Hapag Lloyd (HLAG) AI Stock Analysis

• Market Cap: €20.48B
• Dividend Yield: 6.93%
• Average Volume (3M): 15.08K
• Price to Earnings (P/E): 8.6
• Beta (1Y): 0.58
• Revenue Growth: 19.74%
• EPS Growth: 208.29%
• Country: DE
• Employees: 14,608
• Sector: General
• Sector Strength: N/A
• Industry: Marine Shipping
• EPS (TTM): 1.47
• Shares Outstanding: 175,760,280
• 10 Day Avg. Volume: 18,746
• 30 Day Avg. Volume: 15,084
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €110.33
• Price Target Upside: -6.82% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 9

• Rating: 66 Neutral
• Price Target: €129.00 ▲(8.95% Upside)

Hapag Lloyd's stock score is primarily driven by its strong financial performance and attractive valuation. The company shows robust revenue growth and operational efficiency, although margin compression and cash flow challenges are noted. The stock appears undervalued with a low P/E ratio and high dividend yield. However, technical analysis indicates bearish momentum, which tempers the overall score.

Hapag Lloyd Business Overview & Revenue Model

Company Description

Hapag-Lloyd AG (HLAG) is a leading global shipping company based in Germany, specializing in container shipping and logistics services. Established in 1847, Hapag-Lloyd operates a modern fleet of container ships and provides comprehensive logistics solutions that include inland transportation and port services. The company serves a diverse range of sectors, facilitating international trade by transporting goods across the world’s oceans and connecting markets through an extensive network of liner services.

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	4.94B	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: 118.40
• 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 Neutral. The current price of 118.4 is above the 20-day moving average (MA) of 117.81, below the 50-day MA of 121.54, and below the 200-day MA of 132.43, indicating a neutral trend. The MACD of -1.68 indicates Negative momentum. The RSI at 50.14 is Neutral, neither overbought nor oversold. The STOCH value of 64.56 is Neutral, 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
TGHN	76 Outperform	€741.70M	11.81	17.20%	4.96%	21.42%	-10.98%
JEN	71 Outperform	€1.07B	13.83	8.08%	2.07%	-2.59%	-3.21%
HLAG	66 Neutral	€20.48B	8.57	13.10%	6.93%	19.74%	208.29%
HAG	64 Neutral	€13.05B	143.42	10.89%	0.44%	18.53%	73.20%
HHFA	57 Neutral	€2.06B	58.59	4.87%	0.48%	16.39%	87.55%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%