ZIM Integrated Shipping Services (ZIM) AI Stock Analysis

• Market Cap: $2.05B
• Dividend Yield: 17.38%
• Average Volume (3M): 6.49M
• Price to Earnings (P/E): 0.9
• Beta (1Y): 1.53
• Revenue Growth: 65.83%
• EPS Growth: N/A
• Country: US
• Employees: 4,850
• Sector: Industrials
• Sector Strength: 88
• Industry: Marine Shipping
• EPS (TTM): 2.45
• Shares Outstanding: 120,457,510
• 10 Day Avg. Volume: 5,833,645
• 30 Day Avg. Volume: 6,486,846
• PEG Ratio: -0.10
• Price to Book (P/B): 0.35
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.36
• Enterprise Value/Market Cap: 2.63
• Enterprise Value/Revenue: 0.20
• Enterprise Value/Gross Profit: 1.94
• Enterprise Value/Ebitda: 1.00
• 1Y Price Target: $16.60
• Price Target Upside: -2.52% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 5

• Rating: 78 Outperform
• Price Target: $22.00 ▲(29.18%Upside)

ZIM Integrated Shipping Services presents a compelling investment case with strong financial performance and attractive valuation. The company showcases impressive income growth, strong cash flows, and a robust dividend yield. However, technical indicators suggest possible overbought conditions, and external uncertainties like trade tensions and port fees pose risks. Overall, ZIM is well-positioned, but investors should monitor geopolitical developments closely.

Positive Factors

Cost Structure

ZIM is gradually bridging the cost gap with larger peers by taking delivery of low-cost newbuildings and renewing time charters at lower market rates.

Dividends

ZIM announced a higher-than-expected quarterly dividend of $3.17, bringing the annual dividend to $7.14, which is above consensus.

Financial Performance

ZIM's robust cash position provides significant flexibility to withstand potential market pressures.

Negative Factors

Freight Rates

Freight rates and earnings for ZIM are expected to decline significantly in 2025, with an EBITDA decline of -54%.

Market Conditions

There is a risk of a multiyear oversupplied container shipping market, impacting ZIM’s earnings and returns.

Trade Demand

Increasing risk to trade demand has led to a lower price objective for ZIM shares.

ZIM Integrated Shipping Services Business Overview & Revenue Model

Company Description

ZIM Integrated Shipping Services (ZIM) is a leading global container shipping company, providing comprehensive and efficient sea transportation solutions. Headquartered in Israel, ZIM operates a modern fleet of vessels and offers a wide range of shipping services across major international trade routes. The company specializes in containerized cargo shipping, serving various industries with reliable and timely delivery solutions. ZIM is known for its customer-centric approach, advanced digital services, and commitment to sustainability, making it a preferred choice for businesses worldwide in need of maritime logistics services.

How the Company Makes Money

ZIM Integrated Shipping Services generates revenue primarily through its container shipping operations. The company earns money by transporting goods for customers across international waters, charging freight rates based on factors like cargo volume, distance, and service type. ZIM's revenue streams include long-term contracts with major corporations, spot market transactions, and additional services such as logistics, terminal operations, and container leasing. Partnerships with global ports and shipping alliances enhance ZIM's network and operational efficiency, allowing it to optimize shipping routes and reduce costs. The company's focus on digital innovation and personalized customer solutions also contributes to its competitive edge and financial performance.

ZIM Integrated Shipping Services Financial Statement Overview

Summary

ZIM demonstrates strong financial health with impressive income growth, a stable balance sheet, and robust cash flows. The income statement shows significant recovery and growth, the balance sheet reflects moderate leverage but high ROE, and the cash flow statement underscores excellent cash generation capabilities, although the increase in leverage needs monitoring.

Income Statement

ZIM has demonstrated substantial improvement in its income statement metrics. The gross profit margin significantly increased from a negative value in 2023 to a positive 33.0% in 2024, indicating a robust recovery. Net profit margin also improved to 25.5% in 2024 from a negative margin in the previous year. The revenue growth rate of 63.3% from 2023 to 2024 highlights a strong growth trajectory. EBIT and EBITDA margins are impressive at 30.0% and 45.3%, respectively, showcasing operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 1.49, indicating moderate leverage. The return on equity (ROE) is high at 53.2%, reflecting strong profitability relative to equity. The equity ratio of 35.4% suggests a balanced approach between debt and equity financing. However, the increase in total debt from the previous year poses a potential risk.

Cash Flow

The cash flow statement shows a healthy position with a free cash flow growth rate of 291.2% from 2023 to 2024. The operating cash flow to net income ratio is 1.75, indicating strong cash generation relative to net earnings. The free cash flow to net income ratio is robust at 1.65, underscoring the company’s ability to generate cash above its net earnings.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
8.43B	5.16B	12.56B	10.73B	3.99B
	Gross Profit
2.78B	-2.21B	6.43B	6.07B	865.02M
	EBIT
2.53B	-2.51B	6.14B	5.82B	722.05M
	EBITDA
3.82B	-955.10M	7.65B	6.60B	1.00B
	Net Income Common Stockholders
2.15B	-2.70B	4.62B	4.64B	518.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.12B	1.80B	3.26B	3.69B	629.39M
	Total Assets
11.39B	8.35B	11.63B	9.84B	2.82B
	Total Debt
6.02B	5.01B	4.35B	3.32B	1.83B
	Net Debt
4.70B	4.09B	3.33B	1.78B	1.26B
	Total Liabilities
7.35B	5.89B	5.73B	5.24B	2.55B
	Stockholders Equity
4.04B	2.45B	5.89B	4.59B	267.27M
Cash Flow		Free Cash Flow
3.54B	904.30M	5.76B	4.97B	838.10M
	Operating Cash Flow
3.75B	1.02B	6.11B	5.97B	880.80M
	Investing Cash Flow
-223.20M	1.78B	-1.65B	-3.34B	-35.20M
	Financing Cash Flow
-3.13B	-2.89B	-4.98B	-1.65B	-460.40M

ZIM Integrated Shipping Services Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 17.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZIM, the sentiment is Neutral. The current price of 17.03 is below the 20-day moving average (MA) of 17.18, above the 50-day MA of 15.00, and above the 200-day MA of 14.83, indicating a neutral trend. The MACD of 0.51 indicates Positive momentum. The RSI at 53.77 is Neutral, neither overbought nor oversold. The STOCH value of 55.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ZIM.

ZIM Integrated Shipping Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DAC	78 Outperform	$1.58B	3.50	14.14%	3.99%	4.93%	-17.08%
ZIM	78 Outperform	$2.05B	0.87	72.40%	17.38%	65.83%	―
SBLK	76 Outperform	$1.94B	8.37	11.09%	1.21%	25.60%	-9.32%
CMRE	75 Outperform	$1.05B	3.59	12.57%	5.26%	17.77%	-5.90%
SFL	66 Neutral	$1.28B	21.18	5.09%	12.30%	6.68%	-57.55%
GOGL	66 Neutral	$1.54B	13.55	6.06%	2.60%	-7.73%	-39.13%
Sector *	66 Neutral	$4.51B	12.29	5.40%	3.67%	4.15%	-12.21%