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1. Company Snapshot

1.a. Company Description

Hapag-Lloyd Aktiengesellschaft, together with its subsidiaries, operates as a liner shipping company worldwide.Its vessel and container fleets are used for the transportation of general and special cargo, various dangerous goods, and coffee, as well as reefer cargo covering pharmaceuticals.The company also offers bilateral EDI, a directly connected electronic data interchange; operates an e-commerce portal that provides real-time access to transport data, as well as services to manage customer's supply chain data and connect to their carriers through one interface;mobile app that allows to manage shipping process; and provides e-mail and security information services.


In addition, it provides inland container transportation services through truck and train.As of December 31, 2021, the company's fleet comprised 253 container ships with a total capacity of 1.8 million twenty-foot equivalent unit (TEU); and a container capacity of approximately 3.1 million TEU.Hapag-Lloyd Aktiengesellschaft was founded in 1847 and is headquartered in Hamburg, Germany.

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1.b. Last Insights on HLAG

Hapag-Lloyd's recent performance was negatively impacted by a 3.1% decline in first-half net income to €709 million, driven by geopolitical uncertainty, higher tariffs, and costly alternatives to the Suez route. The company's Q2 2025 earnings revealed a significant drop in EPS to €1.47 from €2.44 in 2Q 2024. Hapag-Lloyd has lowered its full-year earnings forecast, citing uncertainty from global tensions and volatile freight rates. The company plans to implement $1 billion in cost cuts, driven by its phase-in into the Gemini Cooperation vessel-sharing alliance with Maersk.

1.c. Company Highlights

2. Hapag-Lloyd's Strong Volume Growth Amidst Challenging Market Conditions

Hapag-Lloyd reported a 9% growth in volumes to 10.2 million boxes, outpacing the market rate, and revenue increased by 5% to $15.7 billion in the Liner segment, driven by above-market volume growth, particularly in the Gemini trades. However, EBIT in the Liner segment declined to $858 million from $1.9 billion in the same period last year. Group EBIT reached $905 million, and group profit totaled $946 million, with earnings per share (EPS) coming in at $0.77, significantly better than the estimated -$0.6082. The company's Terminal & Infrastructure (T&I) segment saw revenue increase by 15% to $375 million, with EBIT at $46 million.

Publication Date: Nov -14

📋 Highlights
  • Volume Growth and Revenue Increase: Transported 10.2 million boxes (+9% YoY), driving Liner segment revenue to $15.7B (+5% YoY).
  • EBIT Decline Amid Cost Pressures: Liner EBIT fell to $858M (from $1.9B YoY), while Terminal & Infrastructure revenue rose 15% to $375M with $46M EBIT.
  • New Ship Investments: Plans to invest in 22 new ships (2028–2029) to replace aging vessels, cut charter costs, and support decarbonization.
  • Cost Savings and EBIT Outlook: Targeting $350–400M Gemini cost savings by 2026 and $1.1B+ total savings by 2027, with EBIT outlook midpoint slightly raised.

Operational Highlights and Future Plans

Hapag-Lloyd plans to invest in up to 22 new ships, mainly in smaller vessel classes, with deliveries expected in 2028 and 2029, aiming to replace tonnage going out of service, reduce exposure to high time charter rates, and support decarbonization efforts. The company is focusing on leveraging the Gemini performance to grow its business at adequate pricing, achieving cost savings, and maintaining high customer satisfaction. They also plan to expand their Terminal division through acquisitions and investments, currently operating in 22 terminals.

Cost Savings and Margin Expansion

The company targets $350-400 million in cost savings from Gemini in 2026 and $1.1 billion+ from its cost program, with most of the latter effective in 2026 and the full amount in 2027. As CFO Mark Frese mentioned, "expecting $350-400 million cost savings from Gemini in 2026," reinforcing the potential for margin expansion. Operational costs are expected to come down, with cost inflation in 2026 forecasted to be in the low mid-single-digit range, more than 2%, without measures.

Valuation and Outlook

With a P/E Ratio of 8.51 and an EV/EBITDA of 4.61, Hapag-Lloyd's valuation appears reasonable, considering its strong volume growth and cost savings initiatives. Analysts estimate next year's revenue growth at -6.7%, but the company's accumulated growth over the past two years is around 11%. The current order book remains high, and the company anticipates strong growth in 2025, slightly above previous expectations. The Dividend Yield stands at 7.17%, making it an attractive option for income investors.

3. NewsRoom

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Is Now The Time To Look At Buying Hapag-Lloyd Aktiengesellschaft (ETR:HLAG)?

Dec -02

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Maersk: No timeline for Red Sea return

Nov -26

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Earnings Miss: Hapag-Lloyd Aktiengesellschaft Missed EPS By 56% And Analysts Are Revising Their Forecasts

Nov -16

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Trade volatility hits Hapag-Lloyd profits

Nov -13

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Hapag-Lloyd CEO: Container Demand ‘Stronger Than We Anticipated’

Nov -13

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Auto & Transport Roundup: Market Talk

Nov -13

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Hapag-Lloyd AG (HPGLY) Q3 2025 Earnings Call Highlights: Navigating Growth Amidst Cost Pressures

Nov -13

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Auto & Transport Roundup: Market Talk

Nov -13

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.35%)

6. Segments

Liner Shipping

Expected Growth: 6.4%

Growing demand for efficient transportation of goods, increasing globalization, and rising e-commerce sales drive Hapag-Lloyd’s liner shipping growth, ensuring reliable and efficient transportation of goods.

Terminal & Infrastructure

Expected Growth: 4.2%

Increasing containerization, growing demand in emerging markets, and investments in digitalization and sustainability drive Hapag-Lloyd’s terminal and infrastructure segment growth.

Transition

Expected Growth: 7.5%

Hapag-Lloyd AG's strategic shift towards digitalization, operational efficiency, and customer-centricity drives growth, fueled by increasing demand for efficient logistics solutions, and the company's efforts to expand its digital platform

7. Detailed Products

Container Shipping

Hapag-Lloyd offers container shipping services for a wide range of cargo, including dry bulk, refrigerated, and project cargo.

Reefer Cargo

Hapag-Lloyd provides specialized reefer cargo services for temperature-controlled cargo, including perishable goods and pharmaceuticals.

Project Cargo

Hapag-Lloyd offers customized project cargo services for oversized, heavy, or complex cargo, including wind turbines and construction equipment.

Intermodal Services

Hapag-Lloyd provides intermodal services, including trucking, rail, and inland waterway transportation, to connect ports with inland destinations.

Specialized Cargo

Hapag-Lloyd offers specialized cargo services for unusual or high-value cargo, including cars, yachts, and heavy machinery.

Digital Services

Hapag-Lloyd provides digital services, including online booking, tracking, and monitoring, to simplify the shipping process.

8. Hapag-Lloyd Aktiengesellschaft's Porter Forces

Forces Ranking

Threat Of Substitutes

Hapag-Lloyd operates in a highly competitive industry, and customers have various alternatives for their shipping needs. However, the company's strong brand reputation and extensive network of routes and services help to mitigate the threat of substitutes.

Bargaining Power Of Customers

Hapag-Lloyd's customers, including large retailers and manufacturers, have significant bargaining power due to their large volumes and ability to negotiate rates. This puts pressure on the company's pricing and profitability.

Bargaining Power Of Suppliers

Hapag-Lloyd has a diverse supplier base, and the company's large scale of operations gives it significant bargaining power over its suppliers. This helps to reduce costs and improve profitability.

Threat Of New Entrants

The shipping industry has significant barriers to entry, including high capital costs, regulatory hurdles, and the need for specialized expertise. This limits the threat of new entrants and helps to protect Hapag-Lloyd's market position.

Intensity Of Rivalry

The shipping industry is highly competitive, with many established players competing for market share. This intense rivalry puts pressure on Hapag-Lloyd's pricing, profitability, and market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 21.21%
Debt Cost 4.79%
Equity Weight 78.79%
Equity Cost 10.38%
WACC 9.19%
Leverage 26.92%

11. Quality Control: Hapag-Lloyd Aktiengesellschaft passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Maersk

A-Score: 6.9/10

Value: 9.2

Growth: 5.7

Quality: 5.2

Yield: 10.0

Momentum: 8.0

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Volvo

A-Score: 6.1/10

Value: 4.7

Growth: 6.4

Quality: 4.4

Yield: 9.4

Momentum: 5.0

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
Costamare

A-Score: 6.0/10

Value: 8.9

Growth: 6.9

Quality: 6.3

Yield: 8.1

Momentum: 2.5

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
Star Bulk Carriers

A-Score: 5.5/10

Value: 6.2

Growth: 5.2

Quality: 4.9

Yield: 8.8

Momentum: 3.0

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
Hapag-Lloyd

A-Score: 5.4/10

Value: 7.6

Growth: 5.7

Quality: 5.7

Yield: 9.4

Momentum: 1.5

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
Saint-Gobain

A-Score: 5.2/10

Value: 4.8

Growth: 5.8

Quality: 4.3

Yield: 4.4

Momentum: 6.5

Volatility: 5.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

118.6$

Current Price

118.6$

Potential

-0.00%

Expected Cash-Flows