A disrupted supply-chain ecosystem is one of the gravest challenges that businesses across the world are facing today. In such a scenario, understanding market leaders of a capital intensive sector like supply chain could prove to be beneficial for investors.
Taking this into account, today, we will talk about A.P. 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 ships and enjoys a market share of 16.7% (as of April 14, 2022), according to Alphaliner. With over 900 subsidiaries and 95,000 employees, the company operates in more than 130 countries.
Last month, Maersk reported its first-quarter results. Revenues for the quarter stood at $19.3 billion, up 55.1% from the same quarter last year. Earnings for the quarter rose 161.2% year-over-year to $1.81 per share.
The company reported an EBITDA of $9.1 billion, up 125% year-over-year. Meanwhile, the EBITDA margin improved from 32.5% in the year-ago quarter to 47.1%.
The cash and cash equivalents balance of the company rose from $6.4 billion a year ago to $12.1 billion. The company’s dividend yield of 9.26% is way above the sector average of 1.292%.
For 2022, the company forecasts an underlying EBITDA of around $30 billion (previously around $24 billion), an underlying EBIT of roughly $24 billion (previously around $19 billion) and free cash flow (FCF) above $19 billion (previously above $15 billion).
Performance on TipRanks
Maersk scores an 8 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock is likely to outperform the market. Shares of the company have gained 4.4% over the past year.
As per Tipranks, financial Bloggers are 100% Bullish on AMKBY, compared to the sector average of 70%.
Conclusion
Maersk’s solid fundamentals, above-average dividend yield and efficient operations give it the strength to combat market uncertainties and outperform the market.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
