Dauch Corp.

Dauch just posted a quarter with $4.5 billion in revenue, up 196% vs. prior year, and the stock still trades at $6.72.

If you own Dauch, you need to watch debt and customer concentration more than the new name.

dch

utilities small cap updated mar 6, 2026
$6.72
market cap ~$2B · 52-week range $3–$9
xvary composite: 38 / 100 · weak
our overall rating — combines growth, value, risk, and momentum
Start here if you're new
what it is
Dauch makes the axles, shafts, and metal parts that keep trucks, SUVs, and cars moving.
how it gets paid
Last year Dauch made $5.8B in revenue. General Motors programs was the main engine at $2.55B, or 44% of sales.
why growth slowed
Revenue fell 4.7% last year. That compares with $0.07 in the prior-year quarter on a 543% EPS jump.
what just happened
Dauch's was all about scale: revenue hit $4.5B and EPS came in at $0.45.
At a glance
B balance sheet — gets the job done, barely
20/100 earnings predictability — expect surprises
12.7x trailing p/e — the market's not buying it — or you found a deal
9.5% return on capital — nothing to write home about
$1.00 fy2027 eps est
xvary composite: 38/100 — weak
What they do
Dauch makes the axles, shafts, and metal parts that keep trucks, SUVs, and cars moving.
This is a scale business. Dauch did $5.8 billion in annual revenue, and one customer alone, General Motors, made up 44% of 2025 sales, according to. That sounds risky, and it is, but it also means your parts are already buried deep inside huge vehicle programs, where switching suppliers is expensive and slow.
auto-parts small-cap manufacturer merger-story cyclical
How they make money
$5.8B annual revenue · their business grew -4.7% last year
General Motors programs
$2.55B
Ford programs
$0.87B
Stellantis programs
$0.75B
Other OEM programs
$1.62B
The products that matter
core driveline manufacturing
Driveline
$4.1B · 70% of revenue
This is the core business. It contributes roughly $4.1B, or 70% of total revenue, which means your thesis starts with factory execution and vehicle production volumes.
70% of rev
largest customer relationship
General Motors
$2.6B · 44% of revenue
This page's dataset is thin enough that customer concentration matters as much as product mix. General Motors alone represents $2.6B of revenue, or 44% of the company.
44% of rev
second major customer relationship
Ford
$870M · 15% of revenue
Ford adds another $870M, or 15% of sales. Put those two together and 59% of revenue sits with just two OEMs.
15% of rev
Key numbers
$4.0B
long-term debt
Debt this large matters because Dauch only runs at a 1.9% operating margin, so more interest expense leaves less room for bad quarters.
44%
GM exposure
Nearly half the business comes from one customer, which is great when production is steady and brutal when it is not.
1.9%
operating margin
Operating margin means profit after running the business but before interest and taxes, so what: this company has almost no cushion.
$9
18-month target
The 18-month target implies about 34% upside from $6.72, which is the case if integration works and revenue stays above $10B.
Financial health
B
strength
  • balance sheet grade B — adequate — nothing special
  • risk rank 4 — safer than 20% of stocks
  • price stability 15 / 100
  • long-term debt $4.0B (72% of capital)
  • net profit margin 3.1% — keeps 3 cents of every dollar in revenue
  • return on equity 24% — $0.24 profit for every $1 investors have put in
B — return on equity looks solid but long-term debt needs watching.
Total return vs. market

You invested $10,000 in DCH 3 years ago → it's now worth $7,790.

The index would have given you $13,880.

same period. same starting point. DCH trailed the market by $6,090.

source: institutional data · total return
What just happened
beat estimates
Dauch's was all about scale: revenue hit $4.5B and EPS came in at $0.45.
That compares with $0.07 in the prior-year quarter on a 543% EPS jump, while revenue rose 196% vs. prior year, helped by merger-related expansion. Gross margin was 12.7%, which matters because the operating margin base is still thin.
$1.5B
revenue
$0.45
eps
12.7%
gross margin
the number that mattered
The most important number was $4.5B in quarterly revenue, because it shows the post-merger company is now playing at a much larger scale than the old $5.8B annual base.
source: company earnings report, 2026

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What could go wrong

The #1 risk here is customer concentration plus leverage. When 59% of revenue comes from General Motors and Ford, and long-term debt is $4.0B, even a normal production stumble matters.

!
high
general motors concentration
General Motors contributes $2.6B of revenue, or 44% of sales.
If GM production or sourcing shifts, nearly half the business feels it.
!
high
ford concentration on top of gm
Ford adds another $870M, or 15% of revenue.
Together, GM and Ford represent 59% of sales. That's a supplier relationship story with very little diversification.
!
high
balance sheet pressure
Long-term debt stands at $4.0B, equal to 72% of capital.
A low-margin manufacturer does not need many things to go wrong before debt becomes the main character.
!
high
merger execution risk
Recent headlines centered on court, shareholder, and China approvals for the Dowlais combination.
The strategic case depends on integration delivering better scale. The data on this page does not yet prove that outcome.
The combined exposure is easy to state: $3.47B of revenue sits with GM and Ford, leverage is $4.0B, and net margin is just 3.1%. That's not fragile by definition, but it is fragile enough that you should watch every operational miss.
source: institutional data · regulatory filings · risk analysis
Pay attention to
risk
gm and ford now decide most of the story
$2.6B from General Motors and $870M from Ford means 59% of revenue sits with two customers. That's the number to keep in your head.
metric
margin leaves very little slack
A 12.7% gross margin and 3.1% net margin do not give you much cushion if volumes soften or costs rise.
calendar
merger approvals are becoming operating deadlines
Court approval, China clearance, and prior shareholder approval shift the conversation from "will it close" to "will it work."
trend
institutions are buying while price stability stays weak
There were 82 buyers versus 64 sellers in 4q2025, but price stability is still 15 out of 100. That's interest, not conviction proven by the tape.
Analyst rankings
earnings predictability
20 / 100
A 20 / 100 score means results have not been steady. In human-speak, analysts do not trust this business to hit numbers cleanly every quarter.
risk rank
4
Risk rank 4 means the stock is safer than only about 20% of names in the universe. That's a warning label, not a compliment.
price stability
15 / 100
The stock has been volatile. You're not buying a sleep-well-at-night compounder here.
source: institutional data
Institutional activity

institutions have been net buying for 3 consecutive quarters — 82 buyers vs. 64 sellers in 4q2025. total institutional holdings: 0.2B shares. net buying for 3 quarters.

source: institutional data · 2q2025-4q2025
source: institutional data
Price targets
3-5 year target range
$4 $14
$7 current price
$9 target midpoint · +34% from current · 3-5yr high: $15 (+125% · 22% ann'l return)
source: institutional data · analyst targets

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