Danaos Stock Analysis, Valuation (NYSE:DAC)

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$1.28 $0.02 (1.54%) DAC stock closing price Mar 22, 2018 (Closing)
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Updated on : Mar 22, 2018
previous close
DAC 1.3 (0%)
S&P 500 2711.9 (0%)
Closing Price On: Mar 21, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
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Rating: ★★★★★★★★★★ (0/5)
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Sector:   Transportation.   *PE adjusted for one time items.
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Danaos Stock Analysis

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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 3.6/5

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 Q3 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 41.5% was exceptional.
  • LTM Net margins were good at 18.6% for Danaos.
  • The operating cash flow looks good at 2 times the net income.
  • The Danaos stock currently trades at a price to earnings ratio of 1.2. We rate this as a positive, compared to the industry average of 20.2.
  • DAC stock is trading at a favorable price to sales multiple of 0.3 as against the Transportation-Shipping industry average multiple of 1.4.
  • Danaos generates a high return on invested capital of 6.6%.
  • The company has a good Free Cash Flow (FCF) margin of 38.9%.

Should you sell DAC stock?

  • Danaos had a low YoY revenue growth of 1.8% in the 2017 Q4.
  • Sales declined by -5.2% annually over the last 5 years.
  • With a debt/equity ratio of  4.25, Danaos is highly leveraged in comparison to Transportation peers.

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.