DANAOS CORP (DAC)
MHY1968P1218 - Common Stock
We assign a fundamental rating of 7 out of 10 to DAC. DAC was compared to 29 industry peers in the Marine Transportation industry. DAC has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. DAC is cheap, but on the other hand it scores bad on growth. 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
DAC has a better Return On Assets (15.74%) than 82.76% of its industry peers.
Looking at the Return On Equity, with a value of 19.11%, DAC is in the better half of the industry, outperforming 79.31% of the companies in the same industry.
The Return On Invested Capital of DAC (13.10%) is better than 89.66% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DAC is above the industry average of 7.78%.
The last Return On Invested Capital (13.10%) for DAC is above the 3 year average (12.33%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.74% | ||
| ROE | 19.11% | ||
| ROIC | 13.1% |
ROA(3y)20.4%
ROA(5y)14.35%
ROE(3y)30.46%
ROE(5y)24.22%
ROIC(3y)12.33%
ROIC(5y)9.97%
1.3 Margins
DAC has a better Profit Margin (59.19%) than 86.21% of its industry peers.
DAC's Profit Margin has improved in the last couple of years.
DAC's Operating Margin of 59.49% is amongst the best of the industry. DAC outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of DAC has grown nicely.
DAC has a Gross Margin of 79.14%. This is amongst the best in the industry. DAC outperforms 89.66% 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 | 59.49% | ||
| PM (TTM) | 59.19% | ||
| GM | 79.14% |
OM growth 3Y11.23%
OM growth 5Y6.56%
PM growth 3Y21.17%
PM growth 5YN/A
GM growth 3Y2.78%
GM growth 5Y1.2%
2. Health
2.1 Basic Checks
DAC has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, DAC has less shares outstanding
The number of shares outstanding for DAC has been increased compared to 5 years ago.
DAC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.24 indicates that DAC is not in any danger for bankruptcy at the moment.
DAC has a Altman-Z score of 3.24. This is amongst the best in the industry. DAC outperforms 89.66% of its industry peers.
DAC has a debt to FCF ratio of 1.31. This is a very positive value and a sign of high solvency as it would only need 1.31 years to pay back of all of its debts.
DAC has a better Debt to FCF ratio (1.31) than 93.10% of its industry peers.
A Debt/Equity ratio of 0.13 indicates that DAC is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.13, DAC belongs to the best of the industry, outperforming 86.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.31 | ||
| Altman-Z | 3.24 |
ROIC/WACC1.9
WACC6.91%
2.3 Liquidity
DAC has a Current Ratio of 2.98. This indicates that DAC is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.98, DAC is in the better half of the industry, outperforming 68.97% of the companies in the same industry.
A Quick Ratio of 2.84 indicates that DAC has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.84, DAC is in the better half of the industry, outperforming 68.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.98 | ||
| Quick Ratio | 2.84 |
3. Growth
3.1 Past
DAC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -17.66%.
Measured over the past years, DAC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.76% on average per year.
The Revenue has decreased by -1.98% in the past year.
Measured over the past years, DAC shows a quite strong growth in Revenue. The Revenue has been growing by 16.24% on average per year.
EPS 1Y (TTM)-17.66%
EPS 3Y57.88%
EPS 5Y17.76%
EPS growth Q2Q0%
Revenue 1Y (TTM)-1.98%
Revenue growth 3Y28.24%
Revenue growth 5Y16.24%
Revenue growth Q2Q-1.26%
3.2 Future
Based on estimates for the next years, DAC will show a very negative growth in Earnings Per Share. The EPS will decrease by -13.74% on average per year.
The Revenue is expected to decrease by -8.09% on average over the next years.
EPS Next Y5.39%
EPS Next 2Y-10.8%
EPS Next 3Y-13.74%
EPS Next 5YN/A
Revenue Next Year2.94%
Revenue Next 2Y-5.36%
Revenue Next 3Y-8.09%
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
The Price/Earnings ratio is 2.75, which indicates a rather cheap valuation of DAC.
Compared to the rest of the industry, the Price/Earnings ratio of DAC indicates a rather cheap valuation: DAC is cheaper than 82.76% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of DAC to the average of the S&P500 Index (27.73), we can say DAC is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 2.61, the valuation of DAC can be described as very cheap.
96.55% of the companies in the same industry are more expensive than DAC, based on the Price/Forward Earnings ratio.
DAC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.75 | ||
| Fwd PE | 2.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DAC is valued a bit cheaper than 79.31% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DAC indicates a somewhat cheap valuation: DAC is cheaper than 79.31% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.95 | ||
| EV/EBITDA | 2.34 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
DAC has an outstanding profitability rating, which may justify a higher PE ratio.
DAC's earnings are expected to decrease with -13.74% in the coming years. This may justify a cheaper valuation.
PEG (NY)0.51
PEG (5Y)0.16
EPS Next 2Y-10.8%
EPS Next 3Y-13.74%
5. Dividend
5.1 Amount
DAC has a Yearly Dividend Yield of 4.18%, which is a nice return.
Compared to an average industry Dividend Yield of 4.76, DAC pays a bit more dividend than its industry peers.
DAC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.18% |
5.2 History
The dividend of DAC decreases each year by -34.30%.
DAC has been paying a dividend for over 5 years, so it has already some track record.
The dividend of DAC decreased in the last 3 years.
Dividend Growth(5Y)-34.3%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
10.53% 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.
DP10.53%
EPS Next 2Y-10.8%
EPS Next 3Y-13.74%
DANAOS CORP
NYSE:DAC (5/3/2024, 7:04:00 PM)
After market: 78.54 0 (0%)78.54
+1.99 (+2.6%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryMarine Transportation
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.53B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.18% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.75 | ||
| Fwd PE | 2.61 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.51
PEG (5Y)0.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.74% | ||
| ROE | 19.11% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 59.49% | ||
| PM (TTM) | 59.19% | ||
| GM | 79.14% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.98 | ||
| Quick Ratio | 2.84 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-17.66%
EPS 3Y57.88%
EPS 5Y
EPS growth Q2Q
EPS Next Y5.39%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.98%
Revenue growth 3Y28.24%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y