Download PDF

1. Company Snapshot

1.a. Company Description

ZIM Integrated Shipping Services Ltd., together with its subsidiaries, provides container shipping and related services in Israel and internationally.It provides door-to-door and port-to-port transportation services for various types of customers, including end-users, consolidators, and freight forwarders.The company also offers ZIMonitor, a premium reefer cargo tracking service.


As of December 31, 2021, it operated a fleet of 118 vessels, which included 110 container vessels and 8 vehicle transport vessels, of which four vessels were owned by it and 114 vessels are chartered-in; and network of 70 weekly lines.The company was incorporated in 1945 and is headquartered in Haifa, Israel.

Show Full description

1.b. Last Insights on ZIM

ZIM Integrated Shipping Services Ltd.'s recent performance was driven by several positive factors. The company's Q3 earnings, although missing estimates, showed a solid financial position, with $1.78 billion in revenues and $123 million in net income. Additionally, ZIM's board of directors is exploring "potential value creation alternatives," including a possible buyout offer involving its current CEO. The company's forward P/E ratio and P/B ratio are attractive, at 5.83x and 0.515x, respectively. A strategic review is underway, shifting focus from dividends to deal value.

1.c. Company Highlights

2. ZIM's Q3 Results: A Mixed Bag Amidst Volatile Market Conditions

ZIM Integrated Shipping Services Ltd.'s third-quarter 2025 financial results revealed a revenue decline of 36% to $1.8 billion, driven by lower freight rates and volume. The company's adjusted EBITDA margin stood at 33%, while the adjusted EBIT margin was 15%. Earnings per share (EPS) came in at $1.02, missing analyst estimates of $1.67. The company's net income was $123 million, and it declared a dividend of 31¢ per share, representing 30% of the quarter's net income.

Publication Date: Nov -23

📋 Highlights
  • Q3 Financial Performance:: Revenue $1.8B, net income $123M, adjusted EBITDA $593M (33% margin), and adjusted EBIT $260M (15% margin).
  • Dividend Distribution:: Declared $37M dividend (30% of Q3 net income) and $1.1B total dividend in 2025, with cumulative IPO-to-date dividends reaching $5.7B.
  • 2025 EBITDA Guidance:: Revised to $2B–$2.2B, reflecting year-to-date performance, with adjusted EBIT guidance of $700M–$900M.
  • Fleet Expansion & Sustainability:: 115 ships (709,000 TEUs) and contracted 10 LNG dual-fuel vessels (11,500 TEUs) for delivery in 2027–2028.
  • Cash Flow & Debt Management:: Q3 free cash flow of $574M (vs. $1.5B in 2024) and total debt reduced by $369M since 2024 year-end.

Financial Performance and Guidance

ZIM's financial performance was impacted by the challenging market conditions, with the company revising its fourth-quarter guidance due to weaker-than-expected market conditions. However, the company expects to generate adjusted EBITDA between $2 billion and $2.2 billion and adjusted EBIT between $700 million and $900 million for 2025, primarily based on its performance year-to-date. As Xavier Destriau, ZIM's CFO, noted, "the reduction is due to increased amortization from new vessels and equipment upgrades."

Operational Highlights and Strategy

ZIM has been focusing on expanding and diversifying its network to capture new opportunities as global trade patterns evolve. The company has established a strong foothold in Southeast Asia and Latin America, capturing new trade flows and growing volumes. ZIM has also secured a significant charter agreement for 10 LNG dual-fuel vessels, which will enhance the sustainability and competitiveness of its capacity.

Valuation and Dividend Yield

With a P/E Ratio of 1.02 and a Dividend Yield of 45.09%, ZIM's valuation appears to be influenced by its dividend payout policy. The company's ROE stands at 50.68%, indicating strong profitability. The EV/EBITDA ratio is 1.73, suggesting that the company's enterprise value is relatively low compared to its EBITDA. The Net Debt / EBITDA ratio is 1.21, indicating a manageable debt burden.

Outlook and Challenges

ZIM's outlook remains cautious, with growth in supply expected to outpace the growth in demand in the foreseeable future. The order book has continued to grow, and vessel scrapping has been minimal over the past five years. However, the industry's decarbonization agenda may accelerate scrapping of older vessels, which will become increasingly less economically viable. Analysts estimate next year's revenue growth at -15.0%, indicating a challenging environment for the company.

3. NewsRoom

Card image cap

ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) Receives Consensus Rating of “Strong Sell” from Brokerages

Dec -03

Source: defenseworld.net

Card image cap

ZIM: Now Is A Good Time To Sell (Rating Downgrade)

Dec -02

Source: seekingalpha.com

Card image cap

ZIM Updates on Withholding Tax Procedures on December 2025 Cash Dividend

Dec -01

Source: prnewswire.com

Card image cap

American Century Companies Inc. Boosts Holdings in ZIM Integrated Shipping Services Ltd. $ZIM

Nov -29

Source: defenseworld.net

Card image cap

Want $4,000 per Year in Passive Income? Invest Just $2,500 in These Big-Yield Dividend Stocks

Nov -26

Source: 247wallst.com

Card image cap

ZIM Integrated Shipping Shares Are Trending Overnight: Here's Why

Nov -26

Source: feeds.benzinga.com

Card image cap

Why Zim Integrated Shipping Services Stock Zoomed Nearly 14% Higher Today

Nov -25

Source: fool.com

Card image cap

ZIM Integrated Q3: Let Your Profit Run

Nov -25

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.43%)

6. Segments

Containerized Cargo

Expected Growth: 6%

ZIM's containerized cargo growth is driven by increasing global trade, particularly in the e-commerce and retail sectors. Rising demand for fast and reliable shipping services, coupled with ZIM's strategic partnerships and investments in digitalization, have enabled the company to capitalize on this trend. Additionally, ZIM's focus on niche markets and specialized cargo has contributed to its growth momentum.

Other

Expected Growth: 4%

ZIM's 'Other' segment growth is driven by increased demand for logistics services, expansion into new markets, and strategic partnerships. Additionally, the company's focus on digitalization and operational efficiency has led to cost savings and improved customer experience, further boosting growth.

Non-containerized Cargo

Expected Growth: 3%

ZIM's non-containerized cargo growth is driven by increasing demand for project cargo, breakbulk, and Ro-Ro services. Stronger global trade, infrastructure development, and rising energy demand are key contributors. Additionally, ZIM's strategic partnerships, expanded fleet, and enhanced operational efficiency have enabled the company to capitalize on these trends, resulting in a 3% growth rate.

7. Detailed Products

Containerized Cargo Shipping

ZIM provides containerized cargo shipping services for a wide range of goods, including dry goods, refrigerated cargo, and project cargo.

Reefer Cargo Services

ZIM offers specialized reefer cargo services for temperature-controlled cargo, ensuring the integrity of perishable goods during transportation.

Project Cargo Services

ZIM provides customized project cargo services for oversized, heavy, or complex cargo, including engineering, logistics, and transportation solutions.

Breakbulk Cargo Services

ZIM offers breakbulk cargo services for non-containerized cargo, including steel, pipes, and other oversized or heavy cargo.

Intermodal Services

ZIM provides intermodal services, including door-to-door transportation, customs clearance, and inland transportation solutions.

Customs Brokerage Services

ZIM offers customs brokerage services, including customs clearance, compliance, and trade consulting.

8. ZIM Integrated Shipping Services Ltd.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for ZIM Integrated Shipping Services Ltd. is medium due to the availability of alternative modes of transportation such as air freight and trucking.

Bargaining Power Of Customers

The bargaining power of customers for ZIM Integrated Shipping Services Ltd. is high due to the presence of large multinational corporations that have significant negotiating power.

Bargaining Power Of Suppliers

The bargaining power of suppliers for ZIM Integrated Shipping Services Ltd. is low due to the company's large scale of operations and its ability to negotiate favorable terms with suppliers.

Threat Of New Entrants

The threat of new entrants for ZIM Integrated Shipping Services Ltd. is low due to the high barriers to entry in the shipping industry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry for ZIM Integrated Shipping Services Ltd. is high due to the competitive nature of the shipping industry, with many established players competing for 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 41.85%
Debt Cost 7.96%
Equity Weight 58.15%
Equity Cost 11.58%
WACC 10.07%
Leverage 71.96%

11. Quality Control: ZIM Integrated Shipping Services Ltd. passed 1 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
ZIM Shipping

A-Score: 5.8/10

Value: 10.0

Growth: 6.7

Quality: 6.9

Yield: 10.0

Momentum: 1.0

Volatility: 0.3

1-Year Total Return ->

View Full Report
Stock-Card
StealthGas

A-Score: 5.2/10

Value: 9.0

Growth: 7.2

Quality: 7.6

Yield: 0.0

Momentum: 4.0

Volatility: 3.3

1-Year Total Return ->

View Full Report
Stock-Card
HHLA

A-Score: 5.0/10

Value: 6.0

Growth: 2.6

Quality: 2.4

Yield: 3.8

Momentum: 8.0

Volatility: 7.3

1-Year Total Return ->

View Full Report
Stock-Card
Irish Continental

A-Score: 4.7/10

Value: 4.2

Growth: 7.3

Quality: 6.1

Yield: 4.4

Momentum: 4.0

Volatility: 2.3

1-Year Total Return ->

View Full Report
Stock-Card
DFDS

A-Score: 3.3/10

Value: 8.7

Growth: 5.3

Quality: 1.3

Yield: 1.2

Momentum: 0.5

Volatility: 2.7

1-Year Total Return ->

View Full Report
Stock-Card
EuroDry

A-Score: 2.4/10

Value: 8.0

Growth: 2.9

Quality: 0.4

Yield: 0.0

Momentum: 0.5

Volatility: 2.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

20.03$

Current Price

20.03$

Potential

-0.00%

Expected Cash-Flows