Danaos: It's Coming Down Again, Buy This Dip Confidently

Aug. 22, 2022 5:57 AM ETDanaos Corporation (DAC)19 Comments


  • Danaos reported a solid Q2 earnings release even as freight rates normalized. The market had also anticipated a solid card as it recovered remarkably pre-earnings.
  • We posit that DAC has likely bottomed out in the medium term in July. Therefore, we are confident that the market has de-risked the normalization in Danaos' forward growth rates.
  • Notwithstanding, we don't consider DAC as significantly undervalued. Therefore, investors can consider biding their time if they prefer a more attractive entry level.
  • Still, we are confident that DAC's July bottom should hold. As such, we rate DAC as a Buy.
  • I do much more than just articles at Ultimate Growth Investing: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »

Aerial view container ship in port at container terminal port, Ship of container ship stand in terminal port on loading, unloading container, Commercial cargo ship in sea port.



Danaos Corporation's (NYSE:DAC) Q2 earnings demonstrated the resilience of its operating model, as it reported robust results despite the normalization in freight rates.

We noted that Danaos' average gross daily charter rates improved from Q1, as vessel utilization was close

Danaos average gross daily charter rate change %

Danaos average gross daily charter rate change % (Company filings)

Danaos revenue change and adjusted EBITDA change consensus estimates

Danaos revenue change % and adjusted EBITDA change % consensus estimates (S&P Cap IQ)

DAC TTM P/FCF valuation trend

DAC TTM P/FCF valuation trend (koyfin)

DAC price chart (weekly)

DAC price chart (weekly) (TradingView)

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