NORWEGIAN CRUISE LINE HOLDIN (NCLH) Stock Fundamental Analysis
NYSE:NCLH - New York Stock Exchange, Inc. - BMG667211046 - Common Stock - Currency: USD
Taking everything into account, NCLH scores 3 out of 10 in our fundamental rating. NCLH was compared to 135 industry peers in the Hotels, Restaurants & Leisure industry. While NCLH is still in line with the averages on profitability rating, there are concerns on its financial health. NCLH is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year NCLH was profitable.
In the past year NCLH had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: NCLH reported negative net income in multiple years.
In multiple years NCLH reported negative operating cash flow during the last 5 years.
1.2 Ratios
NCLH has a Return On Assets (2.78%) which is in line with its industry peers.
NCLH has a better Return On Equity (48.38%) than 95.42% of its industry peers.
NCLH has a Return On Invested Capital of 7.90%. This is in the better half of the industry: NCLH outperforms 61.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.78% | ||
| ROE | 48.38% | ||
| ROIC | 7.9% |
ROA(3y)-11.81%
ROA(5y)-10.33%
ROE(3y)-1139.9%
ROE(5y)-699.51%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
NCLH's Profit Margin of 5.87% is fine compared to the rest of the industry. NCLH outperforms 61.83% of its industry peers.
NCLH's Profit Margin has declined in the last couple of years.
NCLH has a better Operating Margin (14.70%) than 64.89% of its industry peers.
NCLH's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 39.05%, NCLH is doing worse than 65.65% of the companies in the same industry.
In the last couple of years the Gross Margin of NCLH has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.7% | ||
| PM (TTM) | 5.87% | ||
| GM | 39.05% |
OM growth 3YN/A
OM growth 5Y-11.55%
PM growth 3YN/A
PM growth 5Y-34.21%
GM growth 3YN/A
GM growth 5Y-4.01%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NCLH is destroying value.
Compared to 1 year ago, NCLH has more shares outstanding
The number of shares outstanding for NCLH has been increased compared to 5 years ago.
The debt/assets ratio for NCLH has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.33, we must say that NCLH is in the distress zone and has some risk of bankruptcy.
NCLH has a Altman-Z score of 0.33. This is amonst the worse of the industry: NCLH underperforms 80.15% of its industry peers.
NCLH has a debt to FCF ratio of 45.53. This is a negative value and a sign of low solvency as NCLH would need 45.53 years to pay back of all of its debts.
The Debt to FCF ratio of NCLH (45.53) is worse than 61.83% of its industry peers.
NCLH has a Debt/Equity ratio of 10.35. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 10.35, NCLH is not doing good in the industry: 65.65% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 10.35 | ||
| Debt/FCF | 45.53 | ||
| Altman-Z | 0.33 |
ROIC/WACC0.87
WACC9.04%
2.3 Liquidity
NCLH has a Current Ratio of 0.20. This is a bad value and indicates that NCLH is not financially healthy enough and could expect problems in meeting its short term obligations.
NCLH has a worse Current ratio (0.20) than 97.71% of its industry peers.
A Quick Ratio of 0.17 indicates that NCLH may have some problems paying its short term obligations.
NCLH has a Quick ratio of 0.17. This is amonst the worse of the industry: NCLH underperforms 96.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.2 | ||
| Quick Ratio | 0.17 |
3. Growth
3.1 Past
NCLH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 589.29%, which is quite impressive.
The earnings per share for NCLH have been decreasing by -34.82% on average. This is quite bad
NCLH shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.77%.
Measured over the past years, NCLH shows a small growth in Revenue. The Revenue has been growing by 7.14% on average per year.
EPS 1Y (TTM)589.29%
EPS 3YN/A
EPS 5Y-34.82%
EPS Q2Q%30.26%
Revenue 1Y (TTM)15.77%
Revenue growth 3Y88.33%
Revenue growth 5Y7.14%
Sales Q2Q%10.67%
3.2 Future
Based on estimates for the next years, NCLH will show a very strong growth in Earnings Per Share. The EPS will grow by 45.59% on average per year.
Based on estimates for the next years, NCLH will show a quite strong growth in Revenue. The Revenue will grow by 9.96% on average per year.
EPS Next Y189.38%
EPS Next 2Y91.38%
EPS Next 3Y65.74%
EPS Next 5Y45.59%
Revenue Next Year11.03%
Revenue Next 2Y9.54%
Revenue Next 3Y9.65%
Revenue Next 5Y9.96%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 17.60, the valuation of NCLH can be described as rather expensive.
NCLH's Price/Earnings ratio is a bit cheaper when compared to the industry. NCLH is cheaper than 74.81% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.63. NCLH is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 11.35, the valuation of NCLH can be described as very reasonable.
Based on the Price/Forward Earnings ratio, NCLH is valued cheaper than 89.31% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NCLH to the average of the S&P500 Index (22.68), we can say NCLH is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.6 | ||
| Fwd PE | 11.35 |
4.2 Price Multiples
68.70% of the companies in the same industry are more expensive than NCLH, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as NCLH.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.01 | ||
| EV/EBITDA | 10.43 |
4.3 Compensation for Growth
NCLH's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as NCLH's earnings are expected to grow with 65.74% in the coming years.
PEG (NY)0.09
PEG (5Y)N/A
EPS Next 2Y91.38%
EPS Next 3Y65.74%
5. Dividend
5.1 Amount
No dividends for NCLH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
24.11
-1.57 (-6.11%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners71.66%
Inst Owner Change7.23%
Ins Owners0.35%
Ins Owner Change0.12%
Market Cap10.60B
Analysts78.57
Price Target30.21 (25.3%)
Short Float %4.98%
Short Ratio2.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.87%
Min EPS beat(2)2.95%
Max EPS beat(2)12.79%
EPS beat(4)3
Avg EPS beat(4)6.04%
Min EPS beat(4)-29.42%
Max EPS beat(4)37.85%
EPS beat(8)6
Avg EPS beat(8)6.34%
EPS beat(12)7
Avg EPS beat(12)-0.4%
EPS beat(16)9
Avg EPS beat(16)-0.3%
Revenue beat(2)0
Avg Revenue beat(2)-1.55%
Min Revenue beat(2)-2.41%
Max Revenue beat(2)-0.69%
Revenue beat(4)0
Avg Revenue beat(4)-2.12%
Min Revenue beat(4)-4.27%
Max Revenue beat(4)-0.69%
Revenue beat(8)1
Avg Revenue beat(8)-1.13%
Revenue beat(12)1
Avg Revenue beat(12)-5.34%
Revenue beat(16)2
Avg Revenue beat(16)2.81%
PT rev (1m)-0.09%
PT rev (3m)23.14%
EPS NQ rev (1m)2.11%
EPS NQ rev (3m)4.03%
EPS NY rev (1m)-0.72%
EPS NY rev (3m)-0.36%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-0.05%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.6 | ||
| Fwd PE | 11.35 | ||
| P/S | 1.13 | ||
| P/FCF | 36.01 | ||
| P/OCF | 5.55 | ||
| P/B | 9.34 | ||
| P/tB | 21.24 | ||
| EV/EBITDA | 10.43 |
EPS(TTM)1.37
EY5.68%
EPS(NY)2.12
Fwd EY8.81%
FCF(TTM)0.67
FCFY2.78%
OCF(TTM)4.34
OCFY18.01%
SpS21.28
BVpS2.58
TBVpS1.13
PEG (NY)0.09
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.78% | ||
| ROE | 48.38% | ||
| ROCE | 10.01% | ||
| ROIC | 7.9% | ||
| ROICexc | 8.1% | ||
| ROICexgc | 8.5% | ||
| OM | 14.7% | ||
| PM (TTM) | 5.87% | ||
| GM | 39.05% | ||
| FCFM | 3.15% |
ROA(3y)-11.81%
ROA(5y)-10.33%
ROE(3y)-1139.9%
ROE(5y)-699.51%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-9.93%
ROICexc growth 3YN/A
ROICexc growth 5Y-6.98%
OM growth 3YN/A
OM growth 5Y-11.55%
PM growth 3YN/A
PM growth 5Y-34.21%
GM growth 3YN/A
GM growth 5Y-4.01%
F-Score8
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 10.35 | ||
| Debt/FCF | 45.53 | ||
| Debt/EBITDA | 5.03 | ||
| Cap/Depr | 168.23% | ||
| Cap/Sales | 17.26% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.76% | ||
| Profit Quality | 53.6% | ||
| Current Ratio | 0.2 | ||
| Quick Ratio | 0.17 | ||
| Altman-Z | 0.33 |
F-Score8
WACC9.04%
ROIC/WACC0.87
Cap/Depr(3y)210.28%
Cap/Depr(5y)202.36%
Cap/Sales(3y)61.72%
Cap/Sales(5y)56.89%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)589.29%
EPS 3YN/A
EPS 5Y-34.82%
EPS Q2Q%30.26%
EPS Next Y189.38%
EPS Next 2Y91.38%
EPS Next 3Y65.74%
EPS Next 5Y45.59%
Revenue 1Y (TTM)15.77%
Revenue growth 3Y88.33%
Revenue growth 5Y7.14%
Sales Q2Q%10.67%
Revenue Next Year11.03%
Revenue Next 2Y9.54%
Revenue Next 3Y9.65%
Revenue Next 5Y9.96%
EBIT growth 1Y155.81%
EBIT growth 3YN/A
EBIT growth 5Y-5.23%
EBIT Next Year139.81%
EBIT Next 3Y45.32%
EBIT Next 5Y29.25%
FCF growth 1Y113.48%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y658.03%
OCF growth 3YN/A
OCF growth 5Y-0.68%