Start here if you're new
what it is
Danaos buys big ships and rents them to cargo lines that need capacity now, not three years from now.
how it gets paid
Last year Danaos made $1.0B in revenue. containership charters was the main engine at $820M, or 82% of sales.
why it's growing
Revenue grew 2.8% last year. Latest-quarter revenue rose 97% vs. prior year and EPS rose 86%.
what just happened
Quarterly revenue hit $515M and EPS reached $13.24, a reminder that long charters can print cash when the market cooperates.
At a glance
n/a balance sheet
20/100 earnings predictability — expect surprises
4.1x trailing p/e — the market's not buying it — or you found a deal
3.4% dividend yield — cash in your pocket every quarter
12.6% return on capital — nothing to write home about
xvary composite: 73/100 — average
What they do
Danaos buys big ships and rents them to cargo lines that need capacity now, not three years from now.
When cargo lines need ships fast, they rent them instead of waiting years to build them. You cannot fake 75 containerships with 477,791 TEUs of capacity overnight. Danaos also has 25 more ships under construction adding 163,950 TEUs, so scale keeps your customer list short and your bargaining power high.
How they make money
$1.0B
annual revenue · their business grew +2.8% last year
containership charters
$820M
dry bulk charters
$110M
newbuilding-linked charter additions
$50M
other shipping and investment income
$20M
The products that matter
long-term chartered container vessels
Container Ship Leasing
$990M · 95% of revenue
This is the business. $990M of roughly $1.04B in revenue came from leasing container ships, so your thesis lives or dies on charter duration, utilization, and renewal rates.
95% of revenue
small drybulk side business
Drybulk Vessels
$52M · 5% of revenue
$52M is real money, but it does not change the investment case. If container leasing weakens, this side pocket does not save the quarter.
small side business
Key numbers
$26.05
fy2024 eps est
$1B
fy2024 rev est
4.1x
trailing p/e
3.4%
dividend yield
Financial health
n/a
strength
- balance sheet grade n/a
- risk rank 2 — safer than 80% of stocks
- price stability 45 / 100
- long-term debt $700M (26% of capital)
n/a — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for DAC right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Quarterly revenue hit $515M and EPS reached $13.24, a reminder that long charters can print cash when the market cooperates.
Latest-quarter revenue rose 97% vs. prior year and EPS rose 86%, while full-year revenue was about $1.0B, up 2.8%. Quiet part out loud: this business does not need much overhead to turn ships into profit.
$515M
revenue
$13.24
eps
47.8%
operating margin
the number that mattered
47.8% mattered most. Operating margin → profit after running the business → so what: almost half of every revenue dollar stayed behind before interest and taxes.
source: company earnings report, 2026
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What could go wrong
The main risk is simple: Danaos looks steadier than most shipping names because $4.3B of backlog is smoothing the ride. If that cushion thins before renewal rates recover, the stock stops looking cheap and starts looking correctly priced.
high
charter-rate resets
About 95% of revenue comes from container ship leasing. When multi-year charters expire, renewals happen at whatever market rate exists then, not the rate that built today's 47% margin.
This touches almost the entire $990M core business. Backlog delays the pain. It does not erase it.
high
utilization slips from 95%
High utilization means ships are working instead of waiting. If idle time rises, revenue pressure shows up fast because this is an asset-heavy business with a lot of steel to keep employed.
A small utilization change can matter more than it sounds. Full ships on charter and empty ships at anchor are two very different earnings models.
med
customer concentration
Danaos charters vessels to a limited group of major liner operators. That is normal for this business, but it still means a few counterparties matter a lot.
If one large customer steps back, the revenue gap lands on a company where high utilization is part of the thesis.
med
newbuild and balance-sheet timing
Eight new vessels are scheduled for delivery through 2026, and long-term debt sits at $700M, or 26% of capital. New ships are great when they arrive with attractive charters attached. They are less fun if supply shows up before pricing does.
Debt is not the problem today. Timing is. If fleet growth lands into softer charter economics, returns compress faster than the valuation multiple suggests.
The market is not missing that Danaos is profitable. It is discounting the possibility that today's charter book ages out before equally good replacement contracts show up. If you own the stock, that is the risk to watch.
source: institutional data · regulatory filings · risk analysis
Pay attention to
core metric
backlog versus revenue
$4.3B of backlog against roughly $1.04B of annual revenue is the whole cushion. If backlog starts shrinking faster than revenue, you have your early warning.
calendar
Q1 2026 earnings
The next earnings report is scheduled for May 11, 2026. You want updates on charter coverage, utilization, and whether debt stays controlled while new vessels arrive.
fleet trend
newbuild deliveries
Eight vessels are scheduled for delivery through 2026. More ships help only if they come with charter economics that protect returns instead of diluting them.
risk
shelf registration use
Watch whether the shelf filing stays unused or turns into fresh equity or debt. The filing alone is optional. Using it would tell you management wants more flexibility.
Analyst rankings
earnings predictability
20 / 100
That score says the future numbers are messy. In human-speak, analysts do not expect shipping earnings to arrive in a straight line.
risk rank
2
A rank of 2 means the stock screens safer than about 80% of stocks on this system. You get an odd mix here: cyclical industry, relatively solid current setup.
source: institutional data
Institutional activity
institutional ownership data for DAC is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$104
current price
n/a
target midpoint · n/a from current
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