) vs. iShares MSCI Italy ETF (EWI)

Market Cap: EUR 3.24B
Dividend Yield: 0.61%
Average Volume (3M): 77.94K
Price to Earnings (P/E): 11.8
Beta (1Y): 1.13
Revenue Growth: -7.57%
EPS Growth: 1.55%
Country: Italy
Employees: 10,088
Sector: General
Sector Strength: 55
Industry: Industrial - Machinery

Danieli & C.Officine Meccaniche SPA Business Overview & Revenue Model

Company Description

Danieli & C. Officine Meccaniche S.p.A., established in Buttrio, Italy, in 1914, specializes in the engineering, construction, and distribution of industrial plants for the global iron and steel sector. Its operational footprint spans Europe, Russia,...

Danieli & C.Officine Meccaniche SPA Financial Statement Overview

Summary

Strong revenue expansion (including ~40% growth in FY2026) and robust operating/free cash flow support a healthy profile. Offsetting this are moderate operating profitability and notable gross margin volatility, which reduces confidence in margin stability through the cycle.

Income Statement

72Positive

Balance Sheet

78Positive

Cash Flow

70Positive

Financial statement breakdown
Breakdown	TTM	Jun 2026	Jun 2025	Jun 2024	Jun 2023	Jun 2022
Income Statement
Total Revenue	3.83B	3.83B	4.20B	4.32B	4.07B	3.47B
Gross Profit	1.24B	1.24B	2.07B	2.02B	1.00B	630.98M
EBITDA	438.90M	438.90M	420.92M	479.33M	445.90M	444.71M
Net Income	229.60M	229.60M	220.10M	240.81M	243.64M	218.72M
Balance Sheet
Total Assets	8.53B	8.53B	7.88B	7.49B	6.54B	6.16B
Cash, Cash Equivalents and Short-Term Investments	3.54B	3.54B	2.28B	2.62B	2.21B	2.07B
Total Debt	874.20M	874.20M	961.30M	605.05M	314.83M	561.11M
Total Liabilities	5.56B	5.56B	5.12B	4.86B	4.13B	3.94B
Stockholders Equity	2.97B	2.97B	2.76B	2.63B	2.40B	2.24B
Cash Flow
Free Cash Flow	408.27M	725.37M	395.21M	156.08M	478.80M	166.47M
Operating Cash Flow	434.71M	880.38M	563.79M	331.84M	638.39M	279.39M
Investing Cash Flow	-70.67M	-222.32M	-283.83M	-194.30M	-92.12M	-24.63M
Financing Cash Flow	-95.13M	-90.20M	-130.59M	289.92M	-280.31M	168.56M

Danieli & C.Officine Meccaniche SPA Technical Analysis

Technical Analysis SentimentNegative

Last Price50.65

Price Trends

50DMA54.11Negative

100DMA60.87Negative

200DMA63.43Negative

Market Momentum

MACD-0.57Negative

RSI44.64Neutral

STOCH57.65Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:DAN, the sentiment is Negative. The current price of 50.65 is below the 20-day moving average (MA) of 51.03, below the 50-day MA of 54.11, and below the 200-day MA of 63.43, indicating a bearish trend. The MACD of -0.57 indicates Negative momentum. The RSI at 44.64 is Neutral, neither overbought nor oversold. The STOCH value of 57.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IT:DAN.

Danieli & C.Officine Meccaniche SPA Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IT:DAN against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IT:IP	73Outperform	EUR 4.08B	19.17	10.06%	0.91%	0.99%	-0.11%
IT:DAN	67Neutral	EUR 3.24B	11.78	7.88%	0.61%	-7.57%	1.55%
IT:TES	57Neutral	EUR 243.71M	109.86	2.82%	―	12.03%	―
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IT:FDA	43Neutral	EUR 25.99M	-1.32	-54.95%	―	13.94%	―
IT:BSS	42Neutral	EUR 117.97M	-6.04	-9.32%	―	-4.54%	-75.92%

* General Sector Average

Performance Comparison

IT:DAN and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IT:DAN	Danieli & C.Officine Meccaniche SPA	50.65	5.06	11.10%
IT:BSS	Biesse SPA	4.25	-1.07	-20.11%
IT:FDA	Fidia Spa	0.02	-0.21	-91.15%
IT:IP	Interpump Group SPA	38.54	-3.36	-8.02%
IT:TES	Tesmec S.p.A.	0.38	0.27	242.86%
IT:ESAU	Esautomotion SpA	3.00	-0.36	-10.71%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 27, 2026

Danieli & C.Officine Meccaniche SPA AI Stock Analysis