Norwegian Cruise Line Holdings Ltd. Fundamental Analysis (NYSE: NCLH)
Norwegian Cruise Line Holdings Ltd. Fundamental Analysis (NYSE: NCLH)
Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) shows moderate financial fundamentals with a PE ratio of 10.33, profit margin of 7.49%, and ROE of 32.35%. The company generates $10.2B in annual revenue with moderate year-over-year growth of 3.67%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 26.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NCLH's fundamental strength across five key dimensions:
Efficiency Score
WeakNCLH struggles to generate sufficient returns from assets.
Valuation Score
ModerateNCLH shows balanced valuation metrics.
Growth Score
WeakNCLH faces weak or negative growth trends.
Financial Health Score
WeakNCLH carries high financial risk with limited liquidity.
Profitability Score
WeakNCLH struggles to sustain strong margins.
Key Financial Metrics
Is NCLH Expensive or Cheap?
P/E Ratio
NCLH trades at 10.33 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, NCLH's PEG of 5.65 indicates potential overvaluation.
Price to Book
The market values Norwegian Cruise Line Holdings Ltd. at 3.08 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at -2.65 times EBITDA. This is generally considered low.
How Well Does NCLH Make Money?
Net Profit Margin
For every $100 in sales, Norwegian Cruise Line Holdings Ltd. keeps $7.49 as profit after all expenses.
Operating Margin
Core operations generate 15.09 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $32.35 in profit for every $100 of shareholder equity.
ROA
Norwegian Cruise Line Holdings Ltd. generates $3.17 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Norwegian Cruise Line Holdings Ltd. produces operating cash flow of $2.14B, showing steady but balanced cash generation.
Free Cash Flow
Norwegian Cruise Line Holdings Ltd. generates weak or negative free cash flow of $-1.15B, restricting financial flexibility.
FCF Per Share
Each share generates $-2.51 in free cash annually.
FCF Yield
NCLH converts -14.53% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.33
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
5.65
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.08
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.78
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
5.84
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.20
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.32
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How NCLH Stacks Against Its Sector Peers
| Metric | NCLH Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.33 | 26.29 | Better (Cheaper) |
| ROE | 32.35% | 966.00% | Weak |
| Net Margin | 7.49% | -4927.00% (disorted) | Weak |
| Debt/Equity | 5.84 | 0.60 | Weak (High Leverage) |
| Current Ratio | 0.20 | 2.32 | Weak Liquidity |
| ROA | 3.17% | 295.00% | Weak |
NCLH outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Norwegian Cruise Line Holdings Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
329.63%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
105.90%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
145.74%
Industry Style: Cyclical, Growth, Discretionary
High Growth