DANAOS CORP (DAC) Stock Fundamental Analysis
NYSE:DAC - New York Stock Exchange, Inc. - MHY1968P1218 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to DAC. DAC was compared to 29 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 bad growth rate and is valued cheaply. This makes DAC very considerable for value investing!
1. Profitability
1.1 Basic Checks
DAC had positive earnings in the past year.
DAC had a positive operating cash flow in the past year.
DAC had positive earnings in 4 of the past 5 years.
DAC had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
DAC's Return On Assets of 13.27% is amongst the best of the industry. DAC outperforms 82.14% of its industry peers.
DAC's Return On Equity of 16.67% is fine compared to the rest of the industry. DAC outperforms 75.00% of its industry peers.
DAC has a better Return On Invested Capital (10.37%) than 82.14% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DAC is above the industry average of 8.54%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.27% | ||
| ROE | 16.67% | ||
| ROIC | 10.37% |
ROA(3y)20.4%
ROA(5y)14.35%
ROE(3y)30.46%
ROE(5y)24.22%
ROIC(3y)12.33%
ROIC(5y)9.97%
1.3 Margins
Looking at the Profit Margin, with a value of 56.16%, DAC belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
In the last couple of years the Profit Margin of DAC has grown nicely.
DAC has a Operating Margin of 53.46%. This is amongst the best in the industry. DAC outperforms 92.86% of its industry peers.
In the last couple of years the Operating Margin of DAC has grown nicely.
DAC has a Gross Margin of 75.53%. This is amongst the best in the industry. DAC outperforms 89.29% of its industry peers.
DAC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 53.46% | ||
| PM (TTM) | 56.16% | ||
| GM | 75.53% |
OM growth 3Y11.23%
OM growth 5Y6.56%
PM growth 3Y21.17%
PM growth 5YN/A
GM growth 3Y2.78%
GM growth 5Y1.2%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so DAC is creating value.
There is no outstanding debt for DAC. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
DAC has an Altman-Z score of 2.84. 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 (2.84) is better than 78.57% of its industry peers.
DAC has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.19, DAC is doing good in the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.84 |
ROIC/WACC1.55
WACC6.71%
2.3 Liquidity
A Current Ratio of 3.93 indicates that DAC has no problem at all paying its short term obligations.
DAC's Current ratio of 3.93 is fine compared to the rest of the industry. DAC outperforms 78.57% of its industry peers.
DAC has a Quick Ratio of 3.78. This indicates that DAC is financially healthy and has no problem in meeting its short term obligations.
DAC has a Quick ratio of 3.78. This is in the better half of the industry: DAC outperforms 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.93 | ||
| Quick Ratio | 3.78 |
3. Growth
3.1 Past
DAC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.10%.
Measured over the past years, DAC shows a very strong growth in Earnings Per Share. The EPS has been growing by 24.25% on average per year.
EPS 1Y (TTM)-4.1%
EPS 3Y15.86%
EPS 5Y24.25%
EPS Q2Q%-0.86%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%3.56%
3.2 Future
The Earnings Per Share is expected to decrease by -8.47% on average over the next years.
The Revenue is expected to grow by 0.73% on average over the next years.
EPS Next Y4.72%
EPS Next 2Y0.15%
EPS Next 3Y-8.47%
EPS Next 5YN/A
Revenue Next Year3.73%
Revenue Next 2Y0.73%
Revenue Next 3YN/A
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 3.10, the valuation of DAC can be described as very cheap.
71.43% of the companies in the same industry are more expensive than DAC, based on the Price/Earnings ratio.
DAC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.63.
A Price/Forward Earnings ratio of 2.96 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 92.86% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.68. DAC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.1 | ||
| Fwd PE | 2.96 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DAC is valued a bit cheaper than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.59 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
DAC has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as DAC's earnings are expected to decrease with -8.47% in the coming years.
PEG (NY)0.66
PEG (5Y)0.13
EPS Next 2Y0.15%
EPS Next 3Y-8.47%
5. Dividend
5.1 Amount
DAC has a Yearly Dividend Yield of 3.97%.
DAC's Dividend Yield is comparable with the industry average which is at 13.73.
Compared to an average S&P500 Dividend Yield of 2.27, DAC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.97% |
5.2 History
The dividend of DAC decreases each year by -34.30%.
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)-34.3%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
DAC pays out 10.99% of its income as dividend. This is a sustainable payout ratio.
DAC's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP10.99%
EPS Next 2Y0.15%
EPS Next 3Y-8.47%
84.72
-1.01 (-1.18%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryMarine Transportation
Earnings (Last)
Earnings (Next)
Inst Owners19.04%
Inst Owner Change-3.61%
Ins Owners1.45%
Ins Owner ChangeN/A
Market Cap1.64B
Analysts80
Price Target98.94 (16.78%)
Short Float %5.53%
Short Ratio4.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.97% |
Yearly Dividend3.06
Dividend Growth(5Y)-34.3%
DP10.99%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-6.35%
Min EPS beat(2)-7.73%
Max EPS beat(2)-4.98%
EPS beat(4)0
Avg EPS beat(4)-8.1%
Min EPS beat(4)-11.11%
Max EPS beat(4)-4.98%
EPS beat(8)2
Avg EPS beat(8)-2.14%
EPS beat(12)6
Avg EPS beat(12)12.76%
EPS beat(16)8
Avg EPS beat(16)11.81%
Revenue beat(2)1
Avg Revenue beat(2)-1.17%
Min Revenue beat(2)-4.17%
Max Revenue beat(2)1.83%
Revenue beat(4)1
Avg Revenue beat(4)-1.41%
Min Revenue beat(4)-4.17%
Max Revenue beat(4)1.83%
Revenue beat(8)5
Avg Revenue beat(8)2.33%
Revenue beat(12)9
Avg Revenue beat(12)5.13%
Revenue beat(16)11
Avg Revenue beat(16)4.82%
PT rev (1m)0%
PT rev (3m)-0.98%
EPS NQ rev (1m)-4.41%
EPS NQ rev (3m)-6.72%
EPS NY rev (1m)-2.22%
EPS NY rev (3m)-3.81%
Revenue NQ rev (1m)3.16%
Revenue NQ rev (3m)2.52%
Revenue NY rev (1m)3.37%
Revenue NY rev (3m)-0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.1 | ||
| Fwd PE | 2.96 | ||
| P/S | 1.63 | ||
| P/FCF | N/A | ||
| P/OCF | 2.68 | ||
| P/B | 0.48 | ||
| P/tB | 0.48 | ||
| EV/EBITDA | 2.59 |
EPS(TTM)27.36
EY32.29%
EPS(NY)28.65
Fwd EY33.82%
FCF(TTM)-5.69
FCFYN/A
OCF(TTM)31.62
OCFY37.33%
SpS52
BVpS175.19
TBVpS175.19
PEG (NY)0.66
PEG (5Y)0.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.27% | ||
| ROE | 16.67% | ||
| ROCE | 13.13% | ||
| ROIC | 10.37% | ||
| ROICexc | 11.75% | ||
| ROICexgc | 11.75% | ||
| OM | 53.46% | ||
| PM (TTM) | 56.16% | ||
| GM | 75.53% | ||
| FCFM | N/A |
ROA(3y)20.4%
ROA(5y)14.35%
ROE(3y)30.46%
ROE(5y)24.22%
ROIC(3y)12.33%
ROIC(5y)9.97%
ROICexc(3y)13.42%
ROICexc(5y)10.73%
ROICexgc(3y)13.42%
ROICexgc(5y)10.73%
ROCE(3y)15.61%
ROCE(5y)12.61%
ROICexcg growth 3Y30.65%
ROICexcg growth 5Y17.22%
ROICexc growth 3Y30.65%
ROICexc growth 5Y17.22%
OM growth 3Y11.23%
OM growth 5Y6.56%
PM growth 3Y21.17%
PM growth 5YN/A
GM growth 3Y2.78%
GM growth 5Y1.2%
F-Score5
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.95 | ||
| Cap/Depr | 509.7% | ||
| Cap/Sales | 71.74% | ||
| Interest Coverage | 34.2 | ||
| Cash Conversion | 90.04% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.93 | ||
| Quick Ratio | 3.78 | ||
| Altman-Z | 2.84 |
F-Score5
WACC6.71%
ROIC/WACC1.55
Cap/Depr(3y)219.95%
Cap/Depr(5y)135.22%
Cap/Sales(3y)33.05%
Cap/Sales(5y)20.53%
Profit Quality(3y)63.97%
Profit Quality(5y)104.08%
High Growth Momentum
Growth
EPS 1Y (TTM)-4.1%
EPS 3Y15.86%
EPS 5Y24.25%
EPS Q2Q%-0.86%
EPS Next Y4.72%
EPS Next 2Y0.15%
EPS Next 3Y-8.47%
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%3.56%
Revenue Next Year3.73%
Revenue Next 2Y0.73%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-10.49%
EBIT growth 3Y42.64%
EBIT growth 5Y23.86%
EBIT Next Year19.29%
EBIT Next 3Y6.73%
EBIT Next 5YN/A
FCF growth 1Y-114.96%
FCF growth 3Y5.08%
FCF growth 5Y14.11%
OCF growth 1Y-33.64%
OCF growth 3Y29.44%
OCF growth 5Y28.47%