Hapag Lloyd (HLAG) AI Stock Analysis

• Market Cap: €20.70B
• Dividend Yield: 7.13%
• Average Volume (3M): 16.30K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.49
• Revenue Growth: 19.74%
• EPS Growth: 208.29%
• 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: €107.67
• Price Target Upside: -6.70% 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 ▲(16.12% 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.

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, which involve the transportation of cargo in containers across various shipping routes. The company charges customers based on shipping contracts, which can include freight rates determined by factors such as distance, cargo type, and shipping demand. Additional revenue streams include logistics services, which encompass inland transportation, warehousing, and customs clearance, allowing customers to manage their supply chain more effectively. Hapag-Lloyd also engages in strategic partnerships and alliances with other shipping lines to enhance service offerings and optimize fleet utilization. Fluctuations in global trade volumes, fuel prices, and shipping capacity significantly impact the company's earnings, making it sensitive to economic trends and shipping market conditions.

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: Negative
• Last Price: 115.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 115.4 is below the 20-day moving average (MA) of 119.15, below the 50-day MA of 118.10, and below the 200-day MA of 129.86, indicating a bearish trend. The MACD of -0.68 indicates Positive momentum. The RSI at 41.84 is Neutral, neither overbought nor oversold. The STOCH value of 37.58 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
JEN	72 Outperform	€1.09B	14.09	7.17%	1.89%	-5.27%	-13.70%
TGHN	72 Outperform	€707.20M	11.26	17.81%	5.20%	21.42%	-10.98%
HLAG	71 Outperform	€20.70B	8.77	13.10%	7.13%	19.74%	208.29%
HAG	64 Neutral	€10.62B	116.70	15.96%	0.59%	14.89%	619.09%
HHFA	57 Neutral	€2.07B	58.87	5.02%	0.47%	16.39%	87.55%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%