Zim Shipping
In the upside-down world of global maritime shipping, shares of Zim Integrated Shipping Inc. (NYSE: ZIM) have tumbled by almost 71% over the past 12 months. The good news is that the Israel-based container shipping firm has a forward dividend yield of 96.2% for the period, slightly above its trailing 12-month dividend of 94.8%. The stock has dropped by almost $70.00 a share, and Zim has paid out $27.65 in dividends for the past four quarters.
The stock’s annual shareholder yield (dividends plus buybacks plus debt paydown) was more than 220% at the end of the prior quarter. Investors who bought Zim stock last June when shares traded at around $40 a share have seen a share price decline of about $22 a share and received dividend payments totaling almost $17 a share.
Zim’s dividend policy comprises a distribution of approximately 30% of net quarterly income in the first three quarters of the year. The annual dividend is expected to total 30% to 50% of annual net income. Zim reports quarterly results first thing Monday morning.
Of seven brokerages covering the company, none has a Buy rating. Four rated the shares at Hold, and the others have a Sell or Strong Sell rating. At a share price of around $18.00, the upside potential based on a median price target of $20.00 is 11.1%. At the high target of $27.00, the upside potential is 50%.
For the company’s first quarter of fiscal 2023, the consensus revenue estimate is $1.59 billion, down 27.6% sequentially and 57.3% lower year over year. Analysts expect an adjusted loss per share of $0.22, compared to EPS of $3.44 in the previous quarter and EPS of $14.19 in the year-ago quarter. For the 2023 fiscal year, estimates call for a net loss of $2.54, compared to 2022 EPS of $38.41. Full-year revenue is forecast at $6.23 billion, down by 50.4%.
Zim stock trades at an enterprise value to sales multiple of 0.5 for each of the next three years, based on annual revenue of $6.23 billion, $6.25 billion and $7 billion in 2023, 2024 and 2025, respectively. The stock’s 52-week range is $16.20 to $71.40. The company pays an estimated annual dividend of $16.95 (yield of 96.2%). Total shareholder return for the past year was negative 47.59%.
Originally published at 24/7 Wall St.
Sponsored: Find a Qualified Financial Advisor
Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.
