Zim Integrated Shipping Services Ltd. (ZIM)
NYSE:ZIM
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ZIM
(NYSE:ZIM)
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Rating:53Neutral
Price Target:
$26.00
▼(-2.00% Downside)
Action:Reiterated
Date:05/24/26
The score is driven primarily by mixed financial performance: cash flow is still solid, but profitability remains thin and leverage is meaningful for a cyclical shipping business. Technicals add risk due to weak momentum and price below key short-term averages. Valuation is helped by a high dividend yield, but a negative P/E reduces confidence in earnings-based valuation.
Positive Factors
Cash generation
ZIM’s sustained positive operating and free cash flow provides durable internal funding to service charters, cover working capital and support operational continuity through the shipping cycle. Strong cash generation cushions near-term obligations and funds strategic investments over the next several quarters.
Negative Factors
Thin profitability
Margins have compressed sharply from prior cycle highs, leaving limited profit buffer against adverse demand or cost shocks. With net margin near breakeven, small rate declines or rising bunker/charter costs can erode earnings quickly, constraining durable reinvestment and return generation over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
ZIM’s sustained positive operating and free cash flow provides durable internal funding to service charters, cover working capital and support operational continuity through the shipping cycle. Strong cash generation cushions near-term obligations and funds strategic investments over the next several quarters.
Read all positive factors
ZIM (ZIM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.04B
Dividend Yield20.35%
Average Volume (3M)1.36M
Price to Earnings (P/E)―
Beta (1Y)1.61
Revenue Growth-29.06%
EPS Growth-95.84%
CountryUS
Employees4,850
SectorIndustrials
Sector Strength72
IndustryMarine Shipping
Share Statistics
EPS (TTM)0.82
Shares Outstanding120,465,904
10 Day Avg. Volume940,590
30 Day Avg. Volume1,364,666
Financial Highlights & Ratios
PEG Ratio-0.07
Price to Book (P/B)0.64
Price to Sales (P/S)0.37
P/FCF Ratio1.59
Enterprise Value/Market Cap2.50
Enterprise Value/Revenue1.21
Enterprise Value/Gross Profit11.07
Enterprise Value/Ebitda4.26
Forecast
1Y Price Target
$12.40Price Target Upside-53.26% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering2
EPS Forecast (FY)-2.33
Revenue Forecast (FY)$6.09B
ZIM Business Overview & Revenue Model
Company Description
ZIM Integrated Shipping Services Ltd., together with its subsidiaries, provides container shipping and related services in Israel and internationally. It provides door-to-door and port-to-port transportation services for various types of customers...
How the Company Makes Money
ZIM primarily makes money by selling container shipping capacity and charging freight rates to move customers’ cargo on scheduled liner services. Its core revenue stream is freight revenue, typically priced per container (e.g., TEU/FEU) and driven...
ZIM Earnings Call Summary
Earnings Call Date:Nov 20, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Aug 19, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted solid Q3 financial results and strategic investments in fleet modernization and route diversification. However, there are significant challenges due to declining revenues, freight rates, and a weaker fourth quarter forecast amid ongoing global trade uncertainties.Positive Updates
Solid Q3 Financial Performance
ZIM reported Q3 2025 revenue of $1.8 billion and a net income of $123 million. Adjusted EBITDA was $593 million with a margin of 33%, and adjusted EBIT was $260 million with a margin of 15%.
Negative Updates
Decline in Revenue and Freight Rates
Q3 2025 revenues were down 36% compared to last year, with an average freight rate per TEU decreasing from $2,480 to $1,602.
Read all updates
Q3-2025 Updates
Positive
Negative
Solid Q3 Financial Performance
ZIM reported Q3 2025 revenue of $1.8 billion and a net income of $123 million. Adjusted EBITDA was $593 million with a margin of 33%, and adjusted EBIT was $260 million with a margin of 15%.
Read all positive updates
Company Guidance
During the third quarter of 2025, ZIM Integrated Shipping Services Ltd. reported revenue of $1.8 billion and a net income of $123 million. The company achieved an adjusted EBITDA of $593 million, reflecting an EBITDA margin of 33%, and an adjusted EBIT of $260 million, with an EBIT margin of 15%. Despite a volatile market, ZIM maintained total liquidity of $3 billion as of September 30, 2025, and declared a dividend of 31¢ per share, totaling approximately $37 million, representing 30% of its third-quarter net income. For the full year, ZIM refined its guidance, expecting adjusted EBITDA between $2 billion to $2.2 billion and adjusted EBIT between $700 million and $900 million, based on performance through the first nine months of the year.ZIM Financial Statement Overview
Summary
Income Statement
52
Neutral
Balance Sheet
49
Neutral
Cash Flow
61
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.29B | 6.90B | 8.43B | 5.16B | 12.56B | 10.73B |
| Gross Profit | 686.40M | 1.16B | 2.77B | -194.70M | 6.40B | 6.04B |
| EBITDA | 1.78B | 2.13B | 3.82B | -955.10M | 7.65B | 6.60B |
| Net Income | 97.90M | 479.20M | 2.15B | -2.70B | 4.62B | 4.64B |
Balance Sheet | ||||||
| Total Assets | 10.58B | 11.01B | 11.39B | 8.35B | 11.63B | 9.84B |
| Cash, Cash Equivalents and Short-Term Investments | 1.63B | 1.79B | 2.12B | 1.80B | 3.26B | 3.69B |
| Total Debt | 5.48B | 5.74B | 6.02B | 5.01B | 4.35B | 3.32B |
| Total Liabilities | 6.75B | 6.98B | 7.35B | 5.89B | 5.73B | 5.24B |
| Stockholders Equity | 3.82B | 4.02B | 4.04B | 2.45B | 5.89B | 4.59B |
Cash Flow | ||||||
| Free Cash Flow | 1.46B | 1.61B | 3.54B | 904.30M | 5.76B | 4.97B |
| Operating Cash Flow | 1.63B | 1.83B | 3.75B | 1.02B | 6.11B | 5.97B |
| Investing Cash Flow | 3.85M | -133.30M | -223.20M | 1.78B | -1.65B | -3.34B |
| Financing Cash Flow | -2.28B | -1.96B | -3.13B | -2.89B | -4.98B | -1.65B |
ZIM Technical Analysis
Neutral
26.53
Price Trends
26.20
Negative
24.93
Positive
20.08
Positive
Market Momentum
-0.31
Positive
41.35
Neutral
31.52
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 26.53 is above the 20-day moving average (MA) of 26.06, above the 50-day MA of 26.20, and above the 200-day MA of 20.08, indicating a neutral trend. The MACD of -0.31 indicates Positive momentum. The RSI at 41.35 is Neutral, neither overbought nor oversold. The STOCH value of 31.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ZIM.
ZIM Risk Analysis
ZIM disclosed 55 risk factors in its most recent earnings report. ZIM reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
ZIM Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $2.13B | 4.63 | 10.62% | 0.39% | 5.87% | 8.14% | |
80 Outperform | $2.38B | 3.65 | 13.85% | 3.64% | 2.95% | 15.92% | |
79 Outperform | $1.37B | 3.57 | 24.76% | 6.16% | 7.07% | -0.61% | |
72 Outperform | $3.01B | 10.92 | 5.87% | 1.59% | -11.62% | -37.75% | |
67 Neutral | $1.98B | 6.34 | 16.80% | 2.94% | -59.07% | 10.43% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
53 Neutral | $3.04B | -9.23 | 2.48% | 20.35% | -29.06% | -95.84% |
* Industrials Sector Average
ZIM
ZIM
25.25
9.33
58.60%
CMRE
Costamare
16.41
8.26
101.37%
DAC
Danaos
129.45
47.48
57.92%
GSL
Global Ship Lease
37.54
14.27
61.32%
NMM
Navios Maritime Partners
73.61
34.64
88.88%
SBLK
Star Bulk Carriers
27.55
11.94
76.43%
ZIM Corporate Events
ZIM Swings to First-Quarter Loss as Freight Rates Slide and Costs Rise
May 20, 2026
On May 20, 2026, ZIM reported first-quarter 2026 results showing a sharp reversal from last year, with revenues down 30% to about $1.4 billion and an $86 million net loss versus a $296 million profit in the same period of 2025. The quarter to Marc...
ZIM Shareholders Approve Merger Agreement with Hapag-Lloyd
May 6, 2026
On April 30, 2026, shareholders of ZIM Integrated Shipping Services Ltd. approved an Agreement and Plan of Merger with German liner shipping group Hapag-Lloyd AG and its wholly owned subsidiary Norazia (Israel) Ltd. The binding merger agreement, o...
ZIM Shareholders Approve Merger and Executive Retention Bonuses but Reject Compensation Policy
Apr 30, 2026
On April 30, 2026, ZIM Integrated Shipping Services held a special shareholders’ meeting in Haifa, where 48.84% of outstanding shares were represented, satisfying quorum requirements. Shareholders overwhelmingly approved a merger agreement p...
ZIM Names Long-Time Executive Sami Jubran as New Chief Financial Officer
Apr 23, 2026
On April 22, 2026, ZIM Integrated Shipping Services Ltd. announced that its chief financial officer, Xavier Destriau, notified the chief executive officer and the board of his decision to leave the company. He will remain in his role for a sixR...
ZIM Announces CEO Eli Glickman to Step Down After Six-Month Transition
Apr 15, 2026
On April 15, 2026, ZIM Integrated Shipping Services announced that president and chief executive officer Eli Glickman informed the board of his decision to leave the company. He will remain in his role for a six-month contractual notice period to ...
ZIM Sets April 30 Vote on $35‑per‑Share Merger with Hapag-Lloyd
Mar 19, 2026
ZIM Integrated Shipping Services has called a Special General Meeting of shareholders for April 30, 2026 in Haifa to vote on a proposed merger with Germany’s Hapag-Lloyd AG, under which ZIM would become a wholly owned subsidiary of Hapag-Llo...
ZIM Details Reduced Withholding Tax Path on March 26 Dividend Amid Hapag-Lloyd Merger Constraints
Mar 19, 2026
On March 19, 2026, ZIM filed a Form 6-K and issued a press release detailing Israeli withholding tax procedures for its $0.88 per share cash dividend, totaling about $106 million, scheduled for payment on March 26, 2026 to shareholders of record a...
ZIM Posts Lower 2025 Earnings but Maintains Strong Margins and Dividend Payout
Mar 9, 2026
On March 9, 2026, ZIM reported its results for the fourth quarter and full year ended Dec. 31, 2025, showing a sharp year-on-year earnings decline as post-pandemic freight rates normalized. Full-year revenue fell 18% to $6.90 billion and net incom...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.