# Danaos (DAC.US)

Canonical: https://gigainvestors.com/s/DAC

Analysis as of: 2026-10-16T07:27:54.148Z. Financial observations: FY2003–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $158.72 per share; close as of 2026-10-15.

Estimated value: low $363.82 per share, central $404.90 per share, high $459.58 per share. Buy at or below the central value $404.90 per share. Valuation as of 2026-10-16T07:27:54.148Z; scenarios are not confidence intervals.

Expected annual return: 30.1% at the stated quote. About 30.1% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 3 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 1

- Operating margin variation: 0.39×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.42×

- FY2018: -0.03×

- FY2019: 0.45×

- FY2020: 0.43×

- FY2021: 0.52×

- FY2022: 0.66×

- FY2023: 0.60×

- FY2024: 0.53×

- FY2025: 0.48×

- LTM to Jun 2026: 0.48×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 7.9%

- ROIC, second-lowest year: -0.4%

- Typical minus recent gross margin: -9.5 pp

- Typical gross margin (annual median): 56.4%

- Recent gross margin (lower of latest and 3-year median): 65.9%

- Years with nonpositive capital: 0

- Capital spending / revenue: 23.8%

- ROIC including acquisitions, ten-year median: 6.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: -5.8%

- FY2017: 4.3%

- FY2018: -0.4%

- FY2019: 5.8%

- FY2020: 5.3%

- FY2021: 12.4%

- FY2022: 22.4%

- FY2023: 19.0%

- FY2024: 11.7%

- FY2025: 10.1%

### economics: pass

- Owner earnings / net income, 5-yr: 0.84×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $2.7B

- Net income, five-year total: $3.2B

- Return on incremental invested capital: 32.9%

- Working capital / revenue, annual change: -0.5 pp

- Working capital / revenue, change between three-year averages: -2.5 pp

- Working capital / revenue, final three-year average: 3.6%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 1.00×

- FY2023: 0.72×

- FY2024: 0.29×

- FY2025: 1.00×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- ROIC first 3 years vs last 3 years: -0.4% vs 11.7%

- Per-share earnings: 10.70 to 26.93 (three-year endpoint medians)

- material buybacks concentrated at lower earnings yields (Spearman rho below threshold)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 8.9%

- Ordinary dilution, 5-year annual growth: -5.7%

- Market cap gain: $1.7B

- Cumulative retained earnings: $3.2B

- Diluted shares, 10-year annual growth: 8.9%

- Diluted shares, 5-year annual growth: -5.7%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 12.2%

- Per-share value change: $16.23

- Per-share value, starting three-year median: $10.70

- Per-share value, ending three-year median: $26.93

- Buybacks concentrated in cheaper years (correlation): -0.71

- Average buyback yield: 3.6%

- Buyback history: 6 years

- Debt-funded buybacks: No

- Acquisition spending: $0

- Cumulative net income, 10 years: $3.1B

- ROIC, first three-year median: -0.4%

- ROIC, last three-year median: 11.7%

Chart: Earnings per share; fiscal year observations.

- FY2016: -$46.68

- FY2017: $10.70

- FY2018: -$2.20

- FY2019: $2.32

- FY2020: $6.25

- FY2021: $51.73

- FY2022: $27.55

- FY2023: $29.61

- FY2024: $26.28

- FY2025: $26.93

### accounting: pass

- Sloan accruals: -2.4%

- Receivables to sales index (DSRI): 0.41×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 2.7%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.25×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.00×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -20.1%

- FY2017: -3.3%

- FY2018: -7.4%

- FY2019: -6.1%

- FY2020: -4.1%

- FY2021: 17.2%

- FY2022: -11.0%

- FY2023: 0.0%

- FY2024: -2.7%

- FY2025: -2.4%

## Holders

## Price story

Price needs cash profits to shrink 15.8% a year for ten years · sales +1.2%

Story as of 2026-10-16T09:58:36.598Z; price observation 2026-10-15.

Price needs cash profits to shrink 15.8% a year for ten years

- 2025-11-18: Danaos outlines $4.1B charter backlog and extends newbuilding program with $236M in new contracts ([seekingalpha.com](https://seekingalpha.com/news/4523464-danaos-outlines-4_1b-charter-backlog-and-extends-newbuilding-program-with-236m-in-new?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-02-10: Danaos signals $4.3B contract backlog and explores LNG expansion amid record container demand ([seekingalpha.com](https://seekingalpha.com/news/4549725-danaos-signals-4_3b-contract-backlog-and-explores-lng-expansion-amid-record-container-demand?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

### Sales · FY2025–2026

sales +1.2%; source https://www.sec.gov/Archives/edgar/data/1369241/000110465926021574/dac-20251231x20f.htm; observed 2026-02-27.

- FY2017: $452M 

- FY2018: $459M 

- FY2019: $447M 

- FY2020: $462M 

- FY2021: $690M 

- FY2022: $993M 

- FY2023: $974M 

- FY2024: $1.0B 

- FY2025: $1.0B 

- FY2026: $1.1B 

### Gross margin · FY2025

gross margin 80%; source https://www.sec.gov/Archives/edgar/data/1369241/000110465926021574/dac-20251231x20f.htm; observed 2026-02-27.

- FY2016: 49.4% 

- FY2017: 48.0% 

- FY2018: 51.0% 

- FY2019: 52.9% 

- FY2020: 50.9% 

- FY2021: 59.8% 

- FY2022: 66.9% 

- FY2023: 65.9% 

- FY2024: 60.7% 

- FY2025: 80.0% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in marine shipping; annual sales are USD 1 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1369241/000110465926021574/dac-20251231x20f.htm (filed 2026-02-27); FY2025: revenue 1042455999; grossProfit 833677000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); DAC.US: Danaos Corporation, through its subsidiaries, owns and operates containerships and drybulk vessels in Australia, Europe, and the United States. It operates in two segments, Container Vessels and Drybulk Vessels. The company provides seaborne transportation services by operating vessels in the containership and drybulk sectors of the shipping industry. As of December 31, 2025, it had a fleet of 75 containerships aggregating 477,230 TEUs; 27 container vessels under construction containerships aggregating 173,314 TEUs; 10 Capesize bulk carriers aggregating 1,755,000 DWT; and 2 dry bulk vessels under construction aggregating 422,000 DWT. The company was formerly known as Danaos Holdings Limited and changed its name to Danaos Corporation in October 2005. Danaos Corporation was founded in 1963 and is based in Piraeus, Greece.

### Why customers stay

Margins ranged from 60.7% to 80% during 2023–25; it earns 7.9% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2023: grossProfit / revenue = 65.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2024: grossProfit / revenue = 60.7%.

- Source: https://www.sec.gov/Archives/edgar/data/1369241/000110465926021574/dac-20251231x20f.htm (filed 2026-02-27); FY2025: grossProfit / revenue = 80%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); 10-year return on capital observations [[2016,-0.05755125511831741],[2017,0.04334942489732024],[2018,-0.004283846344135421],[2019,0.057549128824739],[2020,0.05329259385759515],[2021,0.12406603278478977],[2022,0.22421957479720755],[2023,0.18959411986927674],[2024,0.11721740771596903],[2025,0.10068675719105787]]; median 0.07911794300789843. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 18% of cash earnings on expansion; earns 32.9% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2017: growth capex 0; upkeep 4478000; owner earnings 201403000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2018: growth capex 0; upkeep 8250000; owner earnings 75808000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2019: growth capex 0; upkeep 21360000; owner earnings 140904000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2020: growth capex 69130000; upkeep 101531000; owner earnings 153550000. Growth capex / owner earnings = 0.4502116574405731.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2021: growth capex 266417000; upkeep 89303000; owner earnings 1052841000. Growth capex / owner earnings = 0.2530458065367895.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2022: growth capex 121563000; upkeep 77572000; owner earnings 559210000. Growth capex / owner earnings = 0.21738345165501333.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2023: growth capex 0; upkeep 268035000; owner earnings 416329000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2024: growth capex 155685676.63391042; upkeep 503657323.3660896; owner earnings 145225676.63391042. Growth capex / owner earnings = 1.072025830710143.

- Source: https://www.sec.gov/Archives/edgar/data/1369241/000110465926021574/dac-20251231x20f.htm (filed 2026-02-27); FY2025: growth capex 89249999; upkeep 207440000; owner earnings 494613999. Growth capex / owner earnings = 0.18044373830996238.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); Incremental return on capital 0.3286740534289728, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); Dividend observations: [[2016,0],[2017,0],[2018,30887000],[2019,30887000],[2020,30887000],[2021,30887000],[2022,61483000],[2023,60696000],[2024,62807000],[2025,63549999]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1369241/000110465926021574/dac-20251231x20f.htm (filed 2026-02-27); FY2025: cash repurchases 75738999 USD.

### Are managers owners

Insiders own 53.8% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); DAC.US SharesStats.PercentInsiders = 53.790000000000006 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 15.8% yearly over ten years; actual decline was 1.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); Ten-year compound average after fade. Initial solved rate -0.23101521065538794. Price 158.72; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 31.581047826696757 → FY2025 26.930959327017316. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $2.55 per share

- 2016-11: $3.10 per share

- 2016-12: $2.65 per share

- 2017-01: $2.55 per share

- 2017-02: $2.40 per share

- 2017-03: $1.75 per share

- 2017-04: $1.70 per share

- 2017-05: $1.40 per share

- 2017-06: $1.70 per share

- 2017-07: $2.00 per share

- 2017-08: $1.65 per share

- 2017-09: $1.40 per share

- 2017-10: $1.60 per share

- 2017-11: $1.55 per share

- 2017-12: $1.45 per share

- 2018-01: $1.30 per share

- 2018-02: $1.30 per share

- 2018-03: $1.25 per share

- 2018-04: $1.10 per share

- 2018-05: $1.45 per share

- 2018-06: $1.90 per share

- 2018-07: $1.65 per share

- 2018-08: $1.65 per share

- 2018-09: $1.20 per share

- 2018-10: $1.04 per share

- 2018-11: $1.06 per share

- 2018-12: $0.75 per share

- 2019-01: $0.90 per share

- 2019-02: $1.10 per share

- 2019-03: $0.88 per share

- 2019-04: $0.85 per share

- 2019-05: $12.11 per share

- 2019-06: $8.09 per share

- 2019-07: $8.40 per share

- 2019-08: $7.20 per share

- 2019-09: $9.00 per share

- 2019-10: $10.68 per share

- 2019-11: $6.95 per share

- 2019-12: $9.18 per share

- 2020-01: $5.61 per share

- 2020-02: $5.04 per share

- 2020-03: $4.00 per share

- 2020-04: $4.77 per share

- 2020-05: $4.03 per share

- 2020-06: $3.73 per share

- 2020-07: $3.50 per share

- 2020-08: $5.05 per share

- 2020-09: $7.34 per share

- 2020-10: $8.21 per share

- 2020-11: $12.89 per share

- 2020-12: $21.43 per share

- 2021-01: $26.44 per share

- 2021-02: $41.54 per share

- 2021-03: $49.61 per share

- 2021-04: $54.29 per share

- 2021-05: $63.73 per share

- 2021-06: $76.79 per share

- 2021-07: $67.39 per share

- 2021-08: $83.52 per share

- 2021-09: $81.90 per share

- 2021-10: $74.60 per share

- 2021-11: $68.69 per share

- 2021-12: $74.65 per share

- 2022-01: $91.50 per share

- 2022-02: $93.67 per share

- 2022-03: $102.58 per share

- 2022-04: $81.74 per share

- 2022-05: $81.24 per share

- 2022-06: $63.10 per share

- 2022-07: $73.13 per share

- 2022-08: $69.25 per share

- 2022-09: $55.68 per share

- 2022-10: $56.70 per share

- 2022-11: $55.32 per share

- 2022-12: $52.66 per share

- 2023-01: $59.18 per share

- 2023-02: $58.17 per share

- 2023-03: $54.62 per share

- 2023-04: $57.93 per share

- 2023-05: $58.33 per share

- 2023-06: $66.79 per share

- 2023-07: $70.42 per share

- 2023-08: $67.12 per share

- 2023-09: $66.22 per share

- 2023-10: $66.26 per share

- 2023-11: $70.36 per share

- 2023-12: $74.06 per share

- 2024-01: $76.28 per share

- 2024-02: $71.95 per share

- 2024-03: $72.20 per share

- 2024-04: $76.51 per share

- 2024-05: $96.77 per share

- 2024-06: $92.36 per share

- 2024-07: $86.49 per share

- 2024-08: $82.04 per share

- 2024-09: $86.74 per share

- 2024-10: $82.01 per share

- 2024-11: $79.38 per share

- 2024-12: $80.07 per share

- 2025-01: $79.23 per share

- 2025-02: $78.62 per share

- 2025-03: $78.03 per share

- 2025-04: $81.12 per share

- 2025-05: $85.30 per share

- 2025-06: $86.24 per share

- 2025-07: $91.81 per share

- 2025-08: $91.97 per share

- 2025-09: $89.81 per share

- 2025-10: $91.01 per share

- 2025-11: $97.80 per share

- 2025-12: $94.18 per share

- 2026-01: $103.45 per share

- 2026-02: $117.95 per share

- 2026-03: $112.64 per share

- 2026-04: $120.41 per share

- 2026-05: $125.21 per share

- 2026-06: $122.37 per share

- 2026-07: $141.63 per share

- 2026-08: $151.48 per share

- 2026-09: $154.31 per share

- 2026-10: $158.72 per share

## Annual estimated value (USD per share)

- FY2016: low $126.32 per share, central $142.61 per share, high $164.30 per share

- FY2017: low $144.50 per share, central $163.41 per share, high $188.58 per share

- FY2018: low $61.69 per share, central $69.57 per share, high $80.05 per share

- FY2019: low $67.97 per share, central $76.62 per share, high $88.12 per share

- FY2020: low $66.98 per share, central $75.90 per share, high $87.77 per share

- FY2021: low $149.63 per share, central $166.62 per share, high $189.22 per share

- FY2022: low $190.16 per share, central $214.70 per share, high $247.36 per share

- FY2023: low $251.22 per share, central $283.46 per share, high $326.38 per share

- FY2024: low $272.32 per share, central $306.32 per share, high $351.59 per share

- FY2025: low $349.71 per share, central $390.29 per share, high $444.32 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 20-F filing](https://www.sec.gov/Archives/edgar/data/1369241/000110465926021574/dac-20251231x20f.htm); period 2025-12-31, filed 2026-02-27.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.