DANAOS CORP (DAC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DAC - MHY1968P1218 - Common Stock
97.8 USD
+0.46 (+0.47%)
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 has a bad growth rate and is valued cheaply. 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.
DAC had positive earnings in each of the past 5 years.
DAC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 10.12%, DAC belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
DAC's Return On Equity of 12.59% is fine compared to the rest of the industry. DAC outperforms 77.14% of its industry peers.
DAC has a better Return On Invested Capital (8.98%) than 77.14% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DAC is significantly below the industry average of 18.17%.
| 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 88.57% of the companies in the same industry.
In the last couple of years the Profit Margin of DAC has grown nicely.
DAC's Operating Margin of 48.62% is amongst the best of the industry. DAC outperforms 88.57% of its industry peers.
DAC's Operating Margin has improved in the last couple of years.
The Gross Margin of DAC (74.00%) is better than 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.
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 2.91 indicates that DAC is not a great score, but indicates only limited risk for bankruptcy at the moment.
With an excellent Altman-Z score value of 2.91, DAC belongs to the best of the industry, outperforming 82.86% 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.
Looking at the Debt to FCF ratio, with a value of 2.18, DAC is in the better half of the industry, outperforming 80.00% 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.
DAC has a Debt to Equity ratio of 0.18. This is in the better half of the industry: DAC outperforms 68.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 2.18 | ||
| Altman-Z | 2.91 |
ROIC/WACC1.13
WACC7.92%
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's Current ratio of 4.62 is amongst the best of the industry. DAC outperforms 88.57% of its industry peers.
A Quick Ratio of 4.51 indicates that DAC has no problem at all paying its short term obligations.
DAC has a Quick ratio of 4.51. This is amongst the best in the industry. DAC outperforms 88.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.62 | ||
| Quick Ratio | 4.51 |
3. Growth
3.1 Past
DAC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.89%.
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
DAC is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -10.88% yearly.
Based on estimates for the next years, DAC will show a decrease in Revenue. The Revenue will decrease by -3.31% on average per year.
EPS Next Y-2.67%
EPS Next 2Y-1.63%
EPS Next 3Y-10.88%
EPS Next 5YN/A
Revenue Next Year-1.47%
Revenue Next 2Y-0.54%
Revenue Next 3Y-3.31%
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
The Price/Earnings ratio is 3.75, which indicates a rather cheap valuation of DAC.
Based on the Price/Earnings ratio, DAC is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
DAC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.31.
Based on the Price/Forward Earnings ratio of 3.69, 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.
DAC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.75 | ||
| Fwd PE | 3.69 |
4.2 Price Multiples
77.14% of the companies in the same industry are more expensive than DAC, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, DAC is valued a bit cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.2 | ||
| EV/EBITDA | 2.56 |
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 -10.88% in the coming years.
PEG (NY)N/A
PEG (5Y)0.15
EPS Next 2Y-1.63%
EPS Next 3Y-10.88%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.72%, DAC has a reasonable but not impressive dividend return.
DAC's Dividend Yield is a higher than the industry average which is at 7.57.
Compared to an average S&P500 Dividend Yield of 2.40, DAC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.72% |
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-1.63%
EPS Next 3Y-10.88%
NYSE:DAC (11/28/2025, 5:04:00 PM)
97.8
+0.46 (+0.47%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryMarine Transportation
Earnings (Last)
Earnings (Next)
Inst Owners20.13%
Inst Owner Change2.01%
Ins Owners1.53%
Ins Owner ChangeN/A
Market Cap1.79B
Revenue(TTM)1.03B
Net Income(TTM)467.13M
Analysts80
Price Target103.53 (5.86%)
Short Float %5.32%
Short Ratio6.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.72% |
Yearly Dividend3.27
Dividend Growth(5Y)-33.95%
DP13.56%
Div Incr Years3
Div Non Decr Years3
Ex-Date
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)0%
PT rev (3m)0%
EPS NQ rev (1m)-1%
EPS NQ rev (3m)-1%
EPS NY rev (1m)-0.37%
EPS NY rev (3m)-0.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.75 | ||
| Fwd PE | 3.69 | ||
| P/S | 1.73 | ||
| P/FCF | 5.2 | ||
| P/OCF | 2.88 | ||
| P/B | 0.48 | ||
| P/tB | 0.48 | ||
| EV/EBITDA | 2.56 |
EPS(TTM)26.08
EY26.67%
EPS(NY)26.48
Fwd EY27.07%
FCF(TTM)18.81
FCFY19.24%
OCF(TTM)33.97
OCFY34.73%
SpS56.49
BVpS202.65
TBVpS202.65
PEG (NY)N/A
PEG (5Y)0.15
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 | 2.91 |
F-Score6
WACC7.92%
ROIC/WACC1.13
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-2.67%
EPS Next 2Y-1.63%
EPS Next 3Y-10.88%
EPS Next 5YN/A
Revenue 1Y (TTM)2.9%
Revenue growth 3Y13.72%
Revenue growth 5Y17.79%
Sales Q2Q%9.01%
Revenue Next Year-1.47%
Revenue Next 2Y-0.54%
Revenue Next 3Y-3.31%
Revenue Next 5YN/A
EBIT growth 1Y-6.41%
EBIT growth 3Y14.12%
EBIT growth 5Y21.5%
EBIT Next Year31.64%
EBIT Next 3Y3.92%
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.
Can you provide the valuation status for DANAOS CORP?
ChartMill assigns a valuation rating of 7 / 10 to DANAOS CORP (DAC). This can be considered as Undervalued.
What is the profitability of DAC stock?
DANAOS CORP (DAC) has a profitability rating of 8 / 10.
How financially healthy is DANAOS CORP?
The financial health rating of DANAOS CORP (DAC) is 8 / 10.
Can you provide the dividend sustainability for DAC stock?
The dividend rating of DANAOS CORP (DAC) is 5 / 10 and the dividend payout ratio is 13.56%.