Hapag Lloyd (HLAG) AI Stock Analysis

• Market Cap: €21.30B
• Dividend Yield: 7.14%
• Average Volume (3M): 16.30K
• Price to Earnings (P/E): 13.8
• Beta (1Y): 0.89
• Revenue Growth: 8.66%
• EPS Growth: 5.41%
• Country: DE
• Employees: 14,608
• Sector: Industrials
• Sector Strength: 72
• 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: €102.17
• Price Target Upside: -15.35% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: €125.00 ▲(3.56% Upside)

Hapag Lloyd's overall stock score reflects a balance of operational efficiency and a stable financial structure, with challenges in revenue growth and cash flow. The stock's valuation is attractive due to a reasonable P/E ratio and high dividend yield. Technical indicators suggest a potential reversal, but the current trend is bearish.

Positive Factors

Operational Efficiency

Operational efficiency indicates effective management and cost control, which can sustain profitability even in challenging market conditions.

Balance Sheet Health

A strong balance sheet with moderate leverage provides financial stability and flexibility to invest in growth opportunities.

Net Profit Margin

A solid net profit margin reflects the company's ability to convert revenue into actual profit, supporting long-term financial health.

Negative Factors

Revenue Decline

Declining revenue growth can signal weakening demand or competitive pressures, potentially impacting future earnings and market position.

Cash Flow Challenges

Decreased cash flow growth may limit the company's ability to fund operations, invest in growth, or return capital to shareholders.

Gross Profit Margin Decline

A declining gross profit margin suggests increased cost pressures or pricing challenges, which could erode profitability over time.

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 operational efficiency and a stable financial structure, but faces challenges in revenue growth and cash flow generation. The company maintains profitability and a healthy balance sheet, yet needs to address declining sales and cash flow to sustain long-term growth.

Income Statement

Hapag Lloyd's income statement shows a decline in revenue growth with a negative rate of -2.96% in the TTM period, indicating a contraction in sales. The gross profit margin has decreased to 15.55% from 16.99% in the previous year, reflecting reduced profitability. However, the company maintains a healthy net profit margin of 11.81% and an EBIT margin of 12.54%, suggesting operational efficiency despite the revenue decline.

Balance Sheet

The balance sheet remains strong with a manageable debt-to-equity ratio of 0.35, indicating moderate leverage. The return on equity stands at 12.24%, showing effective use of equity to generate profits. The equity ratio is solid, reflecting a stable financial structure with a significant portion of assets financed by equity.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by -23.78% in the TTM period, indicating potential cash generation challenges. The operating cash flow to net income ratio is 0.75, suggesting a reasonable conversion of income to cash. However, the free cash flow to net income ratio of 0.51 indicates some pressure on cash flow relative to net earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.40B	19.11B	17.93B	34.54B	22.27B	12.77B
Gross Profit	2.36B	3.25B	4.96B	18.09B	9.82B	1.79B
EBITDA	4.03B	5.01B	5.20B	19.29B	10.83B	2.58B
Net Income	1.54B	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	3.90B	7.57B	7.65B	18.08B	7.75B	667.90M
Total Debt	6.32B	6.61B	5.03B	5.44B	5.50B	5.14B
Total Liabilities	11.41B	12.89B	10.25B	10.78B	10.55B	8.46B
Stockholders Equity	17.76B	20.65B	18.69B	27.89B	16.15B	6.71B
Cash Flow
Free Cash Flow	1.87B	2.20B	3.26B	18.06B	9.16B	2.36B
Operating Cash Flow	3.87B	4.36B	4.97B	19.50B	10.41B	2.90B
Investing Cash Flow	-1.84B	-1.98B	-1.65B	-4.07B	-1.23B	-477.60M
Financing Cash Flow	-2.51B	-3.08B	-12.18B	-8.23B	-2.48B	-2.19B

Hapag Lloyd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 120.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 Positive. The current price of 120.7 is below the 20-day moving average (MA) of 121.26, above the 50-day MA of 118.56, and below the 200-day MA of 125.74, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 52.35 is Neutral, neither overbought nor oversold. The STOCH value of 85.90 is Negative, 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
JEN	76 Outperform	€1.53B	21.02	7.17%	1.97%	-5.27%	-13.70%
TGHN	72 Outperform	€816.44M	13.00	17.81%	5.12%	21.42%	-10.98%
HAG	68 Neutral	€9.66B	77.92	15.96%	0.68%	14.89%	619.09%
HLAG	67 Neutral	€21.30B	13.82	8.49%	7.14%	8.66%	5.41%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
HHFA	63 Neutral	€2.22B	50.12	5.78%	0.47%	13.44%	113.13%