DANAOS CORP (DAC) Stock Fundamental Analysis
NYSE:DAC - New York Stock Exchange, Inc. - MHY1968P1218 - Common Stock - Currency: USD
Taking everything into account, DAC scores 6 out of 10 in our fundamental rating. DAC was compared to 35 industry peers in the Marine Transportation industry. While DAC has a great profitability rating, there are some minor concerns on its financial health. DAC has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year DAC was profitable.
In the past year DAC had a positive cash flow from operations.
In the past 5 years DAC has always been profitable.
DAC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DAC's Return On Assets of 10.58% is amongst the best of the industry. DAC outperforms 80.56% of its industry peers.
DAC's Return On Equity of 13.44% is fine compared to the rest of the industry. DAC outperforms 77.78% of its industry peers.
DAC has a better Return On Invested Capital (9.47%) than 75.00% of its industry peers.
DAC had an Average Return On Invested Capital over the past 3 years of 12.84%. This is above the industry average of 9.15%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.58% | ||
| ROE | 13.44% | ||
| ROIC | 9.47% |
ROA(3y)14.61%
ROA(5y)15.7%
ROE(3y)18.56%
ROE(5y)24.19%
ROIC(3y)12.84%
ROIC(5y)10.69%
1.3 Margins
With an excellent Profit Margin value of 46.33%, DAC belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
In the last couple of years the Profit Margin of DAC has grown nicely.
Looking at the Operating Margin, with a value of 50.53%, DAC belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
DAC's Operating Margin has improved in the last couple of years.
The Gross Margin of DAC (74.73%) is better than 88.89% of its industry peers.
DAC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 50.53% | ||
| PM (TTM) | 46.33% | ||
| GM | 74.73% |
OM growth 3Y0.35%
OM growth 5Y3.15%
PM growth 3Y-31.16%
PM growth 5Y11.15%
GM growth 3Y-0.61%
GM growth 5Y0.24%
2. Health
2.1 Basic Checks
DAC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
DAC has less shares outstanding than it did 1 year ago.
DAC has less shares outstanding than it did 5 years ago.
The debt/assets ratio for DAC is higher compared to a year ago.
2.2 Solvency
DAC has an Altman-Z score of 2.73. This is not the best score and indicates that DAC is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of DAC (2.73) is better than 86.11% of its industry peers.
DAC has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.21, DAC is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.73 |
ROIC/WACC1.25
WACC7.58%
2.3 Liquidity
A Current Ratio of 4.34 indicates that DAC has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 4.34, DAC belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
A Quick Ratio of 4.18 indicates that DAC has no problem at all paying its short term obligations.
The Quick ratio of DAC (4.18) is better than 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.34 | ||
| Quick Ratio | 4.18 |
3. Growth
3.1 Past
DAC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.02%.
The Earnings Per Share has been growing by 24.25% on average over the past years. This is a very strong growth
DAC shows a small growth in Revenue. In the last year, the Revenue has grown by 3.10%.
DAC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.79% yearly.
EPS 1Y (TTM)-8.02%
EPS 3Y15.86%
EPS 5Y24.25%
EPS Q2Q%-15.52%
Revenue 1Y (TTM)3.1%
Revenue growth 3Y13.72%
Revenue growth 5Y17.79%
Sales Q2Q%-0.06%
3.2 Future
Based on estimates for the next years, DAC will show a decrease in Earnings Per Share. The EPS will decrease by -8.88% on average per year.
DAC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.76% yearly.
EPS Next Y-1.12%
EPS Next 2Y-1.51%
EPS Next 3Y-8.88%
EPS Next 5YN/A
Revenue Next Year2.06%
Revenue Next 2Y0.83%
Revenue Next 3Y-2.76%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 3.43, the valuation of DAC can be described as very cheap.
Based on the Price/Earnings ratio, DAC is valued cheaper than 80.56% of the companies in the same industry.
When comparing the Price/Earnings ratio of DAC to the average of the S&P500 Index (27.30), we can say DAC is valued rather cheaply.
The Price/Forward Earnings ratio is 3.39, which indicates a rather cheap valuation of DAC.
Based on the Price/Forward Earnings ratio, DAC is valued cheaper than 83.33% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. DAC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.43 | ||
| Fwd PE | 3.39 |
4.2 Price Multiples
83.33% of the companies in the same industry are more expensive than DAC, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.72 |
4.3 Compensation for Growth
The excellent profitability rating of DAC may justify a higher PE ratio.
A cheap valuation may be justified as DAC's earnings are expected to decrease with -8.88% in the coming years.
PEG (NY)N/A
PEG (5Y)0.14
EPS Next 2Y-1.51%
EPS Next 3Y-8.88%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.82%, DAC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 7.34, DAC has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.35, DAC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.82% |
5.2 History
The dividend of DAC decreases each year by -33.95%.
DAC has been paying a dividend for over 5 years, so it has already some track record.
DAC has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-33.95%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
DAC pays out 13.45% of its income as dividend. This is a sustainable payout ratio.
The Dividend Rate of DAC has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP13.45%
EPS Next 2Y-1.51%
EPS Next 3Y-8.88%
NYSE:DAC (7/11/2025, 8:04:00 PM)
90.02
+1 (+1.12%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryMarine Transportation
Earnings (Last)
Earnings (Next)
Inst Owners19.04%
Inst Owner Change0%
Ins Owners1.51%
Ins Owner ChangeN/A
Market Cap1.65B
Analysts80
Price Target101.49 (12.74%)
Short Float %5.19%
Short Ratio5.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.82% |
Yearly Dividend3.27
Dividend Growth(5Y)-33.95%
DP13.45%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.86%
Min EPS beat(2)-7.07%
Max EPS beat(2)3.36%
EPS beat(4)1
Avg EPS beat(4)-4.1%
Min EPS beat(4)-7.73%
Max EPS beat(4)3.36%
EPS beat(8)2
Avg EPS beat(8)-4.54%
EPS beat(12)5
Avg EPS beat(12)2.96%
EPS beat(16)9
Avg EPS beat(16)11.81%
Revenue beat(2)0
Avg Revenue beat(2)-2.53%
Min Revenue beat(2)-2.79%
Max Revenue beat(2)-2.27%
Revenue beat(4)1
Avg Revenue beat(4)-1.85%
Min Revenue beat(4)-4.17%
Max Revenue beat(4)1.83%
Revenue beat(8)3
Avg Revenue beat(8)-0.56%
Revenue beat(12)7
Avg Revenue beat(12)3.37%
Revenue beat(16)10
Avg Revenue beat(16)4.55%
PT rev (1m)0%
PT rev (3m)2.58%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.08%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.87%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.43 | ||
| Fwd PE | 3.39 | ||
| P/S | 1.63 | ||
| P/FCF | N/A | ||
| P/OCF | 2.74 | ||
| P/B | 0.47 | ||
| P/tB | 0.47 | ||
| EV/EBITDA | 2.72 |
EPS(TTM)26.25
EY29.16%
EPS(NY)26.54
Fwd EY29.48%
FCF(TTM)-1.02
FCFYN/A
OCF(TTM)32.9
OCFY36.54%
SpS55.38
BVpS190.81
TBVpS190.81
PEG (NY)N/A
PEG (5Y)0.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.58% | ||
| ROE | 13.44% | ||
| ROCE | 11.98% | ||
| ROIC | 9.47% | ||
| ROICexc | 10.84% | ||
| ROICexgc | 10.84% | ||
| OM | 50.53% | ||
| PM (TTM) | 46.33% | ||
| GM | 74.73% | ||
| FCFM | N/A |
ROA(3y)14.61%
ROA(5y)15.7%
ROE(3y)18.56%
ROE(5y)24.19%
ROIC(3y)12.84%
ROIC(5y)10.69%
ROICexc(3y)14.28%
ROICexc(5y)11.66%
ROICexgc(3y)14.28%
ROICexgc(5y)11.66%
ROCE(3y)16.25%
ROCE(5y)13.53%
ROICexcg growth 3Y8.88%
ROICexcg growth 5Y10.92%
ROICexc growth 3Y8.88%
ROICexc growth 5Y10.92%
OM growth 3Y0.35%
OM growth 5Y3.15%
PM growth 3Y-31.16%
PM growth 5Y11.15%
GM growth 3Y-0.61%
GM growth 5Y0.24%
F-Score5
Asset Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.1 | ||
| Cap/Depr | 401.86% | ||
| Cap/Sales | 61.24% | ||
| Interest Coverage | 17.87 | ||
| Cash Conversion | 90.32% | ||
| Profit Quality | N/A | ||
| Current Ratio | 4.34 | ||
| Quick Ratio | 4.18 | ||
| Altman-Z | 2.73 |
F-Score5
WACC7.58%
ROIC/WACC1.25
Cap/Depr(3y)266.68%
Cap/Depr(5y)220.86%
Cap/Sales(3y)37.53%
Cap/Sales(5y)32.84%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-8.02%
EPS 3Y15.86%
EPS 5Y24.25%
EPS Q2Q%-15.52%
EPS Next Y-1.12%
EPS Next 2Y-1.51%
EPS Next 3Y-8.88%
EPS Next 5YN/A
Revenue 1Y (TTM)3.1%
Revenue growth 3Y13.72%
Revenue growth 5Y17.79%
Sales Q2Q%-0.06%
Revenue Next Year2.06%
Revenue Next 2Y0.83%
Revenue Next 3Y-2.76%
Revenue Next 5YN/A
EBIT growth 1Y-9.59%
EBIT growth 3Y14.12%
EBIT growth 5Y21.5%
EBIT Next Year33.81%
EBIT Next 3Y5.56%
EBIT Next 5YN/A
FCF growth 1Y-102.51%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-36.11%
OCF growth 3Y13.25%
OCF growth 5Y23.11%