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Danaos
(NYSE:DAC)
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Rating:83Outperform
Price Target:
$166.00
â–²(18.39% Upside)
Action:Reiterated
Date:08/04/26
The score is driven primarily by strong financial fundamentals (high profitability and a conservative balance sheet) and a very attractive valuation (low P/E with a solid dividend). The latest earnings call supports the outlook with record backlog/coverage and strong liquidity, though rising costs and uncertainty are notable risks. Technicals are positive on trend but look overextended, which tempers the near-term setup.
Positive Factors
Contracted Backlog & Coverage
A $4.6B contracted backlog with a 4.7-year average charter duration and 100% 2026 coverage provides multi-year revenue visibility. This durable contracted coverage reduces spot exposure, improves cashflow predictability, and supports stable fleet employment and financing decisions.
Negative Factors
Volatile Free Cash Flow
Free cash flow volatility, including a negative FCF year and weak TTM conversion, undermines the firm’s ability to self-fund newbuilds, sustain dividends or buybacks consistently. In shipping, erratic FCF raises reliance on external financing and increases refinancing and liquidity risk across cycles.
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Positive Factors
Negative Factors
Contracted Backlog & Coverage
A $4.6B contracted backlog with a 4.7-year average charter duration and 100% 2026 coverage provides multi-year revenue visibility. This durable contracted coverage reduces spot exposure, improves cashflow predictability, and supports stable fleet employment and financing decisions.
Read all positive factors
Danaos Key Performance Indicators (KPIs)
Danaos (DAC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.58B
Dividend Yield2.54%
Average Volume (3M)91.19K
Price to Earnings (P/E)5.0
Beta (1Y)0.74
Revenue Growth2.95%
EPS Growth15.92%
CountryUS
Employees4
SectorIndustrials
Sector Strength72
IndustryMarine Shipping
Share Statistics
EPS (TTM)29.62
Shares Outstanding18,203,568
10 Day Avg. Volume111,771
30 Day Avg. Volume91,194
Financial Highlights & Ratios
PEG Ratio1.35
Price to Book (P/B)0.46
Price to Sales (P/S)1.67
P/FCF Ratio5.39
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$155.00Price Target Upside10.54% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)27.85
Revenue Forecast (FY)$1.05B
Danaos Business Overview & Revenue Model
Company Description
Danaos Corporation, operating through its subsidiaries, specializes in the ownership and management of containerships across key global markets including Australia, Asia, Europe, and the United States. The company's core business involves providin...
How the Company Makes Money
Danaos primarily makes money by chartering its containerships to container liner operators under contractual charter agreements, generating charter hire revenue (typically priced as a daily rate per vessel) over the contract term. Revenue is drive...
Danaos Earnings Call Summary
Earnings Call Date:Aug 03, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 09, 2026
Earnings Call Sentiment Positive
The call conveys a broadly positive operational and financial picture driven by strong Dry Bulk performance, record contracted backlog, robust liquidity and very low net leverage. Key financials improved: adjusted net income (+~15% per share), adjusted EBITDA (+6.1%), Dry Bulk revenue (+57%) and higher Capesize TCE rates. Management has also made meaningful financing progress to support newbuilds. Offsetting items include flat container revenue, a notable increase in G&A (~33%), higher average indebtedness, certain noncash GAAP adjustments and continued market/geopolitical volatility. Management's cautious stance (paused buyback, disciplined approach to new investments) reflects prudent risk management amid elevated market uncertainty.Positive Updates
Adjusted Net Income Growth
Adjusted net income of $133.1 million, or $7.29 per share, vs $117.0 million or $6.36 per share a year ago — an increase of $16.1 million and approximately 15% on a per-share basis.
Negative Updates
Container Revenue Essentially Flat and GAAP Revenue Recognition Headwind
Container vessel revenue was broadly unchanged, down $0.8 million on a base of $238.7 million. Reported revenue was also impacted by a $3.4 million reduction in noncash revenue recognition under U.S. GAAP and $1.2 million of higher off-hire charges.
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Q2-2026 Updates
Positive
Negative
Adjusted Net Income Growth
Adjusted net income of $133.1 million, or $7.29 per share, vs $117.0 million or $6.36 per share a year ago — an increase of $16.1 million and approximately 15% on a per-share basis.
Read all positive updates
Company Guidance
Management's guidance stressed strong forward visibility and cautious, accretive capital deployment: they added $683m to a record contracted revenue backlog of $4.6bn with a 4.7‑year average charter duration and contract coverage of 100% for 2026, 93% for 2027, 79% for 2028 and 61% for 2029 (100% of container operating days contracted for 2026); financial flexibility is high with $1.0bn cash, ~ $1.5bn total liquidity, net debt of $224.5m (0.3x LTM EBITDA) and 78 of 87 vessels debt‑free, while financing progress includes $236m JOLCO commitments and a $132m facility for six 1,800 TEU newbuilds and committed undrawn facilities for the construction program; management expects continued improving profitability (Q2 adjusted EBITDA $186.8m; adjusted net income $133.1m / $7.29 per share; Dry Bulk adj. EBITDA $18.8m; Capesize TCE ≈ $30,400/day) but will be selective on new investments, favor longer‑dated financing and opportunistic, accretive deployments (Alaska LNG FID anticipated around September).Danaos Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
84
Very Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.06B | 1.04B | 1.01B | 973.58M | 993.34M | 689.50M |
| Gross Profit | 717.62M | 833.68M | 615.94M | 641.17M | 664.96M | 412.39M |
| EBITDA | 758.15M | 748.62M | 675.07M | 704.83M | 717.17M | 1.22B |
| Net Income | 540.80M | 494.61M | 505.07M | 576.30M | 559.21M | 1.05B |
Balance Sheet | ||||||
| Total Assets | 5.45B | 5.11B | 4.34B | 3.66B | 3.40B | 3.63B |
| Cash, Cash Equivalents and Short-Term Investments | 1.23B | 1.04B | 514.23M | 357.84M | 267.67M | 552.43M |
| Total Debt | 1.21B | 1.16B | 734.78M | 404.17M | 529.42M | 1.34B |
| Total Liabilities | 1.39B | 1.32B | 918.85M | 644.82M | 839.81M | 1.54B |
| Stockholders Equity | 4.06B | 3.80B | 3.42B | 3.02B | 2.56B | 2.09B |
Cash Flow | ||||||
| Free Cash Flow | 177.14M | 322.29M | -37.59M | 308.26M | 735.61M | 72.39M |
| Operating Cash Flow | 700.19M | 618.98M | 621.75M | 576.29M | 934.74M | 428.11M |
| Investing Cash Flow | -594.53M | -325.70M | -650.79M | -338.53M | 176.57M | -143.15M |
| Financing Cash Flow | 371.25M | 290.62M | 210.61M | -233.62M | -973.40M | -220.87M |
Danaos Technical Analysis
Positive
140.22
Price Trends
129.69
Positive
124.35
Positive
110.68
Positive
Market Momentum
3.92
Negative
68.52
Neutral
58.86
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 140.22 is above the 20-day moving average (MA) of 135.08, above the 50-day MA of 129.69, and above the 200-day MA of 110.68, indicating a bullish trend. The MACD of 3.92 indicates Negative momentum. The RSI at 68.52 is Neutral, neither overbought nor oversold. The STOCH value of 58.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DAC.
Danaos Risk Analysis
Danaos disclosed 67 risk factors in its most recent earnings report. Danaos reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Danaos Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $2.58B | 4.98 | 13.97% | 2.57% | 2.95% | 15.92% | |
82 Outperform | $2.30B | 6.80 | 10.71% | 0.27% | 5.87% | 8.14% | |
79 Outperform | $1.59B | 4.21 | 21.99% | 5.50% | 7.07% | -0.61% | |
65 Neutral | $1.88B | 5.92 | 15.97% | 2.99% | -52.60% | 11.51% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $1.79B | 51.20 | 3.21% | 6.88% | -16.39% | -44.25% | |
54 Neutral | $3.04B | 30.72 | 2.48% | 7.99% | -29.06% | -95.84% |
* Industrials Sector Average
DAC
Danaos
140.72
49.85
54.86%
CMRE
Costamare
14.66
4.34
42.08%
GSL
Global Ship Lease
42.44
14.50
51.88%
NMM
Navios Maritime Partners
79.35
35.22
79.80%
SFL
SFL Corporation
12.07
3.65
43.28%
ZIM
ZIM
26.90
12.20
82.98%
Danaos Corporate Events
Danaos Updates Board, Debt Structure and Q2 2026 Shipping Performance
Aug 4, 2026
At its July 31, 2026 annual meeting, Danaos stockholders re-elected Iraklis Prokopakis as a Class II director and approved the move of Petros Christodoulou from a Class I to a Class II directorship, both for terms running to the 2029 AGM, while al...
Danaos Sets July 31, 2026 Annual Meeting and Opens Online Proxy Access
Jun 18, 2026
Danaos Corporation has called its 2026 Annual Meeting of Stockholders for July 31, 2026, at its manager’s offices in Piraeus, Greece, where shareholders of record as of June 9, 2026 will vote on the election of two Class II directors and the...
Danaos Posts Solid Q1 2026 as Drybulk Strength and Cost Controls Offset Container Weakness
May 12, 2026
Danaos reported results for the three months ended March 31, 2026, highlighting marginal growth in total operating revenues to $253.7 million despite lower container segment revenues. The company operated an average of 75.0 container vessels and 1...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.