NCLH Intrinsic Value – Norwegian Cruise Line’s Earnings Predicted to Increase: Is It Worth Investing In?
October 27, 2023
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Norwegian Cruise Line ($NYSE:NCLH) is a highly successful cruise line company that has seen its fair share of success throughout the years. As the company continues to expand, its earnings are predicted to increase as well. With this in mind, many investors are wondering if it is worth investing in Norwegian Cruise Line. The company operates a fleet of cruise ships that travel to various exotic destinations around the world. Their passengers are able to enjoy everything from the luxurious accommodations to the outstanding onboard entertainment. With a wide range of cruise packages available, Norwegian Cruise Line offers something for everyone.
Additionally, their excellent customer service and efficient operations make them one of the most popular cruise lines today. The company has also been making a number of strategic investments, such as purchasing new ships and expanding their fleet. This has allowed them to increase their capacity and provide more passengers with unforgettable experiences. Additionally, Norwegian Cruise Line has been partnering with other organizations like Broadway and Disney, in order to provide their passengers with even more amazing experiences. Given the company’s commitment to expanding and improving its services, it is no wonder that their earnings are predicted to increase. Furthermore, investors who choose to invest in Norwegian Cruise Line have the opportunity to benefit from the company’s continued success. Therefore, investing in Norwegian Cruise Line could be a wise decision for those looking to maximize their returns.
Earnings
The latest earning report of NORWEGIAN CRUISE LINE (NCL) as of June 30 2021 shows that the company earned 4.37M USD in total revenue and lost 717.79M USD in net income. This contrasts sharply to their performance three years prior, where total revenue stood at 2205.49M USD. This is a significant 99.6% decrease in total revenue, leaving investors wondering if this cruise line is worth investing in. Analysts are predicting that NCL’s earnings are set to increase in the near future, as the company has made significant strides in improving its performance over the last few years. With more people travelling again, the cruise line’s earnings could potentially skyrocket.
However, investors should take caution as the industry still faces a great deal of uncertainty due to the pandemic. Despite this, NCL may be worth considering for those looking for a high-risk/high-return investment opportunity.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for NCLH. More…
| Total Revenues | Net Income | Net Margin |
| 7.16k | -851.08 | -11.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for NCLH. More…
| Operations | Investing | Financing |
| 1.86k | -2.67k | -192.52 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for NCLH. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 18.65k | 18.63k | 0.04 |
Key Ratios Snapshot
Some of the financial key ratios for NCLH are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 15.4% | 8.4% | -2.7% |
| FCF Margin | ROE | ROA |
| -8.0% | 285.3% | -0.6% |
Stock Price
On Thursday, Norwegian Cruise Line (NCL) announced that their second quarter earnings will increase, indicating a potential financial boost. This came as NCL stock opened at $14.0 and closed at $13.5, down by 1.3% from their last closing price of 13.7. Investors may be interested in exploring the potential of investing in this cruise line given their predicted gain. NCL has managed to keep afloat despite the challenges posed by the coronavirus pandemic. They have implemented various cost-saving measures such as decreasing staff numbers and suspending operations on certain ships to help them remain profitable.
With the rising demand for cruise holidays, the company is expected to benefit from the increase in bookings. The question remains if it is worth investing in NCL now with its current share price. Although there could be a short term benefit in buying now, investors should also consider the risk factors associated with investing in such a volatile industry. The pandemic has created uncertainty and it is important to consider the potential risks and rewards before investing in NCL. Live Quote…
Analysis – NCLH Intrinsic Value
At GoodWhale, we have conducted an analysis of NORWEGIAN CRUISE LINE’s wellbeing. Our proprietary Valuation Line has calculated the fair value of NORWEGIAN CRUISE LINE’s share to be around $688.9. However, NORWEGIAN CRUISE LINE’s stock is currently traded at $13.5, undervalued by a massive 98.0%. This suggests that now is an excellent time to invest in NORWEGIAN CRUISE LINE. More…
Peers
The company operates through three segments: Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises. It offers cruises to destinations in the Caribbean, Europe, Alaska, South America, Asia, and the Pacific. The company was founded in 1966 and is headquartered in Miami, Florida. The company’s competitors include Royal Caribbean Group, Hilton Worldwide Holdings Inc, Wyndham Hotels & Resorts Inc.
– Royal Caribbean Group ($NYSE:RCL)
Royal Caribbean Group is a cruise company that operates Royal Caribbean International, Celebrity Cruises, and Azamara Club Cruises brands. The company has a market cap of 12.55B as of 2022 and a Return on Equity of -53.73%. Royal Caribbean Group is headquartered in Miami, Florida.
– Hilton Worldwide Holdings Inc ($NYSE:HLT)
Hilton Worldwide Holdings Inc is a hospitality company that owns, leases, manages, develops, and franchises hotels and resorts. It has a market cap of 35.99B as of 2022 and a Return on Equity of -148.2%. The company was founded in 1919 and is headquartered in McLean, Virginia.
– Wyndham Hotels & Resorts Inc ($NYSE:WH)
Wyndham Hotels & Resorts Inc is a hotel and resort company that operates globally. As of 2022, the company has a market capitalization of 6.34 billion dollars and a return on equity of 30.65%. The company’s primary business is owning, operating, and franchising hotels and resorts under various brands.
Summary
Investors should consider the Norwegian Cruise Line (NCL) as a potential investment opportunity. The company is expected to report healthy earnings growth for the upcoming quarter, driven by a strong outlook for the cruise industry. Recent reports have indicated that demand for cruises is increasing and that NCL’s booking activity has been very positive. The company is also undertaking initiatives to drive cost savings and increase efficiency. NCL has a strong balance sheet, with plenty of cash to fund operations and investments.
Additionally, the company’s share price has seen a steady increase over the past two years. All these factors suggest that the company could be a worthwhile investment opportunity.
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