ZIM INTEGRATED SHIPPING SERV (ZIM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ZIM - IL0065100930 - Common Stock
23.19 USD
-0.05 (-0.22%)
Taking everything into account, ZIM scores 5 out of 10 in our fundamental rating. ZIM was compared to 35 industry peers in the Marine Transportation industry. ZIM has an average financial health and profitability rating. ZIM is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year ZIM was profitable.
- In the past year ZIM had a positive cash flow from operations.
- ZIM had positive earnings in 4 of the past 5 years.
- In the past 5 years ZIM always reported a positive cash flow from operatings.
1.2 Ratios
- ZIM has a better Return On Assets (9.23%) than 82.86% of its industry peers.
- ZIM's Return On Equity of 24.99% is amongst the best of the industry. ZIM outperforms 94.29% of its industry peers.
- The Return On Invested Capital of ZIM (13.46%) is better than 94.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.23% | ||
| ROE | 24.99% | ||
| ROIC | 13.46% |
ROA(3y)8.76%
ROA(5y)18.36%
ROE(3y)7.27%
ROE(5y)63.37%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- With a decent Profit Margin value of 13.23%, ZIM is doing good in the industry, outperforming 71.43% of the companies in the same industry.
- ZIM's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 19.63%, ZIM is in the better half of the industry, outperforming 65.71% of the companies in the same industry.
- In the last couple of years the Operating Margin of ZIM has grown nicely.
- ZIM has a Gross Margin of 24.03%. This is in the lower half of the industry: ZIM underperforms 68.57% of its industry peers.
- ZIM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.63% | ||
| PM (TTM) | 13.23% | ||
| GM | 24.03% |
OM growth 3Y-18.26%
OM growth 5Y53.61%
PM growth 3Y-16.16%
PM growth 5YN/A
GM growth 3Y-16.4%
GM growth 5Y32.89%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ZIM is creating some value.
- The number of shares outstanding for ZIM remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, ZIM has more shares outstanding
- The debt/assets ratio for ZIM has been reduced compared to a year ago.
2.2 Solvency
- ZIM has an Altman-Z score of 1.98. This is not the best score and indicates that ZIM is in the grey zone with still only limited risk for bankruptcy at the moment.
- With a decent Altman-Z score value of 1.98, ZIM is doing good in the industry, outperforming 65.71% of the companies in the same industry.
- ZIM has a debt to FCF ratio of 2.00. This is a very positive value and a sign of high solvency as it would only need 2.00 years to pay back of all of its debts.
- ZIM has a better Debt to FCF ratio (2.00) than 94.29% of its industry peers.
- ZIM has a Debt/Equity ratio of 1.12. This is a high value indicating a heavy dependency on external financing.
- ZIM has a Debt to Equity ratio of 1.12. This is in the lower half of the industry: ZIM underperforms 77.14% of its industry peers.
- Even though the debt/equity ratio score it not favorable for ZIM, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 2 | ||
| Altman-Z | 1.98 |
ROIC/WACC1.39
WACC9.67%
2.3 Liquidity
- A Current Ratio of 1.30 indicates that ZIM should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.30, ZIM is not doing good in the industry: 65.71% of the companies in the same industry are doing better.
- ZIM has a Quick Ratio of 1.22. This is a normal value and indicates that ZIM is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 1.22, ZIM is doing worse than 62.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
- ZIM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -30.32%.
- ZIM shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -22.88% yearly.
- The Revenue has been growing slightly by 1.63% in the past year.
- The Revenue has been growing by 20.62% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-30.32%
EPS 3Y-22.88%
EPS 5YN/A
EPS Q2Q%-89.08%
Revenue 1Y (TTM)1.63%
Revenue growth 3Y-7.73%
Revenue growth 5Y20.62%
Sales Q2Q%-35.73%
3.2 Future
- Based on estimates for the next years, ZIM will show a very negative growth in Earnings Per Share. The EPS will decrease by -28.77% on average per year.
- Based on estimates for the next years, ZIM will show a very negative growth in Revenue. The Revenue will decrease by -11.16% on average per year.
EPS Next Y-82.57%
EPS Next 2Y-48.96%
EPS Next 3Y-28.77%
EPS Next 5YN/A
Revenue Next Year-16.1%
Revenue Next 2Y-15.66%
Revenue Next 3Y-11.16%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 2.79, the valuation of ZIM can be described as very cheap.
- 88.57% of the companies in the same industry are more expensive than ZIM, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 28.60. ZIM is valued rather cheaply when compared to this.
- ZIM is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.79 | ||
| Fwd PE | N/A |
4.2 Price Multiples
- 85.71% of the companies in the same industry are more expensive than ZIM, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, ZIM is valued cheaply inside the industry as 94.29% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.99 | ||
| EV/EBITDA | 2.11 |
4.3 Compensation for Growth
- The decent profitability rating of ZIM may justify a higher PE ratio.
- ZIM's earnings are expected to decrease with -28.77% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-48.96%
EPS Next 3Y-28.77%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 19.19%, ZIM is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 5.57, ZIM pays a better dividend. On top of this ZIM pays more dividend than 94.29% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, ZIM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 19.19% |
5.2 History
- ZIM has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 91.47% of the earnings are spent on dividend by ZIM. This is not a sustainable payout ratio.
DP91.47%
EPS Next 2Y-48.96%
EPS Next 3Y-28.77%
ZIM INTEGRATED SHIPPING SERV / ZIM FAQ
Can you provide the ChartMill fundamental rating for ZIM INTEGRATED SHIPPING SERV?
ChartMill assigns a fundamental rating of 5 / 10 to ZIM.
What is the valuation status for ZIM stock?
ChartMill assigns a valuation rating of 5 / 10 to ZIM INTEGRATED SHIPPING SERV (ZIM). This can be considered as Fairly Valued.
How profitable is ZIM INTEGRATED SHIPPING SERV (ZIM) stock?
ZIM INTEGRATED SHIPPING SERV (ZIM) has a profitability rating of 6 / 10.
Can you provide the financial health for ZIM stock?
The financial health rating of ZIM INTEGRATED SHIPPING SERV (ZIM) is 5 / 10.
How sustainable is the dividend of ZIM INTEGRATED SHIPPING SERV (ZIM) stock?
The dividend rating of ZIM INTEGRATED SHIPPING SERV (ZIM) is 5 / 10 and the dividend payout ratio is 91.47%.