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AP Moller - Maersk A/S (AMKBY)
OTHER OTC:AMKBY

AP Moller - Maersk (AMKBY) AI Stock Analysis

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AP Moller - Maersk

(OTC:AMKBY)

78Outperform
AP Moller - Maersk's overall score is driven by strong financial performance and attractive valuation, with a robust balance sheet and low P/E ratio. Despite this, technical indicators suggest caution due to mixed signals and potential downward momentum. The positive sentiment from the earnings call, with strategic initiatives like the Gemini network and share buyback program, provides a favorable outlook, countering some operational challenges.

AP Moller - Maersk (AMKBY) vs. S&P 500 (SPY)

AP Moller - Maersk Business Overview & Revenue Model

Company DescriptionA.P. Moller - Maersk (AMKBY) is a global leader in shipping and logistics, headquartered in Copenhagen, Denmark. The company operates in multiple sectors including container shipping, ports, and logistics services. Maersk is renowned for its extensive fleet of container vessels and its comprehensive supply chain solutions, serving businesses worldwide with efficient and sustainable transport and logistics services.
How the Company Makes MoneyA.P. Moller - Maersk makes money primarily through its ocean and logistics services. The company's largest revenue stream is its container shipping business, where it charges customers for transporting goods across international waters using its vast fleet of container ships. Additionally, Maersk generates revenue through its terminal operations by providing port services, such as loading and unloading of cargo. The company also earns income from its logistics and services segment, which includes supply chain management, freight forwarding, and warehousing solutions. Key factors contributing to Maersk's earnings include its strategic partnerships with global trade entities, investment in digitalization for efficient operations, and its focus on sustainable practices to meet growing environmental standards.

AP Moller - Maersk Financial Statement Overview

Summary
AP Moller - Maersk demonstrates strong revenue growth and financial stability with a robust balance sheet characterized by low leverage and high equity ratio. While profitability margins have seen a decline, the company maintains strong cash flow generation, supporting its financial health. The key focus should be addressing operational challenges to enhance EBIT and net profit margins.
Income Statement
78
Positive
AP Moller - Maersk's revenue has shown a strong growth trend with a significant increase from $38.89 billion in 2019 to $55.48 billion in 2024. The gross profit margin improved to 12.47% in 2024 from previous years. However, the net profit margin dropped from a peak of 35.82% in 2022 to 11.01% in 2024, indicating a decrease in profitability. EBITDA margin is robust at 25.04% for 2024, although EBIT has decreased to zero, indicating potential operational challenges.
Balance Sheet
85
Very Positive
The company maintains a healthy balance sheet with a debt-to-equity ratio of 0.29 in 2024, showing low leverage. Stockholders' equity has increased consistently to $56.92 billion, and the equity ratio is at 64.91%, reflecting strong financial stability. Return on equity decreased to 10.73% in 2024 from a high of 45.63% in 2022, indicating reduced efficiency in generating profits from equity.
Cash Flow
82
Very Positive
Operating cash flow remains strong at $11.41 billion in 2024, with a positive free cash flow of $7.21 billion, although free cash flow growth rate has slowed compared to previous years. The operating cash flow to net income ratio is favorable at 1.87, indicating solid cash generation relative to net income. However, the free cash flow to net income ratio has slightly decreased to 1.18, suggesting potential pressure on free cash flows.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
55.48B51.06B81.53B61.79B39.74B
Gross Profit
6.92B3.87B31.32B19.81B4.04B
EBIT
0.009.64B31.26B19.67B3.84B
EBITDA
13.89B11.37B36.85B23.86B8.29B
Net Income Common Stockholders
6.11B3.82B29.20B17.94B2.85B
Balance SheetCash, Cash Equivalents and Short-Term Investments
8.15B19.55B11.00B11.84B5.87B
Total Assets
87.70B82.10B93.68B72.27B56.12B
Total Debt
16.48B14.81B15.64B15.34B15.37B
Net Debt
9.90B8.11B5.59B3.50B9.51B
Total Liabilities
29.75B27.01B28.65B26.68B25.26B
Stockholders Equity
56.92B54.03B63.99B44.51B29.85B
Cash FlowFree Cash Flow
7.21B6.00B30.31B19.05B6.51B
Operating Cash Flow
11.41B9.64B34.48B22.02B7.83B
Investing Cash Flow
-7.92B4.08B-21.62B-8.34B-1.02B
Financing Cash Flow
-3.50B-16.80B-14.13B-7.90B-5.62B

AP Moller - Maersk Technical Analysis

Technical Analysis Sentiment
Positive
Last Price8.35
Price Trends
50DMA
8.24
Positive
100DMA
7.87
Positive
200DMA
7.61
Positive
Market Momentum
MACD
<0.01
Negative
RSI
55.16
Neutral
STOCH
84.07
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMKBY, the sentiment is Positive. The current price of 8.35 is above the 20-day moving average (MA) of 7.97, above the 50-day MA of 8.24, and above the 200-day MA of 7.61, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.16 is Neutral, neither overbought nor oversold. The STOCH value of 84.07 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AMKBY.

AP Moller - Maersk Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$24.28B3.8411.01%6.34%8.65%76.04%
DADAC
77
Outperform
$1.50B3.0915.68%4.10%6.00%-9.89%
ZIZIM
73
Outperform
$1.70B0.7966.17%50.64%63.25%
72
Outperform
$1.70B5.1614.71%14.81%33.31%62.94%
71
Outperform
$3.40B7.4318.86%1.29%10.57%68.82%
71
Outperform
$1.54B6.9311.68%13.56%9.33%98.70%
63
Neutral
$4.28B11.335.43%214.88%4.12%-8.65%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AMKBY
AP Moller - Maersk
8.35
1.59
23.52%
DAC
Danaos
80.46
8.06
11.13%
SBLK
Star Bulk Carriers
14.49
-7.79
-34.96%
MATX
Matson
102.38
-5.48
-5.08%
GOGL
Golden Ocean Group
7.77
-4.95
-38.92%
ZIM
ZIM Integrated Shipping Services
14.34
5.80
67.92%

AP Moller - Maersk Earnings Call Summary

Earnings Call Date: Feb 6, 2025 | % Change Since: 12.53% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong financial performance for 2024, with significant improvements in Logistics & Services and Terminals. The launch of the Gemini network and reinstatement of the share buyback program indicate a positive outlook for 2025. However, challenges remain in meeting market volume growth and achieving profitability targets in Logistics & Services, compounded by the uncertainty in the Red Sea reopening.
Highlights
Record-Breaking Financial Performance
Maersk achieved a full year EBITDA of $12.1 billion and an EBIT of $6.5 billion for 2024, marking the best financial year in its history outside the pandemic boom years.
Significant Growth in Logistics & Services
Logistics & Services experienced a sustainable margin improvement from 2.5% in the first half to 4.6% in the second half, with a growth of close to 10% in the last quarter.
Strong Return on Invested Capital in Terminals
Terminals surpassed previous performance with a return on invested capital of 13.5% while undertaking growth investments.
Launch of Gemini Ocean Network
Maersk launched the innovative Gemini Ocean network in cooperation with Hapag-Lloyd, expected to improve schedule reliability to 90% and decrease costs by $0.5 billion.
Reinstatement of Share Buyback Program
Maersk announced the reinstatement of a $2 billion share buyback program, reflecting a strong financial position and outlook for 2025.
Lowlights
Challenges in Meeting Market Volume Growth
Maersk's volume growth was below the estimated global container market growth, with a noted need to improve asset utilization and network efficiency through Gemini.
Uncertainty in Red Sea Reopening
The ongoing uncertainty surrounding the Red Sea disruption impacts forecasts, with potential capacity releases affecting supply-demand balance.
Logistics & Services Profitability Shortfall
Despite improvements, Maersk still falls short in achieving the targeted 6% EBIT margin in Logistics & Services, emphasizing the need for higher asset utilization and density.
Company Guidance
In the earnings call for the fourth quarter and full year 2024, Vincent Clerc, CEO of A.P. Moller - Maersk, highlighted several key metrics and strategic objectives. The company reported a record EBITDA of $12.1 billion and an EBIT of $6.5 billion for 2024, marking a historically strong financial year, excluding the pandemic boom years. Logistics & Services saw a margin increase from 2.5% to 4.6% from the first to second half of the year, driven by productivity and cost management, with a nearly 10% growth in the last quarter. The Terminals segment achieved a return on invested capital of 13.5%, surpassing previous performances. Looking ahead to 2025, Maersk expects underlying EBIT between breakeven and $3 billion and plans to maintain capital expenditures between $10 billion and $11 billion for 2024-2025. The company announced a proposed 2024 dividend of 1120 Danish Kroners per share and reinstated a $2 billion share buyback program, reflecting a total shareholder return of approximately $4.4 billion.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.