- ZIM Integrated Shipping reported fourth-quarter revenue of $2.17 billion, which exceeded market estimates of $2.05 billion, marking an 80% increase year-over-year.
- Earnings per share (EPS) rose to $4.66 from a loss of $1.23 per share in the previous year, surpassing the expected $3.50.
- The company’s adjusted EBIT was $658 million, a significant improvement from a loss of $49 million the previous year, exceeding the forecasted $540.2 million.
- Adjusted EBITDA reached $967 million, a significant rise from $190 million year-over-year, outperforming the estimated $854.4 million.
- Adjusted EBIT margin increased to 30% from negative 4% the previous year.
- Adjusted EBITDA margin improved to 45% from 16% year-over-year.
- Carried volumes reached 982,000 TEUs, representing a 25% increase year-over-year.
- The average freight rate per TEU climbed to $1,886, a 71% increase year-over-year.
- The company projects 2025 adjusted EBITDA between $1.6 billion and $2.2 billion and adjusted EBIT between $350 million and $950 million, contingent on trade conditions in the Red Sea normalizing by the second half of the year.
- The company’s stock currently has 1 buy rating, 2 hold ratings, and 5 sell ratings.
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ZIM Integrated Shipping Services on Smartkarma
On Smartkarma, investment analyst Daniel Hellberg has been providing bearish insights on ZIM Integrated Shipping Services. In his research reports, such as the ‘Monthly Container Shipping Tracker’ series, Hellberg emphasizes the declining price momentum in container shipping. He suggests shorting container carriers like ZIM due to expectations of sharp rate and profitability declines in 2025-26. Despite a brief respite in December, Hellberg remains negative on container shipping, predicting further rate decreases amidst factors like unsustainably strong US imports and the potential reopening of the Suez Canal.
Furthermore, Hellberg recommends a high conviction trade of shorting ZIM against a long position in China Merchants Port Holdings, citing weakening container shipping price momentum. By pairing these positions, investors can capitalize on the expected softening of ZIM’s performance in correlation with price momentum trends. Overall, Daniel Hellberg‘s analyses on Smartkarma indicate a pessimistic outlook on ZIM Integrated Shipping Services and the broader container shipping segment for the medium term.
A look at ZIM Integrated Shipping Services Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 5 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts using the Smartkarma Smart Scores system have given ZIM Integrated Shipping Services a strong overall outlook. With top scores in both the Value and Dividend categories, ZIM showcases its financial stability and potential for long-term returns. Although the Growth and Resilience scores are slightly lower, indicating moderate growth and resilience levels, the company still remains robust in these areas. The Momentum score, while the lowest among the factors, suggests a slower pace of positive change. ZIM Integrated Shipping Services, a provider of shipping services globally, continues to demonstrate its expertise in multi-modal transport, cargo handling, and other related services.
ZIM Integrated Shipping Services‘ impressive scores in Value and Dividend emphasize its solid financial foundation and commitment to providing returns to investors. While the Growth and Resilience scores hint at room for improvement, the company’s wide range of services, including tariff management and schedule information, position it well for future growth. Although the Momentum score lags behind, ZIM Integrated Shipping Services remains a key player in the shipping industry, offering essential services to clients worldwide. Overall, the company’s robust performance in key areas bodes well for its long-term prospects in the competitive shipping market.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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