A disrupted supply chain ecosystem is one of the most serious challenges facing businesses around the world today. In such a scenario, understanding the market leaders of a capital-intensive industry like supply chain could prove beneficial for investors.
Considering this, today we will talk about AP Møller – Mærsk A/S (AMKBY), popularly known as Maersk, which is one of the largest container shipping companies in the world.
Maersk: a deep dive
Founded in 1904, Maersk has a fleet of 729 vessels and enjoys a market share of 16.7% (as of April 14, 2022), according to Alphaliner. With more than 900 subsidiaries and 95,000 employees, the company is present in more than 130 countries.
Last month, Maersk released its first quarter results. Revenue for the quarter was $19.3 billion, up 55.1% from the same quarter last year. Earnings for the quarter rose 161.2% year-on-year to $1.81 per share.
The company reported EBITDA of $9.1 billion, up 125% year-over-year. At the same time, the EBITDA margin improved from 32.5% in the prior year quarter to 47.1%.
The company’s cash and cash equivalents balance fell to $12.1 billion from $6.4 billion a year ago. The company’s dividend yield of 9.26% is well above the industry average of 1.292%.
For 2022, the company expects underlying EBITDA of approximately $30 billion (previously approximately $24 billion), underlying EBIT of approximately $24 billion (previously approximately $19 billion) and cash flow. free cash flow (FCF) greater than $19 billion (previously greater than $15 billion).
Performance on TipRanks
Maersk scores 8 out of 10 on TipRanks’ Smart Score rating system, indicating the stock is likely to outperform the market. Shares of the company have gained 4.4% over the past year.
According to Tipranks, financial bloggers are 100% bullish on AMKBY, compared to the industry average of 70%.
Maersk’s strong fundamentals, above-average dividend yield and efficient operations give it the strength to fight market uncertainties and outperform the market.
Read full disclosure