NYSE:DAC

Stock Analysis Report

Executive Summary

Danaos Corporation, together with its subsidiaries, owns and operates containerships in Australia, Asia, Europe, and the United States.

Snowflake

Fundamentals

Undervalued with limited growth.


Similar Companies

Share Price & News

How has Danaos's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

28.0%

DAC

2.7%

US Shipping

1.0%

US Market


1 Year Return

-26.9%

DAC

-3.7%

US Shipping

6.7%

US Market

Return vs Industry: DAC underperformed the US Shipping industry which returned -3.7% over the past year.

Return vs Market: DAC underperformed the US Market which returned 6.7% over the past year.


Share holder returns

DACIndustryMarket
7 Day28.0%2.7%1.0%
30 Day38.5%-2.7%-1.8%
90 Day18.9%2.8%-1.8%
1 Year-26.9%-26.9%-2.1%-3.7%9.1%6.7%
3 Year-67.2%-67.2%21.9%12.9%46.1%36.6%
5 Year-81.5%-81.5%-59.5%-62.5%66.9%48.6%

Price Volatility Vs. Market

How volatile is Danaos's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Danaos undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: DAC ($11.15) is trading below our estimate of fair value ($58.17)

Significantly Undervalued: DAC is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: DAC is good value based on its PE Ratio (16.1x) compared to the Shipping industry average (25x).

PE vs Market: DAC is good value based on its PE Ratio (16.1x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: Insufficient data to calculate DAC's PEG Ratio to determine if it is good value.


Price Based on Value of Assets

PB vs Industry: DAC is good value based on its PB Ratio (0.2x) compared to the US Shipping industry average (0.6x).


Next Steps

Future Growth

How is Danaos expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

17.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: DAC's forecast earnings growth (17.4% per year) is above the savings rate (2.7%).

Earnings vs Market: DAC's earnings (17.4% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: DAC's earnings are forecast to grow, but not significantly.

Revenue vs Market: DAC's revenue is expected to decline over the next 3 years (-2.5% per year).

High Growth Revenue: DAC's revenue is forecast to decline over the next 3 years (-2.5%).


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: Insufficient data to determine if DAC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Danaos performed over the past 5 years?

-11.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: DAC's earnings have declined by -11.7% per year over the past 5 years.

Accelerating Growth: DAC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: DAC had negative earnings growth (-85.1%) over the past year, making it difficult to compare to the Shipping industry average (-62.3%).


Return on Equity

High ROE: DAC's Return on Equity (1.3%) is considered low.


Return on Assets

ROA vs Industry: DAC's Return on Assets is below or equal to the Shipping industry average last year.


Return on Capital Employed

ROCE Improving: DAC has not improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Danaos's financial position?


Financial Position Analysis

Short Term Liabilities: DAC's short term assets ($122.9M) do not cover its short term liabilities ($223.3M)

Long Term Liabilities: DAC's short term assets (122.9M) do not cover its long term liabilities (1.7B)


Debt to Equity History and Analysis

Debt Level: DAC's debt to equity ratio (189.6%) is considered high

Reducing Debt: DAC's debt to equity ratio has reduced from 482.2% to 189.6% over the past 5 years.

Debt Coverage: DAC's debt is not well covered by operating cash flow (15.4%).

Interest Coverage: DAC's interest payments on its debt are not well covered by EBIT (2.7x coverage).


Balance Sheet

Inventory Level: DAC has a high level of physical assets or inventory.

Debt Coverage by Assets: DAC's debt is not covered by short term assets (assets are 0.1x debt).


Next Steps

Dividend

What is Danaos's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.5%markettop25%3.8%industryaverage4.4%forecastin3Yearsn/a

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: Unable to evaluate DAC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate DAC's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if DAC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if DAC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: DAC is not paying a notable dividend for .


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DAC's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Danaos's salary, the management and board of directors tenure and is there insider trading?

11.4yrs

Average board tenure


CEO

John Coustas (63yo)

0yrs

Tenure

0

Dr. John Coustas serves as the Chairman, Chief Executive Officer and President of Danaos Corporation. He serves as a Member of the Council at Det Norske Veritas. Dr. Coustas has over 25 years of experience ...


Board Age and Tenure

11.4yrs

Average Tenure

68yo

Average Age

Experienced Board: DAC's board of directors are seasoned and experienced ( 11.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Iraklis Prokopakis (68yo)

    Senior VP

    • Tenure: 21.8yrs
  • John Coustas (63yo)

    Chairman

    • Tenure: 0yrs
  • Evangelos Chatzis (46yo)

    CFO & Secretary

    • Tenure: 8.3yrs
  • Dimitris Vastarouchas (51yo)

    Deputy Chief Operating Officer

    • Tenure: 8.8yrs

Board Members

  • Myles Itkin (71yo)

    Director

    • Tenure: 13yrs
  • Miklós Konkoly-Thege (76yo)

    Director

    • Tenure: 13yrs
  • William Repko (70yo)

    Director

    • Tenure: 5.3yrs
  • George Economou (66yo)

    Director

    • Tenure: 9.8yrs
  • Iraklis Prokopakis (68yo)

    Senior VP

    • Tenure: 21.8yrs
  • John Coustas (63yo)

    Chairman

    • Tenure: 0yrs
  • Petros Christodoulou (58yo)

    Director

    • Tenure: 1.3yrs

Company Information

Danaos Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Danaos Corporation
  • Ticker: DAC
  • Exchange: NYSE
  • Founded: 1972
  • Industry: Marine
  • Sector: Transportation
  • Market Cap: US$171.411m
  • Shares outstanding: 15.37m
  • Website: https://www.danaos.com

Number of Employees


Location

  • Danaos Corporation
  • 14 Akti Kondyli
  • Piraeus
  • 185 45
  • Greece

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DACNYSE (New York Stock Exchange)YesCommon SharesUSUSDOct 2006
DVW1DB (Deutsche Boerse AG)YesCommon SharesDEEUROct 2006

Biography

Danaos Corporation, together with its subsidiaries, owns and operates containerships in Australia, Asia, Europe, and the United States. The company offers seaborne transportation services, such as charteri ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 02:06
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

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