ZIM (ZIM) AI Stock Analysis

• Market Cap: $1.65B
• Dividend Yield: 55.26%
• Average Volume (3M): 4.83M
• Price to Earnings (P/E): 0.8
• Beta (1Y): 1.54
• Revenue Growth: 43.57%
• EPS Growth: N/A
• Country: US
• Employees: 4,850
• Sector: Industrials
• Sector Strength: 72
• Industry: Marine Shipping
• EPS (TTM): 0.19
• Shares Outstanding: 120,457,510
• 10 Day Avg. Volume: 4,453,304
• 30 Day Avg. Volume: 4,829,356
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 0.31
• P/FCF Ratio: 0.73
• Enterprise Value/Market Cap: 3.69
• Enterprise Value/Revenue: 0.71
• Enterprise Value/Gross Profit: 2.18
• Enterprise Value/Ebitda: 1.56
• 1Y Price Target: $12.00
• Price Target Upside: -12.47% Downside
• Rating Consensus: Strong Sell
• Number of Analyst Covering: 5

• Rating: 61 Neutral
• Price Target: $15.00 ▲(9.41% Upside)

ZIM's overall stock score is driven by strong profitability and attractive valuation, offset by declining revenue and high leverage. The earnings call provides a mixed outlook with strategic initiatives in place, but ongoing market challenges remain. Technical analysis suggests bearish momentum, further impacting the score.

Positive Factors

Fleet Modernization

Fleet modernization enhances cost efficiency and operational capabilities, positioning ZIM to better compete in the global shipping market.

Geographic Diversification

Geographic diversification reduces dependency on any single market, allowing ZIM to capitalize on growth opportunities in emerging regions.

Strategic Guidance Revision

Upward revision of guidance indicates confidence in strategic initiatives and potential for improved financial performance despite market challenges.

Negative Factors

Revenue Decline

Declining revenue suggests challenges in maintaining sales growth, potentially impacting long-term profitability and market position.

High Leverage

High leverage increases financial risk, potentially limiting strategic flexibility and increasing vulnerability to economic downturns.

Operational Challenges in Turkey

Regulatory challenges in Turkey could disrupt operations and affect financial performance, necessitating strategic adjustments.

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, including end-users, consolidators, and freight forwarders. The company also offers ZIMonitor, a premium reefer cargo tracking service. As of December 31, 2021, it operated a fleet of 118 vessels, which included 110 container vessels and 8 vehicle transport vessels, of which four vessels were owned by it and 114 vessels are chartered-in; and network of 70 weekly lines. The company was incorporated in 1945 and is headquartered in Haifa, Israel.

How the Company Makes Money

ZIM generates revenue primarily through its container shipping services, where it charges customers for the transportation of goods across international waters. The company's revenue streams include freight charges, surcharges, and fees for additional services such as container handling and storage. ZIM's earnings are also influenced by strategic partnerships and alliances with other shipping companies, allowing for expanded service offerings and network optimization. Additionally, ZIM benefits from economies of scale due to its extensive fleet and global operational presence, enhancing its competitive edge in the shipping industry.

ZIM Financial Statement Overview

Summary

ZIM demonstrates strong profitability and efficient operations, but faces challenges with declining revenue and high leverage. The company maintains robust cash flow ratios, yet the negative growth trends in revenue and free cash flow highlight potential risks.

Income Statement

ZIM's income statement shows a mixed performance. The company has strong gross and net profit margins, with a TTM gross profit margin of 34.84% and a net profit margin of 26.52%. However, revenue growth is negative at -3.35% TTM, indicating a decline in sales. The EBIT and EBITDA margins are robust, suggesting efficient operations, but the recent revenue decline is a concern.

Balance Sheet

The balance sheet reflects moderate financial stability. The debt-to-equity ratio is relatively high at 1.49 TTM, indicating significant leverage. Return on equity is strong at 63.54% TTM, showing effective use of equity, but the high leverage poses potential risks. The equity ratio is not explicitly provided, but the overall asset base supports the equity position.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth at -7.31% TTM, which is concerning. However, the operating cash flow to net income ratio is healthy at 1.53 TTM, indicating good cash generation relative to net income. The free cash flow to net income ratio is also strong at 0.94 TTM, suggesting efficient cash management despite recent declines.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.58B	8.43B	5.16B	12.56B	10.73B	3.99B
Gross Profit	2.79B	2.78B	-2.21B	6.43B	6.07B	865.02M
EBITDA	3.91B	3.82B	-955.10M	7.65B	6.60B	1.00B
Net Income	2.00B	2.15B	-2.70B	4.62B	4.64B	518.00M
Balance Sheet
Total Assets	11.10B	11.39B	8.35B	11.63B	9.84B	2.82B
Cash, Cash Equivalents and Short-Term Investments	1.77B	2.12B	1.80B	3.26B	3.69B	629.39M
Total Debt	5.92B	6.02B	5.01B	4.35B	3.32B	1.83B
Total Liabilities	7.20B	7.35B	5.89B	5.73B	5.24B	2.55B
Stockholders Equity	3.90B	4.04B	2.45B	5.89B	4.59B	267.27M
Cash Flow
Free Cash Flow	3.72B	3.54B	904.30M	5.76B	4.97B	838.10M
Operating Cash Flow	3.95B	3.75B	1.02B	6.11B	5.97B	880.80M
Investing Cash Flow	-363.80M	-223.20M	1.78B	-1.65B	-3.34B	-35.20M
Financing Cash Flow	-3.29B	-3.13B	-2.89B	-4.98B	-1.65B	-460.40M

ZIM Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 13.71
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZIM, the sentiment is Negative. The current price of 13.71 is below the 20-day moving average (MA) of 14.01, below the 50-day MA of 14.87, and below the 200-day MA of 15.14, indicating a bearish trend. The MACD of -0.24 indicates Positive momentum. The RSI at 43.74 is Neutral, neither overbought nor oversold. The STOCH value of 18.85 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ZIM.

ZIM Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CMRE	83 Outperform	$1.44B	5.12	12.73%	3.85%	-7.24%	-16.39%
GSL	81 Outperform	$1.09B	2.85	23.89%	6.38%	4.43%	17.82%
NMM	79 Outperform	$1.31B	4.52	11.82%	0.45%	-0.47%	-22.23%
SBLK	74 Outperform	$2.15B	17.71	12.28%	4.27%	2.95%	-61.74%
DAC	69 Neutral	$1.62B	3.68	12.79%	3.84%	5.63%	-17.54%
ZIM	61 Neutral	$1.65B	0.81	59.06%	55.26%	43.57%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

ZIM Corporate Events

ZIM Announces Reduced Withholding Tax on Upcoming Dividend

On September 2, 2025, ZIM Integrated Shipping Services Ltd. announced an update regarding the withholding tax procedures for a dividend distribution scheduled for September 9, 2025. The company revealed that certain shareholders might be eligible for a reduced Israeli withholding tax rate on their dividend shares, following a tax ruling from the Israeli Tax Authority. This announcement could impact shareholders’ tax liabilities and reflects ZIM’s ongoing efforts to optimize financial outcomes for its investors.

ZIM Faces Operational Challenges Due to New Turkish Port Regulations

On August 22, 2025, ZIM Integrated Shipping Services Ltd. received a notice from the Turkish Port Authorities that new regulations in Turkey prohibit vessels associated with Israel from berthing in Turkish ports. This regulation also affects military cargo destined for Israel and Turkish-flagged vessels in Israeli ports. As a result, ZIM has rerouted certain vessels and anticipates potential negative impacts on its financial and operational results. The company is developing a mitigation plan and maintains its full-year 2025 guidance.

ZIM Reports Q2 2025 Financial Results and Raises Full-Year Guidance

On August 20, 2025, ZIM Integrated Shipping Services Ltd. announced its financial results for the second quarter of 2025, reporting revenues of $1.64 billion and a net income of $24 million, marking a significant decrease from the previous year. Despite the challenging market conditions, ZIM increased its full-year guidance midpoints for 2025, expecting adjusted EBITDA between $1.8 billion and $2.2 billion, and adjusted EBIT between $550 million and $950 million, highlighting its strategic focus on operational excellence and fleet modernization to ensure long-term value creation for shareholders.

ZIM Addresses Acquisition Rumors Amid Market Speculation

On August 12, 2025, ZIM Integrated Shipping Services Ltd. addressed market rumors regarding a potential acquisition proposal, stating that it does not comment on such speculation. This announcement reflects the company’s policy of maintaining discretion in response to market rumors, which could impact stakeholder perceptions and market dynamics.