AP Moller - Maersk (AMKBY) AI Stock Analysis

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AP Moller - Maersk

(OTC:AMKBY)

Rating:85Outperform

Price Target:

$11.00

▲(13.52%Upside)

AP Moller - Maersk scores highly due to strong financial stability, robust technical indicators, and attractive valuation. While profitability has declined, the company's low P/E ratio and high dividend yield enhance its investment appeal. Despite positive earnings results, uncertainties from geopolitical tensions and market growth outlook moderate the overall score.

AP Moller - Maersk (AMKBY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$30.65B

Dividend Yield8.08%

Average Volume (3M)273.32K

Price to Earnings (P/E)4.3

Beta (1Y)0.72

Revenue Growth14.70%

EPS Growth349.95%

CountryUS

Employees100,000

SectorIndustrials

Sector Strength87

IndustryMarine Shipping

Share Statistics

EPS (TTM)0.37

Shares Outstanding1,214,478,000

10 Day Avg. Volume129,216

30 Day Avg. Volume273,325

Financial Highlights & Ratios

PEG Ratio0.02

Price to Book (P/B)0.64

Price to Sales (P/S)0.00

P/FCF Ratio1.35

Enterprise Value/Market Cap1.52

Enterprise Value/Revenue0.22

Enterprise Value/Gross Profit0.82

Enterprise Value/Ebitda-1.35

Forecast

1Y Price Target

$1,853.18

Price Target Upside19024.66% Upside

Rating ConsensusModerate Sell

Number of Analyst Covering0

AP Moller - Maersk Business Overview & Revenue Model

Company DescriptionA.P. Moller - Maersk (AMKBY) is a global leader in shipping and logistics, headquartered in Copenhagen, Denmark. The company operates in multiple sectors including container shipping, ports, and logistics services. Maersk is renowned for its extensive fleet of container vessels and its comprehensive supply chain solutions, serving businesses worldwide with efficient and sustainable transport and logistics services.

How the Company Makes MoneyA.P. Moller - Maersk makes money primarily through its ocean and logistics services. The company's largest revenue stream is its container shipping business, where it charges customers for transporting goods across international waters using its vast fleet of container ships. Additionally, Maersk generates revenue through its terminal operations by providing port services, such as loading and unloading of cargo. The company also earns income from its logistics and services segment, which includes supply chain management, freight forwarding, and warehousing solutions. Key factors contributing to Maersk's earnings include its strategic partnerships with global trade entities, investment in digitalization for efficient operations, and its focus on sustainable practices to meet growing environmental standards.

AP Moller - Maersk Earnings Call Summary

Earnings Call Date:May 08, 2025

(Q1-2025)

% Change Since: 12.94%|

Next Earnings Date:Aug 07, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mixed picture, with Maersk achieving significant financial performance and operational improvements in Q1 2025. However, external challenges such as trade tensions and revised market growth expectations create an uncertain outlook for the future.

Q1-2025 Updates

Positive Updates

Strong Financial Performance in Q1 2025

Maersk reported an EBITDA of $2.7 billion and an EBIT of $1.3 billion for Q1 2025, demonstrating solid performance despite a challenging environment.

Terminals Segment Achievements

The Terminals segment saw a 23% year-on-year revenue increase, driven by higher revenue per move and strong volume growth, particularly in North America, Latin America, and Europe. The EBIT margin for Terminals reached 32%.

Logistics & Services EBIT Margin Improvement

Logistics & Services achieved an EBIT margin of 4.1%, significantly improving from the previous year and on track to reach the target of 6% during 2025.

Robust Free Cash Flow

Free cash flow increased substantially to $806 million, supported by stronger earnings and disciplined working capital management.

Shareholder Returns

Maersk returned $2.5 billion to shareholders through dividends and share buybacks in Q1 2025, up from $1.5 billion in the same quarter last year.

Negative Updates

Revised Container Volume Growth Outlook

Maersk revised its container market volume growth expectation to be between -1% and +4% for 2025, down from a previously expected around 4% due to increased macroeconomic and geopolitical uncertainties.

Decline in China-U.S. Trade Volumes

China-U.S. volumes dropped by 30% to 40% in April, affecting overall performance. This lane makes up 5% of Maersk's total volume.

Ongoing Trade Tensions Impacting Outlook

The escalation in U.S.-China trade relations and unresolved tariff issues are contributing to a volatile environment and uncertain outlook for the rest of the year.

Fulfilled by Maersk Negative EBITDA

The Fulfilled by Maersk business segment continued to deliver negative EBITDA, although measures are being taken to improve profitability.

Company Guidance

During the first quarter of 2025, A.P. Møller - Mærsk reported robust financial performance, achieving an EBITDA of $2.7 billion and an EBIT of $1.3 billion, despite a volatile environment. The company maintained a strong EBIT margin of 4.1% in its Logistics & Services segment and delivered exceptional results in Terminals, with a return on invested capital reaching 14.5%. Despite ongoing geopolitical uncertainties, including U.S.-China trade tensions, Maersk confirmed its full-year EBIT guidance of $0 to $3 billion, projecting container market volume growth to range between -1% and +4%. The company also sustained a net profit after tax of $1.2 billion, free cash flow of $806 million, and continued strengthening its balance sheet, with total cash and deposits of $22.3 billion.

AP Moller - Maersk Financial Statement Overview

Summary

AP Moller - Maersk demonstrates strong revenue growth and financial stability with a robust balance sheet characterized by low leverage and high equity ratio. While profitability margins have seen a decline, the company maintains strong cash flow generation, supporting its financial health. The key focus should be addressing operational challenges to enhance EBIT and net profit margins.

Income Statement

Positive

AP Moller - Maersk's revenue has shown a strong growth trend with a significant increase from $38.89 billion in 2019 to $55.48 billion in 2024. The gross profit margin improved to 12.47% in 2024 from previous years. However, the net profit margin dropped from a peak of 35.82% in 2022 to 11.01% in 2024, indicating a decrease in profitability. EBITDA margin is robust at 25.04% for 2024, although EBIT has decreased to zero, indicating potential operational challenges.

Balance Sheet

Very Positive

The company maintains a healthy balance sheet with a debt-to-equity ratio of 0.29 in 2024, showing low leverage. Stockholders' equity has increased consistently to $56.92 billion, and the equity ratio is at 64.91%, reflecting strong financial stability. Return on equity decreased to 10.73% in 2024 from a high of 45.63% in 2022, indicating reduced efficiency in generating profits from equity.

Cash Flow

Very Positive

Operating cash flow remains strong at $11.41 billion in 2024, with a positive free cash flow of $7.21 billion, although free cash flow growth rate has slowed compared to previous years. The operating cash flow to net income ratio is favorable at 1.87, indicating solid cash generation relative to net income. However, the free cash flow to net income ratio has slightly decreased to 1.18, suggesting potential pressure on free cash flows.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
56.45B	55.48B	51.06B	81.53B	61.79B	39.74B
	Gross Profit
56.45B	6.92B	3.87B	31.32B	19.81B	4.04B
	EBIT
-6.27B	5.96B	9.64B	31.26B	19.67B	3.84B
	EBITDA
2.14B	13.39B	11.37B	36.96B	24.48B	8.68B
	Net Income Common Stockholders
7.09B	6.11B	3.82B	29.20B	17.94B	2.85B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.91B	8.15B	6.70B	11.00B	11.84B	5.87B
	Total Assets
86.97B	87.70B	82.58B	93.68B	72.27B	56.12B
	Total Debt
17.04B	16.48B	14.81B	15.64B	15.34B	15.37B
	Net Debt
9.91B	9.90B	8.11B	5.59B	3.50B	9.51B
	Total Liabilities
30.51B	29.75B	27.49B	28.65B	26.68B	25.26B
	Stockholders Equity
55.41B	56.92B	54.03B	63.99B	44.51B	29.85B
Cash Flow		Free Cash Flow
8.19B	7.21B	6.00B	30.31B	19.05B	6.51B
	Operating Cash Flow
13.08B	11.41B	9.64B	34.48B	22.02B	7.83B
	Investing Cash Flow
-7.82B	-7.92B	4.08B	-21.62B	-8.34B	-1.02B
	Financing Cash Flow
-5.65B	-3.50B	-16.80B	-14.13B	-7.90B	-5.62B

AP Moller - Maersk Technical Analysis

Technical Analysis Sentiment

Positive

Last Price9.69

Price Trends

50DMA

8.69

Positive

100DMA

8.36

Positive

200DMA

7.90

Positive

Market Momentum

MACD

0.16

Negative

RSI

62.35

Neutral

STOCH

82.90

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMKBY, the sentiment is Positive. The current price of 9.69 is above the 20-day moving average (MA) of 9.31, above the 50-day MA of 8.69, and above the 200-day MA of 7.90, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 62.35 is Neutral, neither overbought nor oversold. The STOCH value of 82.90 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AMKBY.

AP Moller - Maersk Peers Comparison

Overall Rating

UnderperformOutperform

Sector (66)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AMKBY	85 Outperform	$30.65B	4.30	13.17%	8.08%	14.70%	349.95%
DAC	78 Outperform	$1.66B	3.66	14.14%	3.81%	4.93%	-17.08%
ZIM	78 Outperform	$2.00B	0.90	72.40%	16.90%	65.83%	―
SBLK	76 Outperform	$2.04B	8.80	11.09%	1.15%	25.60%	-9.32%
MATX	74 Outperform	$3.67B	7.41	20.48%	1.21%	11.88%	80.21%
GOGL	66 Neutral	$1.59B	14.01	6.06%	2.51%	-7.73%	-39.13%
Sector *	66 Neutral	$4.47B	12.22	5.40%	3.65%	4.14%	-12.00%

* Industrials Sector Average

Performance Comparison

AMKBY

AP Moller - Maersk

9.69

1.81

22.97%

DAC

Danaos

89.19

2.56

2.96%

SBLK

Star Bulk Carriers

17.40

-4.62

-20.98%

MATX

Matson

112.46

-6.88

-5.77%

GOGL

Golden Ocean Group

7.96

-3.90

-32.88%

ZIM

ZIM Integrated Shipping Services

17.51

5.73

48.64%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.