NORWEGIAN CRUISE LINE HOLDIN (NCLH)

BMG667211046 - Common Stock

20.93  -0.41 (-1.92%)

After market: 20.96 +0.03 (+0.14%)

Fundamental Rating

3

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. NCLH may be in some trouble as it scores bad on both profitability and health. NCLH is not overvalued while it is showing excellent growth. This is an interesting combination.



3

1. Profitability

1.1 Basic Checks

In the past year NCLH was profitable.
NCLH had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: NCLH reported negative net income in multiple years.
In multiple years NCLH reported negative operating cash flow during the last 5 years.

1.2 Ratios

NCLH has a worse Return On Assets (0.85%) than 64.18% of its industry peers.
Looking at the Return On Equity, with a value of 55.26%, NCLH belongs to the top of the industry, outperforming 94.03% of the companies in the same industry.
The Return On Invested Capital of NCLH (5.47%) is comparable to the rest of the industry.
Industry RankSector Rank
ROA 0.85%
ROE 55.26%
ROIC 5.47%
ROA(3y)-11.81%
ROA(5y)-10.33%
ROE(3y)-1139.9%
ROE(5y)-699.51%
ROIC(3y)N/A
ROIC(5y)N/A

1.3 Margins

The Profit Margin of NCLH (1.94%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of NCLH has declined.
NCLH has a Operating Margin (10.89%) which is in line with its industry peers.
NCLH's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 36.04%, NCLH is not doing good in the industry: 70.15% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of NCLH has declined.
Industry RankSector Rank
OM 10.89%
PM (TTM) 1.94%
GM 36.04%
OM growth 3YN/A
OM growth 5Y-11.55%
PM growth 3YN/A
PM growth 5Y-34.21%
GM growth 3YN/A
GM growth 5Y-4.01%

0

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.
NCLH has more shares outstanding than it did 5 years ago.
NCLH has a better debt/assets ratio than last year.

2.2 Solvency

Based on the Altman-Z score of 0.09, we must say that NCLH is in the distress zone and has some risk of bankruptcy.
NCLH has a worse Altman-Z score (0.09) than 82.84% of its industry peers.
A Debt/Equity ratio of 40.94 is on the high side and indicates that NCLH has dependencies on debt financing.
The Debt to Equity ratio of NCLH (40.94) is worse than 71.64% of its industry peers.
Industry RankSector Rank
Debt/Equity 40.94
Debt/FCF N/A
Altman-Z 0.09
ROIC/WACC0.7
WACC7.83%

2.3 Liquidity

NCLH has a Current Ratio of 0.22. This is a bad value and indicates that NCLH is not financially healthy enough and could expect problems in meeting its short term obligations.
NCLH has a worse Current ratio (0.22) than 97.76% of its industry peers.
NCLH has a Quick Ratio of 0.22. This is a bad value and indicates that NCLH is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.19, NCLH is not doing good in the industry: 97.01% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.22
Quick Ratio 0.19

7

3. Growth

3.1 Past

NCLH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 112.50%, 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 -34.82% yearly.
NCLH shows a strong growth in Revenue. In the last year, the Revenue has grown by 76.51%.
The Revenue has been growing slightly by 7.14% on average over the past years.
EPS 1Y (TTM)112.5%
EPS 3YN/A
EPS 5Y-34.82%
EPS growth Q2Q82.69%
Revenue 1Y (TTM)76.51%
Revenue growth 3Y88.33%
Revenue growth 5Y7.14%
Revenue growth Q2Q30.77%

3.2 Future

The Earnings Per Share is expected to grow by 50.50% on average over the next years. This is a very strong growth
NCLH is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.88% yearly.
EPS Next Y122.43%
EPS Next 2Y76.22%
EPS Next 3Y59.58%
EPS Next 5Y50.5%
Revenue Next Year9.73%
Revenue Next 2Y8.47%
Revenue Next 3Y8.8%
Revenue Next 5Y8.88%

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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

4

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 36.09, which means the current valuation is very expensive for NCLH.
NCLH's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.48, NCLH is valued a bit more expensive.
Based on the Price/Forward Earnings ratio of 16.22, the valuation of NCLH can be described as correct.
73.88% of the companies in the same industry are more expensive than NCLH, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.79, NCLH is valued a bit cheaper.
Industry RankSector Rank
PE 36.09
Fwd PE 16.22

4.2 Price Multiples

NCLH's Enterprise Value to EBITDA ratio is in line with the industry average.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 12.54

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 59.58% in the coming years.
PEG (NY)0.29
PEG (5Y)N/A
EPS Next 2Y76.22%
EPS Next 3Y59.58%

0

5. Dividend

5.1 Amount

No dividends for NCLH!.
Industry RankSector Rank
Dividend Yield N/A

NORWEGIAN CRUISE LINE HOLDIN

NYSE:NCLH (3/28/2024, 8:26:39 PM)

After market: 20.96 +0.03 (+0.14%)

20.93

-0.41 (-1.92%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap8.91B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 36.09
Fwd PE 16.22
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.29
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.85%
ROE 55.26%
ROCE
ROIC
ROICexc
ROICexgc
OM 10.89%
PM (TTM) 1.94%
GM 36.04%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.44
Health
Industry RankSector Rank
Debt/Equity 40.94
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.22
Quick Ratio 0.19
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)112.5%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y122.43%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)76.51%
Revenue growth 3Y88.33%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y