Hapag Lloyd (HLAG) AI Stock Analysis

• Market Cap: €22.41B
• Dividend Yield: 5.55%
• Average Volume (3M): 13.66K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.59
• Revenue Growth: 20.11%
• EPS Growth: 89.15%
• Country: DE
• Employees: 14,608
• Sector: Industrials
• Sector Strength: 89
• Industry: Marine Shipping
• EPS (TTM): 2.51
• Shares Outstanding: 175,760,280
• 10 Day Avg. Volume: 14,798
• 30 Day Avg. Volume: 13,662
• PEG Ratio: 1.45
• Price to Book (P/B): 1.10
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.86
• 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: €119.10
• Price Target Upside: -7.10% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 10

• Rating: 67 Neutral
• Price Target: €138.00 ▲(7.64%Upside)

Hapag Lloyd's overall stock score is driven by strong financial performance and attractive valuation metrics, indicating a solid fundamental position. However, technical analysis suggests bearish short-term price momentum, which may pose risks to stock performance. The lack of recent earnings call insights further emphasizes reliance on historical financial strength and valuation metrics.

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 exhibits a stable financial foundation with strong margins and effective cost management, despite declining revenues. The balance sheet is robust with significant equity and manageable debt. Cash flows remain positive, but the recent decline in free cash flow and revenue growth rate highlights areas for improvement.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.90B	19.11B	17.93B	34.54B	22.27B	12.77B
Gross Profit	3.38B	3.25B	4.96B	18.09B	9.82B	1.79B
EBITDA	5.17B	5.01B	5.20B	19.29B	10.83B	2.58B
Net Income	2.53B	2.39B	2.94B	17.03B	9.07B	926.80M
Balance Sheet
Total Assets	32.86B	33.62B	29.01B	38.69B	26.71B	15.18B
Cash, Cash Equivalents and Short-Term Investments	7.73B	7.57B	7.65B	18.08B	7.75B	667.90M
Total Debt	6.46B	6.61B	5.03B	5.44B	5.50B	5.14B
Total Liabilities	12.46B	12.89B	10.25B	10.78B	10.55B	8.46B
Stockholders Equity	20.34B	20.65B	18.69B	27.89B	16.15B	6.71B
Cash Flow
Free Cash Flow	2.53B	2.20B	3.26B	18.06B	9.16B	2.36B
Operating Cash Flow	4.98B	4.36B	4.97B	19.50B	10.41B	2.90B
Investing Cash Flow	-2.27B	-1.98B	-1.65B	-4.07B	-1.23B	-477.60M
Financing Cash Flow	-3.09B	-3.08B	-12.18B	-8.23B	-2.48B	-2.19B

Hapag Lloyd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 128.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:HLAG, the sentiment is Negative. The current price of 128.2 is below the 20-day moving average (MA) of 132.01, below the 50-day MA of 141.34, and below the 200-day MA of 140.34, indicating a bearish trend. The MACD of -4.37 indicates Negative momentum. The RSI at 37.39 is Neutral, neither overbought nor oversold. The STOCH value of 48.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:HLAG.

Hapag Lloyd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HAG	79 Outperform	€11.99B	128.91	10.95%	0.48%	25.46%	41.26%
JEN	75 Outperform	€1.13B	13.05	9.13%	1.92%	1.39%	13.98%
TGHN	73 Outperform	€684.20M	10.62	17.80%	5.33%	14.70%	-18.62%
HLAG	67 Neutral	€22.41B	8.85	12.73%	5.55%	20.11%	89.15%
HHFA	66 Neutral	€1.77B	52.89	5.42%	0.89%	15.53%	112.91%
Sector *	65 Neutral	$10.75B	15.72	5.20%	1.90%	3.09%	-27.42%