Carnival Corporation Intrinsic Value Calculation – Citi Sees Post-Pandemic Turnaround for Carnival Corporation as Rating is Raised to Buy
June 24, 2023
🌥️Trending News
Citi is looking to a continued recovery from the pandemic as Cruise Line International Association outlines a new health and safety policy for the maritime industry. Carnival Corporation ($NYSE:CCL) has taken numerous steps to ensure their fleet of ships are safe and compliant with all health regulations. This includes implementing new technology on board their ships to track passengers’ health in order to prevent any outbreaks from occurring. The company has also implemented strict cleaning protocols and procedures to keep passengers and crew safe during their voyage. These changes have allowed Carnival Corporation to resume sailing operations in certain areas around the world. They’ve also taken measures to increase their operating efficiency, which has resulted in cost savings and improved their overall financial performance.
With all of these changes in place, Citi is confident that Carnival Corporation will continue to see a post-pandemic turnaround as their purchase of P&O Cruises Australia is finalized. Carnival Corporation has always been a leader in the cruise industry, and this latest move shows that they are still committed to providing quality services and experiences for their passengers. Citi is confident that the company’s financial position will continue to improve as they navigate through the pandemic, and expects their rating to remain at Buy going forward.
Price History
Carnival Corporation, one of the world’s largest cruise ship operators, received a ‘Buy’ rating from Citi on Thursday. This comes as a surprise given the severe impact of the pandemic on the cruise industry. On Thursday, CARNIVAL CORPORATION stock opened at $11.0 and closed at $11.0, up by 3.1% from last closing price of 10.7.
This further reinforces Citi’s view of a post-pandemic turnaround for Carnival Corporation. Despite its struggles, Carnival Corporation was able to complete a restructuring plan in April that allowed it to raise $2 billion to shore up its finances and stay afloat. 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 |
| 14.98k | -4.89k | -32.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Carnival Corporation. More…
| Operations | Investing | Financing |
| -1.67k | -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 |
| 51.98k | 45.82k | 4.75 |
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 |
| -10.6% | 2.2% | -20.7% |
| FCF Margin | ROE | ROA |
| -44.1% | -29.3% | -3.7% |
Analysis – Carnival Corporation Intrinsic Value Calculation
After conducting a thorough analysis of CARNIVAL CORPORATION‘s financials, GoodWhale has determined that the intrinsic value of CARNIVAL CORPORATION’s shares is approximately $108.5. This figure was calculated using GoodWhale’s proprietary Valuation Line. At the moment, CARNIVAL CORPORATION stock is being traded at $11.0, resulting in a massive 89.9% undervaluation of the company’s shares. More…
Peers
Carnival Corporation is the world’s largest cruise line operator, with a combined fleet of over 125 ships across 10 cruise line brands. The company’s competitors include Norwegian Cruise Line Holdings Ltd, Royal Caribbean Group, and Carnival PLC. All three companies are based in Miami, Florida, and have a strong presence in the Caribbean cruise market.
– Norwegian Cruise Line Holdings Ltd ($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, the world’s largest cruise ship operator, recently had its stock price move up after it was upgraded to a Buy rating by Citi. This is seen as part of the company’s turnaround effort in the post-pandemic period. Carnival has been hard hit since the start of the pandemic, with many of its ships having to remain idle for long periods.
This new upgrade from Citi has been welcomed by investors and further signals Carnival’s ability to recover from the pandemic. It is hoped that this will help boost the company’s stock price and future prospects in the coming months.
