ZIM INTEGRATED SHIPPING SERV (ZIM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ZIM - IL0065100930 - Common Stock
23.24 USD
+0.52 (+2.29%)
23.26 USD
+0.02 (+0.09%)
We assign a fundamental rating of 5 out of 10 to ZIM. ZIM was compared to 35 industry peers in the Marine Transportation industry. ZIM has an average financial health and profitability rating. ZIM has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year ZIM was profitable.
- ZIM had a positive operating cash flow in the past year.
- Of the past 5 years ZIM 4 years were profitable.
- In the past 5 years ZIM always reported a positive cash flow from operatings.
1.2 Ratios
- ZIM's Return On Assets of 9.23% is amongst the best of the industry. ZIM outperforms 82.86% of its industry peers.
- The Return On Equity of ZIM (24.99%) is better than 94.29% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 13.46%, ZIM belongs to the top of the industry, outperforming 94.29% of the companies in the same industry.
| 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.
- In the last couple of years the Profit Margin of ZIM has declined.
- With a decent Operating Margin value of 19.63%, ZIM is doing good in 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.
- The Gross Margin of ZIM (24.03%) is worse than 68.57% of its industry peers.
- In the last couple of years the Gross Margin of ZIM has grown nicely.
| 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
- ZIM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, ZIM has about the same amount of shares outstanding.
- Compared to 5 years ago, ZIM has more shares outstanding
- ZIM has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 1.98 indicates that ZIM is not a great score, but indicates only limited risk for bankruptcy at the moment.
- The Altman-Z score of ZIM (1.98) is better than 65.71% of its industry peers.
- The Debt to FCF ratio of ZIM is 2.00, which is an excellent value as it means it would take ZIM, only 2.00 years of fcf income to pay off all of its debts.
- ZIM's Debt to FCF ratio of 2.00 is amongst the best of the industry. ZIM outperforms 94.29% of its industry peers.
- A Debt/Equity ratio of 1.12 is on the high side and indicates that ZIM has dependencies on debt financing.
- ZIM's Debt to Equity ratio of 1.12 is on the low side compared to the rest of the industry. ZIM is outperformed by 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.
- The Current ratio of ZIM (1.30) is worse than 65.71% of its industry peers.
- A Quick Ratio of 1.22 indicates that ZIM should not have too much problems paying its short term obligations.
- ZIM has a Quick ratio of 1.22. This is in the lower half of the industry: ZIM underperforms 62.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
- The earnings per share for ZIM have decreased strongly by -30.32% in the last year.
- Measured over the past years, ZIM shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -22.88% on average per year.
- ZIM shows a small growth in Revenue. In the last year, the Revenue has grown by 1.63%.
- 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
- ZIM is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -28.77% yearly.
- ZIM is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -11.16% yearly.
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
- With a Price/Earnings ratio of 2.79, the valuation of ZIM can be described as very cheap.
- Based on the Price/Earnings ratio, ZIM is valued cheaply inside the industry as 88.57% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of ZIM to the average of the S&P500 Index (28.82), we can say ZIM is valued rather cheaply.
- The Forward Price/Earnings Ratio is negative for ZIM. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.79 | ||
| Fwd PE | N/A |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ZIM is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, ZIM is valued cheaply inside the industry as 97.14% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.99 | ||
| EV/EBITDA | 2.09 |
4.3 Compensation for Growth
- ZIM has a very decent profitability rating, which 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.
- ZIM's Dividend Yield is rather good when compared to the industry average which is at 5.57. ZIM pays more dividend than 94.29% of the companies 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
- ZIM pays out 91.47% of its income as dividend. 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%.