By analyzing existing basic indicators between Danaos and Alkermes, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Alkermes with a short position in Danaos. Check out our
pair correlation module for more information.
Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Danaos has an asset utilization ratio of 19.01 percent. This indicates that the company is making $0.19 for each dollar of assets. An increasing asset utilization means that Danaos is more efficient with each dollar of assets it utilizes for everyday operations.
Investment perspective, in general, refers to a viewpoint or opinion regarding investment opportunity in Danaos. It encompasses the assessment of an investment's potential risks and rewards, and expectations for its
performance over time. Several factors influence the investment perspective on Danaos, including investment goals, risk tolerance, time horizon, market conditions, and research and analysis. Investors have varying goals, such as capital preservation, income generation, or long-term growth. Risk tolerance plays a significant role in shaping an investor's perspective, with some being more risk-averse and others willing to take on higher risks for potential returns.
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
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Now, let's check Danaos revenue. Based on the latest financial disclosure, Danaos reported 689.5
M of revenue. This is 80.29% lower than that of the Marine sector and significantly higher than that of the
Industrials industry. The revenue for all United States stocks is 92.69% higher than that of Danaos. As for Alkermes Plc we see revenue of 1.17
B, which is much higher than that of the Industrials
| Danaos | 689.5 Million |
| Sector | 0.0 |
| Alkermes | 1.17 Billion |
Our take on Danaos small dip
The semi variance is down to 4.76 as of today. Danaos currently demonstrates below-average downside deviation. It has Information Ratio of -0.01 and Jensen Alpha of -0.03. However, we advise investors to further question Danaos expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Danaos' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Danaos' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Although some other companies in the marine shipping industry are either recovering or due for a correction, Danaos may not be performing as strong as the other in terms of long-term growth potentials. To conclude, as of the 13th of February 2023, we see that Danaos responds to the market. The firm is
undervalued with
below average probability of distress within the next 24 months. Our final 90 days 'Buy-Sell' recommendation on the firm is
Strong Hold.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Danaos. Please refer to our
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