ZIM Stock Fair Value Calculator – ZIM Integrated Shipping Services Sees Freight Rates Soar Following Red Sea Attacks
January 5, 2024
🌧️Trending News
ZIM ($NYSE:ZIM) Integrated Shipping Services, a global leader in the container shipping industry, has seen significant growth in freight rates following two attacks on commercial vessels in the Red Sea earlier this month. The attacks, which were attributed to Iranian-backed Houthi rebels, resulted in increased tensions throughout the region. As a result, container shipping companies have seen freight rates soar in an effort to protect their vessels from further attacks. ZIM Integrated Shipping Services is a leading global transportation and logistics provider based in Haifa, Israel. It is the world’s tenth largest container shipping company, providing international customers with reliable and cost-effective cargo shipping solutions. The company also offers a range of services such as door-to-door delivery, online tracking, and shipment consolidation. In light of the recent Red Sea attacks, ZIM Integrated Shipping Services has taken steps to ensure the safety of its vessels by increasing security measures and raising freight rates.
This has resulted in a sharp increase in both its short and long-term profits. The company is also exploring ways to reduce the impact of the attacks on its customers by looking for new routes and exploring new technologies to streamline operations. ZIM Integrated Shipping Services has reacted quickly and efficiently to this situation by increasing security measures and raising freight rates. This has enabled the company to remain profitable in the face of increased security risks, while providing reliable and cost-effective shipping solutions for its customers.
Stock Price
On Thursday, ZIM Integrated Shipping Services saw its stock soar an impressive 11.0% from the prior closing price of $12.3, opening at $12.8 and closing at $13.6. This dramatic increase in the stock’s value was triggered by the attacks in the Red Sea on two Saudi Arabian tankers, as well as other ships, on Sunday. The attacks drove up freight rates in the area, as well as other water around the world, which has a direct impact on the shipping and logistics services that ZIM Integrated Shipping Services provides.
The company is expected to benefit from the increased demand for services, as well as the higher freight rates associated with their services. The increased demand for services is likely to have a positive effect on the company’s financial performance going forward. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for ZIM. More…
| Total Revenues | Net Income | Net Margin |
| 6.15k | -2.13k | -35.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for ZIM. More…
| Operations | Investing | Financing |
| 1.93k | 895.3 | -3.2k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for ZIM. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 8.19k | 5.62k | 21.36 |
Key Ratios Snapshot
Some of the financial key ratios for ZIM are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 21.1% | 276.7% | -28.0% |
| FCF Margin | ROE | ROA |
| 29.7% | -29.0% | -13.1% |
Analysis – ZIM Stock Fair Value Calculator
At GoodWhale, we recently conducted an analysis of ZIM Integrated Shipping Services’ wellbeing. After researching the company’s financials and market values, we determined that the intrinsic value of their share is about $20.9, which we calculated using our proprietary Valuation Line. Currently, ZIM Integrated Shipping Services’ stock is being traded at $13.6, which represents an undervaluation of 34.8%. More…
Peers
ZIM Integrated Shipping Services Ltd. is a leading international container shipping company. The company offers its customers a wide range of logistics and transportation services. ZIM operates a modern fleet of vessels and a network of offices and representatives around the world. The company’s competitors include Danaos Corp, Navios Maritime Partners LP, and Global Ship Lease Inc.
– Danaos Corp ($NYSE:DAC)
Danaos Corporation is a global provider of container shipping services. The Company’s vessels transport containers throughout the world, carrying cargo for international shipping lines, including Maersk Line, CMA CGM, COSCO, OOCL, and China Shipping, among others. As of March 31, 2021, the Company owned and operated a fleet of 73 containerships with a capacity of approximately 544,000 TEU.
– Navios Maritime Partners LP ($NYSE:NMM)
Navios Maritime Partners is a publicly traded partnership formed to own and operate vessels in the dry bulk and containership markets. The company’s vessels transport a variety of commodities including iron ore, coal, grain, and containers. Headquartered in Piraeus, Greece, Navios Maritime Partners has a diversified fleet of 62 vessels with a total capacity of 7.6 million deadweight tons. The company’s vessels are employed on short- and medium-term charters to various charterers including major mining companies, steel producers, and agricultural trading houses.
– Global Ship Lease Inc ($NYSE:GSL)
As of 2022, Ship Lease Inc has a market cap of 644.71M and ROE of 26.29%. The company is engaged in the business of operating a fleet of container vessels that provide international seaborne container transportation services.
Summary
ZIM Integrated Shipping Services (ZIM) experienced a surge in ocean freight rates on the same day that its stocks moved up upon news of the Red Sea ship attacks. This indicates a positive outlook on ZIM as investors are presumably confident that the company will capitalize on these increased freight rates and benefit from the current market conditions. ZIM shareholders can expect to see increased profits as a result of this escalation in ocean freight rates. Furthermore, with the current market forecasts and the company’s history of success, ZIM shareholders can feel confident about the future of the company and their investment.
