Trade the Maersk share!
MAERSK

Analysis before buying or selling Maersk shares

Trade the Maersk share!
BUY   SELL
78% of retail CFD accounts lose money - eToro.com
 
Chart provided by Tradingview

Before you buy Maersk shares online or start speculating on its share price, we suggest you discover all the information you will need to analyse this stock. In this article dedicated to this stock, we will tell you who this company is and its economic environment, with details of its activities and its main sources of revenue, a presentation of its various competitors in its sector and its most recent strategic partnerships. We will also explain how you can perform a good fundamental analysis of this stock with some explanations and a list of data to watch.

Elements to consider before selling or buying Maersk shares

Analysis N°1

Firstly, it will be important to monitor the group's ability to expand its customer base geographically by offering new services that could boost its business.

Analysis N°2

It will also be interesting to monitor the various partnerships and strategic alliances or even joint ventures that may enable the group to further stimulate its growth.

Analysis N°3

Similarly, it will be necessary to keep an eye on all the technological developments of the group and on the introduction of equipment and tools that are likely to help it grow and increase its sustainability and profitability by meeting new needs.

Analysis N°4

Maersk's business is closely linked to and dependent on the health of the global economy and it will therefore be necessary to monitor data relating to the wider economy to identify periods of growth or recession.

Analysis N°5

The same applies to exchange rates in the Forex market. Fluctuations in world currencies can have an impact on the margins of companies, including the Maersk Group.

Analysis N°6

It is also important to keep an eye on the various regulatory developments in different countries which may indeed have an impact on the group's business operations.

Analysis N°7

Finally, it will of course be necessary to look at the company's development and growth strategies, particularly its cost-cutting policy, which may have a positive or negative impact on margins.

Trade the Maersk share!
78% of retail CFD accounts lose money. This is an advert for trading CFDs on eToro

General presentation of Maersk

Let us now take a moment to look more closely at the Maersk Group and its activities. In order to understand the challenges and opportunities facing the group, it is essential to have a good understanding of its different segments and sources of profit.

The Maersk A/S Group or AP. Moller is a Danish company active in the maritime transport sector. More specifically, the group is now the world leader in this sector of activity.

In order to better understand the activities of this company, it is possible to divide them into two main areas in this way:

  • The company's cargo shipping activities account for the largest share of its turnover. Today, the group operates a fleet of 706 vessels with container ships, tugs, supply vessels, gas carriers and other specialised carriers. In addition, the group also offers port and logistics services.
  • Finally, the second division concerns ancillary activities with the construction of shipyards, the management of factories with plastic and rubber products as well as equity investments.

It is also interesting to know the geographical distribution of the Maersk Group's revenues, which only generate 0.7% of its turnover in Denmark. The rest is generated by 25.5% in the USA, 5.5% in China and Hong Kong, 4.1% in Australia, 4% in Brazil, 2.9% in Nigeria, 2.1% in the Netherlands, 1.9% in Germany, 1.8% in the UK, 0.8% in Singapore and 50.7% in the rest of the world.

Analysis before buying or selling Maersk shares
Trade the Maersk share!
78% of retail CFD accounts lose money. This is an advert for trading CFDs on eToro

The major competitors of Maersk

Let us now turn to an analysis of the economic and sectoral environment in which the Maersk Group operates. Indeed, this company has to face some major competitors on the market, which we propose to discover here with some information.

CMA - CGM

First of all, this French company based in Marseilles was created by the merger of CMA and CGM and is currently the third largest shipowner in the world since 2006 for the transport of containers by sea. Recently, the group has also decided to diversify its activities and now offers port handling, logistics support and transport activities for high-end customers.

MSC

The Mediterranean Shipping Company or MSC is also a serious competitor to Maersk, which is a Swiss-Italian company offering traditional freight services and a subsidiary specialising in cruises, MSC Cruises. It is currently the second largest player in this sector in terms of commercial traffic managed and therefore the second largest shipowner. Its commercial lines have been developed mainly to the United States, Australia and East Africa. The group is also present in more than 161 countries through numerous local agencies.

Marfret

Finally, Maesrk's main adversaries include the Marfret group, which is a specialist in the transport of freight by sea and operates its regular shipping lines with extensive worldwide coverage and no fewer than a hundred ports of call in the Mediterranean, the North Atlantic, Guyana-Amazonia, the Caribbean, South America and the South Pacific. The company is thus particularly well exposed to the major North/South maritime routes.


The major partners of Maersk

Fortunately, the Maersk Group can also count on good partnerships with other companies, as in the following two examples:

DB Schenker Logistics

In 2015, the two groups signed a 6-year strategic agreement to reduce CO2 emissions from ocean freight. This agreement underlines the desire of both companies to be part of a sustainable economic growth approach with a commitment for Maersk to reduce its CO2 emissions by 20% for each container transported on behalf of DB Schenker.

MSC

The group also joined forces with its rival MSC to share 185 ships on the Asia-Europe, Transatlantic and Transpacific routes. Maersk contributed 55% of the total capacity or 110 ships while MSC contributed 45% or 75 ships.

Trade the Maersk share!
78% of retail CFD accounts lose money. This is an advert for trading CFDs on eToro

Frequently Asked Questions

What are the main subsidiaries owned by the Maersk Group?

The Maersk Group owns and operates a number of subsidiaries that enable it to offer its services in various world markets. These include the subsidiary Maersk Line, APM Terminals, Farrel Lines, Safmarine, Suez Canal Container Terminal, Port de Poti, Svitzer, Maersk Supply Services and Alianca Navegacao e Logistica.

Where can I find financial results and news from the Maersk Group?

If you want to do a good fundamental analysis of Maersk's share price and find out more about how the company is likely to grow, you can view details of its income statements for past and current years directly from its website in the investor section.

Will Maersk's share price go up or down?

It is not possible to predict with certainty whether Maersk's share price will rise or fall. However, you can best assess its potential by using various analyses, such as fundamental analysis, which we have discussed in this article, and technical analysis, which consists of studying stock market charts and their movements.

Trade the Maersk share!

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of retail CFD accounts lose money. You should consider whether you can afford to take the high risk of losing your money.

Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.

Copy trading is a portfolio management service, provided by eToro (Europe) Ltd., which is authorised and regulated by the Cyprus Securities and Exchange Commission.

Cryptoasset investing is unregulated in some EU countries and the UK. No consumer protection. Your capital is at risk.

eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.