1/3/2023 0 Comments Hapag lloyd quick quotesSo I see the strong overreaction to the report as a good opportunity to buy a quality stock with a double-digit yield. Net cash generated from operating activities was $1.71 billion for the second quarter of 2022 (+44.92% YoY) - this is not how a value trap company operates, in my humble opinion.Ī quarterly dividend of $4.75/share will be paid on September 8 (for shareholders of record on August 29 ex-div August 26). It further expects that the cumulative annual dividend amount to be distributed by the company (including the interim dividends paid on account of the first three fiscal quarters of the year) will total 30-50% of its annual net income. But if that were the case, management would not raise the dividend payout from 20% to 30%:Ĭommencing with the dividend for the second quarter of 2022, ZIM intends to distribute a dividend to its shareholders on a quarterly basis at a rate of ~30% of the net quarterly income (up from 20% of net income) of each of the first three fiscal quarters of the year. Such low valuation multiples could theoretically indicate a value trap in a cyclical industry. Operating profit (in the middle of the forecast range) is alone ~6% above the company's current market value, as reported by Seeking Alpha.Īll this is due to the unhealthy valuation of ZIM, which is cheaper than the rest of the industry in almost all key metrics.Īfter today's upcoming drop in quotes, the multiples you see above will be even lower - this will make the already cheap ZIM even cheaper. Hapag lloyd quick quotes full#However, this seems to be fully priced in when we look at the company's forward multiples:įor the full year of 2022, the company is going to generate more EBITDA than its entire enterprise value (forward EBITDA's mid-range of $8 billion vs. In my opinion, the decline in the Drewry Composite World Container Index, which has been ongoing since mid-September 2021, will indeed make ZIM less money than last year. At the same time, its larger and less operationally flexible peers have increased their respective forecast values by about 1/3: New guidance vs. The most important example is that ZIM reiterated its earlier full-year 2022 guidance for adjusted EBITDA of $7.8 billion to $8.2 billion and adjusted EBIT of $6.3 billion to $6.7 billion. But, unfortunately for investors, that did not happen.ĭespite this negative news, I believe that investors should pay attention to the company's guidance, which seems quite conservative compared to other peers. That's why I was surprised by the company's results today - I thought that ZIM would at least not be much worse off compared to other representatives of the industry and beat analysts' forecasts. Source: Author's calculations based on the company's financial statements At the same time, expected revenue growth was roughly in line with the median actual growth rates in the industry: Q2 YoY growth rates I uploaded the growth metrics of the company's top 3 competitors and found that ZIM's Q2 2022 EPS consensus was expected to grow about 2 times weaker than its peers, according to analysts. However, using results from Matson, a direct competitor of the company, we see a discrepancy between those forecasts and the pattern that has existed for many quarters: 1.Īnalysts were estimating ZIM's EPS at $13.22, down 6.84% from Q1 2022. 3 Matson's ( MATX) results were announced on Aug. 11) Maersk released its numbers even earlier - on Aug. Hapag-Lloyd reported Q2 2022 results less than a week ago (Aug. It just so happens that compared to its peers, ZIM reports quite late. Nevertheless, I am getting bullish again and recommending buying this dip as soon as the markets open and the stock price drops even lower. Seeking Alpha, ZIM's main page, author's notes Today, however, we see that ZIM Integrated Shipping's report turned out to be much worse than analysts had predicted - the trading algorithms apparently punished the stock heavily for this: Seeking Alpha, my previous article on ZIM Now we see how that thesis has proven true, even if the stock was not more robust than the S&P 500: Last time, in my article on ZIM Integrated Shipping ( NYSE: ZIM), I described the thesis that quotations have most likely bottomed out and should most likely push off to grow again because there were (and are) fundamental reasons for that. Frederick Doerschem/iStock via Getty Images My Thesis
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