Investing in ZIM Integrated Shipping (USA Stocks:ZIM) may seem attractive at first glance, with a robust Return On Assets (ROA) of
10.76% and a healthy Profit Margin of
16.08%. However, it's important to note that the company's Jensen Alpha, a risk-adjusted measure of a stock's excess return, stands at a loss of
0.77, indicating that the stock may not be performing as well as expected given its level of risk. Additionally, ZIM's Operating Margin is in the negative territory at a loss of
0.13, suggesting inefficiencies in the company's operational management. Given these factors, potential investors should exercise caution and conduct further due diligence before considering ZIM as a wise investment choice.
Top Findings
The asset utilization indicator refers to the revenue generated for every dollar of assets a company currently holds. ZIM Integrated has an asset utilization ratio of 108.05 percent. This implies that the company is generating $1.08 for each dollar of assets. An increase in asset utilization indicates that ZIM Integrated Shipping is becoming more efficient with each dollar of assets it employs in its daily operations.
What is the right price you would pay to acquire a share of ZIM Integrated? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the
future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our
stock advisor page.
What is happening with ZIM Integrated Shipping this year
Annual and quarterly reports issued by ZIM Integrated Shipping are formal
financial statements that are published yearly and quarterly and sent to ZIM stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the
Securities and Exchange Commission (SEC) for businesses owned by the public since 1934.
Companies such as ZIM Integrated often view their annual report as an effective marketing tool to disseminate their perspective on company
future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.
ZIM Integrated Gross Profit
ZIM Integrated Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing ZIM Integrated previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show ZIM Integrated Gross Profit growth over the last 10 years. Please check ZIM Integrated's
gross profit and other
fundamental indicators for more details.
Is ZIM a risky opportunity?
Let's check the volatility. ZIM is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind ZIM (USA Stocks:ZIM) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. obtaining a share of a ZIM Integrated stock makes you a part-owner of that company.
ZIM Integrated Shipping Current Consensus
Here is the recent trade recommendation based on an ongoing consensus estimate among financial analysis covering ZIM Integrated Shipping. The ZIM consensus assessment is calculated by taking the average estimates from all of the analysts covering ZIM Integrated.
| Strong Buy1 | Hold2 | Sell1 | Strong Sell1 |
| Strong Buy | 1 | 20.0 |
| Buy | 0 | 0.0 |
| Hold | 2 | 40.0 |
| Sell | 1 | 20.0 |
| Strong Sell | 1 | 20.0 |
In the world of finance, it's often said that "the trend is your friend". ZIM Integrated Shipping (USA Stocks:ZIM), a player in the Marine Shipping industry, seems to be defying this adage with a recent analyst consensus. Despite a promising net income of
4.63 billion and a robust cash flow from operations of
6.11 billion, the company's operating margin stands at a loss of 0.13. The company's current ratio of 1.64X suggests a healthy short-term liquidity position, but the negative net interest income of 148.4 million raises concerns about its debt servicing capabilities. The company's shares are also heavily shorted, with a short percent of 0.1997, indicating that a significant portion of the market is betting against the stock. Considering these factors, while ZIM Integrated Shipping shows some positive signs, it also carries substantial risks. Therefore, potential investors should tread carefully and consider their risk tolerance before investing.
Over 3 percent roll up for ZIM Integrated. What does it mean for insiders?
The recent decrease in the Coefficient Of Variation to -415.6 for ZIM Integrated Shipping Services Ltd. could potentially signal an impending price decline. Despite the stock's increase of over 3 percent, this statistical measure may suggest heightened volatility and risk. Insiders, especially those contemplating purchasing more shares or maintaining their current positions, should closely monitor this situation. This could be a crucial time to reevaluate the risk-reward balance of their investment in ZIM Integrated. ZIM Integrated Shipping displays very low volatility with a skewness of 0.48 and kurtosis of 1.08. However, we recommend investors to further examine ZIM Integrated Shipping's technical indicators to ensure all market information is available and reliable. Understanding different
market volatility trends often assists investors in timing the market. Proper use of volatility indicators allows traders to measure ZIM Integrated's stock risk against market volatility during both bullish and bearish trends.
The heightened level of volatility that accompanies bear markets can directly affect
ZIM Integrated's stock price, adding stress to investors as they witness their shares' value decrease. This typically compels investors to rebalance their portfolios by purchasing different stocks as prices drop. In conclusion, the current
market sentiment towards ZIM Integrated Shipping Services Ltd. appears to be quite bearish, with the Analyst Overall Consensus indicating a 'Sell' recommendation. The company's Valuation Real Value is at
$9.82, which is lower than the Analyst Highest Estimated Target Price of
$14. This suggests that the stock may be overvalued at its current price. Moreover, the Posible Downside Price is $4.12, indicating a significant potential for loss. With only one Analyst Number of Strong Buys against one each of Strong Sells and Sells, the outlook is not promising. Therefore, based on these data points, it seems that ZIM Integrated may continue to be a risky investment that could potentially erode your capital. .
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Aina Ster is a Member of Macroaxis Editorial Board. Aina delivers weekly perspective on ongoing market and economic trends, analysis and tips from predictive analysis to forecasting across various financial instruments.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Aina Ster do not own shares of ZIM Integrated Shipping. Please refer to our
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