Hapag Lloyd (HLAG) AI Stock Analysis

• Market Cap: €20.70B
• Dividend Yield: 6.91%
• Average Volume (3M): 16.30K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.49
• Revenue Growth: 8.66%
• EPS Growth: 5.41%
• Country: DE
• Employees: 14,608
• Sector: General
• Sector Strength: N/A
• Industry: Marine Shipping
• EPS (TTM): 0.77
• Shares Outstanding: 175,760,280
• 10 Day Avg. Volume: 15,705
• 30 Day Avg. Volume: 16,303
• PEG Ratio: -0.60
• Price to Book (P/B): 1.31
• Price to Sales (P/S): 1.41
• P/FCF Ratio: 12.27
• 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: €104.22
• Price Target Upside: -12.12% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: €134.00 ▲(12.98% Upside)

Hapag Lloyd's overall stock score is driven by its strong financial performance and attractive valuation. The company's robust revenue growth and operational efficiency are key strengths, although margin compression and cash flow challenges are areas to watch. The stock's valuation is compelling with a low P/E ratio and high dividend yield, making it an attractive option for value and income-focused investors. Technical indicators suggest mixed momentum, with short-term bullish signals but longer-term bearish trends.

Positive Factors

Revenue Growth

Robust revenue growth indicates strong demand for services and effective market penetration, supporting long-term business expansion.

Operational Efficiency

Strong operational efficiency reflects effective cost management and competitive positioning, contributing to sustainable profitability.

Balance Sheet Strength

A strong equity base and moderate leverage enhance financial stability, providing resilience against economic fluctuations.

Negative Factors

Margin Compression

Decreasing margins may indicate rising costs or pricing pressures, potentially impacting long-term profitability if not addressed.

Cash Flow Challenges

Declining cash flow growth suggests potential liquidity issues, which could constrain future investments and operational flexibility.

Cash Generation Alignment

Cash generation not fully aligned with profitability may limit the company's ability to reinvest in growth opportunities or buffer against downturns.

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 services, which account for the majority of its earnings. The company charges freight rates for the transportation of containers between ports, with pricing influenced by factors such as cargo demand, route popularity, and shipping capacity. Additionally, Hapag-Lloyd earns revenue from ancillary services, including terminal handling, inland transportation, and logistics solutions, which provide added value to customers looking for end-to-end supply chain management. Significant partnerships with port operators and logistics providers further enhance its service offerings and efficiency. Market fluctuations, fuel costs, and global trade dynamics also play critical roles in shaping the company's financial performance.

Hapag Lloyd Financial Statement Overview

Summary

Hapag Lloyd demonstrates strong revenue growth and maintains operational efficiency, though margins have compressed. The balance sheet is solid with moderate leverage and a strong equity base. Cash flow generation is adequate but shows signs of pressure. Overall, the company is in a stable financial position with opportunities for margin improvement and enhanced cash flow management.

Income Statement

Hapag Lloyd's income statement shows a strong revenue growth rate of 45.1% in the TTM period, indicating robust top-line expansion. However, margins have decreased compared to previous years, with the gross profit margin at 16.96% and net profit margin at 12.73%. Despite the decline, the company maintains healthy EBIT and EBITDA margins of 15.16% and 25.97%, respectively, reflecting operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.32, indicating moderate leverage. The return on equity (ROE) is 12.99%, showing a decent return on shareholder investments. The equity ratio stands at 60.44%, suggesting a strong equity base relative to total assets, which enhances financial stability.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 3.20% in the TTM period, indicating potential cash flow challenges. The operating cash flow to net income ratio is 0.71, and the free cash flow to net income ratio is 0.51, suggesting that cash generation is somewhat aligned with profitability, though there is room for improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.99B	19.11B	17.93B	34.54B	22.27B	12.77B
Gross Profit	3.11B	3.25B	4.96B	18.09B	9.82B	1.79B
EBITDA	4.71B	5.01B	5.20B	19.29B	10.83B	2.58B
Net Income	2.36B	2.39B	2.94B	17.03B	9.07B	926.80M
Balance Sheet
Total Assets	29.22B	33.62B	29.01B	38.69B	26.71B	15.18B
Cash, Cash Equivalents and Short-Term Investments	5.80B	7.57B	7.65B	18.08B	7.75B	667.90M
Total Debt	6.26B	6.61B	5.03B	5.44B	5.50B	5.14B
Total Liabilities	11.50B	12.89B	10.25B	10.78B	10.55B	8.46B
Stockholders Equity	17.66B	20.65B	18.69B	27.89B	16.15B	6.71B
Cash Flow
Free Cash Flow	2.45B	2.20B	3.26B	18.06B	9.16B	2.36B
Operating Cash Flow	4.77B	4.36B	4.97B	19.50B	10.41B	2.90B
Investing Cash Flow	-2.18B	-1.98B	-1.65B	-4.07B	-1.23B	-477.60M
Financing Cash Flow	-2.82B	-3.08B	-12.18B	-8.23B	-2.48B	-2.19B

Hapag Lloyd Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 118.60
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:HLAG, the sentiment is Neutral. The current price of 118.6 is above the 20-day moving average (MA) of 114.37, above the 50-day MA of 116.61, and below the 200-day MA of 127.92, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 58.78 is Neutral, neither overbought nor oversold. The STOCH value of 81.02 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:HLAG.

Hapag Lloyd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JEN	72 Outperform	€1.09B	14.09	7.17%	1.96%	-5.27%	-13.70%
TGHN	72 Outperform	€712.95M	11.35	17.81%	5.16%	21.42%	-10.98%
HLAG	71 Outperform	€20.70B	8.77	8.49%	6.91%	8.66%	5.41%
HAG	64 Neutral	€10.62B	116.70	15.96%	0.73%	14.89%	619.09%
HHFA	57 Neutral	€2.07B	58.87	5.78%	0.47%	13.44%	113.13%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%