Fundamental analysis: Danaos Corporation (DAC)

Awarener score: 8.6

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Superb), the business stability (Lacking) and growth (Good), and the company's inclination to return cash to the stockholders (Superb).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 5.5

Business has been growing at a good pace. It's been almost average when measured against peer companies.
Danaos Corporation business shows some variation, there's some risk. It looks somewhat worse than rivals.

Margins score: 9.7

DAC profit margins -on goods and services sold- are usually very good. They stand better than most rival companies.
Business profit on sales tends to be huge. It's great when measured against competitors.
Profits on sales made -available to repay debt and purchase properties- are usually huge. They remain impressive in relation to peers.
Earnings -before income taxes and interests on loans taken- tend to be huge in relation to total revenues. They're still top-notch against similar companies.
Profits -before income taxes- are usually huge considering total sales, and remain top tier when measured against rivals.
Total net profit tends to be huge when confronted to sales. Company stands top tier when measured against comparable firms.

Growth score: 4.6

Danaos Corporation profit -on goods and services sold- has been growing at a very good pace. It's been lacking compared to competitors.
In recent years, the firm hasn't always been able to profit from operations, which has been bottom tier against comparable firms.
Profits -available to repay debt and purchase properties- have been growing at an excellent pace, which compares almost average when measured against peer enterprises.
Earnings -before income taxes and interests on loans taken- have been growing at an extremely fast tempo. It turns to be in a weak position compared to similar stocks.
In past years, at least once the company lost money -before income taxes-. It was bottom tier against rivals.
In the previous years, the firm had at least a total net loss, and last-in-rank when measured against peer companies.
Earnings per share have been shrinking in the past years. It's been in a very weak position compared to industry peers.

Miscellaneous score: 9.0

DAC managed to pay no income taxes on profits made in the past years, sometimes even got a credit. It's been mediocre against peers.
The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 8.8

Danaos Corporation usually gets excellent returns on the resources it controls. It proves great when measured against peer firms.
The company normally gets very good proceeds -on the resources directly invested in the business-. They remain excellent in relation to similar companies.
There's usually excellent profitability -in relation to owned resources-. It ranks great when measured against competitors.
In the past, got excellent returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's great when measured against comparable enterprises.

Usage of Funds score: 6.5

DAC usually uses a large portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is large. It stands great when measured against rival firms.
The company is usually replacing the property, plant, and equipment that gets old, keeping its operating capabilities up to date, which is weak when measured against industry peers.
In the past twelve months it paid very good dividends, considering the current stock price. It came slightly better than competitors.
Has recently started or restarted paying dividends to stockholders. Business prospects are most likely good. The company has behaved impressive in relation to similar firms.
Dividend payments usually represent a slight portion of genuine funds generation and are most likely safe. Sustainability looks better than most comparable companies.
The company has heavily enlarged the pool of investors in previous years, resulting in more mouths feeding on the pie of profits. It remains in a weak position compared to peer enterprises.
We are not sure on the effectiveness of the company when repurchasing shares, as there were not enough numbers to crunch. It stands unidentified against rivals.
We do not have sufficient data to comment on buybacks and their sustainability. It still looks dubious against competitors.

Balance Sheet score: 5.6

Danaos Corporation has no intangible assets (like brands and goodwill) according to accounting books, which is safest. It happens to be top tier when measured against peer companies.
The company has more than enough short-term resources to face short-term obligations. Liquidity concerns are non-significant. It turns to be excellent in relation to similar firms.
A significant part of resources controlled were provided for with financial debt. Creditors have almost as many claims on the company as shareholders. It remains somewhat better than rival firms.
Controlled resources might be turned into cash and equivalents neither fast nor too slow. Liquidity and risk might be run-of-the-mill. It looks great when measured against rivals.
For every dollar of short-term obligations, the company has more than enough dollars in cash and short-term receivables. It's impressive in relation to peer firms.
For every dollar of short-term obligations, the company has enough dollars in cash and equivalents, which is top-notch against similar enterprises.
Usually, sales are on somewhat less than three months credit. It still ranks last-in-rank when measured against peers.
Normally has approximately somewhat less than one month of sales worth in inventory. It comes up as rather normal in relation to competitors.
On average, it takes higher than three months from the purchase to charging customers. It happens to be bottom tier against peers.
On average pays suppliers before a month since the purchase. It ranks encouraging in relation to industry peers.
The company pays its suppliers roughly two months before charging its customers, so there's some money invested in working capital. It's a disappointment compared to similar companies.
Net interest expenses consume a minor portion of usual business earnings, and are largely bearable. It stands well ranked against rival firms.
Business earnings have usually been good when measured against loans taken. Cutting back reinvesting in the business, it could take less than three years to repay the obligations with current profitability. It ranks more than average in relation to comparable enterprises.
Last twelve months revenues were non-significant in relation to fixed assets. The company must improve income to take advantage of used resources. It looks lacking compared to similar firms.
Resource exploitation is low when yearly sales are considered, business volume must be significantly increased. This metric is normally tied to the industry where the firm belongs. It's still mediocre against peer companies.

Valuation score: 8.6

Danaos Corporation looks extremely cheap in relation to profits and financial position. It happens to be great when measured against competitors.
Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains in good shape compared to peers.
In the past twelve months, the company generated some good free funds in relation to the stock price, which stands well ranked against similar companies.
The company usually generates much more genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, at the current price the share might be very interesting. It's still great when measured against industry firms.
In the past twelve months, the company has significantly rewarded investors, considering both dividends and share on the pie of earnings. It came up excellent in relation to peer ventures.
The company is largely indebted. It should focus on loan repayment before rewarding stockholders. It looks somewhat better than similar enterprises.
Considering the past twelve months, traditional Price-to-Earnings relation looks extremely cheap. Possible reasons are that the market might be betting current earnings will be very hard to sustain through time, or that the company has very high fund needs, a weak financial position, or that earnings aren't representative. If that isn't the case, the stock price could be extremely attractive. It ranks great when measured against peer companies.
Comparing the current stock price with the past twelve-months revenues gives a roughly two to one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks lacking compared to rival firms.
The stock price is significantly below the accounting book value. Unless profitability is extremely low, the stock may be selling at a large discount. Pay attention to the other key indicators for hints. The company remains well ranked against peer firms.
In the past twelve months, the operating business earned huge money when compared to the current stock price and financial position. It happens to be great when measured against industry peers.
In an alternate metric of bang for the buck, the company has usually shown an extreme earnings power ability when measured against the current stock price and financial position. Further analysis is recommended, as the stock might currently be significantly undervalued. It's still impressive in relation to peer companies.

Total score: 7.3

Company at a glance: Danaos Corporation (DAC)

Sector, industry: Industrials, Marine Shipping

Market Cap: 1.10 billions

Revenues TTM: 0.79 billions

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 chartering its vessels to liner companies. As of February 28, 2022, it had a fleet of 71 containerships aggregating 436,589 twenty-foot equivalent units in capacity. The company was formerly known as Danaos Holdings Limited and changed its name to Danaos Corporation in October 2005. Danaos Corporation was founded in 1963 and is based in Piraeus, Greece.