Dauch Corporation Common Stock (DCH)

FairStock Score: 31/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett/Graham investor, I start with business quality. Dauch supplies driveline and metal forming components for electric, hybrid, and combustion vehicles. That is a cyclical, capital-intensive auto-parts business with 18,000 employees; I see little evidence of a durable moat or pricing power. The filings show a bumpy record: revenue was $6.1B in fiscal 2023 and fiscal 2024, then $5.8B in fiscal 2025; net income was -$33.6M, $35.0M, and -$19.7M respectively. In fiscal Q1 2026, the quarter ended 2026-03-31, Dauch lost $100.3M on $2.4B revenue. Fiscal Q2 2026, ended 2026-06-30, showed $3.0B revenue and just $1.0M net income, up from $1.5B revenue and $39.3M net income in fiscal Q2 2025. So sales have surged, but profitability has collapsed. At the 2026-10-13 close of $5.50, FairStock's calculations show P/B 0.86, negative P/E, ROCE 2.53%, and trailing FCF of -$30.7M. Debt is heavy: D/E 3.43. The Altman Z-Score of 0.46 flags distress, though the Piotroski F-Score of 8/9 suggests some accounting improvement. EV/EBITDA 7.64 is not demanding, and P/B below one offers a statistical bargain. But negative free cash flow and unstable earnings mean book value could erode. The computed Lynch category is TURNAROUND—a loss in the latest year after earlier profits—not a Graham net-net with steady earnings. I would want evidence of durable positive cash flow and debt reduction before calling it a true value opportunity.

In plain English: Dauch makes parts for vehicle drivelines and metal forming, serving gas, hybrid and electric vehicles. The business has had weak profits and burns cash, with a lot of debt, but its latest quarter showed a tiny profit after a large loss. At $5.50, the stock trades below the accounting value of its net assets, but that cheapness reflects real doubts about earnings and cash flow.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer