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AP Moller - Maersk A/S (AMKBY)
OTHER OTC:AMKBY
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AP Moller - Maersk
(OTC:AMKBY)
78Outperform
AP Moller - Maersk (AMKBY) vs. S&P 500 (SPY)
Market Cap
$27.74B
Dividend Yield2.73%
Average Volume (3M)167.82K
Price to Earnings (P/E)4.6
Beta (1Y)0.01
Revenue Growth8.65%
EPS Growth76.04%
CountryUS
Employees87,906
SectorIndustrials
Sector Strength66
IndustryMarine Shipping
Share Statistics
EPS (TTM)1.94
Shares Outstanding1,214,478,000
10 Day Avg. Volume151,587
30 Day Avg. Volume167,818
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)N/A
Price to Sales (P/S)0.42
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$1,538.82Price Target Upside17346.94% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering2
AP Moller - Maersk Business Overview & Revenue Model
Company DescriptionA.P. Møller - Mærsk A/S operates as an integrated transport and logistics company worldwide. The company's Ocean segment engages in container shipping activities, including demurrage and detention, terminal handling, documentation and container services, and container storage, as well as transshipment services under Maersk Line, Safmarine, Sealand A Maersk Company, Hamburg Süd, and APM Terminal brands; and sale of bunker oil. Its Logistics & Services segment offers sea and air freight forwarding, supply chain management, cold chain logistics, and custom services, services. The company's Terminals & Towage segment is involved in Gateway terminal activities, and offshore towage, salvage and related marine activities under APM Terminals brand. Its Manufacturing & Others segment engages in the production of reefer containers; anchor handling tug supply vessels and subsea support vessels, and training services to the maritime, oil and gas, offshore wind, and crane industries. The company was founded in 1904 and is based in Copenhagen, Denmark.
How the Company Makes MoneyA.P. Moller - Maersk generates revenue through several key streams. The primary source of income is its Ocean segment, which involves the transportation of goods across the globe using its extensive fleet of container ships. Additional revenue is derived from its Logistics & Services division, offering end-to-end supply chain solutions including warehousing, distribution, and freight forwarding. The company's Terminals & Towage segment also contributes to its earnings by operating port terminals worldwide and providing towing services. Significant partnerships and strategic alliances enhance Maersk's logistics capabilities and expand its reach into new markets, contributing further to its revenue.
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
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.78
Positive
Balance Sheet
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.85
Very Positive
Cash Flow
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.82
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 55.48B | 51.06B | 81.53B | 61.79B | 39.74B | Gross Profit |
| 6.92B | 3.87B | 31.32B | 19.81B | 4.04B | EBIT |
| 0.00 | 9.64B | 31.26B | 19.67B | 3.84B | EBITDA |
| 13.89B | 11.37B | 36.85B | 23.86B | 8.29B | Net Income Common Stockholders |
| 6.11B | 3.82B | 29.20B | 17.94B | 2.85B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 8.15B | 19.55B | 11.00B | 11.84B | 5.87B | Total Assets |
| 87.70B | 82.10B | 93.68B | 72.27B | 56.12B | Total Debt |
| 16.48B | 14.81B | 15.64B | 15.34B | 15.37B | Net Debt |
| 9.90B | 8.11B | 5.59B | 3.50B | 9.51B | Total Liabilities |
| 29.75B | 27.01B | 28.65B | 26.68B | 25.26B | Stockholders Equity |
| 56.92B | 54.03B | 63.99B | 44.51B | 29.85B |
| Cash Flow | Free Cash Flow | |||
| 7.21B | 6.00B | 30.31B | 19.05B | 6.51B | Operating Cash Flow |
| 11.41B | 9.64B | 34.48B | 22.02B | 7.83B | Investing Cash Flow |
| -7.92B | 4.08B | -21.62B | -8.34B | -1.02B | Financing Cash Flow |
| -3.50B | -16.80B | -14.13B | -7.90B | -5.62B |
AP Moller - Maersk Technical Analysis
Positive
8.82
Price Trends
7.92
Positive
7.83
Positive
7.62
Positive
Market Momentum
0.20
Positive
58.11
Neutral
55.81
Neutral
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 8.82 is above the 20-day moving average (MA) of 8.56, above the 50-day MA of 7.92, and above the 200-day MA of 7.62, indicating a bullish trend. The MACD of 0.20 indicates Positive momentum. The RSI at 58.11 is Neutral, neither overbought nor oversold. The STOCH value of 55.81 is Neutral, 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 (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $27.74B | 4.55 | 11.01% | 2.73% | 8.65% | 76.04% | |
78 Outperform | $1.86B | 0.87 | 66.17% | 25.64% | 63.25% | ― | |
77 Outperform | $216.50M | 1.90 | 35.83% | 7.81% | 12.43% | -1.63% | |
72 Outperform | $4.17B | 9.12 | 18.86% | 1.05% | 10.57% | 68.82% | |
69 Neutral | $571.25M | 7.63 | 8.30% | 11.75% | 10.21% | ― | |
67 Neutral | $1.19B | 8.11 | 12.05% | 13.13% | 20.22% | 52.03% | |
62 Neutral | $8.05B | 13.61 | 3.91% | 3.11% | 3.81% | -13.91% |
* Industrials Sector Average
Performance Comparison
AMKBY
AP Moller - Maersk
8.82
2.90
48.99%
ESEA
Euroseas
30.72
3.10
11.22%
GNK
Genco Shipping
13.36
-5.41
-28.82%
SFL
SFL Corporation
8.15
-3.86
-32.14%
MATX
Matson
127.06
16.83
15.27%
ZIM
ZIM Integrated Shipping Services
15.48
8.59
124.67%
AP Moller - Maersk Earnings Call Summary
Earnings Call Date: Feb 6, 2025 | % Change Since: 18.87% | 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.