ZIM INTEGRATED SHIPPING SERV (ZIM) Stock Fundamental Analysis
NYSE:ZIM - IL0065100930 - Common Stock
14.37 USD
-0.33 (-2.24%)
14.39 USD
+0.02 (+0.14%)
ZIM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 36 industry peers in the Marine Transportation industry. ZIM scores excellent on profitability, but there are some minor concerns on its financial health. ZIM is not valued too expensively and it also shows a decent growth rate.
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.
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 94.44% of its industry peers.
Looking at the Return On Equity, with a value of 59.46%, ZIM belongs to the top of the industry, outperforming 97.22% of the companies in the same industry.
The Return On Invested Capital of ZIM (25.24%) is better than 97.22% 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
With an excellent Profit Margin value of 26.53%, ZIM belongs to the best of the industry, outperforming 80.56% of the companies in the same industry.
In the last couple of years the Profit Margin of ZIM has declined.
ZIM has a Operating Margin of 31.32%. This is in the better half of the industry: ZIM outperforms 75.00% of its industry peers.
ZIM's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 34.87%, ZIM is doing worse than 63.89% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ZIM is creating 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
Compared to 1 year ago, ZIM has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.24 indicates that ZIM is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.24, ZIM is doing good in the industry, outperforming 77.78% of the companies in the same industry.
The Debt to FCF ratio of ZIM is 1.46, which is an excellent value as it means it would take ZIM, only 1.46 years of fcf income to pay off all of its debts.
ZIM's Debt to FCF ratio of 1.46 is amongst the best of the industry. ZIM outperforms 83.33% of its industry peers.
A Debt/Equity ratio of 1.16 is on the high side and indicates that ZIM has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.16, ZIM is doing worse than 75.00% of the companies in the same industry.
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 | 2.24 |
ROIC/WACC2.85
WACC8.85%
2.3 Liquidity
A Current Ratio of 1.18 indicates that ZIM should not have too much problems paying its short term obligations.
The Current ratio of ZIM (1.18) is comparable to the rest of the 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 has a Quick ratio of 1.10. This is comparable to the rest of the industry: ZIM outperforms 47.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
ZIM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 1834.88%, which is quite impressive.
The earnings per share for ZIM have been decreasing by -22.88% on average. This is quite bad
ZIM shows a strong growth in Revenue. In the last year, the Revenue has grown by 63.25%.
Measured over the past years, ZIM shows a very strong growth in Revenue. The Revenue has been growing by 20.62% on average per year.
EPS 1Y (TTM)1834.88%
EPS 3Y-22.88%
EPS 5YN/A
EPS Q2Q%-93.83%
Revenue 1Y (TTM)63.25%
Revenue growth 3Y-7.73%
Revenue growth 5Y20.62%
Sales Q2Q%-15.36%
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 -30.47% yearly.
The Revenue is expected to decrease by -10.09% on average over the next years. This is quite bad
EPS Next Y-79.75%
EPS Next 2Y-48.53%
EPS Next 3Y-30.47%
EPS Next 5YN/A
Revenue Next Year-14.65%
Revenue Next 2Y-14.33%
Revenue Next 3Y-10.09%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
ZIM is valuated cheaply with a Price/Earnings ratio of 0.86.
ZIM's Price/Earnings ratio is rather cheap when compared to the industry. ZIM is cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.24, 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 | 0.86 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ZIM indicates a rather cheap valuation: ZIM is cheaper than 88.89% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ZIM indicates a rather cheap valuation: ZIM is cheaper than 97.22% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.43 | ||
| EV/EBITDA | 1.15 |
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 -30.47% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-48.53%
EPS Next 3Y-30.47%
5. Dividend
5.1 Amount
ZIM has a Yearly Dividend Yield of 45.73%, which is a nice return.
The stock price of ZIM dropped by -20.39% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 7.04, 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 2.36, ZIM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 45.73% |
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 24.61% of its income as dividend. This is a sustainable payout ratio.
DP24.61%
EPS Next 2Y-48.53%
EPS Next 3Y-30.47%
14.37
-0.33 (-2.24%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryMarine Transportation
Earnings (Last)
Earnings (Next)
Inst Owners49.31%
Inst Owner Change10.88%
Ins Owners1.17%
Ins Owner ChangeN/A
Market Cap1.73B
Analysts42.67
Price Target15.32 (6.61%)
Short Float %20.31%
Short Ratio4.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 45.73% |
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)0.66%
PT rev (3m)1.99%
EPS NQ rev (1m)-18.77%
EPS NQ rev (3m)-3.12%
EPS NY rev (1m)0%
EPS NY rev (3m)125.31%
Revenue NQ rev (1m)-3.19%
Revenue NQ rev (3m)0.96%
Revenue NY rev (1m)2.87%
Revenue NY rev (3m)8.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.86 | ||
| Fwd PE | N/A | ||
| P/S | 0.2 | ||
| P/FCF | 0.43 | ||
| P/OCF | 0.4 | ||
| P/B | 0.44 | ||
| P/tB | 0.45 | ||
| EV/EBITDA | 1.15 |
EPS(TTM)16.64
EY115.8%
EPS(NY)-3.67
Fwd EYN/A
FCF(TTM)33.32
FCFY231.86%
OCF(TTM)35.54
OCFY247.33%
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 | 2.24 |
F-Score8
WACC8.85%
ROIC/WACC2.85
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)1834.88%
EPS 3Y-22.88%
EPS 5YN/A
EPS Q2Q%-93.83%
EPS Next Y-79.75%
EPS Next 2Y-48.53%
EPS Next 3Y-30.47%
EPS Next 5YN/A
Revenue 1Y (TTM)63.25%
Revenue growth 3Y-7.73%
Revenue growth 5Y20.62%
Sales Q2Q%-15.36%
Revenue Next Year-14.65%
Revenue Next 2Y-14.33%
Revenue Next 3Y-10.09%
Revenue Next 5YN/A
EBIT growth 1Y1037.45%
EBIT growth 3Y-24.58%
EBIT growth 5Y85.29%
EBIT Next Year-11.2%
EBIT Next 3Y-22.75%
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%