Danaos Corp (DAC) stock analysis
Close on Nov 12, 2026Market cap $2.77BP/E 5.7Yield 0.56%
StockData Score
Prices as of Nov 11, 2026How the score works
Mixed9 of 30 checks passed
Danaos passes 9 of the 30 checks behind our score; 15 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 0/6
- Growth
- 1/6
- Past performance
- 4/6
- Financial health
- 4/6
- Dividend
- 0/6
What stands out
Return on capital over 10%
Return on invested capital was 12.9%, above the 10% that usually covers the cost of capital.
Low debt
Debt is 29.8% of shareholders' equity, under the 40% we consider low.
Earnings grew over 5 years
Net income grew 26.4% a year on average over the last five fiscal years.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 53.3% of total debt.
What to watch
Return on equity under 15%
Return on equity was 12.9% over the last twelve months and averaged 28.3% over five years; we look for 15% on both.
Revenue growing under 10% a year
Revenue grew 1.6% a year over the last three fiscal years, short of the 10% we look for.
EPS growing under 10% a year
Diluted EPS grew -0.6% a year over the last three fiscal years.
Earnings growth not accelerating
Net income grew -2.1% over the last twelve months, against a 5-year average of 26.4% a year.
Valuation0/6
P/E against its history
Not enough price and earnings history to compare.
P/E against the industry
Needs positive earnings and enough profitable companies in the industry.
EV/EBITDA against its history
Needs positive EBITDA and price history.
P/B against the industry
Needs positive book value.
Price against fair value
We could not estimate a fair value: it needs at least two valuation methods with positive inputs.
Margin of safety
Depends on the fair value estimate.
Growth1/6
Revenue growing under 10% a year
Revenue grew 1.6% a year over the last three fiscal years, short of the 10% we look for.
EPS growing under 10% a year
Diluted EPS grew -0.6% a year over the last three fiscal years.
Earnings growth not accelerating
Net income grew -2.1% over the last twelve months, against a 5-year average of 26.4% a year.
Growing faster than the industry
Revenue grew 2.8% over the last twelve months; the Water Transportation median is 1.2%.
Company guidance
No outlook found in earnings releases from the last twelve months.
Gross margin trend
This company does not report gross profit.
Past performance4/6
Return on equity under 15%
Return on equity was 12.9% over the last twelve months and averaged 28.3% over five years; we look for 15% on both.
Return on capital over 10%
Return on invested capital was 12.9%, above the 10% that usually covers the cost of capital.
Return on equity above the industry
Danaos's return on equity of 12.9% is above the Water Transportation median of 9.4%.
Earnings grew over 5 years
Net income grew 26.4% a year on average over the last five fiscal years.
Net margin below its 5-year average
Net margin was 47.4% over the last twelve months, against a 5-year average of 73.1%.
Net margin above the industry
Danaos's net margin of 47.4% is above the Water Transportation median of 20.1%.
Financial health4/6
Low debt
Debt is 29.8% of shareholders' equity, under the 40% we consider low.
Debt falling against equity
Debt to equity fell from 130% five years ago to 29.8%.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 53.3% of total debt.
Interest coverage
Interest expense is not reported separately.
Short-term assets cover short-term debts
Current assets are 9.30 times current liabilities.
Bankruptcy risk (Altman Z)
Needs market value, working capital and retained earnings.
Dividend0/6
No dividend
Danaos has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itWe don't publish a fair value for Danaos. It needs a US-dollar share price, at least two valuation methods with positive inputs (earnings, EBITDA, book value or sales) and, for companies with several share classes, classes that trade at the same price.
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Low risk
- Average value traded per day
- $27.90M
- Value traded per 1% price move
- $21.00M
Downside
Low risk
- Typical loss in a bad month
- 8.8%
- Volatility (annualized)
- 24%
- Sharpe ratio, 1 year
- 2.32
- Beta to the S&P 500 (5Y)
- 0.68
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2011 to 2025
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +2.8% | +1.6% | +17.7% | +6.3% | |
| Operating income | -7.8% | -8.6% | +20.1% | +7.4% | |
| Net income | -2.1% | -4.0% | +26.4% | +15.5% | |
| EPS, diluted | +2.7% | -0.6% | +32.9% | +6.0% | |
| Dividend per share | +6.3% | -34.3% | – | – |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2016 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | -55.1% | 16.0% | 13.7% | |
| Return on assets | -10.8% | 5.7% | 10.5% | |
| Current ratio | 0.05 | 0.49 | 3.28 | |
| Debt to equity | – | 1.30 | 0.30 | |
| Net debt to EBITDA | – | 4.24× | 0.18× | |
| Interest coverage | -2.6× | 3.7× | – | |
| Diluted shares | 8M | 24M | 18M |
Cash use needs five years of cash flow figures
Danaos does not report operating cash flow and capital expenditure for each of the last five fiscal years.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | 47.4% | 0.22× | 1.31× | 13.7% |
| FY2024 | 49.8% | 0.25× | 1.24× | 15.7% |
| FY2023 | 59.2% | 0.28× | 1.27× | 20.7% |
| FY2022 | 56.3% | 0.28× | 1.51× | 24.1% |
| FY2021 | 152.7% | 0.22× | 2.03× | 67.4% |
| FY2020 | 33.3% | 0.17× | 2.82× | 16.0% |
| FY2019 | 29.3% | 0.17× | 3.41× | 16.7% |
| FY2018 | -7.2% | 0.16× | 4.57× | -5.3% |
| FY2017 | 18.6% | 0.15× | 5.90× | 16.2% |
| FY2016 | -73.5% | 0.15× | 5.11× | -55.1% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero$494.61M
- Cash generatingOperating cash flow above zero$644.75M
- Return on assets improvedROA up on the prior year13.8% → 11.4%
- Earnings backed by cashOperating cash flow above net income$644.75M vs $494.61M
- Less leverageLong-term debt to assets fell16.1% → 17.1%
- Better liquidityCurrent ratio rose3.97 → 3.28
- No dilutionShare count did not rise19M → 18M
- Gross margin improvedGross margin up on the prior year– → –
- More efficientAsset turnover rose0.28 → 0.24
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