Watsco vs ZIM Integrated Shipping
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KIRA’s take AI analyst
I put Watsco and ZIM Integrated Shipping side by side, using each one’s latest annual report. Here is what stands out:
- Watsco is the larger business, with $7.2B of revenue in fiscal 2025 against $6.9B for ZIM Integrated Shipping.
- Watsco grew revenue faster (−5.0%, against −18.1%).
- ZIM Integrated Shipping kept more of each dollar of sales as operating profit (14.7% operating margin, against 10.0%).
- ZIM Integrated Shipping turned more of its sales into free cash flow (30.2% FCF margin, against 7.4%).
- ZIM Integrated Shipping earned a higher return on the capital invested in it (24.9%, against 20.1%).
Who comes out ahead
Of the 11 measures where higher (or lower) is clearly better, how many each company leads.
Watsco
WSO
4/11
Revenue growthGross marginReturn on equityPiotroski F-score
ZIM Integrated Shipping
ZIM
7/11
5-year growthOperating marginNet marginFCF marginReturn on capitalNet debt / EBITDAShare count change
Side by side
Best in the row
| Latest fiscal year | WSO FY25 | ZIM FY25 |
|---|---|---|
| Size | ||
| Market cap | $11.7B | $3.6B |
| Revenue | $7.2B | $6.9B |
| Free cash flow | $535M | $2.1B |
| Net income | $497M | $479M |
| Growth | ||
| Revenue growth | −5.0% | −18.1% |
| 5-year growth | 7.5% | 11.6% |
| Share count change | 1.0% | 0.0% |
| Profitability | ||
| Gross margin | 28.1% | 19.1% |
| Operating margin | 10.0% | 14.7% |
| Net margin | 6.9% | 6.9% |
| FCF margin | 7.4% | 30.2% |
| Return on capital | 20.1% | 24.9% |
| Return on equity | 18.3% | 11.9% |
| Balance sheet | ||
| Net debt | −$255M | −$930M |
| Net debt / EBITDA | −0.3x | −0.4x |
| Dividends and buybacks | $474M | $516M |
| Valuation & quality | ||
| P/E | 26.3x | — |
| Piotroski F-score | 6 | 4 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.