DANAOS CORP (DAC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DAC - MHY1968P1218 - Common Stock
100.71 USD
-0.11 (-0.11%)
100.71 USD
0 (0%)
Taking everything into account, DAC scores 7 out of 10 in our fundamental rating. DAC was compared to 35 industry peers in the Marine Transportation industry. DAC gets an excellent profitability rating and is at the same time showing great financial health properties. DAC is valued quite cheap, but it does not seem to be growing. With these ratings, DAC could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
- In the past year DAC was profitable.
- DAC had a positive operating cash flow in the past year.
- In the past 5 years DAC has always been profitable.
- In the past 5 years DAC always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 10.12%, DAC belongs to the top of the industry, outperforming 88.57% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 12.59%, DAC is in the better half of the industry, outperforming 77.14% of the companies in the same industry.
- DAC's Return On Invested Capital of 8.98% is fine compared to the rest of the industry. DAC outperforms 80.00% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for DAC is significantly above the industry average of 7.59%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.12% | ||
| ROE | 12.59% | ||
| ROIC | 8.98% |
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
- DAC has a better Profit Margin (45.16%) than 85.71% of its industry peers.
- DAC's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 48.62%, DAC belongs to the top of the industry, outperforming 91.43% of the companies in the same industry.
- In the last couple of years the Operating Margin of DAC has grown nicely.
- DAC's Gross Margin of 74.00% is amongst the best of the industry. DAC outperforms 88.57% of its industry peers.
- In the last couple of years the Gross Margin of DAC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 48.62% | ||
| PM (TTM) | 45.16% | ||
| GM | 74% |
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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DAC is still creating some value.
- DAC has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for DAC has been reduced compared to 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 2.95. 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 (2.95) is better than 77.14% of its industry peers.
- The Debt to FCF ratio of DAC is 2.18, which is a good value as it means it would take DAC, 2.18 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of DAC (2.18) is better than 88.57% of its industry peers.
- A Debt/Equity ratio of 0.18 indicates that DAC is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.18, DAC is in the better half of the industry, outperforming 65.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 2.18 | ||
| Altman-Z | 2.95 |
ROIC/WACC1.19
WACC7.57%
2.3 Liquidity
- DAC has a Current Ratio of 4.62. This indicates that DAC is financially healthy and has no problem in meeting its short term obligations.
- DAC has a better Current ratio (4.62) than 85.71% of its industry peers.
- DAC has a Quick Ratio of 4.51. This indicates that DAC is financially healthy and has no problem in meeting its short term obligations.
- DAC's Quick ratio of 4.51 is amongst the best of the industry. DAC outperforms 82.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.62 | ||
| Quick Ratio | 4.51 |
3. Growth
3.1 Past
- The earnings per share for DAC have decreased by -4.89% in the last year.
- The Earnings Per Share has been growing by 24.25% on average over the past years. This is a very strong growth
- Looking at the last year, DAC shows a small growth in Revenue. The Revenue has grown by 2.90% in the last year.
- 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)-4.89%
EPS 3Y15.86%
EPS 5Y24.25%
EPS Q2Q%3.85%
Revenue 1Y (TTM)2.9%
Revenue growth 3Y13.72%
Revenue growth 5Y17.79%
Sales Q2Q%9.01%
3.2 Future
- Based on estimates for the next years, DAC will show a very negative growth in Earnings Per Share. The EPS will decrease by -13.54% on average per year.
- Based on estimates for the next years, DAC will show a decrease in Revenue. The Revenue will decrease by -4.62% on average per year.
EPS Next Y-3.17%
EPS Next 2Y-3.61%
EPS Next 3Y-13.54%
EPS Next 5YN/A
Revenue Next Year-2.04%
Revenue Next 2Y-1.92%
Revenue Next 3Y-4.62%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 3.86, the valuation of DAC can be described as very cheap.
- Based on the Price/Earnings ratio, DAC is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, DAC is valued rather cheaply.
- The Price/Forward Earnings ratio is 3.96, which indicates a rather cheap valuation of DAC.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of DAC indicates a rather cheap valuation: DAC is cheaper than 85.71% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, DAC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.86 | ||
| Fwd PE | 3.96 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DAC indicates a rather cheap valuation: DAC is cheaper than 82.86% of the companies listed in the same industry.
- 82.86% of the companies in the same industry are more expensive than DAC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.35 | ||
| EV/EBITDA | 2.66 |
4.3 Compensation for Growth
- DAC has an outstanding profitability rating, which may justify a higher PE ratio.
- DAC's earnings are expected to decrease with -13.54% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.16
EPS Next 2Y-3.61%
EPS Next 3Y-13.54%
5. Dividend
5.1 Amount
- DAC has a Yearly Dividend Yield of 3.57%.
- Compared to an average industry Dividend Yield of 5.57, DAC pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.81, DAC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.57% |
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
- 13.56% of the earnings are spent on dividend by DAC. This is a low number and 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.
DP13.56%
EPS Next 2Y-3.61%
EPS Next 3Y-13.54%
DANAOS CORP / DAC FAQ
What is the fundamental rating for DAC stock?
ChartMill assigns a fundamental rating of 7 / 10 to DAC.
What is the valuation status for DAC stock?
ChartMill assigns a valuation rating of 8 / 10 to DANAOS CORP (DAC). This can be considered as Undervalued.
Can you provide the profitability details for DANAOS CORP?
DANAOS CORP (DAC) has a profitability rating of 8 / 10.
Can you provide the financial health for DAC stock?
The financial health rating of DANAOS CORP (DAC) is 8 / 10.
How sustainable is the dividend of DANAOS CORP (DAC) stock?
The dividend rating of DANAOS CORP (DAC) is 5 / 10 and the dividend payout ratio is 13.56%.