Danaos Stock Analysis, Valuation (NYSE:DAC)

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$1.25 $0 (0%) DAC stock closing price Jun 19, 2018 (Closing)

Investors can watch the Amigobulls Danaos stock analysis video here. Our analyst opinion covering the buy and sell arguments for DAC stock is shown in the video.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Danaos Corporation Stock Rating 3.5/5

Amigobulls DAC stock analysis takes into account various financial ratios like relative valuation, Danaos revenue, growth and return on equity based on latest quarter 2017 Q4 financial statements. We also check Danaos dividend performance. Danaos valuation forms a crucial part of our stock analysis. Our Danaos stock rating is based on company's fundamentals like balance sheet risk and cash flow position.

Should you buy DAC stock?

  • Danaos's average operating margin of 41.51 was exceptional.
  • LTM Net margins were good at 18.6% for Danaos.
  • The operating cash flow looks good at 1.9816 times the net income.
  • The price to earnings multiple of 1.2 is attractive when compared with the sector average PE ratio of 18.8.
  • The lower PS ratio 0.3 for DAC stock versus Transportation sector average of 1.5 is a positive for the company.
  • Danaos generates a high return on invested capital of 6.6.
  • The company has a good Free Cash Flow (FCF) margin of 39.

Should you sell DAC stock?

  • 2017-12 revenue growth of 1.8% YoY was meagre.
  • The company saw an average annual sales decline of -5.2 in sales over the last 5 years.
  • Danaos has a debt/equity ratio of 4.25, which is worse than the average in the -sectordesc- sector.

Comments on this video and Danaos stock

Investors can use Amigobulls Danaos stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. The fundamentals of a company are vital to identify long-term investment opportunities.

Danaos revenue growth and profit or net income are the main underlying forces which could detremine the direction of the share price. One can also combine technical analysis and fundamental analysis to get a holistic picture about DAC stock.