ZIM INTEGRATED SHIPPING SERV (ZIM) Stock Fundamental Analysis
NYSE:ZIM - New York Stock Exchange, Inc. - IL0065100930 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to ZIM. ZIM was compared to 36 industry peers in the Marine Transportation industry. While ZIM has a great profitability rating, there are some minor concerns on its financial health. ZIM is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ZIM was profitable.
ZIM had a positive operating cash flow in the past year.
ZIM had positive earnings in 4 of the past 5 years.
Each year in the past 5 years ZIM had a positive operating cash flow.
1.2 Ratios
ZIM's Return On Assets of 20.48% is amongst the best of the industry. ZIM outperforms 94.44% of its industry peers.
ZIM's Return On Equity of 59.46% is amongst the best of the industry. ZIM outperforms 97.22% of its industry peers.
ZIM has a better Return On Invested Capital (25.24%) than 97.22% of its industry peers.
| 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
The Profit Margin of ZIM (26.53%) is better than 80.56% of its industry peers.
ZIM's Profit Margin has declined in the last couple of years.
ZIM's Operating Margin of 31.32% is fine compared to the rest of the industry. ZIM outperforms 75.00% of its industry peers.
In the last couple of years the Operating Margin of ZIM has grown nicely.
ZIM has a Gross Margin of 34.87%. This is in the lower half of the industry: ZIM underperforms 63.89% 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
ZIM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, ZIM has about the same amount of shares outstanding.
Compared to 5 years ago, ZIM has more shares outstanding
The debt/assets ratio for ZIM has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.25 indicates that ZIM is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of ZIM (2.25) is better than 77.78% of its industry peers.
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.
The Debt to FCF ratio of ZIM (1.46) is better than 83.33% 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.
ZIM has a worse Debt to Equity ratio (1.16) 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 | 2.25 |
ROIC/WACC2.81
WACC8.99%
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 Current ratio (1.18) which is comparable to the rest of the industry.
ZIM has a Quick Ratio of 1.10. 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 Quick ratio of 1.10. This is comparable to the rest of the industry: ZIM outperforms 47.22% of its industry peers.
| 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.
ZIM shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -22.88% yearly.
ZIM shows a strong growth in Revenue. In the last year, the Revenue has grown by 65.83%.
ZIM shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.62% yearly.
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
ZIM is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -27.42% yearly.
Based on estimates for the next years, ZIM will show a decrease in Revenue. The Revenue will decrease by -8.50% on average per year.
EPS Next Y-83.71%
EPS Next 2Y-45.75%
EPS Next 3Y-27.42%
EPS Next 5YN/A
Revenue Next Year-14.59%
Revenue Next 2Y-12.76%
Revenue Next 3Y-8.5%
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 stable.
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
ZIM is valuated cheaply with a Price/Earnings ratio of 0.78.
Compared to the rest of the industry, the Price/Earnings ratio of ZIM indicates a rather cheap valuation: ZIM is cheaper than 100.00% 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 26.85.
The Forward Price/Earnings Ratio is negative for ZIM. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.78 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ZIM is valued cheaply inside the industry as 88.89% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ZIM is valued cheaper than 97.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.46 | ||
| EV/EBITDA | 1.18 |
4.3 Compensation for Growth
The decent profitability rating of ZIM may justify a higher PE ratio.
ZIM's earnings are expected to decrease with -27.42% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-45.75%
EPS Next 3Y-27.42%
5. Dividend
5.1 Amount
ZIM has a Yearly Dividend Yield of 45.73%, which is a nice return.
Compared to an average industry Dividend Yield of 7.06, ZIM pays a better dividend. On top of this ZIM pays more dividend than 100.00% of the companies listed in the same industry.
ZIM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 45.73% |
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-45.75%
EPS Next 3Y-27.42%
15.33
-0.22 (-1.41%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryMarine Transportation
Earnings (Last)
Earnings (Next)
Inst Owners49.31%
Inst Owner Change10.88%
Ins Owners1.17%
Ins Owner ChangeN/A
Market Cap1.85B
Analysts42.67
Price Target15.65 (2.09%)
Short Float %20.31%
Short Ratio4.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 45.73% |
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)0.66%
PT rev (3m)1.99%
EPS NQ rev (1m)-18.77%
EPS NQ rev (3m)-3.12%
EPS NY rev (1m)0%
EPS NY rev (3m)125.31%
Revenue NQ rev (1m)-3.19%
Revenue NQ rev (3m)0.96%
Revenue NY rev (1m)2.87%
Revenue NY rev (3m)8.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.78 | ||
| Fwd PE | N/A | ||
| P/S | 0.21 | ||
| P/FCF | 0.46 | ||
| P/OCF | 0.43 | ||
| P/B | 0.47 | ||
| P/tB | 0.48 | ||
| EV/EBITDA | 1.18 |
EPS(TTM)19.53
EY127.4%
EPS(NY)-2.22
Fwd EYN/A
FCF(TTM)33.32
FCFY217.34%
OCF(TTM)35.54
OCFY231.84%
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 | 2.25 |
F-Score8
WACC8.99%
ROIC/WACC2.81
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-83.71%
EPS Next 2Y-45.75%
EPS Next 3Y-27.42%
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-14.59%
Revenue Next 2Y-12.76%
Revenue Next 3Y-8.5%
Revenue Next 5YN/A
EBIT growth 1Y1037.45%
EBIT growth 3Y-24.58%
EBIT growth 5Y85.29%
EBIT Next Year-11.2%
EBIT Next 3Y-22.75%
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%