Norwegian Cruise Line Holdings Ltd
Exchange: NYSESector: IndustrialsIndustry: Travel Services
Norwegian Cruise Line Holdings Ltd. is a leading global cruise company which operates Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises. With a combined fleet of 32 ships and approximately 66,500 berths, NCLH offers itineraries to approximately 700 destinations worldwide. NCLH expects to add 13 additional ships across its three brands through 2036, which will add approximately 41,000 berths to its fleet.
Did you know?
Carries 69.6x more debt than cash on its balance sheet.
Current Price
$18.42
-3.21%GoodMoat Value
$19.18
4.1% undervaluedProfile
Valuation (TTM)
Market Cap$8.39B
P/E19.81
EV$23.56B
P/B3.79
Shares Out455.26M
P/Sales0.85
Revenue$9.83B
EV/EBITDA8.95
Norwegian Cruise Line Holdings Ltd (NCLH) Stock Analysis
GoodMoat Analysis
Norwegian Cruise Line Holdings (NCLH) is a major cruise operator with a portfolio of brands. The analysis suggests it likely fails the initial 'Moat & Quality Gate' of the GoodMoat framework, indicating a lack of durable competitive advantages and concerning financial quality, which makes further valuation analysis less relevant for a value investor.
Read full analysis
Norwegian Cruise Line Holdings operates cruise lines including Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises. Applying the GoodMoat Moat Identification framework, the company scores low. It may have a brand and niche dominance in the premium/luxury segments, but it lacks the structural advantages like network effects, high switching costs, or proprietary technology that define a durable moat. Crucially, the Quality Indicators are weak. The company has a high Debt/Equity ratio of 6.6, far exceeding the favourable threshold of less than 1.0x, and a negative Free Cash Flow Yield of -12.7%, indicating cash burn rather than generation. While the ROE of 19.2% is strong, and operating margin of 15.9% is decent, the negative cash flow and leveraged balance sheet are significant weaknesses. According to the Decision Framework, a business with a low Moat Score and multiple weak Quality ratings fails the initial gate. The current GoodMoat Target price of $19.18 is close to the market price of $20.22, suggesting a marginal valuation, but this is secondary given the business quality concerns. For a value investor focused on durable advantages and financial strength, NCLH presents an unfavourable profile that does not warrant deeper investigation under this framework. Analysis based on data as of 2024-05-15.
Market Cap$8.39B
Current Price$18.42
P/E Ratio19.81
Forward P/E—
PEG Ratio-0.21
EPS$0.92
Book Value$4.85
P/B Ratio3.79
NCLH Financial Charts
FCF vs CAPEX
FCFCAPEX
Cash vs Debt
Net Debt: 14.4B
Revenue
6.5B
FY19
1.3B
FY20
648M
FY21
4.8B
FY22
8.5B
FY23
9.5B
FY24
9.8B
FY25
Net Income
930M
FY19
—
FY20
—
FY21
—
FY22
166M
FY23
910M
FY24
423M
FY25
NCLH 52-Week Range
$16.03
$26.94
50-Day MA: $20.82200-Day MA: $22.24
Did you know?
Profit margin stands at 4.3%.
Norwegian Cruise Line Holdings Ltd (NCLH) Financial Summary
Norwegian Cruise Line Holdings Ltd (NCLH) is a Industrials company in the Travel Services industry, listed on NYSE. The stock currently trades at $18.42 with a market capitalization of $8.39B.
Key valuation metrics include a P/E ratio of 19.81, price-to-book ratio of 3.79, and EPS of $0.92. The company reports a profit margin of 4.3% and return on equity of 19.2%.
NCLH Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $8.39B |
| P/E Ratio | 19.81 |
| EPS | $0.92 |
| P/B Ratio | 3.79 |
| P/S Ratio | 0.85 |
| EV/EBITDA | 8.95 |
| Profit Margin | 4.3% |
| Return on Equity | 19.2% |
| Debt/Equity | 6.61 |
NCLH Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $6.46B | $930.23M |
| FY20 | $1.28B | $-4.01B |
| FY21 | $647.99M | $-4.51B |
| FY22 | $4.84B | $-2.27B |
| FY23 | $8.55B | $166.18M |
| FY24 | $9.48B | $910.26M |
| FY25 | $9.83B | $423.25M |
Norwegian Cruise Line Holdings Ltd (NCLH) Valuation
Based on GoodMoat's DCF model, Norwegian Cruise Line Holdings Ltd has a fair value estimate of $19.18. At the current price of $18.42, the stock appears 4.0% undervalued relative to our intrinsic value estimate.
NCLH Quality Indicators
Norwegian Cruise Line Holdings Ltd maintains a profit margin of 4.3% and an operating margin of 15.9%. Return on equity stands at 19.2%. The current ratio is 0.21. Debt-to-equity ratio is 6.61.
About Norwegian Cruise Line Holdings Ltd
Norwegian Cruise Line Holdings Ltd. is a leading global cruise company which operates Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises. With a combined fleet of 32 ships and approximately 66,500 berths, NCLH offers itineraries to approximately 700 destinations worldwide. NCLH expects to add 13 additional ships across its three brands through 2036, which will add approximately 41,000 berths to its fleet.
NCLH Free Cash Flow
Norwegian Cruise Line Holdings Ltd generated $-1.17B in trailing twelve-month free cash flow, representing an FCF yield of -13.95%. This low FCF yield may reflect heavy reinvestment or growth spending.
NCLH Shares Outstanding
Norwegian Cruise Line Holdings Ltd has 0.46 billion shares outstanding at a share price of $18.42, giving it a market capitalization of $8.39B.
NCLH Recent Insider Trades
Recent insider transactions at Norwegian Cruise Line Holdings Ltd include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Ashby Faye L. (SVP & Chief Accounting Officer) | SELL | 5,250 | $110250.00 |