Equity Research Analysis: ZIM Integrated Shipping Services Ltd. (ZIM)
|Blank Capital Research Unit|Spot: $29.05
Price$29.05
Composite Score66.4/100
RatingBUY (4★)
Rank#222 OF 7,333
Market Cap$2.6B
P/E Ratio
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ZIM Integrated Shipping Services Ltd. provides container shipping and related services in Israel and internationally. As of December 31, 2021, it operated a fleet of 118 vessels, which included 110 container vessels and 8 vehicle transport vessels. The company was incorporated in 1945 and is headquartered in Haifa, Israel.
Transportation, Communications, Electric, Gas, And Sanitary Services
Transportation
$2.57B
5.9K
Eliyahu Glickman
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Attractive yield supported by strong profitability.
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| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$UGP ULTRAPAR HOLDINGS INC | 79 | 90 | 95 | 87 | - | - | 29.5% | 5.7% | 7.3% | 3.8% | 1.9% | -16.9% | 4.9% | 22.0x | $2.8B | VS | |
$TNK TEEKAY TANKERS LTD. | 78 | 94 | 97 | 82 | - | - | 24.4% | 20.6% | 67.0% | 30.9% | 32.8% | -16.6% | 7.6% | 0.0x | $1.3B | VS | |
$DHT DHT Holdings, Inc. | 75 | 84 | 88 | 78 | - | - | 17.5% | 12.2% | 54.8% | 36.8% | 31.7% | 2.0% | 10.9% | 40.0x | $1.5B | VS | |
$STNG Scorpio Tankers Inc. | 75 | 86 | 95 | 74 | - | - | 24.7% | 16.6% | 63.1% | 61.5% | 53.8% | -7.2% | 3.3% | 30.0x | $2.6B | VS | |
$NAT NORDIC AMERICAN TANKERS Ltd | 75 | 82 | 88 | 87 | - | - | 8.9% | 5.5% | 64.4% | 22.1% | 13.3% | -10.7% | 18.0% | 53.0x | $465M | VS | |
$AMX AMERICA MOVIL SAB DE CV/ | 74 | 86 | 81 | 68 | - | - | 5.8% | 1.5% | 61.1% | 20.7% | 3.2% | -13.7% | 3.5% | 202.0x | $44.7B | VS | |
$PAC Pacific Airport Group | 73 | 94 | 80 | 78 | - | - | 35.2% | 10.8% | 84.4% | 44.8% | 26.4% | -18.0% | 5.6% | 81.0x | $8.5B | VS | |
$GSL Global Ship Lease, Inc. | 73 | 82 | 94 | 81 | - | - | 26.7% | 15.6% | 100.0% | 53.7% | 50.1% | 5.8% | 7.7% | 47.0x | $753M | VS | |
$TRMD TORM plc | 73 | 86 | 94 | 65 | - | - | 32.7% | 19.3% | 58.8% | 40.9% | 38.0% | 2.5% | 30.1% | 59.0x | $1.7B | VS | |
$VIV TELEFONICA BRASIL S.A. | 73 | 82 | 90 | 78 | - | - | 7.0% | 4.0% | 43.9% | 15.5% | 10.0% | -15.9% | 5.6% | 0.0x | $12.5B | VS | |
$ZIM ZIM Integrated Shipping Services Ltd. | 66 | 86 | 97 | 67 | 1.6x | 0.5x | 213.4% | 75.6% | 33.0% | 30.0% | 25.6% | 63.2% | 22.4% | 117.0x | $2.6B | ||
| SECTOR BENCH | - | - | - | - | - | 16.9x | 6.1x | 11.9% | 3.5% | 55.1% | 17.6% | 10.4% | 4.0% | 1.5% | 1.0x | - | REF |
ZIM Integrated Shipping Services Ltd. (ZIM) receives a "Buy" rating with a composite score of 66.4/100. It ranks #222 out of 7,333 stocks in our coverage universe and carries a 4-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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Eliyahu Glickman
Chief Executive Officer
Labor Force
5,930
86
28
19
Audit Verdict: Lower quality and stability scores may indicate governance concerns.
No recent insider transactions available for ZIM
Outperforming peers — winners tend to keep winning over 3-12 months
Trading at a discount to fundamentals — favorable entry valuation
High profitability & efficiency — strong quality floor supports entry
High volatility — wider range of outcomes increases timing risk
Aggressive spending — empire-building risk, dilutive growth
Top-rated overall — multiple factors aligned for strong entry
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Relative valuation derived from Transportation, Communications, Electric, Gas, And Sanitary Services sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for ZIM.
View All RatingsYOY expansion rate
Core pricing power
Operating efficiency
Bottom-line conversion
Equity capital efficiency
Asset base utilization
Financial leverage load
Direct cash return
Earnings well-supported by fundamental cash flows
Material decline in asset turnover efficiency detected
High margin volatility — erratic forensic earnings quality
Capital Income Projection
A $10,000 capital deployment would generate approximately $2240 annually in verified dividends.
| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 86 | 96 | -10DRAG |
| MOMENTUM | 67 | 75 | -8DRAG |
| VALUATION | 97 | 99 | -2NEUTRAL |
| INVESTMENT | 28 | 19 | +9ALPHA |
| STABILITY | 19 | 13 | +6ALPHA |
| SHORT INT | 54 | 59 | -5NEUTRAL |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROIC 72.6% vs WACC 9.8% (spread +62.9%)
GM 33% vs sector 55%, OM 30% vs sector 18%
Capital turnover 2.48x
Rev growth 63%, 5yr history
Interest coverage 5.4x, Net debt/EBITDA 0.9x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
ZIM Integrated Shipping Services Ltd. receives a Buy rating with a composite score of 66.4/100 and 4 out of 5 stars, ranking #222 of 7,333 stocks in our universe. ZIM displays a favorable combination of factors that positions it above the majority of the market. While not without risk, the quantitative profile supports a constructive outlook.
ZIM Integrated Shipping Services Ltd. scores an outstanding 86/100 on our quality factor, placing it among the highest-quality companies in our coverage universe. The company reports a return on equity of 213.4% (sector avg: 11.9%), gross margins of 33.0% (sector avg: 55.1%), net margins of 25.6% (sector avg: 10.4%). This level of profitability and capital efficiency typically reflects a durable competitive advantage and disciplined management.
From a valuation perspective, ZIM scores an exceptional 97/100, indicating the stock trades at a deep discount relative to its fundamentals. Key valuation metrics include a P/E ratio of 1.61x, an EV/EBITDA of 0.47x, a P/B ratio of 0.87x. A value score this high suggests the market may be significantly underpricing the company's earnings power, assets, or cash flow generation.
ZIM Integrated Shipping Services Ltd.'s investment score of 28/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of 63.2% vs. a sector average of 4.0% and a return on assets of 75.6% (sector: 3.5%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
ZIM demonstrates moderate momentum with a score of 67/100, suggesting a neutral price trend without strong directional conviction. Revenue growth stands at 63.2% year-over-year, while a beta of 1.47 reflects its sensitivity to broader market moves. Moderate momentum may indicate the stock is consolidating or transitioning between trends, warranting close monitoring of upcoming catalysts.
ZIM Integrated Shipping Services Ltd. registers a low stability score of 19/100, indicating high volatility and potentially stressed financial conditions. Key stability metrics include a beta of 1.47 and a debt-to-equity ratio of 117.00x (sector avg: 1.0x). Stocks at this level carry elevated capital loss risk and may be unsuitable for conservative portfolios without careful risk management.
The short interest score of 54/100 for ZIM suggests somewhat elevated bearish positioning by institutional traders. Specific risk factors include above-average market sensitivity (beta: 1.47), elevated leverage (D/E: 117.00x). With a $2.6B market cap (mid-cap), ZIM Integrated Shipping Services Ltd. may experience above-average volatility. Investors should consider whether the short thesis has merit or if it creates a potential short-squeeze opportunity.
ZIM Integrated Shipping Services Ltd. offers an attractive dividend yield of 22.4%, placing it among the higher-yielding stocks in its peer group. This compares to a sector average dividend yield of 1.5%. A yield this high can provide meaningful income, but investors should verify the payout is sustainable by examining the payout ratio, free cash flow coverage, and any history of dividend cuts.
ZIM Integrated Shipping Services Ltd. is a mid-cap company in the Transportation, Communications, Electric, Gas, And Sanitary Services sector, ranked #38 of 50 in its sector (24th percentile) and #222 of 7,333 overall (97th percentile). Key comparisons include ROE of 213.4% exceeding the 11.9% sector median and operating margins of 30.0% above the 17.6% sector average. This bottom-quartile standing highlights significant competitive headwinds within the Transportation, Communications, Electric, Gas, And Sanitary Services space.
Quant Factor Profile
Key factor gap
Value (97) vs Stability (19) — closing this gap could shift the rating.
RANK #38 OF 50 IN UTILITIES
EV/EBITDA 92% BELOW SECTOR MEDIAN (FAVORABLE)
ROE 1688% ABOVE SECTOR MEDIAN (FAVORABLE)
Gross Margin 40% BELOW SECTOR MEDIAN
AUDIT DATA AS OF DEC 31, 2024 (Q3 FY2024)
We rate ZIM Integrated Shipping Services Ltd. (ZIM) as a Buy with a composite score of 66.4/100 at a current price of $29.05. The stock scores above average across the majority of our six quantitative factors and ranks #222 out of 7,333 stocks in our universe, reflecting a favorable risk-reward profile.
The rating is primarily driven by strength in value (97th percentile) and quality (86th percentile), which together account for the majority of the composite score. Offsetting weakness in stability (19th percentile) and investment (28th percentile) tempers our overall conviction. We assign a Narrow Moat rating (56/100), High uncertainty, and Exemplary capital allocation.
Key items to watch: balance sheet deleveraging progress; sustainability of the current growth rate. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is stable, which suggests the competitive landscape is stable for now.
ZIM Integrated Shipping Services Ltd. holds a lower-quartile position (#38 of 50) within the Transportation, Communications, Electric, Gas, And Sanitary Services sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 66.4/100 places it at rank #222 in our full 7,333-stock universe. At $2.6B in market capitalization, ZIM Integrated Shipping Services Ltd. is a mid-cap player in the Transportation, Communications, Electric, Gas, And Sanitary Services space, which limits certain scale advantages but may allow for more agile strategic execution.
The near-term outlook is constructive, with revenue growing at 63% and momentum in the 67th percentile confirming positive market sentiment and institutional accumulation. The combination of strong top-line growth and favorable price dynamics suggests the company is executing well on its growth strategy. Investment factor at the 28th percentile indicates reinvestment patterns that investors should monitor for sustainability.
The margin cascade tells an important story: gross margins of 33% (-22.1pp vs sector) narrow to operating margins of 30% (+12.4pp vs sector) and net margins of 25.6%, yielding a gross-to-net conversion rate of 77%. This efficient conversion suggests well-controlled operating costs and limited margin leakage between the gross and net levels.
At a current price of $29.05, ZIM Integrated Shipping Services Ltd. appears undervalued relative to its fundamentals. Our value factor score of 97/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. The stock screens as attractively priced on a majority of these measures, suggesting the market may be underappreciating the underlying fundamentals.
The stock currently trades at a P/E of 1.6x (a 90% discount to the sector median of 16.9x), EV/EBITDA of 0.5x (discounted to peers), P/B of 0.9x, P/S of 0.1x. The below-sector P/E suggests possible undervaluation or the market pricing in near-term headwinds.
The stock's Buy rating (composite score 66.4/100) reflects broad-based quantitative strength, placing it in the top 20% of our 7,333-stock universe.
Returns on equity of 213.4% exceed the cost of equity for most companies, indicating genuine shareholder value creation and a reinvestment engine that compounds wealth over time.
Revenue growth of 63% confirms the business is expanding its addressable market — growth at this level typically supports multiple expansion and attracts institutional capital.
A value factor score of 97/100 suggests the market is underpricing these fundamentals, creating a potential margin of safety for new investors.
Positive momentum (67th percentile) indicates institutional accumulation and favorable technical dynamics that tend to persist in the intermediate term.
We assign a High uncertainty rating to ZIM Integrated Shipping Services Ltd.. Key risk factors include elevated market sensitivity (beta of 1.47), significant leverage (117% debt-to-equity), below-average price stability (19th percentile). The wide range of potential outcomes widens our fair value estimate and increases the possibility of permanent capital impairment. Investors considering this name should size positions accordingly and demand a meaningful margin of safety before initiating.
Specific risk factors that inform our assessment include: elevated market sensitivity (beta of 1.47); significant leverage (117% debt-to-equity); below-average price stability (19th percentile). Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 19th percentile and quality factor at the 86th percentile provide a quantitative summary of the overall risk landscape.
Key risk mitigants include: a 22.40% dividend yield anchors total return. These factors partially offset the identified risks and provide downside protection in adverse scenarios. On balance, the risk-reward profile warrants caution and disciplined position management.
We rate ZIM Integrated Shipping Services Ltd.'s capital allocation as Exemplary. Management demonstrates a strong track record of balancing reinvestment with shareholder returns, evidenced by returns on equity of 213.4%, a 22.40% dividend yield, best-in-class net margins of 25.6%. Exemplary allocators typically generate returns on equity above 20% while maintaining debt-to-equity below 50% — ZIM Integrated Shipping Services Ltd. meets this high bar.
The balance sheet remains conservatively managed, providing financial flexibility for opportunistic investments while maintaining a margin of safety for shareholders. The company returns capital via a 22.40% dividend yield, and the combination of 75.6% return on assets and controlled leverage suggests management is deploying capital at rates well above the cost of capital — the hallmark of exemplary stewardship.
In summary, ZIM Integrated Shipping Services Ltd. receives a Buy rating with a composite score of 66.4/100 (rank #222 of 7,333). Our quantitative framework assigns a Narrow Moat (56/100, trend: stable), High uncertainty, and Exemplary capital allocation. The average factor score across quality, value, momentum, stability, and investment is 59/100.
Our analysis supports a constructive view on ZIM Integrated Shipping Services Ltd.. The combination of identifiable competitive advantages, high uncertainty, and exemplary capital allocation creates a risk-reward profile that favors accumulation at current levels. We recommend investors consider adding this name to portfolios aligned with the stock's risk profile.
Analysis derived from Blank Capital Research quantitative terminal. For informational purposes only. No trade solicitation. Past performance not indicative of future results. Consult a qualified advisor.
We assign ZIM Integrated Shipping Services Ltd. a Narrow Moat rating with a composite moat score of 56/100. The ROIC-WACC spread of +62.9% is the primary signal of economic value creation. The company possesses identifiable competitive advantages, though they are less entrenched than those of wide-moat peers. Our analysis indicates that ZIM Integrated Shipping Services Ltd. can sustain above-average returns on invested capital for at least 10 years, with the strongest contributor being economic value creation at 15/20.
The strongest moat sources are economic value creation (15/20) and growth durability (13.8/20). ROIC 72.6% vs WACC 9.8% (spread +62.9%). Rev growth 63%, 5yr history. These pillars form the core of ZIM Integrated Shipping Services Ltd.'s competitive identity and are the primary drivers of excess returns in our framework.
Areas of relative weakness include margin superiority (6.9/20) and reinvestment efficiency (7.9/20). GM 33% vs sector 55%, OM 30% vs sector 18%. Improvement in these areas could meaningfully widen the moat over time, while deterioration would be an early warning of competitive erosion.
Our moat trend assessment is Stable. Multi-year ROIC and operating margin trajectories show neither meaningful improvement nor deterioration, suggesting the competitive position is steady. We expect ZIM Integrated Shipping Services Ltd.'s moat profile to remain largely unchanged absent a material shift in return on capital or industry dynamics.
Key profit drivers include operating margins of 30% reflecting effective cost management, robust top-line growth of 63% expanding the revenue base, returns on equity of 213.4% driving shareholder value creation. The margin cascade from 33% gross to 30% operating to 25.6% net reveals the company's cost structure and reinvestment intensity. Our analysis indicates that the profit engine is high-quality and likely sustainable, with the quality factor at the 86th percentile.
The margin profile shows gross margins of 33%, operating margins of 30%, net margins of 25.6%. Return metrics include ROE of 213.4% and ROA of 75.6%. Relative to the Transportation, Communications, Electric, Gas, And Sanitary Services sector, gross margins are 22.1 percentage points below the sector median of 55%, and ROE of 213.4% compares to a sector median of 11.9%.
The balance sheet reflects above-average leverage with D/E of 117%, a dividend yield of 22.40%, revenue growth of 63%. The sector median D/E is 1%, putting ZIM Integrated Shipping Services Ltd. at higher leverage than the typical peer. Overall balance sheet health is adequate for the current business environment.
Elevated leverage (117% D/E) amplifies downside risk and limits management's financial flexibility in adverse scenarios.
High beta of 1.47 means amplified losses in market selloffs — in a broad market correction, this stock would likely decline more than the index.
The U.S. economy grew 4.3% in Q3, beating expectations and pushing Treasury yields higher, which dampens prospects for early Fed rate cuts in 2026. While strong consumer spending supports earnings, the market is rotating away from mega-cap tech toward financials, defense, and materials. The S&P 500 holds near records with modest gains, while the Nasdaq pauses after recent strength. Metals surge on structural demand, and GLP-1 leader Novo Nordisk rallies on FDA approval of its obesity pill.
U.S. stock futures pared earlier gains on Tuesday as investors await delayed Q3 GDP and durable goods reports. Major indices showed mixed performance with SPY and QQQ slightly lower in premarket trading. Key movers included Parsons (contract award), ZIM (acquisition proposals), Trump Media (Bitcoin purchase), and XMax (public offering). Markets are pricing an 80.1% likelihood of unchanged Fed rates, with a truncated trading week ahead.
Hapag-Lloyd has agreed to acquire ZIM Integrated Shipping Services in a proposed $4.2 billion deal. The transaction includes a carve out of Israeli focused assets and the creation of a separate "New ZIM" controlled by FIMI Opportunity Funds. The structure is designed to address Israeli national security and regulatory requirements, while consolidating global container shipping capacity. ZIM Integrated Shipping Services (NYSE:ZIM), recently closing at $29.27, is entering a new chapter as it...
Hapag Lloyd has agreed to acquire ZIM Integrated Shipping Services (NYSE:ZIM) in a US$4.2b transaction. The deal includes the creation of a "New ZIM" entity to retain key operations and interests in Israel. The transaction is subject to regulatory, shareholder, and governmental approvals, with labor strikes and Israel's golden share considerations in focus. ZIM operates as a global container shipping company, and this deal places it at the center of one of the larger consolidation moves in...
ZIM Integrated Shipping surged 33.56% in premarket trading after announcing a merger agreement with Hapag-Lloyd, which will acquire ZIM for $35.00 per share in cash, valuing the company at $4.2 billion. The deal represents a 58% premium to ZIM's February 13 closing price and is expected to close by late 2026. The acquisition will make Hapag-Lloyd the fifth-largest container shipping company globally.
Above 50MA
37.18%
Net New Highs
+51081