Hapag Lloyd (HLAG) AI Stock Analysis

• Market Cap: €25.24B
• Dividend Yield: 5.71%
• Average Volume (3M): 22.24K
• Price to Earnings (P/E): 10.0
• Beta (1Y): 0.60
• Revenue Growth: 20.11%
• EPS Growth: 89.15%
• Country: DE
• Employees: 14,608
• Sector: Industrials
• Sector Strength: 90
• Industry: Marine Shipping
• EPS (TTM): 2.51
• Shares Outstanding: 175,760,280
• 10 Day Avg. Volume: 11,065
• 30 Day Avg. Volume: 22,240
• PEG Ratio: 0.02
• Price to Book (P/B): 1.12
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.73
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €119.89
• Price Target Upside: -15.39% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 9

• Rating: 70 Outperform
• Price Target: €159.00 ▲(12.21%Upside)

Hapag Lloyd's overall score of 70 reflects a well-balanced valuation, strong financial performance, and mixed technical indicators. The company has a solid financial position and attractive dividend yield, but declining revenue and free cash flow growth are areas of concern. The absence of earnings call and corporate event data limits further insights into its prospects.

Hapag Lloyd Business Overview & Revenue Model

Company Description

Hapag-Lloyd Aktiengesellschaft, together with its subsidiaries, operates as a liner shipping company worldwide. Its vessel and container fleets are used for the transportation of general and special cargo, various dangerous goods, and coffee, as well as reefer cargo covering pharmaceuticals. The company also offers bilateral EDI, a directly connected electronic data interchange; operates an e-commerce portal that provides real-time access to transport data, as well as services to manage customer's supply chain data and connect to their carriers through one interface;mobile app that allows to manage shipping process; and provides e-mail and security information services. In addition, it provides inland container transportation services through truck and train. As of December 31, 2021, the company's fleet comprised 253 container ships with a total capacity of 1.8 million twenty-foot equivalent unit (TEU); and a container capacity of approximately 3.1 million TEU. Hapag-Lloyd Aktiengesellschaft was founded in 1847 and is headquartered in Hamburg, Germany.

How the Company Makes Money

Hapag-Lloyd generates revenue primarily through its container shipping operations. The company charges its customers for transporting containers, which contain various types of cargo, across international waters. Revenue is derived from freight rates, which can fluctuate based on market demand, fuel costs, and other economic conditions. The company also earns from ancillary services such as logistics management, customs brokerage, and inland transportation. Key partnerships with global port operators, shipping alliances, and intermodal logistics providers enhance its service offerings and operational efficiency, contributing to its earnings. Hapag-Lloyd's strategic investments in digitalization and sustainability further support its revenue streams by improving service quality and meeting regulatory standards.

Hapag Lloyd Financial Statement Overview

Summary

Hapag Lloyd shows a stable financial foundation with strong margins and effective cost management. While revenue and free cash flow have declined, the company maintains robust margins and a solid balance sheet with significant equity and manageable debt. The focus should be on reversing revenue declines to ensure sustained growth.

Income Statement

Hapag Lloyd's income statement reveals a decline in revenue over the past two years, with a notable decrease from 2022 to 2023. Despite the revenue drop, the company maintains healthy profit margins with a gross profit margin of 17.0% and a net profit margin of 12.5% in 2024, indicating efficient cost management. However, the revenue growth rate shows a negative trend, which could pose challenges if not reversed. EBIT and EBITDA margins remain strong, suggesting robust operational performance.

Balance Sheet

The balance sheet shows a solid equity base with an equity ratio of 61.4% in 2024, reflecting financial stability. The debt-to-equity ratio is manageable at 0.32, indicating moderate leverage. Return on equity is slightly lower in 2024 at 11.5%, reflecting decreased profitability compared to previous years. Overall, the balance sheet demonstrates a sound financial position with a strong equity cushion and controlled debt levels.

Cash Flow

The cash flow analysis indicates a reduction in free cash flow from 2023 to 2024, yet the company maintains a positive free cash flow of $2.2 billion. Operating cash flow to net income ratio is 1.83, signifying strong cash generation relative to net income. The free cash flow to net income ratio of 0.92 suggests effective capital expenditure management. However, the decline in free cash flow growth rate is a concern for sustaining future investments.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
19.11B	17.93B	34.54B	22.27B	12.77B
	Gross Profit
3.25B	4.96B	18.09B	9.82B	1.79B
	EBIT
2.58B	2.52B	17.43B	9.36B	1.28B
	EBITDA
5.01B	5.20B	19.29B	10.83B	2.58B
	Net Income Common Stockholders
2.39B	2.94B	17.03B	9.07B	926.80M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.57B	7.65B	18.08B	7.75B	667.90M
	Total Assets
33.62B	29.01B	38.69B	26.71B	15.18B
	Total Debt
6.61B	5.03B	5.44B	5.50B	5.14B
	Net Debt
1.15B	-660.80M	-9.80B	-2.20B	4.47B
	Total Liabilities
12.89B	10.25B	10.78B	10.55B	8.46B
	Stockholders Equity
20.65B	18.69B	27.89B	16.15B	6.71B
Cash Flow		Free Cash Flow
2.20B	3.26B	18.06B	9.16B	2.36B
	Operating Cash Flow
4.36B	4.97B	19.50B	10.41B	2.90B
	Investing Cash Flow
-1.98B	-1.65B	-4.07B	-1.23B	-477.60M
	Financing Cash Flow
-3.08B	-12.18B	-8.23B	-2.48B	-2.19B

Hapag Lloyd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 141.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:HLAG, the sentiment is Positive. The current price of 141.7 is below the 20-day moving average (MA) of 152.63, above the 50-day MA of 138.43, and above the 200-day MA of 140.71, indicating a neutral trend. The MACD of 0.43 indicates Positive momentum. The RSI at 46.40 is Neutral, neither overbought nor oversold. The STOCH value of 19.34 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:HLAG.

Hapag Lloyd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HLAG	70 Outperform	€25.24B	9.96	12.73%	5.71%	20.11%	89.15%
Sector *	66 Neutral	$4.52B	12.34	5.41%	3.62%	4.15%	-12.18%
0H3Q		€47.21B	14.13	14.23%	4.51%	―	―
0M2T		€34.49M	―	-31.92%	―	―	―
0MNC		€5.08B	10.98	7.78%	6.51%	―	―