NCLH gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 132 industry peers in the Hotels, Restaurants & Leisure industry. There are concerns on the financial health of NCLH while its profitability can be described as average. NCLH has a decent growth rate and is not valued too expensively.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

NCLH had positive earnings in the past year.
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.
The reported operating cash flow has been mixed in the past 5 years: NCLH reported negative operating cash flow in multiple years.

1.2 Ratios

NCLH has a Return On Assets (2.99%) which is in line with its industry peers.
The Return On Equity of NCLH (30.26%) is better than 83.33% of its industry peers.
NCLH's Return On Invested Capital of 7.44% is fine compared to the rest of the industry. NCLH outperforms 62.88% of its industry peers.

		Industry Rank	Sector Rank
ROA	2.99%
ROE	30.26%
ROIC	7.44%

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

Looking at the Profit Margin, with a value of 6.85%, NCLH is in the better half of the industry, outperforming 64.39% of the companies in the same industry.
NCLH's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 16.39%, NCLH is doing good in the industry, outperforming 71.97% of the companies in the same industry.
In the last couple of years the Operating Margin of NCLH has declined.
NCLH's Gross Margin of 41.98% is in line compared to the rest of the industry. NCLH outperforms 40.15% of its industry peers.
In the last couple of years the Gross Margin of NCLH has declined.

		Industry Rank	Sector Rank
OM	16.39%
PM (TTM)	6.85%
GM	41.98%

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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NCLH is destroying value.
The number of shares outstanding for NCLH has been increased compared to 1 year ago.
The number of shares outstanding for NCLH has been increased compared to 5 years ago.
NCLH has a better debt/assets ratio than last year.

2.2 Solvency

Based on the Altman-Z score of 0.37, we must say that NCLH is in the distress zone and has some risk of bankruptcy.
NCLH has a Altman-Z score of 0.37. This is in the lower half of the industry: NCLH underperforms 77.27% of its industry peers.
A Debt/Equity ratio of 6.22 is on the high side and indicates that NCLH has dependencies on debt financing.
NCLH has a Debt to Equity ratio of 6.22. This is in the lower half of the industry: NCLH underperforms 62.88% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	6.22
Debt/FCF	N/A
Altman-Z	0.37

ROIC/WACC0.97

WACC7.66%

2.3 Liquidity

A Current Ratio of 0.19 indicates that NCLH may have some problems paying its short term obligations.
NCLH's Current ratio of 0.19 is on the low side compared to the rest of the industry. NCLH is outperformed by 92.42% of its industry peers.
NCLH has a Quick Ratio of 0.19. This is a bad value and indicates that NCLH is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of NCLH (0.17) is worse than 91.67% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	0.19
Quick Ratio	0.17

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 48.91% over the past year.
Measured over the past years, NCLH shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -18.68% on average per year.
The Revenue has been growing slightly by 3.59% in the past year.
The Revenue has been growing slightly by 7.96% on average over the past years.

EPS 1Y (TTM)48.91%

EPS 3YN/A

EPS 5Y-18.68%

EPS Q2Q%21.21%

Revenue 1Y (TTM)3.59%

Revenue growth 3Y144.57%

Revenue growth 5Y7.96%

Sales Q2Q%4.69%

3.2 Future

The Earnings Per Share is expected to grow by 17.94% on average over the next years. This is quite good.
Based on estimates for the next years, NCLH will show a small growth in Revenue. The Revenue will grow by 7.52% on average per year.

EPS Next Y16.96%

EPS Next 2Y21.14%

EPS Next 3Y19.27%

EPS Next 5Y17.94%

Revenue Next Year4.75%

Revenue Next 2Y7.34%

Revenue Next 3Y7.17%

Revenue Next 5Y7.52%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 11.24, the valuation of NCLH can be described as reasonable.
Based on the Price/Earnings ratio, NCLH is valued cheaper than 90.91% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.39. NCLH is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 8.63 indicates a reasonable valuation of NCLH.
93.94% 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 (25.72), we can say NCLH is valued rather cheaply.

		Industry Rank	Sector Rank
PE	11.24
Fwd PE	8.63

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NCLH indicates a somewhat cheap valuation: NCLH is cheaper than 69.70% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	9.08

4.3 Compensation for Growth

NCLH's 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 19.27% in the coming years.