We encountered a Saudi thesis On Danaos Corporation on the skeptical optimistic company, subsek by dheeraj Namburu. In this article, we will summarize the bull thesis on Dac. Danaos Corporation has been traded at $ 94.30 as of August 7Y. DAC’s Thurling P/E 3.87 was according to Yahoo Finance.
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Danaos Corporation (DAC) enter 2025 in a very strong financial form. The company gathered strongly, which reduced the total debt to $ 745 million (out of more than $ 1.5 billion) with a net debt of only $ 292 million – which leads to a significant decrease in the debts of/EBITDA/0.4 x. Liquidity is about 825 million dollars, exceeding net debts. The interest costs remain modest at 46 million dollars despite the high rates, thanks to the largely stable debt profile.
The profitability is strong, with an EBITDA 2024 margin by 71 % and the net margin by 52 %. ROE ~ 16 %, while the EV/ebitda double is only 2.6 x – deep value. Danaos operates in two parts: The basic container shipment has created $ 519.8 million of a modified net income, while the largest dry part contributed modestly at $ 2.3 million. Usage remains high, cost control continues to be strength, as daily operation costs 9 % less than average industry.
Looking at the future, the vision is strong: ~ $ 3.7 billion of contracted accumulation, provides revenues until 2026, support 2025 profitability in the range ~ 22-25 dollars. While the profits may end with the expiration of high -rate covenants, the overlapping expiry and the new construction with the attached charters helps to facilitate the transition. The proactive charter strategy of the administration will probably reduce old ships.
Capital returns are still disciplined. Danaos pays annual profits of $ 3.40 (about 4 %) with 12 % payment rate, 14 % of shares retires through re -purchases. With no shares dilution, a strong FCF ($ 594 million in 2024), and the new construction was fully funded, the company maintains flexibility in expanding the opportunistic fleet. The evaluation remains convincing: shares trade in about 3 x profits and ~ 0.5 x concrete book, with a basic issue to $ 110 and the possibility of the bull issue to $ 150.
Previously, we covered a file Saudi thesis On Danaos Corporation by Inflexio Research in May 2025, which highlighted its appreciation, great accumulation, and aggressive re -purchase. The shares of the company have been estimated ~ 9.8 % since the thesis played. The thesis is still based on giving continuous profits. Dheeraj Namburu shares a similar view, but it emphasizes the strong public budget for Danaos and cost discipline.
Danaos is not listed in our list 30 shares more popular among hedge boxes. According to our database, 16 DAC hedge boxes were held at the end of the first quarter, which was 13 in the previous quarter. Although we acknowledge the DAC capabilities as an investment, we believe that some of the artificial intelligence shares provide greater potential in the upward direction and carry less risks on the negative side. If you are looking for a stock of artificial intelligence with less than very apprecia The best inventory of artificial intelligence in the short term.
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