DANAOS CORP (DAC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DAC - MHY1968P1218 - Common Stock
98.23 USD
+2.34 (+2.44%)
98.23 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to DAC. DAC was compared to 35 industry peers in the Marine Transportation industry. Both the health and profitability get an excellent rating, making DAC a very profitable company, without any liquidiy or solvency issues. DAC is cheap, but on the other hand it scores bad on growth. This makes DAC very considerable 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.
Each year in the past 5 years DAC has been profitable.
DAC had a positive operating cash flow in each of the past 5 years.
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 better Return On Equity (12.59%) than 77.14% of its industry peers.
DAC has a better Return On Invested Capital (8.98%) than 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 7.60%.
| 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
Looking at the Profit Margin, with a value of 45.16%, 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 48.62%. This is amongst the best in the industry. DAC outperforms 91.43% of its industry peers.
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.
DAC's Gross Margin has been stable in the last couple of years.
| 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.
The number of shares outstanding for DAC has been reduced compared to 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
An Altman-Z score of 2.92 indicates that DAC is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.92, DAC is doing good in the industry, outperforming 77.14% of the companies in the same industry.
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.
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.
DAC has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.18, DAC is doing good in 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 | 2.92 |
ROIC/WACC1.22
WACC7.36%
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.
The Current ratio of DAC (4.62) is better 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.
DAC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.25% yearly.
DAC shows a small growth in Revenue. In the last year, the Revenue has grown by 2.90%.
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.
The Revenue is expected to decrease by -2.34% on average over the next years.
EPS Next Y-3.46%
EPS Next 2Y-2.05%
EPS Next 3Y-9.85%
EPS Next 5YN/A
Revenue Next Year-1.96%
Revenue Next 2Y-0.34%
Revenue Next 3Y-2.34%
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.
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
With a Price/Earnings ratio of 3.77, 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.
DAC is valuated cheaply when we compare the Price/Earnings ratio to 26.92, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 3.74 indicates a rather cheap valuation of DAC.
DAC's Price/Forward Earnings ratio is rather cheap when compared to the industry. DAC is cheaper than 88.57% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of DAC to the average of the S&P500 Index (23.57), we can say DAC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.77 | ||
| Fwd PE | 3.74 |
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.
Based on the Price/Free Cash Flow ratio, DAC is valued cheaper than 82.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.22 | ||
| EV/EBITDA | 2.59 |
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 -9.85% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.16
EPS Next 2Y-2.05%
EPS Next 3Y-9.85%
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 4.83, DAC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.94, 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 13.56% 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%
98.23
+2.34 (+2.44%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryMarine Transportation
Earnings (Last)
Earnings (Next)
Inst Owners20.47%
Inst Owner Change0%
Ins Owners1.41%
Ins Owner ChangeN/A
Market Cap1.80B
Revenue(TTM)1.03B
Net Income(TTM)467.13M
Analysts80
Price Target106.08 (7.99%)
Short Float %5.52%
Short Ratio6.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.82% |
Yearly Dividend3.27
Dividend Growth(5Y)-33.95%
DP13.56%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-5.67%
Min EPS beat(2)-5.88%
Max EPS beat(2)-5.47%
EPS beat(4)1
Avg EPS beat(4)-3.76%
Min EPS beat(4)-7.07%
Max EPS beat(4)3.36%
EPS beat(8)1
Avg EPS beat(8)-5.93%
EPS beat(12)3
Avg EPS beat(12)-2.68%
EPS beat(16)7
Avg EPS beat(16)8.63%
Revenue beat(2)2
Avg Revenue beat(2)2.59%
Min Revenue beat(2)0.17%
Max Revenue beat(2)5%
Revenue beat(4)2
Avg Revenue beat(4)0.03%
Min Revenue beat(4)-2.79%
Max Revenue beat(4)5%
Revenue beat(8)3
Avg Revenue beat(8)-0.69%
Revenue beat(12)7
Avg Revenue beat(12)1.56%
Revenue beat(16)11
Avg Revenue beat(16)3.86%
PT rev (1m)2.46%
PT rev (3m)2.46%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.05%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.59%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.77 | ||
| Fwd PE | 3.74 | ||
| P/S | 1.74 | ||
| P/FCF | 5.22 | ||
| P/OCF | 2.89 | ||
| P/B | 0.48 | ||
| P/tB | 0.48 | ||
| EV/EBITDA | 2.59 |
EPS(TTM)26.08
EY26.55%
EPS(NY)26.25
Fwd EY26.72%
FCF(TTM)18.81
FCFY19.15%
OCF(TTM)33.97
OCFY34.58%
SpS56.49
BVpS202.65
TBVpS202.65
PEG (NY)N/A
PEG (5Y)0.16
Graham Number344.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.12% | ||
| ROE | 12.59% | ||
| ROCE | 11.36% | ||
| ROIC | 8.98% | ||
| ROICexc | 10.7% | ||
| ROICexgc | 10.7% | ||
| OM | 48.62% | ||
| PM (TTM) | 45.16% | ||
| GM | 74% | ||
| FCFM | 33.3% |
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%
ROICexgc growth 3Y8.88%
ROICexgc 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-Score6
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 2.18 | ||
| Debt/EBITDA | 1.02 | ||
| Cap/Depr | 170.97% | ||
| Cap/Sales | 26.82% | ||
| Interest Coverage | 14.1 | ||
| Cash Conversion | 93.49% | ||
| Profit Quality | 73.74% | ||
| Current Ratio | 4.62 | ||
| Quick Ratio | 4.51 | ||
| Altman-Z | 2.92 |
F-Score6
WACC7.36%
ROIC/WACC1.22
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)-4.89%
EPS 3Y15.86%
EPS 5Y24.25%
EPS Q2Q%3.85%
EPS Next Y-3.46%
EPS Next 2Y-2.05%
EPS Next 3Y-9.85%
EPS Next 5YN/A
Revenue 1Y (TTM)2.9%
Revenue growth 3Y13.72%
Revenue growth 5Y17.79%
Sales Q2Q%9.01%
Revenue Next Year-1.96%
Revenue Next 2Y-0.34%
Revenue Next 3Y-2.34%
Revenue Next 5YN/A
EBIT growth 1Y-6.41%
EBIT growth 3Y14.12%
EBIT growth 5Y21.5%
EBIT Next Year30.29%
EBIT Next 3Y5.33%
EBIT Next 5YN/A
FCF growth 1Y0.26%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y8.04%
OCF growth 3Y13.25%
OCF growth 5Y23.11%
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%.