Is Danaos Stock a Good Investment?

Danaos Investment Advice

DAC

To provide specific investment advice or recommendations on Danaos stock, we recommend investors consider the following general factors when evaluating Danaos. This will help you to make an informed decision on whether to include Danaos in one of your diversified portfolios:

Examine Danaos' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
Research Danaos' leadership team and their track record. Good management can help Danaos navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
Consider the overall health of the Marine Transportation space and any emerging trends that could impact Danaos' business and its evolving consumer preferences.
Compare Danaos' performance and market position to its competitors. Analyze how Danaos is positioned in terms of product offerings, innovation, and market share.
Check if Danaos pays a dividend and its dividend yield and payout ratio.
Review what financial analysts are saying about Danaos' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.

It's important to note that investing in Danaos stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Danaos is a good investment.

Sell

Buy

Strong Hold

Macroaxis provides advice on Danaos to complement and cross-verify current analyst consensus on Danaos. Our investment recommendation engine determines the company's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Danaos is not overpriced, please confirm all Danaos fundamentals, including its price to sales, net income, and the relationship between the price to earning and gross profit . Given that Danaos has a price to earning of 8.42 X, we urge you to verify Danaos market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Market Performance	Weak	Details
Volatility	Very steady	Details
Hype Condition	Stale	Details
Current Valuation	Overvalued	Details
Odds Of Distress	Low	Details
Economic Sensitivity	Moves indifferently to market moves	Details
Investor Sentiment	Excited	Details
Analyst Consensus	Buy	Details
Financial Leverage	Not Rated	Details
Reporting Quality (M-Score)	Unavailable	Details

Examine Danaos Stock

Researching Danaos' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 50.0% of the company shares are held by company insiders. The company has price-to-book (P/B) ratio of 0.49. Some equities with similar Price to Book (P/B) outperform the market in the long run. Danaos has Price/Earnings To Growth (PEG) ratio of 0.52. The entity recorded earning per share (EPS) of 28.89. The firm last dividend was issued on the 25th of November 2024. Danaos had 1:14 split on the 2nd of May 2019.

To determine if Danaos is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Danaos' research are outlined below:

	Danaos is unlikely to experience financial distress in the next 2 years
	About 50.0% of the company shares are held by company insiders
	Latest headline from news.google.com: Ex-Dividend Reminder Advanced Energy Industries, Robert Half and Danaos - Nasdaq

Danaos Quarterly Liabilities And Stockholders Equity

4.25 Billion

Danaos uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Danaos. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Danaos' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.

	13th of February 2024 Upcoming Quarterly Report	View
	20th of May 2024 Next Financial Report	View
	31st of December 2023 Next Fiscal Quarter End	View
	13th of February 2024 Next Fiscal Year End	View
	30th of September 2023 Last Quarter Report	View
	31st of December 2022 Last Financial Announcement	View

Earnings surprises can significantly impact Danaos' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Danaos' investors have experienced.

Reported	Fiscal Date	Estimated EPS	Reported EPS	Surprise
2020-05-18	2020-03-31	1.19	1.34	0.15	12
2014-02-10	2013-12-31	1.72	1.96	0.24	13
2014-05-05	2014-03-31	1.11	0.84	-0.27	24
2020-08-03	2020-06-30	1.42	1.71	0.29	20
2019-05-13	2019-03-31	2.24	2.53	0.29	12
2013-04-29	2013-03-31	1.52	1.82	0.3	19
2014-10-29	2014-09-30	1.93	2.24	0.31	16
2019-11-04	2019-09-30	2.14	2.46	0.32	14

Know Danaos' Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Danaos is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Danaos backward and forwards among themselves. Danaos' institutional investor refers to the entity that pools money to purchase Danaos' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.

		Shares
Jpmorgan Chase & Co	2024-06-30	67.2 K
Lazard Asset Management Llc	2024-06-30	65.2 K
Amvescap Plc.	2024-06-30	55.9 K
Dalal Street Llc	2024-09-30	46.6 K
Acadian Asset Management Llc	2024-06-30	42.9 K
Blackrock Inc	2024-06-30	42.8 K
Bank Of America Corp	2024-06-30	41 K
Susquehanna International Group, Llp	2024-06-30	39.6 K
Two Sigma Advisers, Llc	2024-06-30	36.6 K
Morgan Stanley - Brokerage Accounts	2024-06-30	729.9 K
Rbf Llc	2024-06-30	418 K

Note, although Danaos' institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Danaos' market capitalization trends

The company currently falls under 'Mid-Cap' category with a total capitalization of 1.64 B.

Market Cap

1.56 Billion

Danaos' profitablity analysis

	Last Reported	Projected for Next Year
Return On Tangible Assets	0.16	0.17
Return On Capital Employed	0.17	0.10
Return On Assets	0.16	0.17
Return On Equity	0.19	0.12

The company has Net Profit Margin of 0.56 %, which implies that it may need a different competitive strategy as even a very small decline in it revenue may erase profits and result in a net loss. This is way below average. In the same way, it shows Net Operating Margin of 0.52 %, which entails that for every 100 dollars of revenue, it generated $0.52 of operating income.

Determining Danaos' profitability involves analyzing its financial statements and using various financial metrics to determine if Danaos is a good buy. For example, gross profit margin measures Danaos' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Danaos' profitability and make more informed investment decisions.

Please note, the presentation of Danaos' financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Danaos' management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Danaos' management manipulating its earnings.

Evaluate Danaos' management efficiency

Danaos has Return on Asset of 0.0859 % which means that on every $100 spent on assets, it made $0.0859 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.1798 %, implying that it generated $0.1798 on every 100 dollars invested. Danaos' management efficiency ratios could be used to measure how well Danaos manages its routine affairs as well as how well it operates its assets and liabilities. At present, Danaos' Return On Assets are projected to increase slightly based on the last few years of reporting. At present, Danaos' Other Current Assets are projected to increase significantly based on the last few years of reporting. The current year's Total Current Assets is expected to grow to about 526.9 M, whereas Total Assets are forecasted to decline to about 3.1 B.

	Last Reported	Projected for Next Year
Book Value Per Share	151.73	100.54
Tangible Book Value Per Share	151.73	100.54
Enterprise Value Over EBITDA	2.20	2.09
Price Book Value Ratio	0.49	0.47
Enterprise Value Multiple	2.20	2.09
Price Fair Value	0.49	0.47
Enterprise Value	1.6 B	1.9 B

Evaluating the management effectiveness of Danaos allows investors to assess its financial health and operational efficiency. Coupled with an analysis of its growth prospects and the current market dynamics, we evaluate the stock's true value and future potential. Key indicators such as revenue, earnings or debt levels are examined alongside external factors like economic trends and regulatory changes. The Danaos Stock analysis seeks to determine whether the stock is undervalued, appropriately priced, or overvalued, thereby guiding your investment decisions.

Dividend Yield

0.0398

Forward Dividend Yield

0.0398

Forward Dividend Rate

3.4

Beta

1.475

Basic technical analysis of Danaos Stock

As of the 22nd of November, Danaos shows the Mean Deviation of 1.07, downside deviation of 1.4, and Coefficient Of Variation of 2835.8. Danaos technical analysis allows you to utilize historical prices and volume patterns in order to determine a pattern that computes the direction of the firm's future prices.

Danaos' Outstanding Corporate Bonds

Danaos issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Danaos uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Danaos bonds can be classified according to their maturity, which is the date when Danaos has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

	Boeing Co 2196 Corp Bond US097023DG73	View
	HSBC Holdings PLC Corp Bond US404280DR76	View

View All Danaos Corporate Bonds

Understand Danaos' technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing Danaos' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

	Risk Adjusted Performance	0.0316
	Market Risk Adjusted Performance	0.1605
	Mean Deviation	1.07
	Semi Deviation	1.36
	Downside Deviation	1.4
	Coefficient Of Variation	2835.8
	Standard Deviation	1.45
	Variance	2.11
	Information Ratio	(0.04)
	Jensen Alpha	0.014
	Total Risk Alpha	(0.15)
	Sortino Ratio	(0.04)
	Treynor Ratio	0.1505
	Maximum Drawdown	7.45
	Value At Risk	(2.43)
	Potential Upside	2.46
	Downside Variance	1.95
	Semi Variance	1.84
	Expected Short fall	(1.19)
	Skewness	(0.01)
	Kurtosis	1.14

	Risk Adjusted Performance	0.0316
	Market Risk Adjusted Performance	0.1605
	Mean Deviation	1.07
	Semi Deviation	1.36
	Downside Deviation	1.4
	Coefficient Of Variation	2835.8
	Standard Deviation	1.45
	Variance	2.11
	Information Ratio	(0.04)
	Jensen Alpha	0.014
	Total Risk Alpha	(0.15)
	Sortino Ratio	(0.04)
	Treynor Ratio	0.1505
	Maximum Drawdown	7.45
	Value At Risk	(2.43)
	Potential Upside	2.46
	Downside Variance	1.95
	Semi Variance	1.84
	Expected Short fall	(1.19)
	Skewness	(0.01)
	Kurtosis	1.14

Consider Danaos' intraday indicators

Danaos intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Danaos stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

	Accumulation Distribution	2100.94
	Daily Balance Of Power	0.5936
	Rate Of Daily Change	1.02
	Day Median Price	85.1
	Day Typical Price	85.37
	Price Action Indicator	1.46
	Period Momentum Indicator	1.3

Danaos Corporate Filings

F3	13th of November 2024 An amendment to the original Schedule 13D filing	View Verify
6K	12th of November 2024 A report filed by foreign private issuers with SEC. A foreign private issuer is a non-U.S. company with securities traded on U.S. exchanges.	View Verify
	29th of February 2024 Other Reports	View Verify

Danaos time-series forecasting models is one of many Danaos' stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Danaos' historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

Danaos Stock media impact

Far too much social signal, news, headlines, and media speculation about Danaos that are available to investors today. That information is available publicly through Danaos media outlets and privately through word of mouth or via Danaos internal channels. However, regardless of the origin, that massive amount of Danaos data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.

A primary focus of Danaos news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Danaos relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Danaos' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Danaos alpha.

Danaos Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards Danaos can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.

Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

Danaos Corporate Directors

William Repko	Independent Director	Profile
Miklos KonkolyThege	Independent Director	Profile
Iraklis Prokopakis	COO, Sr. VP, Treasurer, Director, Member of Compensation Committee and Member of Nominating and Corporate Governance Committee	Profile
Dimitris Vastarouchas	Deputy Chief Operating Officer, Technical Director	Profile

When determining whether Danaos offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Danaos' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Danaos Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Danaos Stock: