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mttssn research · Nordic Deep Dive
A.P. Moller Maersk A (MAERSK-A.CO)
Industrials · Container shipping, terminals & logistics (A.P. Møller-Mærsk) · LTM Q1 2026
Analysis date: 2026-07-16
Price at analysis: $15,510.00
Method: mttssn_streamlined_v1
Conviction: MEDIUM
HOLD
Conviction: MEDIUM
A deep-cyclical shipping conglomerate in a confirmed down-leg: LTM adjusted ROIC 3.5% vs 8% WACC (EP −$2.6bn), Ocean EBIT negative in Q1 2026 and FY26 underlying EBIT guided −$1.5/+$1.0bn on fleet overcapacity. Against that: net cash, ~$17bn financial reserves, buybacks below book, Terminals at ~19% ROIC. Priced between no-growth EBV and book. HOLD.
Adj. ROIC
3.5%
WACC 8% → spread -4.5pp
Economic Profit
$-2,555M
−$2.55bn LTM at 8% WACC; adj ROIC 3.5% on $56.4bn IC
FCF Yield
n/a
$552m LTM (Maersk def., post-lease); FY26 guided ≥ −$3.0bn on $10–11bn capex
Price / Target
DKK 15,510 → DKK 16,200
+4% base; HOLD
Revenue (LTM)
$53.6B
LTM $53.6bn; Q1 −2.6% yoy (Ocean rates −14%, volumes +9.3%)
EBIT Margin
4.8%
EBIT 4.8% LTM; Q1'26 margin 2.6%, −6.8pp yoy, Ocean EBIT negative
EV / IC
n/a
Enterprise value / invested capital
Net Debt
n/a
Net cash NIBD −$1.3bn; leases $12.3bn in IC; ~$17.4bn cash+deposits+securities
Thesis

Maersk is a container-shipping conglomerate — Ocean (the swing factor), APM Terminals (the quality asset) and Logistics & Services — in a confirmed freight down-leg. LTM adjusted NOPAT of $1.96bn on $56.4bn invested capital gives 3.5% ROIC against an 8% WACC: economic profit −$2.6bn, with Q1 2026 Ocean EBIT at −$192m as loaded freight rates fell 14% yoy.

Rated through-cycle, the economics do not clear the bar: the spread is negative at mid-cycle, and FY2026 underlying EBIT is guided at −$1.5 to +$1.0bn on newbuild overcapacity and Red Sea/Hormuz reopening scenarios. Terminals (~19% segment ROIC on $9.3bn IC) and an improving L&S (EBIT +22% in Q1, margin 4.6%) cushion the mix but cannot carry a $56bn capital base.

What keeps this a HOLD rather than a SELL is the balance sheet and the price: net cash NIBD −$1.3bn, ~$17.4bn of cash, term deposits and securities, buybacks and dividends executing below book, and a share price already sitting between no-growth EBV and book value. The downside is asset-buffered; the upside needs a rate cycle.

Valuation · reverse-DCF & scenarios

The frame is EBV plus asset backing, not a growth DCF. LTM adjusted NOPAT $1.96bn capitalised at 8% gives ~$24.5bn of operating value; adding $17.4bn financial assets and deducting ~$18.8bn of debt, leases, pension and NCI leaves ~$23bn of equity EBV — well below the DKK 245.5bn market cap. The market is already paying for a recovery above LTM earnings power.

The offset: parent equity of $54.1bn puts the shares at roughly 0.7–0.75x book with net cash beneath — historically Maersk's trough-valuation zone. Base DKK 16,200 (+4%) on 2027 rate stabilisation and continued buyback shrink; bull DKK 21,500 (delayed Red Sea reopening plus supply discipline); bear DKK 11,000 (reopening plus a 2016–19-style rate trough, EBIT negative through 2027). 24-month horizon.

Market-implied growth
≥-50.0%
model ceiling — EV implies more than constant-ROIC sustains
No-growth value / share
$-3,146
-20% of price; rest = priced-in growth
ROIC − WACC
-4.5 pp
ROIC 3.5% vs WACC 8.0% — positive = value creation
CAP (priced-in)
n/a
years of excess returns the price implies (fades to WACC)

At today’s enterprise value the constant-ROIC reverse-DCF maxes out: even at its sustainable-growth ceiling (~-50.0%, limited by ROIC 3% ≈ WACC 8%) it cannot reach the current EV. No-growth value is $-3,146/share (-20% of price); the market prices in growth and/or a higher ROIC than booked — richly valued on this lens. Read the sensitivity grid.

Scenario24m targetImpl. gUpsideProb.Driver
Bull$21,500≥-50%+39%25%Delayed Red Sea reopening + supply discipline lift 2027 rates; Terminals/L&S rerate
Base$16,200≥-50%+4%45%2026 trough per guidance, 2027 rate stabilisation; buyback shrink at a book discount
Bear$11,000≥-50%-29%30%Reopening into the newbuild wave; 2016–19-style trough, EBIT negative through 2027
Prob-weighted$15,965+3%100%Scenario-weighted expected value

Sensitivity — fair value / share at WACC × growth

WACC \ g0%3%5%8%10%15%
6.50%-2,917-3,252-3,514-3,970-4,320-5,379
7.25%-3,049-3,394-3,663-4,130-4,487-5,565
8.00% (base)-3,146-3,497-3,769-4,241-4,601-5,686
8.75%-3,221-3,574-3,848-4,321-4,682-5,765
9.50%-3,281-3,635-3,908-4,380-4,739-5,816

Green = fair value above the current price of $15,510.00. The reverse-DCF conclusion is dominated by WACC and growth — see the whole surface, not a single fair value.

Method & data. NOPAT $1,957, invested capital and ROIC 3.5% are observed (adjustments.json); WACC 8.0% and terminal g 2.5% are assumptions. EV→equity uses net debt $64,545. The model holds ROIC constant (no fade) over the explicit horizon; the CAP figure instead fades excess returns to WACC.

⤓ Download the full model (.xlsx) — formula-driven sheets; flex the blue input cells and the model cascades in Excel.

Key drivers

1. Terminals compounding

APM Terminals earns ~19% segment ROIC on $9.3bn IC — the group's only durable EP engine; earnings +9.9% in Q1.

2. L&S margin repair

Logistics & Services EBIT +22% in Q1'26, margin 4.6% (+0.5pp) on cost discipline — reduces Ocean dependence.

3. Capital returns below book

FY25 buybacks $2.05bn + dividends $2.55bn, continuing in Q1'26 — repurchases at a book discount are accretive.

4. Fortress balance sheet

Net cash NIBD −$1.3bn with ~$17.4bn cash, deposits and securities — funds capex and returns through the trough.

5. Volumes intact

Ocean volumes +9.3% yoy in Q1 at 96% utilisation; 2026 market volume growth guided at 2–4%.

Key risks
Conclusion

Maersk is a structurally sub-WACC deep cyclical in mid-down-leg, priced below book with a fortress balance sheet — fairly valued for the economics, not cheap enough for the cycle risk. HOLD, medium conviction; base DKK 16,200 (+4%) over 24 months.

A move toward DKK 11,000–12,000 — near the bear case and a deeper book discount — would offer a genuine cyclical entry. Evidence of supply discipline (idling, scrapping, delivery deferrals) or a delayed Red Sea reopening is the bull trigger; a reopening into the delivery wave is the bear one.

Footnote evidence & sources

Every adjustment traces to the cited note/page in the source filing — click to open it there. Source reports archived locally.

Adjustment / figureValueSourceWhy mttssn treats it this way
FY2025 revenue 53,988 / EBIT 3,500 / tax 556 / profit 2,915 (NCI 190, parent 2,725)3,500Consolidated income statement, p.121FY anchor for LTM flows; NCI split needed because net_income_reported must be parent-attributable
Q1 2026 IS: revenue 12,970 / EBIT 340 / tax 192 / parent share 53; Q1 2025 comparatives340Condensed income statement, p.15LTM = FY2025 - Q1 2025 + Q1 2026 for all flow items
Q1 2026 balance sheet: equity 55,218, leases 12,320, borrowings 5,189, cash 6,642, securities 88655,218Condensed balance sheet at 31 March, p.16IC is computed on the latest quarter snapshot, not the FY anchor
Accumulated OCI -840 (translation -815, FVOCI 40, hedges -65) at 2026-03-31-840Condensed statement of changes in equity, p.18OCI reserves are FX/actuarial noise, stripped so IC reflects deployed operating capital; negative OCI raises equity_ex_oci
Term deposits >3 months 10,900 inside Receivables etc.10,900Note 2 Term deposits and other receivables, p.19Interest-bearing term deposits are a financial reserve, not operating capital — removed from IC exactly as Maersk does in its own invested-capital APM
Net gains on sale of non-current assets: FY 138, Q1'25 55, Q1'26 8-91Note 2.4 Gains on sale, p.133Container/vessel disposal gains are removed from NOPAT — portfolio churn, not freight/logistics margin
FY2025 net impairment credit +40 (PPE reversal 108, PPE impairment 22, intangible impairment 46)-40Note 2.3 D&A and impairment losses net, p.133A net impairment REVERSAL flatters EBIT; normalized to zero, which lowers adjusted NOPAT
Lease interest 728 within financial expenses; borrowing interest 298728Note 2.5 Financial income and expenses, p.133Confirms IFRS 16 lease interest is below EBIT — no NOPAT add-back when lease liabilities are capitalized in IC
Goodwill 5,328 (L&S 4,635); customer relationships amort 1585,328Note 3.1 Intangible assets, p.134Goodwill/equity only 9.4% — modest M&A intensity; PPA amortisation stays in opex (Maersk does not add it back either)
Restructuring recurrence: severance 148 (128), staff-cost restructuring 94 (73), provision B/S 68128Note 2.2 remuneration + Note 3.8 Provisions, p.132/141Restructuring recurs every year at Maersk — mttssn keeps it in opex and rejects the company's underlying-EBIT addback (~128 LTM)
Net pension liability 190 (DBO 1,475, assets 1,396, asset ceiling 111); net interest ~-1190Note 4.3 Pensions, p.145-146Net pension added to IC as debt-like capital; net interest immaterial so no P&L reclass
Q1 2026 restructuring charge 77 under group-wide programme announced 5 Feb 202677Highlights Q1 2026, p.3Evidence the restructuring stream continues into 2026 — supports treating it as recurring opex
Company underlying EBIT: 12M 2025 3,363, Q1 2025 1,199, Q1 2026 4202,584Summary financial information p.4 + definitions p.24APM bridge anchor: LTM underlying EBIT 2,584 vs our adjusted 2,456, -5.0% divergence from the rejected restructuring addback
Maersk own invested capital APM 54,069 at 2026-03-31; NIBD -1,281 (net cash)54,069Quarterly summary, p.23Sanity anchor for our IC 56,402 (+4.3%, OCI-strip and operational-cash retention explain the gap)
Quality · Buffett tenets7 / 15
Understandable business
Container shipping (Ocean) + terminals + logistics; a century of operating history and clean segment disclosure, but the earnings driver is unforecastable freight rates — EBIT $6.5bn (FY24) → $3.5bn (FY25) → FY26 underlying guided −$1.5/+$1.0bn.
Durable moat
[kostnads-skalfördel · stabil] Fleet scale and the Gemini network give a cost position, not pricing power: Q1'26 loaded rates −14% yoy pushed Ocean EBIT to −$192m despite 96% utilisation and bunker costs −15% — a rate-taker at the margin. Terminals (efficient scale in port concessions) holds ~19% segment ROIC on $9.3bn IC, but the group mid-cycle spread is negative (adj ROIC 3.5% vs 8% WACC) — cyclical spread, positive only at peak, caps this at 1. Falsifierare: Terminals concession-ROIC erosion or post-Gemini volume-share loss would remove the only durable leg.
Management & capital allocation
[allokering · candor] FY25 returned $2.05bn buybacks + $2.55bn dividends, continuing through the trough (Q1'26: $357m + $1,083m) at a discount to book — accretive; net cash held. Candor good: APM divergence only −5.0%, the sole dispute being their recurring restructuring add-back (~$128m LTM) that we keep in opex. Röd flagga: FCF guided ≥ −$3bn on $10–11bn capex — an extended trough forces the returns programme down.
Financial strength & returns
The balance sheet is fortress-grade — net cash NIBD −$1.3bn, ~$17.4bn cash + term deposits + securities, $12.3bn leases capitalised — but returns fail the frame: adjusted ROIC 3.5% vs 8% WACC, EP −$2.55bn LTM, FCF $552m LTM turning negative on guidance. Survives any trough; earns through none.
Valuation margin of safety
Roughly 0.7–0.75x parent book ($54.1bn, FX-dependent) looks cheap, but no-growth EBV on LTM NOPAT ($1.96bn/8% ≈ $24.5bn ops + $17.4bn financial assets − $18.8bn debt-like ≈ $23bn equity) covers only ~60% of the DKK 245.5bn market cap — the price already pays for a rate recovery; the book discount is earned by sub-WACC returns.