Norwegian Cruise Line Holdings (NYSE:NCLH) investors are sitting on a loss of 68% if they invested five years ago

We think intelligent long term investing is the way to go. But that doesn't mean long term investors can avoid big losses. To wit, the Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) share price managed to fall 68% over five long years. That's an unpleasant experience for long term holders. Unfortunately the share price momentum is still quite negative, with prices down 8.3% in thirty days.

So let's have a look and see if the longer term performance of the company has been in line with the underlying business' progress.

View our latest analysis for Norwegian Cruise Line Holdings

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

During five years of share price growth, Norwegian Cruise Line Holdings moved from a loss to profitability. That would generally be considered a positive, so we are surprised to see the share price is down. Other metrics might give us a better handle on how its value is changing over time.

In contrast to the share price, revenue has actually increased by 1.2% a year in the five year period. A more detailed examination of the revenue and earnings may or may not explain why the share price languishes; there could be an opportunity.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. If you are thinking of buying or selling Norwegian Cruise Line Holdings stock, you should check out this free report showing analyst profit forecasts.

A Different Perspective

It's good to see that Norwegian Cruise Line Holdings has rewarded shareholders with a total shareholder return of 37% in the last twelve months. That certainly beats the loss of about 11% per year over the last half decade. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. It's always interesting to track share price performance over the longer term. But to understand Norwegian Cruise Line Holdings better, we need to consider many other factors. Take risks, for example - Norwegian Cruise Line Holdings has 1 warning sign we think you should be aware of.

Of course Norwegian Cruise Line Holdings may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.