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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Red Rock Resorts, Inc.

Choice Hotels International, Inc.

Royal Caribbean Group

Vail Resorts, Inc.

Carnival Corp.

Norwegian Cruise Line Holdings Ltd.

Marriott International, Inc.

Hilton Worldwide Holdings, Inc.

Hyatt Hotels Corp.

Wyndham Hotels & Resorts, Inc.

Travel + Leisure Co.

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 -25.27%, 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 -25.27% 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, Medium Return

Absolute

Risk Adjusted

Volatility

Norwegian Cruise Line Holdings Ltd.

-1.37%

0.33

51.90%

S&P 500

16.12%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

28.64%

EBIT Growth (5y)

28.11%

EBIT to Interest (avg)

0.55

Debt to EBITDA (avg)

32.06

Net Debt to Equity (avg)

9.77

Sales to Capital Employed (avg)

0.61

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

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

4.12

EV to EBIT

14.71

EV to EBITDA

8.97

EV to Capital Employed

1.41

EV to Sales

2.42

PEG Ratio

0.56

Dividend Yield

ROCE (Latest)

9.61%

ROE (Latest)

32.55%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

Mildly Bullish

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

15What is working for the Company

PRE-TAX PROFIT(Q)

At USD 433.64 MM has Grown at 175.45%

OPERATING CASH FLOW(Y)

Highest at USD 2,029.89 MM

NET PROFIT(Q)

At USD 419.3 MM has Grown at 117.78%

RAW MATERIAL COST(Y)

Fallen by -2.6% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 692.11 %

INVENTORY TURNOVER RATIO(HY)

Highest at 43.73 times

DEBTORS TURNOVER RATIO(HY)

Highest at 42.75 times

NET SALES(Q)

Highest at USD 2,938.14 MM

OPERATING PROFIT(Q)

Highest at USD 1,017.66 MM

OPERATING PROFIT MARGIN(Q)

Highest at 34.64 %

-14What is not working for the Company

NET PROFIT(HY)

At USD 449.29 MM has Grown at -29.68%

CASH AND EQV(HY)

Lowest at USD 350.82 MM

INTEREST(Q)

Highest at USD 328.82 MM

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

Pre-Tax Profit

At USD 433.64 MM has Grown at 175.45%

over average net sales of the previous four periods of USD 157.43 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 419.3 MM has Grown at 117.78%

over average net sales of the previous four periods of USD 192.53 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Operating Cash Flow

Highest at USD 2,029.89 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Net Sales

Highest at USD 2,938.14 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Net Sales

At USD 2,938.14 MM has Grown at 22.92%

over average net sales of the previous four periods of USD 2,390.25 MM

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Operating Profit

Highest at USD 1,017.66 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Operating Profit Margin

Highest at 34.64 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Debt-Equity Ratio

Lowest at 692.11 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 43.73 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 42.75 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -2.6% (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 268.67 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.

Interest

At USD 328.82 MM has Grown at 38.87%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest

Highest at USD 328.82 MM

in the last five periods and Increased by 38.87% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Cash and Eqv

Lowest at USD 350.82 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents