Norwegian Cruise Line Holdings Ltd. (NCLH) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Royal Caribbean Group

Carnival Corp.

Choice Hotels International, Inc.

Wyndham Hotels & Resorts, Inc.

Red Rock Resorts, Inc.

Norwegian Cruise Line Holdings Ltd.

Vail Resorts, Inc.

Travel + Leisure Co.

Marriott International, Inc.

Hyatt Hotels Corp.

Hilton Worldwide Holdings, Inc.

Why is Norwegian Cruise Line Holdings Ltd. ?

High Debt company with Weak Long Term Fundamental Strength

Poor long term growth as Operating profit has grown by an annual rate 82.06% of over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 36.41% signifying low profitability per unit of shareholders funds

Flat results in Jun 25

PRE-TAX PROFIT(Q) At USD 30.63 MM has Fallen at -83.97%
NET PROFIT(Q) At USD 29.99 MM has Fallen at -86.72%
CASH AND EQV(HY) Lowest at USD 368.37 MM

With ROE of 63.79%, it has a attractive valuation with a 6.17 Price to Book Value

Over the past year, while the stock has generated a return of -31.23%, its profits have risen by 140.5% ; the PEG ratio of the company is 0.1

Below par performance in long term as well as near term

Along with generating -31.23% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Norwegian Cruise Line Holdings Ltd. should be less than 10%
Overall Portfolio exposure to Hotels & Resorts should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Hotels & Resorts)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Norwegian Cruise Line Holdings Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Norwegian Cruise Line Holdings Ltd.

-31.34%

0.14

51.92%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.47%

EBIT Growth (5y)

82.06%

EBIT to Interest (avg)

0.55

Debt to EBITDA (avg)

32.06

Net Debt to Equity (avg)

9.77

Sales to Capital Employed (avg)

0.60

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

99.37%

ROCE (avg)

5.46%

ROE (avg)

36.41%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

6.17

EV to EBIT

15.35

EV to EBITDA

9.29

EV to Capital Employed

1.48

EV to Sales

2.40

PEG Ratio

0.07

Dividend Yield

ROCE (Latest)

9.64%

ROE (Latest)

63.79%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

10What is working for the Company

NET PROFIT(9M)

At USD 294.62 MM has Grown at 174.03%

OPERATING CASH FLOW(Y)

Highest at USD 1,965.83 MM

DEBT-EQUITY RATIO (HY)

Lowest at 917.78 %

RAW MATERIAL COST(Y)

Fallen by -9.04% (YoY

-14What is not working for the Company

PRE-TAX PROFIT(Q)

At USD 30.63 MM has Fallen at -83.97%

NET PROFIT(Q)

At USD 29.99 MM has Fallen at -86.72%

CASH AND EQV(HY)

Lowest at USD 368.37 MM

INTEREST(Q)

Highest at USD 236.78 MM

Here's what is working for Norwegian Cruise Line Holdings Ltd.

Operating Cash Flow

Highest at USD 1,965.83 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Debt-Equity Ratio

Lowest at 917.78 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -9.04% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 260.32 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Norwegian Cruise Line Holdings Ltd.

Pre-Tax Profit

At USD 30.63 MM has Fallen at -83.97%

over average net sales of the previous four periods of USD 191.02 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 29.99 MM has Fallen at -86.72%

over average net sales of the previous four periods of USD 225.89 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Interest

At USD 236.78 MM has Grown at 40.65%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest

Highest at USD 236.78 MM

in the last five periods and Increased by 40.65% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Cash and Eqv

Lowest at USD 368.37 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents