DanaosDAC -1.43%81 Interest Coverage is 10.56 as of Mar. 2026, which is 137% above its 10-year median of 4.46. GuruFocus rates DAC with a GF Score™ of 81/100 and a GF Value™ of $92.04 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 846 Transportation companies, Danaos ranks better than 68.56% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Danaos's
Operating Income
for the
three
months ended in Mar. 2026 was $125 Mil. Danaos's Interest Expense for the
three
months ended in Mar. 2026 was $-12 Mil.
Danaos's interest coverage for the quarter that ended in Mar. 2026 was 10.56.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Danaos's Interest Coverage or its related term are showing as below:
DAC'
s Interest Coverage Range Over the Past 10 Years
Min: 2.17 Med: 4.46 Max: 28.3
Current: 11.27
DAC's Interest Coverage is ranked better than 68.56% of 846
companies
in the Transportation industry
Industry Median: 5.67
vs DAC: 11.27
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Danaos Interest Coverage Related Terms
Danaos Interest Coverage Historical Data
* Premium members only.
The historical data trend for Danaos's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
DAC vs NMM, CMRE, ZIM: Interest Coverage Comparison
For the Marine Shipping subindustry, Danaos's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Danaos Interest Coverage vs Transportation Industry
For the Transportation industry and Industrials sector, Danaos's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Danaos's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Danaos (DAC) has a Interest Coverage of 10.56 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Danaos and its competitors. This is 137% above median its historical median of 4.46. Over the past decade, Danaos' Interest Coverage has ranged from 2.17 to 28.30. According to the industry distribution chart, Danaos ranks #266 out of 846 companies in the Transportation industry, placing it in the top 31.4%.
Is Danaos' Interest Coverage too high?
Danaos' current Interest Coverage of 10.56 is 137% above median its 10-year median of 4.46. Over the past 10 years, this metric has ranged from a low of 2.17 to a high of 28.30. The Transportation industry median Interest Coverage is 5.67. Danaos' value of 10.56 is 86.2% above this industry median. Based on the distribution chart, Danaos ranks #266 out of 846 companies in the Transportation industry, which is above the industry midpoint. Overall, Danaos has a GF Score™ of 81/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Danaos' Interest Coverage compare to NMM and CMRE?
According to the Transportation industry distribution chart, Danaos ranks #266 out of 846 companies for Interest Coverage. This puts Danaos in the upper half of its industry. The industry median Interest Coverage is 5.67. Danaos' value of 10.56 is 86.2% above this benchmark. Historically, Danaos' own Interest Coverage has ranged from 2.17 to 28.30 over the past decade. While the company's 10-year median is 4.46 vs. the industry median of 5.67, Danaos has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Transportation company?
The median Interest Coverage among Transportation companies is 5.67, based on 846 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Danaos's current Interest Coverage of 10.56 is 86.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Danaos and its competitors. For the Transportation industry, the median Interest Coverage is 5.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Danaos's current Interest Coverage is 10.56, which is 137% above median its own 10-year median of 4.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Danaos stock overvalued right now?
Based on GuruFocus' analysis, Danaos (DAC) is currently considered Significantly Overvalued. The stock's GF Value™ is $92.04, compared to a current price of $125.68 — trading 36.5% above its estimated fair value. The current Interest Coverage is 10.56, which is 137% above median its 10-year median of 4.46 and 86.2% above the Transportation industry median of 5.67. Danaos' overall GF Score™ is 81/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Danaos (DAC), the current Interest Coverage is 10.56 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Danaos (DAC) Overvalued in 2026?
Based on GuruFocus' analysis, Danaos stock appears to be overvalued.
The current stock price of $125.68 is trading 36.5% above its estimated GF Value™ of $92.04.
GuruFocus considers Danaos to be Significantly Overvalued.
Key valuation signals for DAC:
Interest Coverage: 10.56 (137% above median its 10-year median of 4.46)
GF Value™: $92.04 vs. price of $125.68 (36.5% above fair value)
Industry Position: 86.2% above the Transportation median (#266 of 846)
No single metric tells the full story. See the DAC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Danaos Corp is an international owner of containerships. It provides international seaborne transportation services by operating vessels in the containership sector of the shipping industry. The company's customers include HMM, MSC, Yang Ming, Hapag Lloyd, ZIM, Maersk, COSCO, OOCL, ONE, PIL, Sealead, Niledutch, Samudera, OSC, and Arkas. Geographically, the company operates in Australia, Asia, Europe, and America, with maximum revenue from the Australia-Asia region. It has two reporting segments: Container vessels and Drybulk vessels segment. It generates the majority of its revenue from Container vessels.
81GF Score
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