Danaos AI Stock Analysis
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Danaos (DAC) AI Stock Analysis
Danaos
(NYSE:DAC)
DAC scores well primarily due to strong financial performance (high profitability and a conservative balance sheet) and very attractive valuation (low P/E and high dividend yield). The score is moderated by weaker near-term technical signals and free-cash-flow volatility, while the latest earnings call supports the outlook with record backlog and strong liquidity despite cost and macro/geopolitical risks.
Danaos Key Performance Indicators (KPIs)
Container Vessels Ownership DaysTotal days the company owned container vessels during the period, which reflects fleet size and the company’s capital commitment. Growing ownership days can signal fleet expansion and future revenue potential but also imply higher fixed costs, debt needs, and capital expenditure risk if charter markets weaken.
Ownership days have steadily expanded over the past two years, signalling deliberate fleet growth and newbuild deliveries that underpin higher revenue potential and the company’s beefed-up contracted backlog/coverage in the near term. That expansion, however, is already raising vessel opex and interest costs and, combined with management’s selective spot exposure on some dry‑bulk tonnage, could increase earnings volatility beyond 2026—though very strong liquidity and low net leverage materially mitigate financial risk.
The FlyDanaos (DAC) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $2.75B
- Dividend Yield
- 5.77%
- Average Volume (3M)
- 147.89K
- Price to Earnings (P/E)
- 5.1
- Beta (1Y)
- 0.73
- Revenue Growth
- 2.45%
- EPS Growth
- 21.62%
- Country
- US
- Employees
- 4
- Sector
- Industrials
- Sector Strength
- 63
- Industry
- Marine Shipping
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 providing e...
How the Company Makes Money
Danaos makes money primarily by leasing its containerships to container liner companies under charter agreements. Its core revenue stream is charter hire (vessel leasing income) earned over the charter term, which may be structured as time charters t...
Danaos Earnings Call Summary
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.
Q2-2026 Updates
Positive Updates
Negative 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
Strong profitability and a conservative balance sheet (low-to-moderate leverage with equity building), supported by solid operating cash flow. The main drag is free cash flow volatility (including negative FCF in 2024 and weaker recent conversion versus net income), reflecting capital intensity and reinvestment swings typical in shipping.
Income Statement
86Very PositiveBalance Sheet
84Very PositiveCash Flow
72Positive| 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 | 769.94M | 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 | 348.06M | -37.59M | 308.26M | 735.61M | 72.39M |
| Operating Cash Flow | 700.19M | 644.75M | 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 | 264.85M | 210.61M | -233.62M | -973.40M | -220.87M |
Danaos Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DAC, the sentiment is Neutral. The current price of 150.85 is below the 20-day moving average (MA) of 154.87, below the 50-day MA of 154.53, and above the 200-day MA of 127.73, indicating a neutral trend. The MACD of -1.84 indicates Positive momentum. The RSI at 42.63 is Neutral, neither overbought nor oversold. The STOCH value of 23.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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.
Latest Risks Added
3 New RisksDanaos Peers Comparison
Overall Rating
ESEA81Outperform
GSL80Outperform- DAC80Outperform
NMM79Outperform
CMRE66Neutral
SFL64Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ESEA | 81Outperform | $427.17M | 3.39 | 28.60% | 4.61% | 2.53% | 14.22% |
| GSL | 80Outperform | $1.52B | 4.04 | 20.37% | 5.86% | 4.11% | -5.24% |
| DAC | 80Outperform | $2.68B | 5.09 | 13.97% | 5.77% | 2.45% | 21.62% |
| NMM | 79Outperform | $2.46B | 4.44 | 16.33% | 0.26% | 19.34% | 127.00% |
| CMRE | 66Neutral | $1.56B | 5.01 | 15.31% | 3.70% | -42.03% | 3.81% |
| SFL | 64Neutral | $1.53B | 16.21 | 9.15% | 7.68% | -4.36% | ― |
| Sector * | 63Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| DAC | Danaos | 150.85 | 62.05 | 69.87% | |
| CMRE | Costamare | 12.98 | -1.26 | -8.86% | |
| ESEA | Euroseas Ltd | 66.20 | 8.70 | 15.14% | |
| GSL | Global Ship Lease | 42.65 | 10.69 | 33.45% | |
| NMM | Navios Maritime Partners | 88.00 | 35.58 | 67.88% | |
| SFL | Sfl Corporation Limited | 10.94 | 3.43 | 45.63% |
Danaos Corporate Events
Danaos Weighs Norwegian Listing and Minority Sale of Dry Bulk Unit
Danaos Corporation announced on October 9, 2026 that it is exploring a carve-out and sale of a minority stake in its dry bulk segment, with investment banks mandated to advise on a potential equity placement and listing in the Norwegian market. The d...
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.
Date of analysis: Nov 04, 2026