ZIM INTEGRATED SHIPPING SERV (ZIM) Stock Fundamental Analysis
NYSE:ZIM - IL0065100930 - Common Stock
13.2 USD
-0.1 (-0.75%)
13.2149 USD
+0.01 (+0.11%)
Overall ZIM gets a fundamental rating of 5 out of 10. We evaluated ZIM against 35 industry peers in the Marine Transportation industry. ZIM scores excellent on profitability, but there are some minor concerns on its financial health. ZIM has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
ZIM had positive earnings in the past year.
ZIM had a positive operating cash flow in the past year.
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 100.00% of its industry peers.
Looking at the Return On Equity, with a value of 59.46%, ZIM belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
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
The Profit Margin of ZIM (26.53%) is better than 82.86% of its industry peers.
In the last couple of years the Profit Margin of ZIM has declined.
ZIM has a Operating Margin of 31.32%. This is in the better half of the industry: ZIM outperforms 77.14% of its industry peers.
ZIM's Operating Margin has improved in the last couple of years.
ZIM has a Gross Margin of 34.87%. This is in the lower half of the industry: ZIM underperforms 62.86% 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.
The number of shares outstanding for ZIM has been increased compared to 5 years ago.
Compared to 1 year ago, ZIM has an improved debt to assets ratio.
2.2 Solvency
ZIM has an Altman-Z score of 2.23. This is not the best score and indicates that ZIM is in the grey zone with still only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.23, ZIM is doing good in the industry, outperforming 77.14% 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.
The Debt to FCF ratio of ZIM (1.46) is better than 80.00% of its industry peers.
ZIM has a Debt/Equity ratio of 1.16. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.16, ZIM is doing worse than 82.86% of the companies in the same industry.
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 | 2.23 |
ROIC/WACC2.89
WACC8.72%
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 60.00% of its industry peers.
A Quick Ratio of 1.10 indicates that ZIM should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.10, ZIM is doing worse than 60.00% 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 1834.88% 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 63.25%.
The Revenue has been growing by 20.62% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)1834.88%
EPS 3Y-22.88%
EPS 5YN/A
EPS Q2Q%-93.83%
Revenue 1Y (TTM)63.25%
Revenue growth 3Y-7.73%
Revenue growth 5Y20.62%
Sales Q2Q%-15.36%
3.2 Future
The Earnings Per Share is expected to decrease by -30.47% on average over the next years. This is quite bad
ZIM is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -10.09% yearly.
EPS Next Y-79.75%
EPS Next 2Y-48.53%
EPS Next 3Y-30.47%
EPS Next 5YN/A
Revenue Next Year-14.65%
Revenue Next 2Y-14.33%
Revenue Next 3Y-10.09%
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
A Price/Earnings ratio of 0.79 indicates a rather cheap valuation of ZIM.
ZIM's Price/Earnings ratio is rather cheap when compared to the industry. ZIM is cheaper than 100.00% of the companies in the same industry.
ZIM is valuated cheaply when we compare the Price/Earnings ratio to 27.03, which is the current average of the S&P500 Index.
ZIM is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.79 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ZIM indicates a rather cheap valuation: ZIM is cheaper than 88.57% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ZIM is valued cheaply inside the industry as 97.14% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.4 | ||
| EV/EBITDA | 1.1 |
4.3 Compensation for Growth
The decent profitability rating of ZIM may justify a higher PE ratio.
A cheap valuation may be justified as ZIM's earnings are expected to decrease with -30.47% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-48.53%
EPS Next 3Y-30.47%
5. Dividend
5.1 Amount
ZIM has a Yearly Dividend Yield of 45.73%, which is a nice return.
The stock price of ZIM dropped by -24.61% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 6.75, 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 2.45, ZIM pays a better dividend.
| 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-48.53%
EPS Next 3Y-30.47%
13.2
-0.1 (-0.75%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryMarine Transportation
Earnings (Last)
Earnings (Next)
Inst Owners49.31%
Inst Owner Change10.87%
Ins Owners1.17%
Ins Owner ChangeN/A
Market Cap1.59B
Analysts42.67
Price Target14.79 (12.05%)
Short Float %15.71%
Short Ratio3.4
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)-5.51%
PT rev (3m)-4.89%
EPS NQ rev (1m)-39.71%
EPS NQ rev (3m)-33.68%
EPS NY rev (1m)24.26%
EPS NY rev (3m)179.96%
Revenue NQ rev (1m)-3.4%
Revenue NQ rev (3m)-4.65%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)3.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.79 | ||
| Fwd PE | N/A | ||
| P/S | 0.18 | ||
| P/FCF | 0.4 | ||
| P/OCF | 0.37 | ||
| P/B | 0.4 | ||
| P/tB | 0.41 | ||
| EV/EBITDA | 1.1 |
EPS(TTM)16.64
EY126.06%
EPS(NY)-3.67
Fwd EYN/A
FCF(TTM)33.32
FCFY252.42%
OCF(TTM)35.54
OCFY269.25%
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 | 2.23 |
F-Score8
WACC8.72%
ROIC/WACC2.89
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)1834.88%
EPS 3Y-22.88%
EPS 5YN/A
EPS Q2Q%-93.83%
EPS Next Y-79.75%
EPS Next 2Y-48.53%
EPS Next 3Y-30.47%
EPS Next 5YN/A
Revenue 1Y (TTM)63.25%
Revenue growth 3Y-7.73%
Revenue growth 5Y20.62%
Sales Q2Q%-15.36%
Revenue Next Year-14.65%
Revenue Next 2Y-14.33%
Revenue Next 3Y-10.09%
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%