ZIM (ZIM) AI Stock Analysis

• Market Cap: $2.39B
• Dividend Yield: 20.35%
• Average Volume (3M): 5.37M
• Price to Earnings (P/E): 2.5
• Beta (1Y): 1.65
• Revenue Growth: 1.63%
• EPS Growth: -30.30%
• Country: US
• Employees: 4,850
• Sector: Industrials
• Sector Strength: 72
• Industry: Marine Shipping
• EPS (TTM): 1.02
• Shares Outstanding: 120,457,510
• 10 Day Avg. Volume: 3,896,063
• 30 Day Avg. Volume: 5,374,838
• 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: 2.54
• Enterprise Value/Revenue: 0.80
• Enterprise Value/Gross Profit: 3.38
• Enterprise Value/Ebitda: 2.03
• 1Y Price Target: $13.92
• Price Target Upside: -29.98% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 5
• EPS Forecast (FY): 2.78
• Revenue Forecast (FY): $6.82B

• Rating: 62 Neutral
• Price Target: $20.50 ▲(3.12% Upside)

ZIM's overall stock score reflects strong profitability and attractive valuation, offset by technical indicators suggesting overbought conditions and challenges in revenue growth. The company's strategic investments and high dividend yield are positives, but high leverage and market uncertainties pose risks.

Positive Factors

Fleet Modernization

Investing in modern, efficient vessels enhances operational efficiency and positions ZIM for long-term competitiveness in the shipping industry.

Geographic Diversification

Expanding into new regions diversifies revenue streams and reduces dependency on any single market, enhancing resilience against regional downturns.

Strong Cash Generation

Strong cash generation supports ongoing investments and dividend payouts, ensuring financial stability and shareholder value over the long term.

Negative Factors

High Leverage

High leverage increases financial risk, potentially limiting flexibility and increasing vulnerability to market volatility and interest rate changes.

Declining Revenue

A significant revenue decline indicates potential market challenges and could impact long-term profitability and growth prospects.

Freight Rate Pressure

Decreasing freight rates can compress margins and reduce profitability, challenging ZIM's ability to maintain its financial performance.

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 operations, where it charges customers for the transportation of goods across various trade routes. This revenue model includes freight charges for containerized cargo, which vary based on factors such as distance, cargo type, and shipping conditions. Additionally, ZIM earns money through ancillary services, including logistics and supply chain solutions that complement its shipping operations. Key revenue streams include long-term contracts with major shipping lines and freight forwarders, spot market shipping rates, and partnerships with ports and terminals for cargo handling. The company also benefits from fluctuating freight rates, which can significantly impact its profitability, especially during periods of high demand in the shipping industry.

ZIM Financial Statement Overview

Summary

ZIM demonstrates strong profitability and cash generation capabilities, despite facing revenue growth challenges. The company's leverage is relatively high, which could be a risk factor in uncertain market conditions. However, the solid margins and cash flow ratios suggest resilience and operational efficiency.

Income Statement

ZIM's income statement shows a mixed performance. The TTM data reveals a decline in revenue growth rate by 11.52%, indicating a challenging market environment. However, the company maintains strong profitability with a gross profit margin of 32.54% and a net profit margin of 23.37%. EBIT and EBITDA margins are also robust at 31.02% and 45.51%, respectively, showcasing operational efficiency. Despite the revenue decline, the company remains profitable, which is a positive indicator.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio stands at 1.52, indicating a relatively high level of leverage, which could pose risks in a volatile market. Return on equity is strong at 50.68%, suggesting effective use of equity to generate profits. However, the equity ratio is moderate, highlighting a balanced asset structure but with potential leverage concerns.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by 25.41% in the TTM period, which is concerning. However, the operating cash flow to net income ratio is healthy at 1.71, indicating good cash generation relative to net income. The free cash flow to net income ratio is also strong at 0.94, reflecting efficient cash conversion. Despite the decline in growth, cash flow metrics remain solid.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.59B	8.43B	5.16B	12.56B	10.73B	3.99B
Gross Profit	1.80B	2.77B	-194.70M	6.40B	6.04B	842.49M
EBITDA	2.99B	3.82B	-955.10M	7.65B	6.60B	1.00B
Net Income	1.00B	2.15B	-2.70B	4.62B	4.64B	517.96M
Balance Sheet
Total Assets	10.87B	11.39B	8.35B	11.63B	9.84B	2.82B
Cash, Cash Equivalents and Short-Term Investments	1.95B	2.12B	1.80B	3.26B	3.69B	629.39M
Total Debt	5.66B	6.02B	5.01B	4.35B	3.32B	1.83B
Total Liabilities	6.85B	7.35B	5.89B	5.73B	5.24B	2.55B
Stockholders Equity	4.02B	4.04B	2.45B	5.89B	4.59B	267.27M
Cash Flow
Free Cash Flow	2.83B	3.54B	904.30M	5.76B	4.97B	838.10M
Operating Cash Flow	3.08B	3.75B	1.02B	6.11B	5.97B	880.80M
Investing Cash Flow	-276.10M	-223.20M	1.78B	-1.65B	-3.34B	-35.20M
Financing Cash Flow	-3.05B	-3.13B	-2.89B	-4.98B	-1.65B	-460.40M

ZIM Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.88
• 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 Positive. The current price of 19.88 is above the 20-day moving average (MA) of 19.78, above the 50-day MA of 16.79, and above the 200-day MA of 15.29, indicating a bullish trend. The MACD of 0.89 indicates Positive momentum. The RSI at 67.22 is Neutral, neither overbought nor oversold. The STOCH value of 50.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ZIM.

ZIM Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DAC	81 Outperform	$1.73B	3.79	13.16%	3.64%	3.82%	-13.73%
GSL	81 Outperform	$1.23B	3.10	26.18%	6.16%	7.13%	23.37%
CMRE	76 Outperform	$1.89B	6.25	14.98%	2.93%	-29.82%	-16.77%
NMM	76 Outperform	$1.47B	5.91	8.36%	0.39%	-1.33%	-33.66%
SBLK	67 Neutral	$2.15B	35.97	2.50%	1.59%	-13.87%	-82.48%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ZIM	62 Neutral	$2.39B	2.53	25.25%	20.35%	1.63%	-30.30%

ZIM Corporate Events

ISS Endorses ZIM’s Director Nominees Ahead of Annual Meeting

On December 8, 2025, ZIM Integrated Shipping Services Ltd. announced that Institutional Shareholder Services (ISS), a leading proxy advisory firm, recommended shareholders vote in favor of all eight of ZIM’s director nominees and against the three nominees proposed by dissident shareholders for the upcoming Annual Meeting on December 26, 2025. This endorsement by ISS underscores the strength of ZIM’s current board, which has been credited with delivering strong shareholder returns, modernizing the fleet, and maintaining a robust balance sheet. The recommendation is seen as a validation of ZIM’s strategic direction and governance, urging shareholders to protect their investment by supporting the company’s nominees.

ZIM Announces Reduced Withholding Tax on December 2025 Dividend

On December 1, 2025, ZIM Integrated Shipping Services Ltd. announced updates regarding the withholding tax procedures for its upcoming dividend distribution scheduled for December 8, 2025. The company has obtained a tax ruling from the Israeli Tax Authority, allowing certain shareholders to benefit from a reduced Israeli withholding tax rate on their dividends. This announcement is significant as it impacts the financial returns for eligible shareholders and reflects ZIM’s efforts to optimize tax efficiency for its investors.

ZIM Enhances Shareholder Voting Options for December 2025 Meeting

ZIM Integrated Shipping Services Ltd. announced that shareholders can now vote via internet and phone for the upcoming Annual and Extraordinary Shareholders’ Meeting scheduled for December 26, 2025. This update, filed with the U.S. Securities and Exchange Commission, aims to facilitate shareholder participation and streamline the voting process, potentially impacting shareholder engagement and decision-making efficiency.

ZIM Announces Strategic Review Amid Acquisition Proposal

On November 25, 2025, ZIM Integrated Shipping Services Ltd. announced that its Board of Directors is conducting an ongoing strategic review process following a preliminary, non-binding acquisition proposal from CEO Eli Glickman and Rami Ungar. The review, which has been in progress for several months, aims to explore value creation alternatives, including a potential sale of the company, to maximize shareholder value. The Board has engaged Evercore as its financial advisor and legal counsel from Meitar Law Offices and Skadden, Arps, Slate, Meagher & Flom LLP. Additionally, the Board has welcomed two new independent directors, Yair Avidan and Dr. Yoram Turbowicz, to enhance its financial and transactional expertise.

ZIM Reports Q3 2025 Financial Results Amid Market Challenges

On November 20, 2025, ZIM Integrated Shipping Services Ltd. announced its financial results for the third quarter of 2025, reporting revenues of $1.78 billion and a net income of $123 million. Despite a challenging market environment characterized by geopolitical tensions and fluctuating tariffs, ZIM demonstrated resilience with a strategic focus on cost-effective fleet management and market diversification. The company declared a dividend of $37 million, reflecting its commitment to shareholder returns, and adjusted its full-year guidance upwards, anticipating adjusted EBITDA between $2.0 billion and $2.2 billion. CEO Eli Glickman emphasized ZIM’s ability to navigate market volatility and its strategic initiatives to ensure long-term growth and value for shareholders.

ZIM Announces Board Changes with New Appointments

On November 17, 2025, ZIM Integrated Shipping Services Ltd. announced the resignation of two board members, Mr. Yair Caspi and Mr. Yoav Sebba, effective immediately. Subsequently, on November 19, 2025, the company appointed Mr. Yoram Turbowitcz and Mr. Yair Avidan as new board members, with plans to recommend their re-election at the upcoming annual shareholders’ meeting in December 2025. These appointments bring significant experience in regulatory and financial sectors, potentially strengthening ZIM’s strategic positioning and governance.

ZIM Announces Upcoming Shareholder Meeting on December 19, 2025

ZIM Integrated Shipping Services Ltd. announced that it will hold its annual and extraordinary general meeting of shareholders on December 19, 2025, in Haifa, Israel. During this meeting, shareholders will vote on the re-election of board members, the re-appointment of auditors, and a new compensation policy for directors and officers. The outcomes of these votes could impact the company’s governance and operational strategies moving forward.