HOEGF - Wallenius Wilhelmsen: Solid But Now Is Not The Right Time

2024-07-11 11:54:21 ET

Summary

• Wallenius Wilhelmsen is the largest listed shipping solutions provider for Ro-Ro cargo, controlling a fleet of 125 car carriers.
• The Oslo Stock Exchange-listed company is well-managed and recently improved its dividend policy,  allowing for semi-annual dividends and special payouts.
• However, the market shows signs of saturation, and the global order book currently stands at 38 percent. Investors should carefully consider if this is the right time to add.

Investment Thesis

The Ro-Ro segment, a niche in shipping, has had a few stellar years off the back of increased demand. Wallenius Wilhelmsen ( OTCPK:WAWIF ), which controls one of the largest fleets, is one of the players in this market. WAWIF pays semi-annual dividends. Its most recent dividend was USD 0.68, implying almost a 20 percent annualized yield. While it offers excellent management, a healthy balance sheet, and a recently revised dividend policy, there are signs of headwinds in the Ro-Ro segment. There are also alternatives for investors looking for Ro-Ro exposure. Ultimately, there may be a better time to enter the segment, but the segment looks set to generate healthy dividends for some time, resulting in a Hold verdict.

Company Overview

Wallenius Wilhelmsen is an Oslo Stock Exchange-listed (OSE) shipping solutions provider for Ro-Ro cargo, transporting cars, machinery, and breakbulk cargoes around the globe. Headquartered in Oslo, Norway, it controls a fleet of about 125 car carriers on 15 routes covering six continents, serving eight terminals and 66 processing centers. It owns 86 vessels itself and charters the remaining vessels. ...

For further details see: