Danaos (DAC) AI Stock Analysis

• Market Cap: $1.63B
• Dividend Yield: 3.83%
• Average Volume (3M): 73.53K
• Price to Earnings (P/E): 3.7
• Beta (1Y): 0.63
• 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: 62,029
• 30 Day Avg. Volume: 73,534
• 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: 1.04
• Enterprise Value/Revenue: 1.64
• Enterprise Value/Gross Profit: 2.80
• Enterprise Value/Ebitda: 2.53
• 1Y Price Target: $97.00
• Price Target Upside: 9.20% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: $97.00 ▲(9.20% Upside)

Danaos Corporation's overall stock score is driven by its strong valuation and financial performance, despite technical indicators showing bearish momentum. The earnings call highlighted both strengths in contract coverage and financial stability, as well as challenges in cost management and revenue pressures.

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 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: Negative
• Last Price: 88.83
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DAC, the sentiment is Negative. The current price of 88.83 is below the 20-day moving average (MA) of 92.83, below the 50-day MA of 92.72, and above the 200-day MA of 83.41, indicating a neutral trend. The MACD of -1.02 indicates Positive momentum. The RSI at 31.99 is Neutral, neither overbought nor oversold. The STOCH value of 3.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DAC.

Danaos Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CMRE	83 Outperform	$1.43B	5.04	14.61%	3.91%	-7.24%	-16.39%
GSL	81 Outperform	$1.09B	2.84	26.40%	6.52%	4.43%	17.82%
NMM	79 Outperform	$1.30B	4.47	9.89%	0.45%	-0.47%	-22.23%
DAC	69 Neutral	$1.63B	3.66	13.38%	3.83%	5.63%	-17.54%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ZIM	61 Neutral	$1.68B	0.84	59.06%	54.78%	43.57%	―
SFL	58 Neutral	$1.03B	29.72	3.35%	13.03%	3.51%	-74.09%

Danaos Corporate Events

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.