DANAOS CORP (DAC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DAC - MHY1968P1218 - Common Stock
103 USD
+0.6 (+0.59%)
103 USD
0 (0%)
DAC gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 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. These ratings would make DAC suitable 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.
- 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 88.57% 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'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
- The Profit Margin of DAC (45.16%) is better than 85.71% of its industry peers.
- 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.
- The Gross Margin of DAC (74.00%) is better than 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DAC is creating some value.
- DAC has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, DAC has less shares outstanding
- Compared to 1 year ago, DAC has a worse debt to assets ratio.
2.2 Solvency
- DAC has an Altman-Z score of 2.97. 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 (2.97) is better than 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.
- Looking at the Debt to FCF ratio, with a value of 2.18, DAC belongs to the top 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.
- The Debt to Equity ratio of DAC (0.18) is better than 65.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 2.18 | ||
| Altman-Z | 2.97 |
ROIC/WACC1.18
WACC7.61%
2.3 Liquidity
- A Current Ratio of 4.62 indicates that DAC has no problem at all paying its short term obligations.
- The Current ratio of DAC (4.62) is better than 85.71% 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 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.
- The Revenue has been growing slightly by 2.90% in the past 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 -13.54% yearly.
- 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
- A Price/Earnings ratio of 3.95 indicates a rather cheap valuation of DAC.
- Compared to the rest of the industry, the Price/Earnings ratio of DAC indicates a somewhat cheap valuation: DAC is cheaper than 80.00% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, DAC is valued rather cheaply.
- DAC is valuated cheaply with a Price/Forward Earnings ratio of 4.05.
- Based on the Price/Forward Earnings ratio, DAC is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 25.83. DAC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.95 | ||
| Fwd PE | 4.05 |
4.2 Price Multiples
- DAC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. DAC is cheaper than 82.86% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of DAC indicates a rather cheap valuation: DAC is cheaper than 82.86% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.48 | ||
| EV/EBITDA | 2.7 |
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 -13.54% in the coming years.
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%.
- DAC's Dividend Yield is a higher than the industry average which is at 5.57.
- Compared to an average S&P500 Dividend Yield of 1.82, 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.
- DAC's earnings and Dividend Rate are 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%.