ZIM Integrated Shipping Services Ltd. Fundamental Analysis
ZIM Integrated Shipping Services Ltd. (ZIM) shows weak financial fundamentals with a PE ratio of 31.56, profit margin of 1.56%, and ROE of 2.49%. The company generates $6.3B in annual revenue with weak year-over-year growth of -18.07%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 12.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ZIM's fundamental strength across five key dimensions:
Efficiency Score
WeakZIM struggles to generate sufficient returns from assets.
Valuation Score
ModerateZIM shows balanced valuation metrics.
Growth Score
WeakZIM faces weak or negative growth trends.
Financial Health Score
ModerateZIM shows balanced financial health with some risks.
Profitability Score
ModerateZIM maintains healthy but balanced margins.
Key Financial Metrics
Is ZIM Expensive or Cheap?
P/E Ratio
ZIM trades at 31.56 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ZIM's PEG of -0.33 indicates potential undervaluation.
Price to Book
The market values ZIM Integrated Shipping Services Ltd. at 0.81 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.82 times EBITDA. This is generally considered low.
How Well Does ZIM Make Money?
Net Profit Margin
For every $100 in sales, ZIM Integrated Shipping Services Ltd. keeps $1.56 as profit after all expenses.
Operating Margin
Core operations generate 6.03 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.49 in profit for every $100 of shareholder equity.
ROA
ZIM Integrated Shipping Services Ltd. generates $0.93 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
ZIM Integrated Shipping Services Ltd. generates strong operating cash flow of $1.63B, reflecting robust business health.
Free Cash Flow
ZIM Integrated Shipping Services Ltd. generates strong free cash flow of $1.46B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $12.08 in free cash annually.
FCF Yield
ZIM converts 47.03% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
31.56
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.33
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.81
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.49
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.43
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.19
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.009
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How ZIM Stacks Against Its Sector Peers
| Metric | ZIM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 31.56 | 25.90 | Worse (Expensive) |
| ROE | 2.49% | 1248.00% | Weak |
| Net Margin | 1.56% | -35020.00% (disorted) | Weak |
| Debt/Equity | 1.43 | 0.74 | Weak (High Leverage) |
| Current Ratio | 1.19 | 9.99 | Neutral |
| ROA | 0.93% | -1489331.00% (disorted) | Weak |
ZIM outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews ZIM Integrated Shipping Services Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
72.49%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
-7.74%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
106.66%
Industry Style: Cyclical, Value, Infrastructure
High Growth