NYSE:NCLH

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 15.3% below its fair value

Earnings are forecast to grow 10.25% per year

Earnings grew by 7.2% over the past year

Risk Analysis

Has a high level of debt



Snowflake Analysis

Good value 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: NCLH has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.1%

NCLH

3.1%

US Hospitality

1.7%

US Market


1 Year Return

25.5%

NCLH

19.2%

US Hospitality

23.6%

US Market

Return vs Industry: NCLH exceeded the US Hospitality industry which returned 20.1% over the past year.

Return vs Market: NCLH exceeded the US Market which returned 23.2% over the past year.


Shareholder returns

NCLHIndustryMarket
7 Day3.1%3.1%1.7%
30 Day3.6%4.6%3.5%
90 Day19.4%15.8%11.7%
1 Year25.5%25.5%22.3%19.2%26.2%23.6%
3 Year29.7%29.7%47.0%37.1%53.2%43.3%
5 Year29.5%29.5%56.1%39.6%75.5%56.1%

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

Valuation

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

13.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NCLH ($57.9) is trading below our estimate of fair value ($68.37)

Significantly Below Fair Value: NCLH is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: NCLH is good value based on its PE Ratio (13x) compared to the Hospitality industry average (25.1x).

PE vs Market: NCLH is good value based on its PE Ratio (13x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: NCLH is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: NCLH is good value based on its PB Ratio (2x) compared to the US Hospitality industry average (2.4x).


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?

10.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NCLH's forecast earnings growth (10.3% per year) is above the savings rate (1.7%).

Earnings vs Market: NCLH's earnings (10.3% per year) are forecast to grow slower than the US market (14.3% per year).

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

Revenue vs Market: NCLH's revenue (7% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: NCLH's revenue (7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NCLH's Return on Equity is forecast to be low in 3 years time (15.4%).


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: NCLH has high quality earnings.

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


Past Earnings Growth Analysis

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

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

Earnings vs Industry: NCLH earnings growth over the past year (7.2%) exceeded the Hospitality industry -18.9%.


Return on Equity

High ROE: NCLH'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: NCLH's short term assets ($842.7M) do not cover its short term liabilities ($3.4B).

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


Debt to Equity History and Analysis

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

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

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

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


Balance Sheet

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

Debt Coverage by Assets: NCLH'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?

0.76%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years0.8%

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate NCLH'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 NCLH's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NCLH'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 NCLH's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Norwegian Cruise Line Holdings's salary, the management and board of directors tenure and is there insider trading?

3.9yrs

Average management tenure


CEO

Frank Del Rio (64yo)

5yrs

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 ($USD22.59M) is above average for companies of similar size in the US market ($USD10.76M).

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


Management Age and Tenure

3.9yrs

Average Tenure

50yo

Average Age

Experienced Management: NCLH's management team is considered experienced (3.9 years average tenure).


Board Age and Tenure

4.5yrs

Average Tenure

57yo

Average Age

Experienced Board: NCLH's board of directors are considered experienced (4.5 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$99,24813 Dec 19
Faye Ashby
EntityIndividual
Role
Chief Accounting Officer
Senior VP & Chief Accounting Officer
Shares1,786
Max PriceUS$55.57
SellUS$928,92813 Nov 19
Andrew Stuart
EntityIndividual
Shares17,864
Max PriceUS$52.00
SellUS$1,250,37316 Aug 19
Andrew Stuart
EntityIndividual
Shares25,000
Max PriceUS$50.02
SellUS$621,28821 May 19
Jason Montague
EntityIndividual
Role
Unit CEO
President & CEO of Regent brand
Shares10,805
Max PriceUS$57.50
SellUS$337,65128 Feb 19
Harry Sommer
EntityIndividual
Shares6,138
Max PriceUS$55.01
SellUS$567,73227 Feb 19
Daniel Farkas
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares10,200
Max PriceUS$55.66

Ownership Breakdown

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


Management Team

  • Dan Farkas (50yo)

    Executive VP

    • Tenure: 11.9yrs
  • Frank Del Rio (64yo)

    President

    • Tenure: 5yrs
    • Compensation: US$22.59m
  • T. Lindsay (61yo)

    Executive Vice President of Vessel Operations

    • Tenure: 5yrs
    • Compensation: US$5.34m
  • Bob Becker (59yo)

    Executive Vice President

    • Compensation: US$1.31m
  • Jason Montague (45yo)

    President & CEO of Regent brand

    • Tenure: 3.3yrs
    • Compensation: US$5.35m
  • Faye Ashby (47yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 3.9yrs
  • Andrea DeMarco

    Vice President of Investor Relations & Corporate Communications

    • Yucheng Xiang

      Managing Director of China operations

      • David Herrera

        Senior Vice President of Strategy & Corporate Development

        • Tenure: 1.9yrs
      • Mark Kempa (47yo)

        Executive VP & CFO

        • Tenure: 1.8yrs
        • Compensation: US$4.49m

      Board Members

      • Steve Martinez (50yo)

        Director

        • Tenure: 12yrs
      • John Chidsey (57yo)

        Independent Director

        • Tenure: 6.8yrs
        • Compensation: US$165.00k
      • Adam Aron (64yo)

        Director

        • Tenure: 12yrs
        • Compensation: US$120.00k
      • Pamela Thomas-Graham (56yo)

        Independent Director

        • Tenure: 1.8yrs
        • Compensation: US$99.30k
      • Stella David (57yo)

        Independent Director

        • Tenure: 3yrs
        • Compensation: US$100.00k
      • Russell Galbut (66yo)

        Independent Chairman of the Board

        • Tenure: 1.6yrs
        • Compensation: US$156.51k
      • Chad Leat (63yo)

        Independent Director

        • Tenure: 4.2yrs
        • Compensation: US$160.00k
      • Frank Del Rio (64yo)

        President

        • Tenure: 5yrs
        • Compensation: US$22.59m
      • Bob Binder (55yo)

        Vice Chairman of Oceania Cruises & Regent and CEO & President of Oceania Cruises

        • Tenure: 4.7yrs
        • Compensation: US$3.80m
      • David Abrams (52yo)

        Independent Director

        • Tenure: 5.8yrs
        • Compensation: US$120.00k

      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: NCLH
      • Exchange: NYSE
      • Founded: 1966
      • Industry: Hotels, Resorts and Cruise Lines
      • Sector: Consumer Services
      • Market Cap: US$12.691b
      • 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 Analysis2020/01/20 00:27
      End of Day Share Price2020/01/17 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.