Danaos (DAC) AI Stock Analysis

• Market Cap: $1.64B
• Dividend Yield: 3.79%
• Average Volume (3M): 66.33K
• Price to Earnings (P/E): 3.7
• Beta (1Y): 0.68
• Revenue Growth: 5.63%
• EPS Growth: -17.54%
• Country: US
• Employees: 4
• Sector: Industrials
• Sector Strength: 72
• Industry: Marine Shipping
• EPS (TTM): 6.36
• Shares Outstanding: 18,309,654
• 10 Day Avg. Volume: 56,421
• 30 Day Avg. Volume: 66,335
• PEG Ratio: -0.31
• Price to Book (P/B): 0.45
• Price to Sales (P/S): 1.53
• P/FCF Ratio: -41.14
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 1.64
• Enterprise Value/Gross Profit: 2.80
• Enterprise Value/Ebitda: 2.53
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $98.00 ▲(14.03% Upside)

Danaos Corporation's stock score reflects its strong financial performance and attractive valuation, which are offset by technical indicators suggesting potential bearish momentum and mixed earnings call sentiment. The company's robust balance sheet and high contract coverage provide stability, but challenges such as declining free cash flow and increased costs need to be addressed.

Danaos Business Overview & Revenue Model

Company Description

Danaos Corporation (DAC) is a leading international owner and operator of containerships, primarily engaged in the transportation of containerized cargo. Headquartered in Athens, Greece, the company operates a modern fleet of vessels and provides reliable and efficient shipping services across various sectors of the global trade. Danaos caters to a wide range of shipping companies and plays a crucial role in the supply chain by facilitating the movement of goods worldwide.

How the Company Makes Money

Danaos generates revenue primarily through the long-term chartering of its fleet of containerships. The company enters into charter agreements with major shipping lines, which pay fixed daily rates for the use of the vessels over specified periods. This model ensures a stable revenue stream, as many contracts are structured for several years. Additionally, Danaos may earn ancillary income through operational services and management of its vessels. Significant partnerships with prominent shipping companies bolster its earnings potential, as these relationships often lead to long-term agreements that provide financial stability and predictability.

Danaos Financial Statement Overview

Summary

Danaos demonstrates strong financial health with robust profitability and a solid balance sheet. However, the significant decline in free cash flow growth poses a potential risk. The company should focus on improving cash flow management to sustain its financial stability in the long term.

Income Statement

Danaos has shown consistent revenue growth with a TTM revenue growth rate of 1.67%. The company maintains strong profitability with a net profit margin of 44.62% and an EBIT margin of 48.37% in the TTM. However, there is a slight decline in gross profit margin compared to previous years, indicating potential cost pressures.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio of 0.21, indicating prudent financial management. Return on equity is healthy at 13.22% in the TTM, though it has decreased from previous years. The equity ratio stands strong at 79.45%, reflecting a solid capital structure.

Cash Flow

Cash flow analysis reveals a significant decline in free cash flow growth, with a negative rate of -1133.59% in the TTM. Despite this, the operating cash flow to net income ratio is strong at 4.12, suggesting efficient cash generation relative to earnings. The free cash flow to net income ratio is moderate at 0.31.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.03B	1.01B	973.58M	993.34M	689.50M	461.59M
Gross Profit	605.65M	615.94M	643.71M	664.96M	412.39M	234.85M
EBITDA	669.46M	675.07M	704.83M	787.63M	444.48M	315.64M
Net Income	459.47M	505.07M	576.30M	559.21M	1.05B	93.15M
Balance Sheet
Total Assets	4.52B	4.34B	3.66B	3.40B	3.63B	2.71B
Cash, Cash Equivalents and Short-Term Investments	546.16M	514.23M	357.84M	267.67M	552.43M	65.66M
Total Debt	761.19M	734.78M	404.17M	501.95M	1.34B	1.46B
Total Liabilities	928.61M	918.85M	644.82M	839.81M	1.54B	1.68B
Stockholders Equity	3.59B	3.42B	3.02B	2.56B	2.09B	1.04B
Cash Flow
Free Cash Flow	192.12M	-37.59M	308.26M	735.61M	72.39M	95.02M
Operating Cash Flow	620.76M	621.75M	576.29M	934.74M	428.11M	265.68M
Investing Cash Flow	-460.42M	-650.79M	-338.53M	176.57M	-143.15M	-170.74M
Financing Cash Flow	16.95M	210.61M	-233.62M	-973.40M	-220.87M	-168.45M

Danaos Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 85.94
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DAC, the sentiment is Positive. The current price of 85.94 is below the 20-day moving average (MA) of 87.31, below the 50-day MA of 90.45, and above the 200-day MA of 84.58, indicating a neutral trend. The MACD of 0.17 indicates Negative momentum. The RSI at 54.00 is Neutral, neither overbought nor oversold. The STOCH value of 75.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DAC.

Danaos Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GSL	81 Outperform	$1.13B	2.93	26.40%	6.28%	4.43%	17.82%
CMRE	80 Outperform	$1.56B	5.49	14.61%	3.54%	-7.24%	-16.39%
DAC	73 Outperform	$1.64B	3.69	13.38%	3.79%	5.63%	-17.54%
NMM	64 Neutral	$1.39B	4.79	9.89%	0.42%	-0.47%	-22.23%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ZIM	63 Neutral	$1.73B	0.86	59.06%	53.10%	43.57%	―
SFL	60 Neutral	$971.64M	28.07	3.35%	13.80%	3.51%	-74.09%

Danaos Corporate Events

Danaos Corporation Completes $500 Million Senior Notes Offering

On October 16, 2025, Danaos Corporation successfully closed a $500 million offering of 6.875% senior notes due in 2032. The proceeds from this offering are intended to refinance existing debt, including the redemption of $262.8 million of 8.500% senior notes due in 2028 and the repayment of secured credit facilities, as well as to cover related refinancing costs and for general corporate purposes. This strategic financial move is expected to enhance the company’s financial structure and potentially improve its market positioning.

Danaos Corporation Announces Board Changes Following Director Resignation

On October 13, 2025, Danaos Corporation announced the resignation of William Repko from its board of directors, which was not due to any disagreements with the company. The board still maintains a majority of independent directors and has appointed Charalampos Pampoukis to the Audit Committee to fill the vacancy left by Repko. This change is not expected to disrupt the company’s operations or strategic direction.

Danaos Corporation Prices $500 Million Senior Notes Offering

On October 9, 2025, Danaos Corporation announced the pricing of a $500 million offering of 6.875% Senior Notes due 2032 in a private offering. The proceeds from this offering are intended to redeem the company’s existing 8.500% Senior Notes due 2028, repay outstanding amounts under secured credit facilities with BNP Paribas/Credit Agricole and Alpha Bank, cover refinancing-related costs, and for general corporate purposes. This strategic financial move is expected to enhance Danaos’s financial flexibility and strengthen its position in the shipping industry.

Danaos Corporation Announces $500 Million Senior Notes Offering

On October 6, 2025, Danaos Corporation announced plans to offer up to $500 million in Senior Notes due 2032, contingent on market conditions. The proceeds are intended to redeem existing notes, repay secured credit facilities, and cover refinancing costs, with implications for the company’s financial restructuring and market strategy.

Danaos Corporation Expands Fleet and Revenue Backlog with New Orders

On September 30, 2025, Danaos Corporation announced an addition of $304 million to its contracted revenue backlog and the order of two new containerships. The new orders are part of Danaos’ strategy to modernize its fleet and strengthen its position in the global containership market. The new vessels, to be delivered in 2027, will feature eco-friendly technology and comply with the latest international emission standards. This expansion increases Danaos’ total contracted cash operating revenues to $3.6 billion and enhances its earnings and cash flow visibility, with nearly full charter coverage for 2025 and significant coverage for 2026.

Danaos Corporation Announces AGM Results and Operational Updates

On August 1, 2025, Danaos Corporation held its annual meeting of stockholders where Mr. William Repko, Mr. Richard Sadler, and Mr. Charalampos Pampoukis were re-elected as Class III directors for a three-year term. The stockholders also ratified the appointment of Deloitte Certified Public Accountants, S.A. as independent auditors. Additionally, Danaos has amended its management and brokerage services agreements, reflecting strategic adjustments in its operational framework. The company reported a notable increase in operating revenues for the three months ended June 30, 2025, driven by fleet expansion and higher vessel utilization, which underscores its strengthening position in the maritime industry.