Hapag-Lloyd AG, HLAG GR : Valuations discounting challenging market environment
We believe the near-to-medium term outlook for the container shipping industry is marred by oversupply, which will continue to plague the sector in the foreseeable future. However, Hapag Lloyd’s well-diversified presence across routes reduces the risk from the slump on a particular trade lane. The company is among the top five liner companies in capacity terms, and its large scale of operations accompanied by synergies from cost saving programmes will ensure that it remains profitable despite the challenging business environment.
We rate HL as Attractive, with a fair value of EUR 21 and a P/B multiple of 0.48 with an upside potential of 21%. We believe HL is trading at a discount to the industry average. We attribute this to the expectation of a challenging container market. HL is currently trading at EUR 17.55 and a one-year forward P/B of 0.4x. The company scores a Green light on Drewry’s bespoke value and and an Orange light on risk ranking, indicating an Attractive valuation and Medium risk.
Drewry, since 1970, has been providing research and advisory services on the global Maritime and Shipping industries and has established itself as a firm with long history of credibility and expertise on various aspects of the maritime industry. Leveraging this in-depth market knowledge and understanding, we have extended our offering to deliver a unique, independent investment research service on globally listed companies operating in the maritime industry. Under the brand Drewry Maritime Equity Research and in accordance with the FCA, DMER led by Rahul Kapoor and his team, offers fundamental analysis on listed companies. DMER analysts have access to one of the most up-to-date, comprehensive and reliable sources of market insight and research data available today. By combining these market-leading resources with seasoned sector expertise and commercial awareness, we are able to offer a highly differentiated and comprehensive investment research service to prospective investors in listed maritime companies. We look at globally listed companies within the following sectors: Port Operators, Container Shipping, Container Manufacturing & Leasing, LNG Shipping, Dry Bulk Shipping and Tanker Shipping. Combine in-depth sector expertise with financial analysis focusing on over 50 stocks globally.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.