DANAOS CORP (DAC) Stock Fundamental Analysis
NYSE:DAC - New York Stock Exchange, Inc. - MHY1968P1218 - Common Stock - Currency: USD
Taking everything into account, DAC scores 6 out of 10 in our fundamental rating. DAC was compared to 36 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 valuation in line with the averages, but on the other hand it scores bad on growth.
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 each of the past 5 years.
Each year in the past 5 years DAC had a positive operating cash flow.
1.2 Ratios
The Return On Assets of DAC (10.58%) is better than 80.56% of its industry peers.
With a decent Return On Equity value of 13.44%, DAC is doing good in the industry, outperforming 77.78% of the companies in the same industry.
DAC has a Return On Invested Capital of 9.47%. This is in the better half of the industry: DAC outperforms 75.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DAC is above the industry average of 9.15%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.58% | ||
| ROE | 13.44% | ||
| ROIC | 9.47% |
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 46.33% is amongst the best of the industry. DAC outperforms 83.33% of its industry peers.
DAC's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 50.53%, DAC belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
In the last couple of years the Operating Margin of DAC has grown nicely.
DAC's Gross Margin of 74.73% is amongst the best of the industry. DAC outperforms 88.89% of its industry peers.
DAC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 50.53% | ||
| PM (TTM) | 46.33% | ||
| GM | 74.73% |
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.
DAC has less shares outstanding than it did 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 2.72 indicates that DAC is not a great score, but indicates only limited risk for bankruptcy at the moment.
DAC has a better Altman-Z score (2.72) than 86.11% of its industry peers.
DAC has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
DAC has a better Debt to Equity ratio (0.21) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.72 |
ROIC/WACC1.24
WACC7.66%
2.3 Liquidity
DAC has a Current Ratio of 4.34. This indicates that DAC is financially healthy and has no problem in meeting its short term obligations.
DAC has a better Current ratio (4.34) than 91.67% of its industry peers.
A Quick Ratio of 4.18 indicates that DAC has no problem at all paying its short term obligations.
The Quick ratio of DAC (4.18) is better than 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.34 | ||
| Quick Ratio | 4.18 |
3. Growth
3.1 Past
The earnings per share for DAC have decreased by -8.02% 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.
Looking at the last year, DAC shows a small growth in Revenue. The Revenue has grown by 3.10% in the last year.
The Revenue has been growing by 17.79% on average over the past years. This is quite good.
EPS 1Y (TTM)-8.02%
EPS 3Y15.86%
EPS 5Y24.25%
EPS Q2Q%-15.52%
Revenue 1Y (TTM)3.1%
Revenue growth 3Y13.72%
Revenue growth 5Y17.79%
Sales Q2Q%-0.06%
3.2 Future
The Earnings Per Share is expected to decrease by -8.88% on average over the next years.
Based on estimates for the next years, DAC will show a decrease in Revenue. The Revenue will decrease by -2.76% on average per year.
EPS Next Y-1.12%
EPS Next 2Y-1.51%
EPS Next 3Y-8.88%
EPS Next 5YN/A
Revenue Next Year2.06%
Revenue Next 2Y0.83%
Revenue Next 3Y-2.76%
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
DAC is valuated cheaply with a Price/Earnings ratio of 3.37.
Based on the Price/Earnings ratio, DAC is valued cheaper than 80.56% of the companies in the same industry.
DAC is valuated cheaply when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 3.33, the valuation of DAC can be described as very cheap.
Based on the Price/Forward Earnings ratio, DAC is valued cheaper than 83.33% of the companies in the same industry.
DAC is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.33, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.37 | ||
| Fwd PE | 3.33 |
4.2 Price Multiples
83.33% of the companies in the same industry are more expensive than DAC, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.7 |
4.3 Compensation for Growth
The excellent profitability rating of DAC may justify a higher PE ratio.
DAC's earnings are expected to decrease with -8.88% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.14
EPS Next 2Y-1.51%
EPS Next 3Y-8.88%
5. Dividend
5.1 Amount
DAC has a Yearly Dividend Yield of 3.82%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 7.47, DAC has a dividend in line with its industry peers.
DAC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| 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
13.45% 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.
DP13.45%
EPS Next 2Y-1.51%
EPS Next 3Y-8.88%
88.45
-0.9 (-1.01%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryMarine Transportation
Earnings (Last)
Earnings (Next)
Inst Owners19.04%
Inst Owner Change0%
Ins Owners1.51%
Ins Owner ChangeN/A
Market Cap1.62B
Analysts80
Price Target101.49 (14.74%)
Short Float %5.3%
Short Ratio5.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.82% |
Yearly Dividend3.27
Dividend Growth(5Y)-33.95%
DP13.45%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.86%
Min EPS beat(2)-7.07%
Max EPS beat(2)3.36%
EPS beat(4)1
Avg EPS beat(4)-4.1%
Min EPS beat(4)-7.73%
Max EPS beat(4)3.36%
EPS beat(8)2
Avg EPS beat(8)-4.54%
EPS beat(12)5
Avg EPS beat(12)2.96%
EPS beat(16)9
Avg EPS beat(16)11.81%
Revenue beat(2)0
Avg Revenue beat(2)-2.53%
Min Revenue beat(2)-2.79%
Max Revenue beat(2)-2.27%
Revenue beat(4)1
Avg Revenue beat(4)-1.85%
Min Revenue beat(4)-4.17%
Max Revenue beat(4)1.83%
Revenue beat(8)3
Avg Revenue beat(8)-0.56%
Revenue beat(12)7
Avg Revenue beat(12)3.37%
Revenue beat(16)10
Avg Revenue beat(16)4.55%
PT rev (1m)0%
PT rev (3m)2.58%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.08%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.87%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.37 | ||
| Fwd PE | 3.33 | ||
| P/S | 1.6 | ||
| P/FCF | N/A | ||
| P/OCF | 2.69 | ||
| P/B | 0.46 | ||
| P/tB | 0.46 | ||
| EV/EBITDA | 2.7 |
EPS(TTM)26.25
EY29.68%
EPS(NY)26.54
Fwd EY30.01%
FCF(TTM)-1.02
FCFYN/A
OCF(TTM)32.9
OCFY37.19%
SpS55.38
BVpS190.81
TBVpS190.81
PEG (NY)N/A
PEG (5Y)0.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.58% | ||
| ROE | 13.44% | ||
| ROCE | 11.98% | ||
| ROIC | 9.47% | ||
| ROICexc | 10.84% | ||
| ROICexgc | 10.84% | ||
| OM | 50.53% | ||
| PM (TTM) | 46.33% | ||
| GM | 74.73% | ||
| FCFM | N/A |
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%
ROICexcg growth 3Y8.88%
ROICexcg 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-Score5
Asset Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.1 | ||
| Cap/Depr | 401.86% | ||
| Cap/Sales | 61.24% | ||
| Interest Coverage | 17.87 | ||
| Cash Conversion | 90.32% | ||
| Profit Quality | N/A | ||
| Current Ratio | 4.34 | ||
| Quick Ratio | 4.18 | ||
| Altman-Z | 2.72 |
F-Score5
WACC7.66%
ROIC/WACC1.24
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)-8.02%
EPS 3Y15.86%
EPS 5Y24.25%
EPS Q2Q%-15.52%
EPS Next Y-1.12%
EPS Next 2Y-1.51%
EPS Next 3Y-8.88%
EPS Next 5YN/A
Revenue 1Y (TTM)3.1%
Revenue growth 3Y13.72%
Revenue growth 5Y17.79%
Sales Q2Q%-0.06%
Revenue Next Year2.06%
Revenue Next 2Y0.83%
Revenue Next 3Y-2.76%
Revenue Next 5YN/A
EBIT growth 1Y-9.59%
EBIT growth 3Y14.12%
EBIT growth 5Y21.5%
EBIT Next Year33.81%
EBIT Next 3Y5.56%
EBIT Next 5YN/A
FCF growth 1Y-102.51%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-36.11%
OCF growth 3Y13.25%
OCF growth 5Y23.11%