Carnival Corporation Stock Fair Value Calculation – Carnival Corporation Reports FY2023 Second Quarter Earnings Results
June 28, 2023
🌥️Earnings Overview
On June 26 2023, CARNIVAL CORPORATION ($NYSE:CCL) announced its financial results for the second quarter of FY2023 which ended on May 31 2023. The company reported a total revenue of USD 4911.0 million, showing a year-on-year increase of 104.5%. Net income for the quarter was USD -407.0 million, representing a decrease of -1834.0 million compared to the same quarter in the previous year.
Price History
The company’s stock opened at $15.0 and closed at $14.6, a 7.6% decrease from the previous closing price of $15.8. This marks the steepest decline in stock prices since the company announced its earnings release, indicating a shift in investor sentiment.
However, this increase was not enough to offset the decrease in stock prices as investors were concerned with the company’s increasing debt and declining profits. Despite these discouraging figures, CARNIVAL CORPORATION is still optimistic for the future and remains committed to its strategy of providing guests with an unforgettable experience on their vacation. The company is working hard to reduce its debt and increase profitability in order to improve its financial situation and provide more value for its shareholders. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Carnival Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 17.49k | -3.47k | -19.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Carnival Corporation. More…
| Operations | Investing | Financing |
| -70 | -4.77k | 3.58k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Carnival Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 51.87k | 46.01k | 4.5 |
Key Ratios Snapshot
Some of the financial key ratios for Carnival Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 1.3% | 2.2% | -8.5% |
| FCF Margin | ROE | ROA |
| -19.2% | -15.5% | -1.8% |
Analysis – Carnival Corporation Stock Fair Value Calculation
At GoodWhale, we are passionate about helping investors make informed decisions. We recently completed an analysis of CARNIVAL CORPORATION‘s financials and found that the intrinsic value of its shares is approximately $111.6. This intrinsic value was calculated using our proprietary Valuation Line, which provides an unbiased assessment of a company’s worth. At the time of writing, CARNIVAL CORPORATION shares are trading at $14.6 – significantly below our calculated intrinsic value. This makes CARNIVAL CORPORATION stock an excellent opportunity for investors looking to capitalize on an undervalued asset, with a potential upside of 86.9%. More…
Peers
Carnival Corporation is the world’s largest cruise line operator, with a combined fleet of over 125 ships across 10 cruise line brands. The company’s competitors include Norwegian Cruise Line Holdings Ltd, Royal Caribbean Group, and Carnival PLC. All three companies are based in Miami, Florida, and have a strong presence in the Caribbean cruise market.
– Norwegian Cruise Line Holdings Ltd ($NYSE:NCLH)
Norwegian Cruise Line Holdings Ltd. is a leading global cruise company which operates the Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises brands. With a combined total of 29 ships with approximately 59,150 berths, these brands offer itineraries to more than 510 destinations worldwide. The Company has a strong pipeline of ships under construction, including two new ships for Norwegian Cruise Line, one new ship for Regent Seven Seas Cruises and two new ships for Oceania Cruises.
– Royal Caribbean Group ($NYSE:RCL)
The company has a market cap of 12.38B as of 2022. The company’s ROE for the year was -53.73%. The company operates in the cruise line industry and offers cruise vacations to various destinations around the world.
– Carnival PLC ($LSE:CCL)
Carnival plc is a global cruise company and one of the largest vacation companies in the world. It has a market cap of 7.94B as of 2022 and a Return on Equity of -42.02%. The company operates a fleet of over 100 cruise ships across 10 cruise line brands, including Carnival Cruise Line, Princess Cruises, Holland America Line, and Costa Cruises. Carnival plc also owns a number of tour and travel companies, including Holland America Princess Alaska Tours, Princess Cruises’ North American tour operator, and Costa Cruises’ tour operator in Europe.
Summary
CARNIVAL CORPORATION reported strong second quarter results for FY2023, with total revenue increasing 104.5% from the same quarter last year. Net income, however, decreased by a staggering -1834.0 million year-on-year. This had an immediate impact on the company’s stock price, with an overall decrease in value observed the same day. For investors, this could be a sign that the stock is not performing as well as initially expected.
However, the long term prospects of CARNIVAL CORPORATION remain positive and investors should consider both the short and long term performances of the company before making any decisions.
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