DB:1NC

Stock Analysis Report

Norwegian Cruise Line Holdings

Executive Summary

Norwegian Cruise Line Holdings Ltd., together with its subsidiaries, operates as a cruise company in the United States and internationally.

Rewards

Trading at 29.3% below its fair value

Earnings are forecast to grow 9.65% per year

Earnings grew by 7.2% over the past year

Risk Analysis

Has a high level of debt



Snowflake Analysis

Undervalued with acceptable track record.


Similar Companies

Share Price & News

How has Norwegian Cruise Line Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1NC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.0%

1NC

-5.0%

DE Hospitality

0.2%

DE Market


1 Year Return

1.7%

1NC

3.5%

DE Hospitality

14.4%

DE Market

Return vs Industry: 1NC underperformed the German Hospitality industry which returned 3.5% over the past year.

Return vs Market: 1NC underperformed the German Market which returned 14.4% over the past year.


Shareholder returns

1NCIndustryMarket
7 Day-3.0%-5.0%0.2%
30 Day-12.0%-0.3%0.9%
90 Day0.9%-11.9%4.6%
1 Year1.7%1.7%8.0%3.5%17.9%14.4%
3 Year-3.2%-3.2%-9.2%-21.6%15.7%5.6%
5 Year12.3%12.3%-10.4%-29.3%23.4%6.5%

Price Volatility Vs. Market

How volatile is Norwegian Cruise Line Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Norwegian Cruise Line Holdings undervalued compared to its fair value and its price relative to the market?

29.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1NC (€47.6) is trading below our estimate of fair value (€67.33)

Significantly Below Fair Value: 1NC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1NC is good value based on its PE Ratio (11.7x) compared to the Hospitality industry average (25x).

PE vs Market: 1NC is good value based on its PE Ratio (11.7x) compared to the German market (20.7x).


Price to Earnings Growth Ratio

PEG Ratio: 1NC is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: 1NC is good value based on its PB Ratio (1.8x) compared to the DE Hospitality industry average (2.3x).


Next Steps

Future Growth

How is Norwegian Cruise Line Holdings forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

9.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1NC's forecast earnings growth (9.6% per year) is above the savings rate (-0.4%).

Earnings vs Market: 1NC's earnings (9.6% per year) are forecast to grow slower than the German market (13.3% per year).

High Growth Earnings: 1NC's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1NC's revenue (6.8% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: 1NC's revenue (6.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1NC's Return on Equity is forecast to be low in 3 years time (15.3%).


Next Steps

Past Performance

How has Norwegian Cruise Line Holdings performed over the past 5 years?

23.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1NC has high quality earnings.

Growing Profit Margin: 1NC's current net profit margins (15.1%) are lower than last year (15.2%).


Past Earnings Growth Analysis

Earnings Trend: 1NC's earnings have grown significantly by 23.3% per year over the past 5 years.

Accelerating Growth: 1NC's earnings growth over the past year (7.2%) is below its 5-year average (23.3% per year).

Earnings vs Industry: 1NC earnings growth over the past year (7.2%) exceeded the Hospitality industry -36.8%.


Return on Equity

High ROE: 1NC's Return on Equity (15.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Norwegian Cruise Line Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1NC's short term assets ($842.7M) do not cover its short term liabilities ($3.4B).

Long Term Liabilities: 1NC's short term assets ($842.7M) do not cover its long term liabilities ($6.3B).


Debt to Equity History and Analysis

Debt Level: 1NC's debt to equity ratio (99.9%) is considered high.

Reducing Debt: 1NC's debt to equity ratio has reduced from 120.8% to 99.9% over the past 5 years.

Debt Coverage: 1NC's debt is well covered by operating cash flow (29.3%).

Interest Coverage: 1NC's interest payments on its debt are well covered by EBIT (4.6x coverage).


Balance Sheet

Inventory Level: 1NC has a high level of physical assets or inventory.

Debt Coverage by Assets: 1NC's debt is not covered by short term assets (assets are 0.1x debt).


Next Steps

Dividend

What is Norwegian Cruise Line Holdings's current dividend yield, its reliability and sustainability?

0.87%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%1.3%markettop25%3.6%industryaverage5.3%forecastin3Years0.9%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 1NC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1NC's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 1NC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1NC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1NC's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.0yrs

Average management tenure


CEO

Frank Del Rio (64yo)

5.1yrs

Tenure

US$22,593,061

Compensation

Mr. Frank J. Del Rio has been Chief Executive Officer and President at NCL Corporation Ltd. since January 8, 2015. Mr. Del Rio has been the Chief Executive Officer and President of Norwegian Cruise Line Ho ...


CEO Compensation Analysis

Compensation vs Market: Frank's total compensation ($USD22.59M) is above average for companies of similar size in the German market ($USD4.31M).

Compensation vs Earnings: Frank's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Frank Del Rio
President5.1yrsUS$22.59m0.11% $11.2m
Mark Kempa
Executive VP & CFO1.9yrsUS$4.49m0.0090% $919.9k
T. Lindsay
Executive Vice President of Vessel Operations5.1yrsUS$5.34m0.046% $4.6m
Jason Montague
President & CEO of Regent brand3.4yrsUS$5.35m0.020% $2.1m
Faye Ashby
Senior VP & Chief Accounting Officer4yrsno data0.0067% $680.5k
Andrea DeMarco
Vice President of Investor Relations & Corporate Communications0yrsno datano data
Daniel Farkas
Executive VP12yrsno data0.024% $2.5m
Alex Xiang
Managing Director of China operations0yrsno datano data
David Herrera
Senior Vice President of Strategy & Corporate Development2yrsno datano data
Robert Becker
Executive Vice President0yrsUS$1.31mno data

4.0yrs

Average Tenure

50yo

Average Age

Experienced Management: 1NC's management team is considered experienced (4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Frank Del Rio
President5.1yrsUS$22.59m0.11% $11.2m
Robert Binder
Vice Chairman of Oceania Cruises & Regent and CEO & President of Oceania Cruises4.8yrsUS$3.80m0.034% $3.4m
Steven Martinez
Director12.1yrsno datano data
John Chidsey
Independent Director6.8yrsUS$165.00k0.013% $1.3m
Adam Aron
Director12.1yrsUS$120.00k0.0046% $467.6k
Pamela Thomas-Graham
Independent Director1.8yrsUS$99.30k0.0024% $246.5k
Stella David
Independent Director3.1yrsUS$100.00k0.0072% $732.4k
Russell Galbut
Independent Chairman of the Board1.7yrsUS$156.51k0.022% $2.2m
Chad Leat
Independent Director4.3yrsUS$160.00k0.010% $1.0m
David Abrams
Independent Director5.8yrsUS$120.00k0.0092% $934.1k

4.6yrs

Average Tenure

57yo

Average Age

Experienced Board: 1NC's board of directors are considered experienced (4.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 1NC insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Norwegian Cruise Line Holdings Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Norwegian Cruise Line Holdings Ltd.
  • Ticker: 1NC
  • Exchange: DB
  • Founded: 1966
  • Industry: Hotels, Resorts and Cruise Lines
  • Sector: Consumer Services
  • Market Cap: US$10.997b
  • Listing Market Cap: US$10.187b
  • Shares outstanding: 212.76m
  • Website: https://www.nclhltdinvestor.com

Number of Employees


Location

  • Norwegian Cruise Line Holdings Ltd.
  • 7665 Corporate Center Drive
  • Miami
  • Florida
  • 33126
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NCLHNYSE (New York Stock Exchange)YesNew Ordinary SharesUSUSDJan 2013
1NCDB (Deutsche Boerse AG)YesNew Ordinary SharesDEEURJan 2013
NCLH NBMV (Bolsa Mexicana de Valores)YesNew Ordinary SharesMXMXNJan 2013
NCLHWBAG (Wiener Boerse AG)YesNew Ordinary SharesATEURJan 2013
0UC3LSE (London Stock Exchange)YesNew Ordinary SharesGBUSDJan 2013
N1CL34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COMBRBRLDec 2019

Biography

Norwegian Cruise Line Holdings Ltd., together with its subsidiaries, operates as a cruise company in the United States and internationally. The company operates the Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises brands. It offers cruise itineraries ranging from a few days to 180-days calling on various locations, including destinations in Scandinavia, Russia, the Mediterranean, the Greek Isles, Alaska, Canada and New England, India and the rest of Asia, Tahiti and the South Pacific, Australia and New Zealand, Africa, South America, the Panama Canal, the Caribbean, and Harvest Caye. As of December 31, 2018, the company had 26 ships with approximately 50,400 berths. It distributes its products through retail/travel agents and international channel, as well as meetings, incentives, and charters. The company was founded in 1966 and is headquartered in Miami, Florida. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 22:31
End of Day Share Price2020/02/19 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.