Hey everybody. I want to talk to you about zim integrated shipping, and i want you to look at this thick pranks page. This is randy givens he's from jefferies he's ranked 130 out of 781 analysts on tip ranks. His success rate is 57 and his average return right now is 31.5.

As you can see, he covers a lot of these shipping companies. The contenders companies - i mean you know these names if you're in this industry dinos would be one of them. Obviously, and he gets the right look. 707 correct ratings average return, 326 percent now the same with zim.

Now. What you should notice here is that zim is the most upsided investment in his coverage: 81 upside a hundred and twenty dollars per share. Now i'm going to say right now right here, i do not share his enthusiasm. I don't think it's a 120 stock, but i do see a nice little 15 to 25 upside by the end of this year.

This is not going to be a long-term hold like a volunteer or a tesla, because this is a very cyclical, seasonal business. I mean containers and shipping, it's a very fluctuating business. There's no long-term growth plan here right, but the stars are aligning for them to make another run, i think, and in this market, i'll take it. So if you look at his profile, he made night predictions for them.

Nine out of nine were profitable made 111 was covering since what looks like march 2021 so about a year ago. So the you know, obviously the numbers are impressive. Now i will be honest with you: the stock has ran up quite significantly about 70 in the past 12 months, but what you are not seeing here is it actually already peaked. It started in the low 60s right here in the beginning of the year.

It then went up all the way to 84 85. 86 88. You can see right here and then it dropped off back to the 60s, even the 50s, and now it's climbing back up right now, it's at 68 and 20 cents, and the bottom line of this video is always the bottom line comes first. Is that um? I think that this stock is a very interesting stock.

To consider this scenario, i think it has a nice upside and, as my good friend gabe from my community or one of my moderators, who brought me this stock and who did the preliminary research says? Yes, if we can get it under 70 bucks, i believe that this would be a very interesting stock to ride all the way through 2022, all the way to the end of the year dividend, which should be quite significant, as i'm about to show you. Of course everything i'm saying here: it's not financial advice, it's just my own opinion, which might be inaccurate and have been many times before, but i'm happy to share this with you. If you want to listen, but of course, if you you know want to make your own decisions, you got to do your research and talk to professionals, so you know do it at your own risk, so this company is very interesting and for a few reasons, the One thing i want to show you here is that, yes, they have run up quite significantly 71 percent, but there already was almost 90 they're back to 66 768. So definitely there's room for it to grow profitability wise the company is killing margins.

I'm going to show you in a second they're, adjusted ebit, which is just insane 64 percent, almost 64 gross margin, ebitda margin, 54.6 net income margin 43.2, and look at this levered free cash flow margin. This is insane 33. Now, what's even insane about this more than you would assume is that this company is a straight lease back-to-back business, so zim doesn't really own any vessels, except maybe four and the rest of its 100 plus fleet is just leased so in the leasing business back to Back the margins usually are not that good, because you have another player in the game and want to get a piece of the pie. So these margins are absolutely insane and the reason they're enjoying these insane margins and i'm going to show you what it looks like if you go to the to the filings, so they'll show you here the adjusted ebit.

So what happens here is that you see the actual net income and then what they actually take out here is the depreciation amortization, because those are not cash flow items. These are tax benefits, it's basically and the irs, giving you an opportunity to pay less tax. In your profits, because of loss of value on your own assets, so when you utilize that you go to ebid, which is basically earnings before interest and tax, because interest and tax are definitely should be accounting for, since they are cash flow items. So we're looking at adjusted ebit margin of 54.

Now this is where i want you to pay attention. Last year we had 18, which is where the usually these margins are for these sort of companies. So what happened here a massive spike and it's obviously covered induced? It's obviously supply chain shortage induced all of that is true, but it will continue for this company. It seems like because of their structure of leasing.

So while everybody were asleep at the wheel, not sure what to do with containers, what to do with vessels, these guys went out and aggressively closed long-term leases on containers on on on vessels and basically bought everything up and now because they they're cheap. Their margins are, as you can see, going through the roof instead of 524 million, they did essentially 10 extra profits because essentially, what they did here is just they leased all these vessels for cheap, and now they have it for a few more years and they're, taking Advantage of this hot boiling market at their cheap leases, just a beautiful play checkmate to the industry pretty much so these margins will definitely persist as long as the charter costs or do not considerably crash, which i don't expect them to with everything is going on in The world right now with the supply chain, shortages and everything, so it doesn't seem very, very likely that that might happen now. The other thing i want you to look at here is that the company is not trading that expensive, so price to sales forward, which means for the next 12 months is under one point. Sixty six uh ev sales is point.

Sixty eight eveda is one point two forward one. So this is not an expensive company. In fact, it's quite heavily discounted still considering how good earnings and the profits are. As you can see, it gets an a plus here for a good reason.

Now. This company is also a dividend monster now, if you haven't, if you haven't seen it yet, you should check it out. These are the payout ratios and the annual uh numbers here is. This is not a mistake: their qualities are insane and their end of year dividend tends to be a little bit higher and q1 march 22nd paid out 17.

I believe that as the year progresses, they'll pay out more and more, and you see the payout ratio here is over 50. This is a dividend beast and as long as they can maintain profitability, the dividend stays and that's kind of their policy going forward. So this will give you a nice little cushion. The company doesn't really miss earnings even before this latest spike, as you've seen, the company did spike, but look it's been beating earnings quite consistently since the beginning of 2021 and here's the most interesting part.

If you look at their financials, you can see the spike right here from 4 to 10.7. That's definitely, you know pandemic induced and all that stuff will happen for sure, but it's not going to go away so fast because of the things i just told you about. Now, what i want you to pay attention to here is this the balance sheet. So this is a very interesting balance sheet, so the company is sitting on right here: total cash and investments of 3.6 billion dollars.

If i scroll down what you're going to see is the amount of debt the company has total debt is 3.3 billion, so 3.3 billion total debt with 3.6 total cash. So it has more cash, not more assets, more cash than that, which means it can repay its debt any given time, which is a very, very smart thing to have definitely in the pandemic, definitely an impending recession in the volatility that we are right now and as Far as the other assets they have here in the books, it's pretty much cash. I mean total receivables, that's cash. As long as you can collect it.

I mean it's not 100, but it's money that people owe you inventory is obviously not, but i mean in all honesty those five billion you're seeing here in assets. They don't have any goodwill, it's actual money for the most part, so four billion of it is definitely straight up money, maybe even more now, if you look at the structure of the liabilities, so you'll see that they have total abilities of where the total ability is Hold on, let me find the second current liabilities, long-term liabilities, total abilities, 5.2 billion and then total assets of 9.8, so double assets versus liabilities, um a healthy cash flow, a healthy balance sheet. Let's look at the cash flow and yeah. You can definitely see this back in the past year, 4.6 billion net change in cash, as you can see right here, pretty much tripling since 20 to 20 21..

So, ideally, what you would think here is that as long as this company can and will maintain the margins, then it should allow this nice little dividend yield. You can see here here, 29.5, it's 19.5 to persist and the share price will also probably kiss the mid 70s. Maybe low 80s depends on the amount of dividends it's going to get announced, but then again look there's no certainties in life. It seems like this stock at a price that it's currently at about 70 bucks.

I do agree with my subscriber and patreon and the community manager gabe that under 70 that this is a very interesting stock to research, especially in this market. There's not a lot of good. You know deals right now, so this seems to be like one of the very interesting deals that i advise you guys to check out. I'm not a huge fan of the container in the shipping business because of how seasonal this and how cyclical it is.

But this seems to be on the right wave and as long as china actually loosens up their covert issues and restarts their ports, i mean we might see another positive catalyst for this stock as well as you can see, it's been running up quite nicely over the Past you know day or so i don't really care about that. For me, it's you know it's a 75 80 stock. If you buy that 67 68, 69 or 70 you're still going to make a nice little penny on it. Of course, there's nothing guaranteed in life, except for taxes and death.

I mean this is a very interesting bet to consider. Thank you very much, quick video low production value today, i'm sorry, i just wanted to give you the information before it spice. You know spikes up or whatever happens with it or maybe it will go down who knows, but you know wanted to share my opinion before the day starts. Thank you so much to see the next video.