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ZIM (ZIM)
NYSE:ZIM
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ZIM
(NYSE:ZIM)
Rating:72Outperform
Price Target:
$17.50
▲(14.16% Upside)
Positive Factors
Dividends
A dividend with a 9% yield is forecasted for 2024, reflecting the company's policy of a quarterly payout of 30%.
Management Buyout
ZIM shares are up 16% following unconfirmed news that ZIM’s CEO Eli Glickman is planning to take the company private with a $2.4bn offer.
Volume Growth
Global container volumes increased by 9.7%, leading to a raised volume forecast for the second quarter and fiscal year 2025 estimates.
Negative Factors
Analyst Rating
The analyst recommends an 'UNDERPERFORM' rating for ZIM with a price objective of 14.80 USD.
Freight Rates Decline
Spot freight rates have declined 33% from the peak in early June mainly driven by a sharp decrease in Transpacific rates, and a further drop is expected.
Oversupply in Shipping
The container shipping industry is oversupplied, and there is an expectation of continued decline in freight rates.
ZIM (ZIM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.87B
Dividend Yield55.38%
Average Volume (3M)4.87M
Price to Earnings (P/E)0.8
Beta (1Y)1.53
Revenue Growth65.83%
EPS GrowthN/A
CountryUS
Employees4,850
SectorIndustrials
Sector Strength83
IndustryMarine Shipping
Share Statistics
EPS (TTM)0.19
Shares Outstanding120,457,510
10 Day Avg. Volume7,072,070
30 Day Avg. Volume4,874,246
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap3.25
Enterprise Value/Revenue0.69
Enterprise Value/Gross Profit1.97
Enterprise Value/Ebitda1.46
Forecast
1Y Price Target
$13.70Price Target Upside-10.63% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering2
ZIM Business Overview & Revenue Model
Company DescriptionZIM 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 MoneyZIM 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 Earnings Call Summary
Earnings Call Date:Aug 20, 2025
(Q2-2025)
| % Change Since: -1.41%|
Next Earnings Date:Nov 12, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed performance with several challenges such as revenue decline, weak demand in key markets, and increasing cost pressures, balanced by strategic fleet modernization, geographic diversification, and revised guidance showing confidence in future performance.Q2-2025 Updates
Positive Updates
Revenue and Net Income Performance
Generated revenue of $1.6 billion and net income of $24 million in Q2. Total liquidity maintained at $2.9 billion.
Dividend Declaration
Board declared a dividend of $0.06 per share, totaling $7 million based on Q2 results.
Guidance Revision
Revised full year guidance with adjusted EBITDA expected between $1.8 billion to $2.2 billion and adjusted EBIT between $550 million and $950 million.
Fleet Modernization
Operates a modern fleet with 123 ships and 46 newbuild vessels delivered in 2023 and 2024, enhancing cost structure and efficiency.
Geographic Diversification
10% year-over-year volume growth in Latin America. Expanded presence in Southeast Asia, including Vietnam and Thailand.
Negative Updates
Revenue Decline
Second quarter revenues were down 15% compared to last year, reflecting lower freight rates and volumes.
Weak Transpacific Demand
6% decline in carried volumes due to weak Transpacific demand and tariff-related disruptions.
Freight Rate Pressure
Anticipated continued pressure on freight rates during the second half of 2025 due to reinstated capacity and weak demand.
Car Carrier Market Pressure
Car carrier revenue decreased, and the market has been under pressure due to new tariffs on Chinese electric vehicles.
Cost Structure Challenges
Increased cost structure due to higher bunker costs, charter rates, and operational costs compared to pre-COVID levels.
Company Guidance
During ZIM Integrated Shipping Services' second quarter 2025 financial results call, the company provided updated guidance reflecting a revised full-year outlook amid market volatility. ZIM reported Q2 revenue of $1.6 billion and a net income of $24 million, with an adjusted EBITDA of $472 million and an adjusted EBIT of $149 million. The adjusted EBITDA margin stood at 29%, while the adjusted EBIT margin was 9%. Total liquidity was maintained at $2.9 billion as of June 30, despite the payment of approximately $470 million in dividends. The company revised its full-year guidance, increasing the lower end of the expected adjusted EBITDA range to between $1.8 billion and $2.2 billion, and adjusted EBIT between $550 million and $950 million. ZIM's CEO, Eli Glickman, emphasized the company's strategic adjustments to its Transpacific network and expansion in Southeast Asia to address market changes, contributing to a 10% year-over-year volume growth in Latin America. Despite challenges, ZIM remains confident in its competitive position, leveraging a modern fleet and agile strategy to navigate the uncertainties in global trade.ZIM Financial Statement Overview
Summary
ZIM Integrated Shipping Services shows strong financial performance with robust revenue growth and profitability. The company has a high net profit margin of 26.5% and strong cash flow generation, though there is some volatility in financial performance and moderate leverage with a debt-to-equity ratio of 1.49.Income Statement
ZIM Integrated Shipping Services has demonstrated strong revenue growth over recent years, particularly visible in the TTM data with a revenue increase and improved margins. The gross profit margin for TTM is approximately 34.8%, while the net profit margin stands at a robust 26.5%. The EBIT and EBITDA margins are also strong, indicating efficient operations. However, the significant fluctuations in revenue and margins from 2022 to 2023 indicate potential volatility in financial performance.75
Positive
Balance Sheet
The company's balance sheet shows a stable equity base with a debt-to-equity ratio of 1.49 in TTM, suggesting moderate leverage. The return on equity (ROE) is impressive at approximately 59.4% for TTM, showcasing high profitability relative to equity. However, the equity ratio of 34.4% indicates a reliance on debt, which could pose risks in a high-interest-rate environment.68
Positive
Cash Flow
ZIM's cash flow statements reflect strong cash generation capabilities, with a high operating cash flow to net income ratio of 1.77 in TTM. The free cash flow to net income ratio is 1.65, indicating efficient cash utilization. The company has shown a remarkable free cash flow growth rate from 2023 to 2024, contributing to a strong cash position.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.87B | 8.43B | 5.16B | 12.56B | 10.73B | 3.99B |
| Gross Profit | 3.09B | 2.78B | -2.21B | 6.43B | 6.07B | 865.02M |
| EBITDA | 4.17B | 3.82B | -955.10M | 7.65B | 6.60B | 1.00B |
| Net Income | 2.35B | 2.15B | -2.70B | 4.62B | 4.64B | 518.00M |
Balance Sheet | ||||||
| Total Assets | 11.49B | 11.39B | 8.35B | 11.63B | 9.84B | 2.82B |
| Cash, Cash Equivalents and Short-Term Investments | 2.31B | 2.12B | 1.80B | 3.26B | 3.69B | 629.39M |
| Total Debt | 5.88B | 6.02B | 5.01B | 4.35B | 3.32B | 1.83B |
| Total Liabilities | 7.53B | 7.35B | 5.89B | 5.73B | 5.24B | 2.55B |
| Stockholders Equity | 3.96B | 4.04B | 2.45B | 5.89B | 4.59B | 267.27M |
Cash Flow | ||||||
| Free Cash Flow | 4.01B | 3.54B | 904.30M | 5.76B | 4.97B | 838.10M |
| Operating Cash Flow | 4.28B | 3.75B | 1.02B | 6.11B | 5.97B | 880.80M |
| Investing Cash Flow | -448.60M | -223.20M | 1.78B | -1.65B | -3.34B | -35.20M |
| Financing Cash Flow | -2.97B | -3.13B | -2.89B | -4.98B | -1.65B | -460.40M |
ZIM Technical Analysis
Negative
15.33
Price Trends
16.20
Negative
15.57
Negative
15.49
Negative
Market Momentum
-0.13
Positive
37.30
Neutral
19.02
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 15.33 is below the 20-day moving average (MA) of 16.17, below the 50-day MA of 16.20, and below the 200-day MA of 15.49, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 37.30 is Neutral, neither overbought nor oversold. The STOCH value of 19.02 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
Overall Rating
UnderperformOutperform
Sector (71)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $1.33B | 4.68 | 14.61% | 4.14% | -7.24% | -16.39% | |
80 Outperform | $1.69B | 3.79 | 13.38% | 3.69% | 5.63% | -17.54% | |
74 Outperform | $2.10B | 17.38 | 5.11% | 7.75% | 2.95% | -61.74% | |
72 Outperform | $1.87B | 0.80 | 59.06% | 55.38% | 65.83% | ― | |
71 Outperform | ¥269.83B | 15.10 | 8.31% | 2.77% | 6.08% | 11.04% | |
67 Neutral | $1.59B | 14.04 | 6.06% | 10.03% | -7.73% | -39.13% | |
60 Neutral | $1.11B | 29.08 | 3.35% | 13.42% | 3.51% | -74.00% |
* Industrials Sector Average
Performance Comparison
ZIM
ZIM
14.70
2.09
16.57%
CMRE
Costamare
11.37
1.62
16.62%
DAC
Danaos
92.68
13.34
16.81%
SFL
SFL Corporation
8.20
-2.19
-21.08%
SBLK
Star Bulk Carriers
18.98
-0.65
-3.31%
GOGL
Golden Ocean Group
7.98
-3.27
-29.07%
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.