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AP Moller - Maersk A/S (AMKBY)
OTHER OTC:AMKBY
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AP Moller - Maersk
(OTC:AMKBY)
Rating:77Outperform
Price Target:
$12.00
▲(15.05% Upside)
Positive Factors
Strong Financial Performance
Maersk's robust financial performance in Q1 2025, with strong EBITDA and EBIT, highlights its ability to maintain profitability even in challenging environments, indicating a resilient business model.
Terminals Segment Growth
Significant growth in the Terminals segment, driven by higher revenue per move and volume growth, underscores Maersk's strong market position and operational efficiency in key regions.
Balance Sheet Health
Maersk's low leverage and strong equity utilization reflect a healthy balance sheet, providing financial stability and flexibility for future investments and growth.
Negative Factors
Revised Market Growth Expectations
Lowered growth expectations for container market volumes due to macroeconomic and geopolitical uncertainties could impact revenue growth and long-term strategic planning.
Decline in Trade Volumes
Significant decline in China-U.S. trade volumes, a key market for Maersk, may affect overall performance and necessitate strategic adjustments to mitigate impact.
Negative EBITDA in Fulfilled by Maersk
Ongoing negative EBITDA in the Fulfilled by Maersk segment indicates challenges in achieving profitability, potentially affecting overall margins and requiring strategic focus.
AP Moller - Maersk (AMKBY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$32.81B
Dividend Yield10.64%
Average Volume (3M)131.41K
Price to Earnings (P/E)4.7
Beta (1Y)0.80
Revenue Growth16.28%
EPS Growth567.66%
CountryUS
Employees100,000
SectorIndustrials
Sector Strength72
IndustryMarine Shipping
Share Statistics
EPS (TTM)0.19
Shares Outstanding1,214,478,000
10 Day Avg. Volume72,428
30 Day Avg. Volume131,407
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.82
Enterprise Value/Revenue0.48
Enterprise Value/Gross Profit2.00
Enterprise Value/Ebitda1.95
Forecast
1Y Price Target
$12.00Price Target Upside15.05% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
AP Moller - Maersk Business Overview & Revenue Model
Company DescriptionAP Moller - Maersk (AMKBY) is a leading global integrated container logistics company, specializing in shipping and logistics services. Founded in 1904 and headquartered in Copenhagen, Denmark, Maersk operates in multiple sectors, including ocean transportation, inland logistics, and supply chain management. The company offers a wide range of services, including container shipping, port operations, and logistics solutions, aimed at simplifying and streamlining supply chains for businesses worldwide.
How the Company Makes MoneyMaersk generates revenue primarily through its container shipping operations, which involve the transportation of goods across international waters. The company's revenue model includes freight charges for shipping containers, handling fees at ports, and logistics services that encompass inland transportation and warehousing. Key revenue streams consist of long-term contracts with large corporations, spot market shipping rates, and value-added services such as customs clearance and supply chain management. Additionally, Maersk's extensive network of partnerships with ports, terminal operators, and logistics providers enhances its service offerings and contributes to its earnings by ensuring efficient and reliable delivery of goods.
AP Moller - Maersk Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q1-2025)
| % Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Neutral
The earnings call highlights strong financial performance across several segments, including impressive returns in Terminals and improvements in Logistics & Services. However, challenges remain with declining freight rates and significant geopolitical uncertainties impacting the China-U.S. trade lane. Despite these issues, the company maintains a positive outlook, driven by operational improvements and strategic initiatives.Q1-2025 Updates
Positive Updates
Strong Financial Performance
Generated an EBITDA of $2.7 billion and an EBIT of $1.3 billion for the first quarter of 2025, with a substantial year-on-year increase in EBIT from $177 million.
Logistics & Services Improvement
Logistics & Services achieved an EBIT margin of 4.1%, showing significant year-on-year improvement with a target of reaching 6% by the end of 2025.
Terminals Segment Success
Terminals delivered strong results with a 14.5% return on invested capital and a revenue increase of 23% year-on-year, driven by higher revenue per move and strong volume growth.
Solid Free Cash Flow
Free cash flow reached $806 million, supported by stronger earnings and disciplined working capital management.
Increased Shareholder Returns
Returned $2.5 billion to shareholders through dividends and share buybacks, up from $1.5 billion in the same quarter last year.
Negative Updates
Decline in Ocean Freight Rates
Experienced a continuously declining rate environment since mid-2024, with average freight rates decreasing by 8.7% since Q4 2024.
Challenges in China-U.S. Trade Lane
China-U.S. volumes dropped 30% to 40% in April due to ongoing trade tensions and tariffs, impacting overall volume performance.
Geopolitical Uncertainty
Increased macroeconomic and geopolitical uncertainties, particularly related to U.S.-China trade relations, affecting outlook for container market volumes.
Company Guidance
During the earnings call for the first quarter of 2025, A.P. Møller - Mærsk CEO Vincent Clerc and CFO Patrick Jany provided detailed guidance on the company's performance and expectations. The company reported a strong EBITDA of $2.7 billion and an EBIT of $1.3 billion, with a notable EBIT margin improvement in Logistics & Services to 4.1%. Despite a declining rate environment in the Ocean segment, vessel utilization remained high, around 90%, ensuring solid profitability. Terminals saw a return on invested capital rise to 14.5%, driven by strong volume growth and higher revenue per move. However, the company revised its container market volume growth forecast to between -1% and +4% due to increased macroeconomic and geopolitical uncertainties, including U.S.-China trade tensions. Nevertheless, Maersk maintained its full-year EBIT guidance of $0 to $3 billion. The company continued to focus on cost management, with cash flow from operations reaching $2.8 billion and a cash conversion rate of 102%. Maersk also returned $2.5 billion to shareholders through dividends and buybacks. Looking forward, the company aims to leverage its Gemini network for greater operational flexibility and maintain its guidance amidst a volatile environment.AP Moller - Maersk Financial Statement Overview
Summary
AP Moller - Maersk exhibits strong financial performance with impressive revenue growth and profitability. The balance sheet is solid, with low leverage and effective equity utilization. However, the decline in free cash flow growth poses a potential risk that needs addressing.Income Statement
AP Moller - Maersk shows strong revenue growth with a TTM growth rate of 63.6%, indicating robust demand and market position. The gross profit margin improved significantly to 23.77% in TTM from 12.47% in 2024, reflecting better cost management. However, the EBIT margin decreased slightly to 11.19% from 12.99% in 2024, suggesting some pressure on operational efficiency. Overall, the company demonstrates strong profitability and growth momentum.85
Very Positive
Balance Sheet
The company maintains a healthy balance sheet with a debt-to-equity ratio of 0.32, indicating low leverage and financial stability. Return on equity improved to 12.30% in TTM, showcasing effective use of equity to generate profits. The equity ratio stands at 63.73%, reflecting a strong capital structure. While the balance sheet is robust, the slight increase in debt levels requires monitoring.78
Positive
Cash Flow
Operating cash flow remains strong at $13.31 billion in TTM, but free cash flow growth has turned negative, declining by 172.2%. The operating cash flow to net income ratio is healthy at 0.90, indicating good cash conversion. However, the decline in free cash flow growth suggests potential challenges in cash generation, which could impact future investments.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 56.81B | 55.48B | 51.06B | 81.53B | 61.79B | 39.74B |
| Gross Profit | 13.51B | 6.92B | 3.87B | 31.32B | 19.81B | 4.04B |
| EBITDA | 13.88B | 13.39B | 11.37B | 36.96B | 24.48B | 8.68B |
| Net Income | 6.88B | 6.11B | 3.82B | 29.20B | 17.94B | 2.85B |
Balance Sheet | ||||||
| Total Assets | 87.86B | 87.70B | 82.58B | 93.68B | 72.27B | 56.12B |
| Cash, Cash Equivalents and Short-Term Investments | 6.95B | 24.04B | 6.70B | 11.00B | 11.84B | 5.87B |
| Total Debt | 17.69B | 16.48B | 14.81B | 15.64B | 15.34B | 15.37B |
| Total Liabilities | 30.79B | 29.75B | 27.49B | 28.65B | 26.68B | 25.26B |
| Stockholders Equity | 55.98B | 56.92B | 54.03B | 63.99B | 44.51B | 29.85B |
Cash Flow | ||||||
| Free Cash Flow | 8.04B | 7.21B | 6.00B | 30.31B | 19.05B | 6.51B |
| Operating Cash Flow | 13.31B | 11.41B | 9.64B | 34.48B | 22.02B | 7.83B |
| Investing Cash Flow | -7.54B | -7.92B | 4.08B | -21.62B | -8.34B | -1.02B |
| Financing Cash Flow | -7.75B | -3.50B | -16.80B | -14.13B | -7.90B | -5.62B |
AP Moller - Maersk Technical Analysis
Positive
10.43
Price Trends
10.34
Positive
9.70
Positive
8.78
Positive
Market Momentum
>-0.01
Positive
50.54
Neutral
39.49
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 10.43 is below the 20-day moving average (MA) of 10.51, above the 50-day MA of 10.34, and above the 200-day MA of 8.78, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 50.54 is Neutral, neither overbought nor oversold. The STOCH value of 39.49 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 (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $1.47B | 5.12 | 14.61% | 3.76% | -7.24% | -16.39% | |
80 Outperform | $1.74B | 3.87 | 13.38% | 3.59% | 5.63% | -17.54% | |
79 Outperform | $1.40B | 4.40 | 9.89% | 0.42% | -0.47% | -22.23% | |
77 Outperform | $32.81B | 4.67 | 12.75% | 10.64% | 16.28% | 567.66% | |
74 Outperform | $3.37B | 6.97 | 19.70% | 1.30% | 8.75% | 56.21% | |
63 Neutral | $10.84B | 15.52 | 7.40% | 2.00% | 2.86% | -14.57% | |
60 Neutral | $1.63B | 0.79 | 59.06% | 55.91% | 43.57% | ― |
* Industrials Sector Average
Performance Comparison
AMKBY
AP Moller - Maersk
10.46
3.39
47.95%
CMRE
Costamare
12.24
2.57
26.58%
DAC
Danaos
94.63
18.82
24.83%
NMM
Navios Maritime Partners
48.10
-7.76
-13.89%
MATX
Matson
103.34
-27.80
-21.20%
ZIM
ZIM
13.63
1.66
13.87%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.