ZIM INTEGRATED SHIPPING SERV (ZIM) Stock Fundamental Analysis
NYSE:ZIM - New York Stock Exchange, Inc. - IL0065100930 - Common Stock - Currency: USD
Taking everything into account, ZIM scores 5 out of 10 in our fundamental rating. ZIM was compared to 32 industry peers in the Marine Transportation industry. Both the profitability and the financial health of ZIM get a neutral evaluation. Nothing too spectacular is happening here. ZIM has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year ZIM was profitable.
In the past year ZIM had a positive cash flow from operations.
ZIM had positive earnings in 4 of the past 5 years.
ZIM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ZIM's Return On Assets of 20.48% is amongst the best of the industry. ZIM outperforms 96.88% of its industry peers.
ZIM has a Return On Equity of 59.46%. This is amongst the best in the industry. ZIM outperforms 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 25.24%, ZIM belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.48% | ||
| ROE | 59.46% | ||
| ROIC | 25.24% |
ROA(3y)8.76%
ROA(5y)18.36%
ROE(3y)7.27%
ROE(5y)63.37%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 26.53%, ZIM is doing good in the industry, outperforming 75.00% of the companies in the same industry.
In the last couple of years the Profit Margin of ZIM has declined.
With a decent Operating Margin value of 31.32%, ZIM is doing good in the industry, outperforming 68.75% of the companies in the same industry.
In the last couple of years the Operating Margin of ZIM has grown nicely.
ZIM's Gross Margin of 34.87% is on the low side compared to the rest of the industry. ZIM is outperformed by 71.88% of its industry peers.
In the last couple of years the Gross Margin of ZIM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.32% | ||
| PM (TTM) | 26.53% | ||
| GM | 34.87% |
OM growth 3Y-18.26%
OM growth 5Y53.61%
PM growth 3Y-16.16%
PM growth 5YN/A
GM growth 3Y-16.4%
GM growth 5Y32.89%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ZIM is creating value.
ZIM has about the same amout of shares outstanding than it did 1 year ago.
ZIM has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ZIM has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.27 indicates that ZIM is not a great score, but indicates only limited risk for bankruptcy at the moment.
With an excellent Altman-Z score value of 2.27, ZIM belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
ZIM has a debt to FCF ratio of 1.46. This is a very positive value and a sign of high solvency as it would only need 1.46 years to pay back of all of its debts.
ZIM's Debt to FCF ratio of 1.46 is amongst the best of the industry. ZIM outperforms 87.50% of its industry peers.
A Debt/Equity ratio of 1.16 is on the high side and indicates that ZIM has dependencies on debt financing.
The Debt to Equity ratio of ZIM (1.16) is worse than 75.00% of its industry peers.
Although ZIM does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 1.46 | ||
| Altman-Z | 2.27 |
ROIC/WACC2.75
WACC9.18%
2.3 Liquidity
ZIM has a Current Ratio of 1.18. This is a normal value and indicates that ZIM is financially healthy and should not expect problems in meeting its short term obligations.
ZIM has a worse Current ratio (1.18) than 62.50% of its industry peers.
A Quick Ratio of 1.10 indicates that ZIM should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.10, ZIM perfoms like the industry average, outperforming 40.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 587.03% over the past year.
The earnings per share for ZIM have been decreasing by -22.88% on average. This is quite bad
ZIM shows a strong growth in Revenue. In the last year, the Revenue has grown by 65.83%.
The Revenue has been growing by 20.62% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)587.03%
EPS 3Y-22.88%
EPS 5YN/A
EPS Q2Q%226.67%
Revenue 1Y (TTM)65.83%
Revenue growth 3Y-7.73%
Revenue growth 5Y20.62%
Sales Q2Q%28.46%
3.2 Future
Based on estimates for the next years, ZIM will show a very negative growth in Earnings Per Share. The EPS will decrease by -29.69% on average per year.
The Revenue is expected to decrease by -8.72% on average over the next years.
EPS Next Y-92.77%
EPS Next 2Y-44.75%
EPS Next 3Y-29.69%
EPS Next 5YN/A
Revenue Next Year-17.61%
Revenue Next 2Y-12.97%
Revenue Next 3Y-8.72%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 0.86, which indicates a rather cheap valuation of ZIM.
Compared to the rest of the industry, the Price/Earnings ratio of ZIM indicates a rather cheap valuation: ZIM is cheaper than 96.88% of the companies listed in the same industry.
ZIM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.55.
The Forward Price/Earnings Ratio is negative for ZIM. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.86 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ZIM is valued cheaper than 87.50% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ZIM is valued cheaper than 96.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.5 | ||
| EV/EBITDA | 1.22 |
4.3 Compensation for Growth
ZIM has a very decent profitability rating, which may justify a higher PE ratio.
ZIM's earnings are expected to decrease with -29.69% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-44.75%
EPS Next 3Y-29.69%
5. Dividend
5.1 Amount
ZIM has a Yearly Dividend Yield of 44.58%, which is a nice return.
Compared to an average industry Dividend Yield of 8.23, ZIM pays a better dividend. On top of this ZIM pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, ZIM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 44.58% |
5.2 History
ZIM has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
24.61% of the earnings are spent on dividend by ZIM. This is a low number and sustainable payout ratio.
DP24.61%
EPS Next 2Y-44.75%
EPS Next 3Y-29.69%
16.8
-0.23 (-1.35%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryMarine Transportation
Earnings (Last)
Earnings (Next)
Inst Owners54.69%
Inst Owner Change-8.16%
Ins Owners1.05%
Ins Owner ChangeN/A
Market Cap2.02B
Analysts42.67
Price Target15.55 (-7.44%)
Short Float %18.4%
Short Ratio3.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 44.58% |
Yearly Dividend4.81
Dividend Growth(5Y)N/A
DP24.61%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)37.8%
Min EPS beat(2)29.56%
Max EPS beat(2)46.04%
EPS beat(4)4
Avg EPS beat(4)44.36%
Min EPS beat(4)29.56%
Max EPS beat(4)70.6%
EPS beat(8)5
Avg EPS beat(8)-0.15%
EPS beat(12)7
Avg EPS beat(12)-1092.11%
EPS beat(16)11
Avg EPS beat(16)-813.55%
Revenue beat(2)2
Avg Revenue beat(2)5.75%
Min Revenue beat(2)4.26%
Max Revenue beat(2)7.25%
Revenue beat(4)4
Avg Revenue beat(4)7.6%
Min Revenue beat(4)4.26%
Max Revenue beat(4)12.54%
Revenue beat(8)4
Avg Revenue beat(8)1.71%
Revenue beat(12)6
Avg Revenue beat(12)-0.27%
Revenue beat(16)10
Avg Revenue beat(16)3.16%
PT rev (1m)1.33%
PT rev (3m)-9.77%
EPS NQ rev (1m)19.27%
EPS NQ rev (3m)-29.57%
EPS NY rev (1m)-16.4%
EPS NY rev (3m)-60.57%
Revenue NQ rev (1m)4.29%
Revenue NQ rev (3m)-5.62%
Revenue NY rev (1m)4.42%
Revenue NY rev (3m)-1.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.86 | ||
| Fwd PE | N/A | ||
| P/S | 0.23 | ||
| P/FCF | 0.5 | ||
| P/OCF | 0.47 | ||
| P/B | 0.51 | ||
| P/tB | 0.53 | ||
| EV/EBITDA | 1.22 |
EPS(TTM)19.53
EY116.25%
EPS(NY)-1.7
Fwd EYN/A
FCF(TTM)33.32
FCFY198.33%
OCF(TTM)35.54
OCFY211.56%
SpS73.65
BVpS32.86
TBVpS31.94
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.48% | ||
| ROE | 59.46% | ||
| ROCE | 31.95% | ||
| ROIC | 25.24% | ||
| ROICexc | 34.37% | ||
| ROICexgc | 34.98% | ||
| OM | 31.32% | ||
| PM (TTM) | 26.53% | ||
| GM | 34.87% | ||
| FCFM | 45.24% |
ROA(3y)8.76%
ROA(5y)18.36%
ROE(3y)7.27%
ROE(5y)63.37%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y-39.31%
ROICexcg growth 5Y21.82%
ROICexc growth 3Y-39.21%
ROICexc growth 5Y23.31%
OM growth 3Y-18.26%
OM growth 5Y53.61%
PM growth 3Y-16.16%
PM growth 5YN/A
GM growth 3Y-16.4%
GM growth 5Y32.89%
F-Score8
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 1.46 | ||
| Debt/EBITDA | 1.16 | ||
| Cap/Depr | 22.35% | ||
| Cap/Sales | 3.02% | ||
| Interest Coverage | 5.75 | ||
| Cash Conversion | 107.67% | ||
| Profit Quality | 170.54% | ||
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 2.27 |
F-Score8
WACC9.18%
ROIC/WACC2.75
Cap/Depr(3y)17.11%
Cap/Depr(5y)N/A
Cap/Sales(3y)2.51%
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)587.03%
EPS 3Y-22.88%
EPS 5YN/A
EPS Q2Q%226.67%
EPS Next Y-92.77%
EPS Next 2Y-44.75%
EPS Next 3Y-29.69%
EPS Next 5YN/A
Revenue 1Y (TTM)65.83%
Revenue growth 3Y-7.73%
Revenue growth 5Y20.62%
Sales Q2Q%28.46%
Revenue Next Year-17.61%
Revenue Next 2Y-12.97%
Revenue Next 3Y-8.72%
Revenue Next 5YN/A
EBIT growth 1Y1037.45%
EBIT growth 3Y-24.58%
EBIT growth 5Y85.29%
EBIT Next Year-15.35%
EBIT Next 3Y-19.3%
EBIT Next 5YN/A
FCF growth 1Y-5.39%
FCF growth 3Y-10.68%
FCF growth 5Y57.03%
OCF growth 1Y-7.41%
OCF growth 3Y-14.34%
OCF growth 5Y58.89%