Zim Integrated Shipping Services Ltd.

ZIM Integrated Shipping Services Ltd. (NYSE: ZIM) is an asset-light container shipping company based in Israel which offers multi-modal cargo handling, tariff management, schedule information, and other related services globally.

Key Highlights

• The company reported a surge of 111.89% in total revenue to USD 1.74 billion in Q1FY21 (ended March 31, 2021) compared to USD 823.22 million in Q1FY20.
• ZIM reported a net income of USD 589.59 million in Q1FY21 in contrast to a net loss of USD 11.92 million in Q1FY20.
• On August 09, 2021, ZIM partnered with Data Science Group (DSG) to set up a Centre of Excellence to research artificial intelligence and machine learning to evaluate and develop AI projects integrated with ZIM’s operations.
• On July 06, 2021, ZIM signed a long-term charter for ten 7000 TEU Dual-Fuel LNG containership vessels of ~USD 1.5 billion with Seaspan Corporation, a subsidiary of Atlas Group.
• ZIM’s Net margin for Q1FY21 was 33.8%, higher than the industry median of 18.6%.
• The Debt/Equity ratio (including lease liabilities) as of Q1FY21 was 2.03x, making a significantly leveraged balance sheet. The peer median stood at 0.88x.
• The company’s ordinary shares were listed on NYSE on January 28, 2021, at an issue price of USD 15.00 per share.
• ZIM’s share price has increased 119.86% in the past six months.
• The stock is currently trading above its crucial short-term 50-day SMA support levels, a bullish indicator.
• Stock is currently leaning towards the higher end of the 52-week range of USD 11.34 to USD 49.90.

Technical Price Chart (as of August 17, 2021). Analysis by Kalkine

Conclusion: Considering the significant uptick in the stock price, we believe the current share price adequately reflects the robust business fundamentals and have chosen to remain on the sidelines. Hence, we recommend an “Expensive” rating on the stock at the closing price of USD 45.51, up 1.93% as of August 17, 2021.

*The reference data in this report has been partly sourced from REFINITIV.