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: Tips for Investing
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
