ZIM Integrated Shipping's stock seems overpriced at $16.65 per share, with only modest growth expected. It has a performance score of 9 out of 100, indicating weak performance. The company's market beta is 0.24, suggesting its stock price doesn't fluctuate much compared to the broader market. This means that while ZIM's returns might not rise as much as the market during bullish periods, its losses could also be less severe during downturns. To make an informed decision about ZIM's potential for a rebound, consider reviewing its value at risk and examining the relationship between its skewness and day median price.
Top Findings
ZIM Integrated Shipping, trading on the NYSE, has caught the attention of investors looking for a potential bullish shift. Despite facing a challenging year with an EPS estimate of 1.01 loss for the next year, the company shows resilience with a robust operating margin of 24.33%. This suggests that while short-term earnings might be under pressure, the company's operational efficiency could provide a foundation for future growth, especially if investor confidence continues to build.
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.
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?
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. It is good to see analyst projects for ZIM Integrated, but it might be worth checking our own buy vs. sell analysis
ZIM Integrated Gross Profit
ZIM Integrated Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing ZIM Integrated previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show ZIM Integrated Gross Profit growth over the last 10 years. Please check ZIM Integrated's gross profit and other fundamental indicators for more details.
Breaking 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.
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
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