ZIM Integrated Shipping, trading under the ticker ZIM on the NYSE, is a prominent player in the marine shipping industry. As part of the industrials category, ZIM has been navigating through turbulent waters, with its recent financials reflecting a net income loss of $2.7 billion. Despite these challenges, the company remains a significant entity in marine transportation, offering investors a unique opportunity to assess its potential for a bullish turnaround. With an EPS estimate of $12.33 for the current year, there is a glimmer of hope that ZIM might stabilize its financial footing. However, the profit margin stands at a negative 33%, indicating that the company still faces substantial hurdles. As investors weigh these factors, the question remains whether ZIM can regain investor confidence and chart a course toward profitability. Currently, ZIM Integrated's Enterprise Value to Sales ratio remains steady compared to last year. By November 20, 2024, the Free Cash Flow Per Share is expected to rise to 8.34, while the Price to Sales Ratio might decrease to 0.22. Although many investors are prioritizing capital preservation over market returns, ZIM Integrated Shipping might stand out as an exception. Let's explore why recent price movements hint at a potential rebound in December. Additionally, I'll highlight some forward-looking indicators that ZIM Integrated investors should keep an eye on as December approaches.
The performance of ZIM Integrated Shipping in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence ZIM Integrated's
stock prices. When investing in ZIM Integrated, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, ZIM Stock can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as ZIM Integrated carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.
And What about dividends?
A dividend is the distribution of a portion of ZIM Integrated earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. ZIM Integrated dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. ZIM one year expected dividend income is about USD3.5 per share.
As of the 28th of November 2024,
Dividends Paid is likely to grow to about (730.7
M). In addition to that,
Dividend Yield is likely to drop to 0.62.
Investing in stocks that pay
dividends, such as stock of ZIM Integrated Shipping, is one of many strategies that are good for long-term investments. Ex-dividend dates are significant because investors in ZIM Integrated must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for ZIM Integrated. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
How important is ZIM Integrated's Liquidity
ZIM Integrated
financial leverage refers to using borrowed capital as a funding source to finance ZIM Integrated Shipping ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. ZIM Integrated financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to ZIM Integrated's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of ZIM Integrated's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between ZIM Integrated's total debt and its cash.
What do experts say about ZIM?
Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
Analysis ConsensusBreaking down the case for ZIM Integrated
ZIM Integrated Shipping retains a total of 120.39 Million
outstanding shares. 30% of ZIM Integrated
outstanding shares are owned by
institutional investors. Institutional investors are typically referred to investors that purchase positions in a given stock to benefit from reduced commissions. Accordingly, institutional investors are subject to different rules and regulations than regular investors. Please look out for any change in current institutional holding as this could mean something significant has changed at the company or is about to change.
Please note that no matter how many assets the company shows, if the real value of the company is less than the current market value, you may not be able to make money on it.
| 2021 | 2022 | 2023 | 2024 (projected) |
Depreciation And Amortization | 779.2M | 1.4B | 1.5B | 1.5B | Interest Income | 150.1M | 96.5M | 119.5M | 125.5M |
Ownership Breakdown
| Retail Investors34.2% | Insiders17.54% | Institutions48.26% |
| Retail Investors | 34.2 |
| Insiders | 17.54 |
| Institutions | 48.26 |
Warren Buffett once noted that the stock market is designed to transfer money from the Active to the Patient. This insight is particularly relevant for ZIM Integrated Shipping (NYSE: ZIM), as the company navigates a challenging landscape with a net income loss of 2.7 billion dollars. Despite these headwinds, investor confidence may find solace in the company's robust cash position of 3.31 billion dollars, which provides a cushion against volatility. With a current ratio of 1.64x, ZIM maintains the ability to cover its short-term obligations, hinting at financial stability amidst market uncertainties. As the marine shipping industry remains pivotal in global trade, patient investors might find potential in ZIM's long-term trajectory, even as short-term challenges persist..
Will ZIM pull back in December 2024?
ZIM Integrated Shipping has recently seen its coefficient of variation soar to over 997.54, indicating a sharp increase in stock volatility. This means investors are facing a bumpy ride, with returns becoming less predictable. As we approach December 2024, this volatility raises concerns about the stock's stability and the possibility of a pullback. Investors should keep a close eye on market trends and company updates, as these will be key in assessing whether ZIM can sustain its current path or if a correction is likely. As of November 20th, ZIM Integrated shows a mean deviation of 3.45, a risk-adjusted performance of 0.0839, and a downside deviation of 4.04. With a Jensen Alpha of 0.4305, it's crucial to evaluate ZIM's market performance to ensure its sustainability into next year.
Our Bottom Line On ZIM Integrated Shipping
Although some other firms within the marine shipping industry are still a little expensive, even after the recent corrections, ZIM Integrated may offer a potential longer-term growth to investors. With a somewhat neutral outlook on your 90 days horizon, it may be better to hold off any trading activity and neither trade new shares of ZIM nor drop your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to ZIM Integrated.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of ZIM Integrated Shipping. Please refer to our
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