NORWEGIAN CRUISE LINE HOLDIN (NCLH) Stock Fundamental Analysis
NYSE:NCLH - New York Stock Exchange, Inc. - BMG667211046 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to NCLH. NCLH was compared to 135 industry peers in the Hotels, Restaurants & Leisure industry. While NCLH is still in line with the averages on profitability rating, there are concerns on its financial health. NCLH has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year NCLH was profitable.
In the past year NCLH had a positive cash flow from operations.
In multiple years NCLH reported negative net income over the last 5 years.
In multiple years NCLH reported negative operating cash flow during the last 5 years.
1.2 Ratios
NCLH's Return On Assets of 3.99% is fine compared to the rest of the industry. NCLH outperforms 64.44% of its industry peers.
NCLH has a better Return On Equity (60.19%) than 96.30% of its industry peers.
The Return On Invested Capital of NCLH (7.50%) is better than 62.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.99% | ||
| ROE | 60.19% | ||
| ROIC | 7.5% |
ROA(3y)-2.27%
ROA(5y)-10.54%
ROE(3y)-1056.87%
ROE(5y)-689.6%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
NCLH has a better Profit Margin (9.05%) than 71.85% of its industry peers.
In the last couple of years the Profit Margin of NCLH has declined.
NCLH has a better Operating Margin (15.38%) than 68.15% of its industry peers.
In the last couple of years the Operating Margin of NCLH has declined.
NCLH has a Gross Margin of 40.47%. This is in the lower half of the industry: NCLH underperforms 62.22% of its industry peers.
In the last couple of years the Gross Margin of NCLH has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.38% | ||
| PM (TTM) | 9.05% | ||
| GM | 40.47% |
OM growth 3YN/A
OM growth 5Y-3.24%
PM growth 3YN/A
PM growth 5Y-7.78%
GM growth 3YN/A
GM growth 5Y-1.58%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NCLH is destroying value.
NCLH has more shares outstanding than it did 1 year ago.
NCLH has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, NCLH has an improved debt to assets ratio.
2.2 Solvency
NCLH has an Altman-Z score of 0.24. This is a bad value and indicates that NCLH is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of NCLH (0.24) is worse than 82.96% of its industry peers.
NCLH has a Debt/Equity ratio of 9.09. This is a high value indicating a heavy dependency on external financing.
NCLH's Debt to Equity ratio of 9.09 is on the low side compared to the rest of the industry. NCLH is outperformed by 64.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.09 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.24 |
ROIC/WACC0.89
WACC8.45%
2.3 Liquidity
A Current Ratio of 0.19 indicates that NCLH may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.19, NCLH is doing worse than 97.04% of the companies in the same industry.
A Quick Ratio of 0.16 indicates that NCLH may have some problems paying its short term obligations.
The Quick ratio of NCLH (0.16) is worse than 95.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.19 | ||
| Quick Ratio | 0.16 |
3. Growth
3.1 Past
NCLH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 65.38%, which is quite impressive.
NCLH shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -18.68% yearly.
The Revenue has been growing slightly by 5.57% in the past year.
The Revenue has been growing slightly by 7.96% on average over the past years.
EPS 1Y (TTM)65.38%
EPS 3YN/A
EPS 5Y-18.68%
EPS Q2Q%-56.25%
Revenue 1Y (TTM)5.57%
Revenue growth 3Y144.57%
Revenue growth 5Y7.96%
Sales Q2Q%-2.91%
3.2 Future
NCLH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.66% yearly.
Based on estimates for the next years, NCLH will show a quite strong growth in Revenue. The Revenue will grow by 9.07% on average per year.
EPS Next Y14.88%
EPS Next 2Y18.27%
EPS Next 3Y17.99%
EPS Next 5Y18.66%
Revenue Next Year6.55%
Revenue Next 2Y8.13%
Revenue Next 3Y8.31%
Revenue Next 5Y9.07%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 10.56, the valuation of NCLH can be described as very reasonable.
NCLH's Price/Earnings ratio is rather cheap when compared to the industry. NCLH is cheaper than 91.11% of the companies in the same industry.
NCLH is valuated cheaply when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 7.18 indicates a rather cheap valuation of NCLH.
94.07% of the companies in the same industry are more expensive than NCLH, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of NCLH to the average of the S&P500 Index (22.43), we can say NCLH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.56 | ||
| Fwd PE | 7.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NCLH is valued a bit cheaper than the industry average as 70.37% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.14 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as NCLH's earnings are expected to grow with 17.99% in the coming years.
PEG (NY)0.71
PEG (5Y)N/A
EPS Next 2Y18.27%
EPS Next 3Y17.99%
5. Dividend
5.1 Amount
NCLH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
18.17
-0.74 (-3.91%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners80.67%
Inst Owner Change2.3%
Ins Owners0.39%
Ins Owner Change2.57%
Market Cap8.06B
Analysts81.25
Price Target25.74 (41.66%)
Short Float %6.79%
Short Ratio1.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)58.89%
Min EPS beat(2)-24.41%
Max EPS beat(2)142.19%
EPS beat(4)3
Avg EPS beat(4)33.38%
Min EPS beat(4)-24.41%
Max EPS beat(4)142.19%
EPS beat(8)6
Avg EPS beat(8)20.04%
EPS beat(12)8
Avg EPS beat(12)12.42%
EPS beat(16)9
Avg EPS beat(16)7.19%
Revenue beat(2)0
Avg Revenue beat(2)-2.26%
Min Revenue beat(2)-2.76%
Max Revenue beat(2)-1.75%
Revenue beat(4)0
Avg Revenue beat(4)-1.9%
Min Revenue beat(4)-2.76%
Max Revenue beat(4)-0.69%
Revenue beat(8)0
Avg Revenue beat(8)-1.88%
Revenue beat(12)1
Avg Revenue beat(12)-1.79%
Revenue beat(16)1
Avg Revenue beat(16)-9.37%
PT rev (1m)-14.59%
PT rev (3m)-14.77%
EPS NQ rev (1m)-2.92%
EPS NQ rev (3m)-6.3%
EPS NY rev (1m)-1.49%
EPS NY rev (3m)-2.12%
Revenue NQ rev (1m)-1.36%
Revenue NQ rev (3m)-1.96%
Revenue NY rev (1m)-0.83%
Revenue NY rev (3m)-1.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.56 | ||
| Fwd PE | 7.18 | ||
| P/S | 0.86 | ||
| P/FCF | N/A | ||
| P/OCF | 4.19 | ||
| P/B | 5.69 | ||
| P/tB | 10.33 | ||
| EV/EBITDA | 9.14 |
EPS(TTM)1.72
EY9.47%
EPS(NY)2.53
Fwd EY13.93%
FCF(TTM)-1.25
FCFYN/A
OCF(TTM)4.33
OCFY23.85%
SpS21.23
BVpS3.19
TBVpS1.76
PEG (NY)0.71
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.99% | ||
| ROE | 60.19% | ||
| ROCE | 9.49% | ||
| ROIC | 7.5% | ||
| ROICexc | 7.59% | ||
| ROICexgc | 7.92% | ||
| OM | 15.38% | ||
| PM (TTM) | 9.05% | ||
| GM | 40.47% | ||
| FCFM | N/A |
ROA(3y)-2.27%
ROA(5y)-10.54%
ROE(3y)-1056.87%
ROE(5y)-689.6%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-0.2%
ROICexc growth 3YN/A
ROICexc growth 5Y2.69%
OM growth 3YN/A
OM growth 5Y-3.24%
PM growth 3YN/A
PM growth 5Y-7.78%
GM growth 3YN/A
GM growth 5Y-1.58%
F-Score7
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.09 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.3 | ||
| Cap/Depr | 253.06% | ||
| Cap/Sales | 26.31% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.17% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.19 | ||
| Quick Ratio | 0.16 | ||
| Altman-Z | 0.24 |
F-Score7
WACC8.45%
ROIC/WACC0.89
Cap/Depr(3y)218.66%
Cap/Depr(5y)176.64%
Cap/Sales(3y)27.26%
Cap/Sales(5y)54.38%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)65.38%
EPS 3YN/A
EPS 5Y-18.68%
EPS Q2Q%-56.25%
EPS Next Y14.88%
EPS Next 2Y18.27%
EPS Next 3Y17.99%
EPS Next 5Y18.66%
Revenue 1Y (TTM)5.57%
Revenue growth 3Y144.57%
Revenue growth 5Y7.96%
Sales Q2Q%-2.91%
Revenue Next Year6.55%
Revenue Next 2Y8.13%
Revenue Next 3Y8.31%
Revenue Next 5Y9.07%
EBIT growth 1Y27.22%
EBIT growth 3YN/A
EBIT growth 5Y4.47%
EBIT Next Year81.66%
EBIT Next 3Y32.02%
EBIT Next 5Y21.75%
FCF growth 1Y28.05%
FCF growth 3YN/A
FCF growth 5Y35.24%
OCF growth 1Y77.25%
OCF growth 3YN/A
OCF growth 5Y2.38%