ZIM INTEGRATED SHIPPING SERV (ZIM) Stock Fundamental Analysis
NYSE:ZIM - New York Stock Exchange, Inc. - IL0065100930 - Common Stock - Currency: USD
ZIM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 34 industry peers in the Marine Transportation industry. ZIM has an average financial health and profitability rating. ZIM is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
ZIM had positive earnings in the past year.
ZIM had a positive operating cash flow in the past year.
Of the past 5 years ZIM 4 years were profitable.
ZIM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ZIM has a Return On Assets of 20.48%. This is amongst the best in the industry. ZIM outperforms 97.06% of its industry peers.
With an excellent Return On Equity value of 59.46%, ZIM belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
ZIM has a Return On Invested Capital of 25.24%. This is amongst the best in the industry. ZIM outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.48% | ||
| ROE | 59.46% | ||
| ROIC | 25.24% |
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
ZIM has a better Profit Margin (26.53%) than 76.47% of its industry peers.
In the last couple of years the Profit Margin of ZIM has declined.
ZIM's Operating Margin of 31.32% is fine compared to the rest of the industry. ZIM outperforms 70.59% of its industry peers.
ZIM's Operating Margin has improved in the last couple of years.
ZIM has a Gross Margin of 34.87%. This is in the lower half of the industry: ZIM underperforms 67.65% of its industry peers.
ZIM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.32% | ||
| PM (TTM) | 26.53% | ||
| GM | 34.87% |
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) well above the Cost of Capital (WACC), ZIM is creating value.
The number of shares outstanding for ZIM remains at a similar level compared to 1 year ago.
The number of shares outstanding for ZIM has been increased compared to 5 years ago.
Compared to 1 year ago, ZIM has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.26 indicates that ZIM is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.26, ZIM belongs to the top of the industry, outperforming 82.35% of the companies in the same industry.
ZIM has a debt to FCF ratio of 1.46. This is a very positive value and a sign of high solvency as it would only need 1.46 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.46, ZIM belongs to the best of the industry, outperforming 85.29% of the companies in the same industry.
ZIM has a Debt/Equity ratio of 1.16. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.16, ZIM is not doing good in the industry: 73.53% of the companies in the same industry are doing better.
Although ZIM does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 1.46 | ||
| Altman-Z | 2.26 |
ROIC/WACC2.76
WACC9.16%
2.3 Liquidity
A Current Ratio of 1.18 indicates that ZIM should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.18, ZIM is in line with its industry, outperforming 44.12% of the companies in the same industry.
ZIM has a Quick Ratio of 1.10. This is a normal value and indicates that ZIM is financially healthy and should not expect problems in meeting its short term obligations.
ZIM's Quick ratio of 1.10 is in line compared to the rest of the industry. ZIM outperforms 47.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 587.03% over the past year.
ZIM shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -22.88% yearly.
ZIM shows a strong growth in Revenue. In the last year, the Revenue has grown by 65.83%.
ZIM shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.62% yearly.
EPS 1Y (TTM)587.03%
EPS 3Y-22.88%
EPS 5YN/A
EPS Q2Q%226.67%
Revenue 1Y (TTM)65.83%
Revenue growth 3Y-7.73%
Revenue growth 5Y20.62%
Sales Q2Q%28.46%
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 -27.86% on average per year.
The Revenue is expected to decrease by -8.72% on average over the next years.
EPS Next Y-84.19%
EPS Next 2Y-46.27%
EPS Next 3Y-27.86%
EPS Next 5YN/A
Revenue Next Year-16.97%
Revenue Next 2Y-12.97%
Revenue Next 3Y-8.72%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 0.81, the valuation of ZIM can be described as very cheap.
97.06% 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 27.45. 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 | 0.81 | ||
| Fwd PE | N/A |
4.2 Price Multiples
88.24% 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 97.06% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.47 | ||
| EV/EBITDA | 1.19 |
4.3 Compensation for Growth
The decent profitability rating of ZIM may justify a higher PE ratio.
A cheap valuation may be justified as ZIM's earnings are expected to decrease with -27.86% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-46.27%
EPS Next 3Y-27.86%
5. Dividend
5.1 Amount
ZIM has a Yearly Dividend Yield of 48.82%, which is a nice return.
Compared to an average industry Dividend Yield of 7.93, ZIM pays a better dividend. On top of this ZIM pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, ZIM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 48.82% |
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
24.61% of the earnings are spent on dividend by ZIM. This is a low number and sustainable payout ratio.
DP24.61%
EPS Next 2Y-46.27%
EPS Next 3Y-27.86%
15.76
-0.38 (-2.35%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryMarine Transportation
Earnings (Last)
Earnings (Next)
Inst Owners50%
Inst Owner Change-8.16%
Ins Owners1.17%
Ins Owner ChangeN/A
Market Cap1.90B
Analysts42.67
Price Target15.55 (-1.33%)
Short Float %18.96%
Short Ratio3.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 48.82% |
Yearly Dividend4.81
Dividend Growth(5Y)N/A
DP24.61%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)37.8%
Min EPS beat(2)29.56%
Max EPS beat(2)46.04%
EPS beat(4)4
Avg EPS beat(4)44.36%
Min EPS beat(4)29.56%
Max EPS beat(4)70.6%
EPS beat(8)5
Avg EPS beat(8)-0.15%
EPS beat(12)7
Avg EPS beat(12)-1092.11%
EPS beat(16)11
Avg EPS beat(16)-813.55%
Revenue beat(2)2
Avg Revenue beat(2)5.75%
Min Revenue beat(2)4.26%
Max Revenue beat(2)7.25%
Revenue beat(4)4
Avg Revenue beat(4)7.6%
Min Revenue beat(4)4.26%
Max Revenue beat(4)12.54%
Revenue beat(8)4
Avg Revenue beat(8)1.71%
Revenue beat(12)6
Avg Revenue beat(12)-0.27%
Revenue beat(16)10
Avg Revenue beat(16)3.16%
PT rev (1m)1.33%
PT rev (3m)-6.63%
EPS NQ rev (1m)0%
EPS NQ rev (3m)19.27%
EPS NY rev (1m)118.66%
EPS NY rev (3m)82.01%
Revenue NQ rev (1m)1.48%
Revenue NQ rev (3m)3.59%
Revenue NY rev (1m)5.23%
Revenue NY rev (3m)-0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.81 | ||
| Fwd PE | N/A | ||
| P/S | 0.21 | ||
| P/FCF | 0.47 | ||
| P/OCF | 0.44 | ||
| P/B | 0.48 | ||
| P/tB | 0.49 | ||
| EV/EBITDA | 1.19 |
EPS(TTM)19.53
EY123.92%
EPS(NY)-2.49
Fwd EYN/A
FCF(TTM)33.32
FCFY211.41%
OCF(TTM)35.54
OCFY225.52%
SpS73.65
BVpS32.86
TBVpS31.94
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.48% | ||
| ROE | 59.46% | ||
| ROCE | 31.95% | ||
| ROIC | 25.24% | ||
| ROICexc | 34.37% | ||
| ROICexgc | 34.98% | ||
| OM | 31.32% | ||
| PM (TTM) | 26.53% | ||
| GM | 34.87% | ||
| FCFM | 45.24% |
ROA(3y)8.76%
ROA(5y)18.36%
ROE(3y)7.27%
ROE(5y)63.37%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y-39.31%
ROICexcg growth 5Y21.82%
ROICexc growth 3Y-39.21%
ROICexc growth 5Y23.31%
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%
F-Score8
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 1.46 | ||
| Debt/EBITDA | 1.16 | ||
| Cap/Depr | 22.35% | ||
| Cap/Sales | 3.02% | ||
| Interest Coverage | 5.75 | ||
| Cash Conversion | 107.67% | ||
| Profit Quality | 170.54% | ||
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 2.26 |
F-Score8
WACC9.16%
ROIC/WACC2.76
Cap/Depr(3y)17.11%
Cap/Depr(5y)N/A
Cap/Sales(3y)2.51%
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)587.03%
EPS 3Y-22.88%
EPS 5YN/A
EPS Q2Q%226.67%
EPS Next Y-84.19%
EPS Next 2Y-46.27%
EPS Next 3Y-27.86%
EPS Next 5YN/A
Revenue 1Y (TTM)65.83%
Revenue growth 3Y-7.73%
Revenue growth 5Y20.62%
Sales Q2Q%28.46%
Revenue Next Year-16.97%
Revenue Next 2Y-12.97%
Revenue Next 3Y-8.72%
Revenue Next 5YN/A
EBIT growth 1Y1037.45%
EBIT growth 3Y-24.58%
EBIT growth 5Y85.29%
EBIT Next Year-15.35%
EBIT Next 3Y-19.3%
EBIT Next 5YN/A
FCF growth 1Y-5.39%
FCF growth 3Y-10.68%
FCF growth 5Y57.03%
OCF growth 1Y-7.41%
OCF growth 3Y-14.34%
OCF growth 5Y58.89%