Zim Integrated Shipping : Stock Analysis

Zim Integrated Shipping Services Ltd. (ZIM) is an Israeli international cargo shipping company that has been operating since 1945. It is one of the top 20 global carriers, with its headquarters located in Haifa, Israel. The company has been publicly held and traded on the New York Stock Exchange since 2021.

As of April 5, 2023, and based on the available data, ZIM Integrated Shipping Services Ltd. (ZIM) appears to be a company with mixed financial performance. While the company has shown strong revenue growth and profitability margins, its earnings per share estimates for the current fiscal year are negative, which could be a concern for investors.

In terms of valuation ratios, ZIM appears to be undervalued based on its low P/E ratio and low price-to-sales and price-to-book ratios. The company also has a low enterprise value-to-sales ratio, which could make it an attractive investment opportunity for value investors.

ZIM has a relatively strong liquidity position, with a current ratio and quick ratio above 1, indicating that the company has sufficient current assets to cover its current liabilities. However, ZIM has a high total debt-to-equity ratio, which suggests that the company has a significant amount of leverage and could be vulnerable to economic downturns.

In terms of profitability, ZIM has a profit margin of 36.77% and an operating margin of 48.85%. Its return on assets is 35.73% and its return on equity is 88.21%. The company had revenue of $12.56 billion in the trailing twelve months, with a revenue per share of $104.67. Its quarterly revenue growth (yoy) is -36.90% and its quarterly earnings growth (yoy) is -75.70%. Its gross profit is $7.8 billion, and its EBITDA is $7.53 billion. ZIM’s net income available to common shareholders in the trailing twelve months is $4.62 billion, with a diluted EPS of $42.32.

ZIM has total cash of $3.26 billion and total debt of $4.35 billion, with a total debt-to-equity ratio of 73.74. Its current ratio is 1.61, and its book value per share is $49.04. The company generated $6.11 billion in operating cash flow and $4.57 billion in levered free cash flow over the trailing twelve months.

ZIM Integrated Shipping and Dividends:

Dividends:

• ZIM has a trailing annual dividend rate of $16.95 with a yield of 86.75%.
• The company’s forward annual dividend rate is also $16.95, with a yield of 72.22%.
• The payout ratio is 71.84%.
• ZIM is expected to pay its next dividend on April 21, 2023.

Earnings and Estimates:

• ZIM’s EPS estimate for Q1 2023 is +0.27, a decrease from +14.19 in Q1 2022.
• The company’s annual EPS estimate for FY 2023 is -1.67, a significant drop from +38.35 in FY 2022.
• There are only three analysts covering ZIM.
• The next earnings report is scheduled for August 16, 2023, with the last report having been released on May 17, 2023.

Valuation Ratios:

• ZIM’s P/E ratio (TTM) is 0.46, while its P/E ratio (including extraordinary items) is 0.51.
• The company’s price to sales ratio is 0.16 and its price to book ratio is 0.35.
• ZIM’s enterprise value to EBITDA is 0.46 and its enterprise value to sales is 0.27.
• The total debt to enterprise value ratio is 1.37 and the total debt to EBITDA ratio is 0.58.

Profitability Margins:

• ZIM’s gross margin is +50.96% and its operating margin is +48.41%.
• The company’s pretax margin is +47.99%, and its net margin is +36.77%.
• ZIM’s return on assets (ROA) is 43.04%, and its return on equity (ROE) is 88.14%.
• The return on total capital (ROTC) is 66.96%, while the return on invested capital (ROIC) is 59.03%.

Efficiency Ratios:

• ZIM’s revenue per employee is $1,923,675, while its income per employee is $707,412.
• The company’s receivables turnover ratio is 12.42, and its total asset turnover ratio is 1.17.

Liquidity and Solvency Ratios:

• ZIM’s current ratio is 1.60, while its quick ratio is 1.53.
• The company’s cash ratio is 1.22, and its total debt to total equity ratio is 73.82.
• The total debt to total capital ratio is 42.47, and the total debt to total assets ratio is 37.40.
• The long-term debt to equity ratio is 48.74, and the long-term debt to total capital ratio is 28.04.
• ZIM’s interest coverage ratio is 27.05.

Efficiency:

• ZIM’s cash conversion cycle is not available.
• The company’s capital expenditure (TTM) is 2.76, and its total asset turnover ratio is 1.17.

Asset Utilization:

• ZIM’s revenue per employee is $1,923,675, and its income per employee is $707,412.
• The company’s receivables turnover ratio is 12.42, and its total asset turnover ratio is 1.17.

Working Capital Efficiency:

• ZIM’s working capital is $13.39.

Liquidity:

• ZIM’s current ratio is 1.60, while its quick ratio is 1

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Disclaimer:

This analysis report is provided for informational purposes only and should not be construed as investment advice or a recommendation to buy or sell any securities. The information presented in this report is based on publicly available information and is believed to be reliable but is not guaranteed to be accurate or complete. Aliff Capital disclaim any liability for any losses that may arise from the use of this report. Investors are advised to conduct their own research and consult with a financial advisor before making any investment decisions.