DANAOS CORP (DAC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DAC - MHY1968P1218 - Common Stock
100.82 USD
+0.21 (+0.21%)
100.82 USD
0 (0%)
Overall DAC gets a fundamental rating of 7 out of 10. We evaluated DAC against 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 cheap, but on the other hand it scores bad on growth. These ratings would make DAC suitable for value investing!
1. Profitability
1.1 Basic Checks
- DAC had positive earnings in the past year.
- In the past year DAC had a positive cash flow from operations.
- Each year in the past 5 years DAC has been profitable.
- In the past 5 years DAC always reported a positive cash flow from operatings.
1.2 Ratios
- DAC has a Return On Assets of 10.12%. This is amongst the best in the industry. DAC outperforms 88.57% of its industry peers.
- DAC has a Return On Equity of 12.59%. This is in the better half of the industry: DAC outperforms 77.14% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 8.98%, DAC is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
- DAC had an Average Return On Invested Capital over the past 3 years of 12.84%. This 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's Profit Margin of 45.16% is amongst the best of the industry. DAC outperforms 85.71% of its industry peers.
- In the last couple of years the Profit Margin of DAC has grown nicely.
- With an excellent Operating Margin value of 48.62%, DAC belongs to the best 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 has a Gross Margin of 74.00%. This is amongst the best in 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
- DAC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for DAC has been reduced compared to 1 year ago.
- Compared to 5 years ago, DAC has less shares outstanding
- The debt/assets ratio for DAC is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.95 indicates that DAC is not a great score, but indicates only limited risk for bankruptcy at the moment.
- DAC's Altman-Z score of 2.95 is fine compared to the rest of the industry. DAC outperforms 77.14% of its industry peers.
- DAC has a debt to FCF ratio of 2.18. This is a good value and a sign of high solvency as DAC would need 2.18 years to pay back of all of its debts.
- With an excellent Debt to FCF ratio value of 2.18, DAC belongs to the best of the industry, outperforming 88.57% of the companies in the same industry.
- 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
WACC7.53%
2.3 Liquidity
- A Current Ratio of 4.62 indicates that DAC has no problem at all paying its short term obligations.
- With an excellent Current ratio value of 4.62, DAC belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
- 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.
- Looking at the Quick ratio, with a value of 4.51, DAC belongs to the top of the industry, outperforming 82.86% of the companies in the same industry.
| 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.
- 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.
- 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
- The Earnings Per Share is expected to decrease by -9.85% on average over the next years.
- DAC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.62% yearly.
EPS Next Y-3.46%
EPS Next 2Y-2.05%
EPS Next 3Y-9.85%
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
- 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.
- 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
- With a Price/Earnings ratio of 3.87, the valuation of DAC can be described as very cheap.
- 80.00% of the companies in the same industry are more expensive than DAC, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 27.30. DAC is valued rather cheaply when compared to this.
- Based on the Price/Forward Earnings ratio of 3.84, the valuation of DAC can be described as very cheap.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of DAC indicates a rather cheap valuation: DAC is cheaper than 88.57% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.32, DAC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.87 | ||
| Fwd PE | 3.84 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, DAC is valued cheaper than 82.86% of the companies 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 | 5.36 | ||
| EV/EBITDA | 2.66 |
4.3 Compensation for Growth
- 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 -9.85% in the coming years.
PEG (NY)N/A
PEG (5Y)0.16
EPS Next 2Y-2.05%
EPS Next 3Y-9.85%
5. Dividend
5.1 Amount
- DAC has a Yearly Dividend Yield of 3.55%.
- DAC's Dividend Yield is a higher than the industry average which is at 5.35.
- DAC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.55% |
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 13.56% 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.
DP13.56%
EPS Next 2Y-2.05%
EPS Next 3Y-9.85%
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%.