Danaos (NYSE:DAC) continues to rise

Danaos Average Assets are projected to decrease significantly based on the last few years of reporting. The past year's Average Assets were at 2.41 Billion. The current year Earnings before Tax is expected to grow to about 162.9 M, whereas Earnings Before Interest Taxes and Depreciation Amortization EBITDA are forecasted to decline to about 282 M. As many millenniums are excited about industrials space, it is only fair to go over Danaos. Why are we still confident in hope for a quick recovery. This post is to show some fundamental factors affecting Danaos' products and services. I will also drop some light on how it may impact the investing outlook for Danaos in March.
Published over a year ago
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Reviewed by Gabriel Shpitalnik

About 44.0% of the company shares are held by company insiders. Insiders ownership of Danaos refers to the amount of Danaos equity owned by Danaos officers, directors, relatives of the leadership team, or anyone who has access to private information before it's made available to the public. Check out our latest analysis of Danaos, including its current ownership diagnostics.
The performance of Danaos in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence Danaos' stock prices. When investing in Danaos, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, Danaos Stock can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as Danaos carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.

And What about dividends?

A dividend is the distribution of a portion of Danaos earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Danaos dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Danaos one year expected dividend income is about USD2.03 per share.
The current year's Dividends Paid is expected to grow to about (57.7 M). In addition to that, Dividend Yield is expected to decline to 0.04.
Last ReportedProjected for 2024
Dividends Paid-60.7 M-57.7 M
Dividend Yield 0.04  0.04 
Dividend Payout Ratio 0.11  0.10 
Dividend Paid And Capex Coverage Ratio(2.77)(2.91)
Investing in dividend-paying stocks, such as Danaos is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Danaos must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Danaos. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Danaos's Liquidity

Danaos financial leverage refers to using borrowed capital as a funding source to finance Danaos ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Danaos financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Danaos' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Danaos' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Danaos's total debt and its cash.

Danaos Gross Profit

Danaos Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Danaos previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Danaos Gross Profit growth over the last 10 years. Please check Danaos' gross profit and other fundamental indicators for more details.

Breaking down Danaos Indicators

Danaos holds a total of twenty million four hundred fifty thousand outstanding shares. Danaos retains significant amount of outstanding shares owned by insiders. An insider is usually defined as a CEO, other corporate executive, director, or institutional investor who own at least 10% of the company outstanding shares. Since such a large part of the company is owned by insiders, it is advisable to analyze if each of these insiders have been buying or selling the stock in recent months. Please note that no matter how much assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.
 2018 2019 2020 2021 (projected)
Interest Expense85.71 M72.07 M82.88 M88.87 M
Gross Profit341.92 M333.15 M299.83 M316.07 M

Ownership Breakdown

Retail Investors
27.48%
Insiders
44.29%
Institutions
28.23%
Retail Investors27.48
Insiders44.29
Institutions28.23

Our take on today Danaos rise

The risk adjusted performance is down to 0.27 as of today. Danaos is displaying above-average volatility over the selected time horizon. Investors should scrutinize Danaos independently to ensure intended market timing strategies are aligned with expectations about Danaos volatility.

The Bottom Line

Whereas some other companies within the marine shipping industry are still a little expensive, even after the recent corrections, Danaos may offer a potential longer-term growth to investors. To conclude, as of the 14th of February 2021, our latest 30 days advice on the company is Buy. We believe Danaos is currently fairly valued with low chance of distress for the next two years.

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Editorial Staff

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