Danaos (DAC) AI Stock Analysis

• Market Cap: $1.78B
• Dividend Yield: 3.57%
• Average Volume (3M): 73.15K
• Price to Earnings (P/E): 3.9
• Beta (1Y): 0.69
• Revenue Growth: 3.82%
• EPS Growth: -13.73%
• Country: US
• Employees: 4
• Sector: Industrials
• Sector Strength: 72
• Industry: Marine Shipping
• EPS (TTM): 6.75
• Shares Outstanding: 18,309,654
• 10 Day Avg. Volume: 93,732
• 30 Day Avg. Volume: 73,147
• 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: 0.95
• Enterprise Value/Revenue: 1.63
• Enterprise Value/Gross Profit: 2.76
• Enterprise Value/Ebitda: 2.44
• 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: 81 Outperform
• Price Target: $111.00 ▲(14.03% Upside)

Danaos Corporation demonstrates strong financial performance and attractive valuation, with positive earnings call sentiment despite some challenges. Technical indicators suggest bullish momentum, though caution is advised due to overbought signals.

Positive Factors

Fleet Expansion

Expanding the fleet with long-term charters enhances revenue stability and market position, supporting long-term growth and competitiveness.

Strong Financial Health

A strong balance sheet with low leverage provides financial flexibility and resilience, enabling strategic investments and stability.

Contracted Revenue Backlog

A growing contracted revenue backlog ensures predictable cash flows and supports long-term financial planning and stability.

Negative Factors

Decline in Free Cash Flow

A decline in free cash flow can limit the company's ability to invest in growth opportunities and may strain financial flexibility.

Increased Operating Costs

Rising operating costs can pressure margins and reduce profitability, impacting long-term financial performance.

Decreased Net Income

A decrease in net income can signal challenges in maintaining profitability, affecting investor confidence and financial health.

Danaos Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

Danaos generates revenue primarily through long-term charters of its containership fleet. The company enters into time charters or bareboat charters with major shipping companies, providing a steady stream of income based on contracted rates. These charters typically have multi-year durations, which ensures predictable cash flows. Additionally, Danaos may engage in spot market charters for short-term leasing opportunities, allowing for flexibility in responding to market demand. The company's strong operational capabilities, along with its strategic partnerships and relationships with leading shipping lines, contribute to its earnings stability and growth potential. Factors such as global trade volumes, shipping rates, and fuel prices also influence Danaos's profitability, as they impact the demand for shipping services and operating costs.

Danaos Financial Statement Overview

Summary

Danaos shows strong financial performance with impressive revenue growth and profitability. The balance sheet is stable with low leverage, and cash flow management is effective, although there is room for improvement in free cash flow conversion.

Income Statement

Danaos has shown impressive revenue growth with a TTM increase of 44.2%, indicating strong market demand. The company maintains robust profitability with a net profit margin of 45.16% and an EBIT margin of 49.04% in the TTM. However, there is a slight decline in gross profit margin compared to previous years, which could indicate rising costs or pricing pressures.

Balance Sheet

Danaos exhibits a solid balance sheet with a low debt-to-equity ratio of 0.20, reflecting prudent financial management. The return on equity is healthy at 13.14%, although it has decreased from previous years, suggesting a potential slowdown in efficiency. The equity ratio remains strong, indicating a stable financial position.

Cash Flow

The company has achieved significant free cash flow growth of 84.21% in the TTM, demonstrating effective cash management. The operating cash flow to net income ratio is strong at 3.41, indicating good cash generation relative to earnings. However, the free cash flow to net income ratio is moderate at 0.55, suggesting room for improvement in converting earnings to free cash flow.

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	611.60M	615.94M	641.17M	664.96M	412.39M	234.85M
EBITDA	691.76M	675.07M	704.83M	717.17M	1.22B	308.58M
Net Income	467.13M	505.07M	576.30M	559.21M	1.05B	153.55M
Balance Sheet
Total Assets	4.61B	4.34B	3.66B	3.40B	3.63B	2.71B
Cash, Cash Equivalents and Short-Term Investments	596.37M	514.23M	357.84M	267.67M	552.43M	65.66M
Total Debt	752.53M	734.78M	404.17M	529.42M	1.34B	1.46B
Total Liabilities	904.15M	918.85M	644.82M	839.81M	1.54B	1.68B
Stockholders Equity	3.71B	3.42B	3.02B	2.56B	2.09B	1.04B
Cash Flow
Free Cash Flow	353.91M	-37.59M	308.26M	735.61M	72.39M	95.02M
Operating Cash Flow	640.52M	621.75M	576.29M	934.74M	428.11M	265.68M
Investing Cash Flow	-316.94M	-650.79M	-338.53M	176.57M	-143.15M	-170.74M
Financing Cash Flow	-104.98M	210.61M	-233.62M	-973.40M	-220.87M	-168.45M

Danaos Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 97.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 97.34 is above the 20-day moving average (MA) of 93.77, above the 50-day MA of 90.66, and above the 200-day MA of 86.01, indicating a bullish trend. The MACD of 1.78 indicates Negative momentum. The RSI at 66.92 is Neutral, neither overbought nor oversold. The STOCH value of 86.47 is Negative, 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
DAC	81 Outperform	$1.78B	3.87	13.16%	3.57%	3.82%	-13.73%
GSL	81 Outperform	$1.25B	3.15	26.18%	6.06%	7.13%	23.37%
CMRE	76 Outperform	$1.56B	5.49	14.98%	3.01%	-29.82%	-16.77%
NMM	72 Outperform	$1.54B	6.11	8.33%	0.37%	-1.33%	-33.68%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ZIM	62 Neutral	$2.05B	1.02	25.25%	45.09%	1.63%	-30.30%
SFL	58 Neutral	$1.08B	―	-0.15%	12.24%	-11.10%	-101.57%

Danaos Corporate Events

Danaos Corporation Reports Revenue Growth Amid Fleet Expansion

In its latest financial report for the three months ended September 30, 2025, Danaos Corporation reported a 1.8% increase in operating revenues, reaching $260.7 million compared to the same period in 2024. The growth was driven by new vessel additions and improved fleet utilization, although offset by lower charter rates. The company also experienced a decrease in voyage expenses and an increase in vessel operating expenses due to fleet expansion. Notably, Danaos reported a gain on investments and a stable financial position despite an increase in outstanding debt, reflecting strategic investments in fleet capacity.

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.