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.

Snowflake

Fundamentals

Undervalued with proven 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


Market Performance


7 Day Return

1.3%

NCLH

1.6%

US Hospitality

1.8%

US Market


1 Year Return

1.6%

NCLH

3.9%

US Hospitality

7.3%

US Market

Return vs Industry: NCLH underperformed the US Hospitality industry which returned 3.9% over the past year.

Return vs Market: NCLH underperformed the US Market which returned 7.3% over the past year.


Shareholder returns

NCLHIndustryMarket
7 Day1.3%1.6%1.8%
30 Day-7.6%-4.8%-0.7%
90 Day2.4%-4.0%0.06%
1 Year1.6%1.6%6.4%3.9%9.7%7.3%
3 Year31.0%31.0%41.7%32.4%46.3%36.9%
5 Year42.1%42.1%41.3%25.7%64.5%46.5%

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

Valuation

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

42.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: NCLH ($49.78) is trading below our estimate of fair value ($86.73)

Significantly Undervalued: NCLH is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NCLH is good value based on its PE Ratio (11.1x) compared to the Hospitality industry average (22.3x).

PE vs Market: NCLH is good value based on its PE Ratio (11.1x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: NCLH is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: NCLH is good value based on its PB Ratio (1.7x) compared to the US Hospitality industry average (2.1x).


Next Steps

Future Growth

How is Norwegian Cruise Line Holdings forecast to perform in the next 1 to 3 years based on estimates from 16 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 (10.1% per year) is above the savings rate (2.7%).

Earnings vs Market: NCLH's earnings (10.1% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: NCLH's revenue (6.8% per year) is forecast to grow slower than the US market (7.3% per year).

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


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: NCLH's Return on Equity is forecast to be low in 3 years time (16.7%).


Next Steps

Past Performance

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

23.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NCLH's earnings have grown significantly by 23.8% per year over the past 5 years.

Accelerating Growth: NCLH's earnings growth over the past year (18.6%) is below its 5-year average (23.8% per year).

Earnings vs Industry: NCLH earnings growth over the past year (18.6%) exceeded the Hospitality industry -13.9%.


Return on Equity

High ROE: NCLH's Return on Equity (16%) is considered low.


Return on Assets

ROA vs Industry: NCLH has a higher Return on Assets than the Hospitality industry average last year.


Return on Capital Employed

ROCE Improving: NCLH has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Norwegian Cruise Line Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: NCLH's short term assets ($903.6M) do not cover its short term liabilities ($3.6B)

Long Term Liabilities: NCLH's short term assets (903.6M) do not cover its long term liabilities (6.2B)


Debt to Equity History and Analysis

Debt Level: NCLH's debt to equity ratio (103%) is considered high

Reducing Debt: NCLH's debt to equity ratio has reduced from 129.2% to 103% over the past 5 years.

Debt Coverage: NCLH's debt is well covered by operating cash flow (29.7%).

Interest Coverage: NCLH's interest payments on its debt are well covered by EBIT (4.5x 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?

0.55%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.7%industryaverage2.9%forecastin3Years0.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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?

4.1yrs

Average management tenure


CEO

Frank Del Rio (64yo)

4.8yrs

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 ($USD22.59M) is about average for companies of similar size in the US market ($USD11.21M).

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


Management Age and Tenure

4.1yrs

Average Tenure

50yo

Average Age

Experienced Management: NCLH's management team is considered experienced (4.1 years average tenure).


Board Age and Tenure

4.3yrs

Average Tenure

57yo

Average Age

Experienced Board: NCLH's board of directors are considered experienced (4.3 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$1,250,37316 Aug 19
Andrew Stuart
EntityIndividual
Role
Unit President
President & CEO of Norwegian Brand
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


Management Team

  • Andy Stuart (56yo)

    President & CEO of Norwegian Brand

    • Tenure: 4.6yrs
    • Compensation: US$5.35m
  • Dan Farkas (50yo)

    Executive VP

    • Tenure: 11.7yrs
  • Frank Del Rio (64yo)

    President

    • Tenure: 4.8yrs
    • Compensation: US$22.59m
  • T. Lindsay (61yo)

    Executive Vice President of Vessel Operations

    • Tenure: 4.8yrs
    • Compensation: US$5.34m
  • Jason Montague (45yo)

    President & CEO of Regent brand

    • Tenure: 3.1yrs
    • Compensation: US$5.35m
  • Faye Ashby (47yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 3.7yrs
  • Andrea DeMarco

    Vice President of Investor Relations & Corporate Communications

    • Tenure: 0yrs
  • Yucheng Xiang

    Managing Director of China operations

    • Tenure: 0yrs
  • David Herrera

    Senior Vice President of Strategy & Corporate Development

    • Tenure: 1.7yrs
  • Mark Kempa (47yo)

    Executive VP & CFO

    • Tenure: 1.6yrs
    • Compensation: US$4.49m

Board Members

  • Steve Martinez (50yo)

    Director

    • Tenure: 11.8yrs
  • John Chidsey (57yo)

    Independent Director

    • Tenure: 6.5yrs
    • Compensation: US$165.00k
  • Adam Aron (64yo)

    Director

    • Tenure: 11.8yrs
    • Compensation: US$120.00k
  • Pamela Thomas-Graham (56yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: US$99.30k
  • Stella David (57yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$100.00k
  • Russell Galbut (66yo)

    Independent Chairman of the Board

    • Tenure: 1.3yrs
    • Compensation: US$156.51k
  • Chad Leat (63yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: US$160.00k
  • Frank Del Rio (64yo)

    President

    • Tenure: 4.8yrs
    • Compensation: US$22.59m
  • Bob Binder (55yo)

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

    • Tenure: 4.4yrs
    • Compensation: US$3.80m
  • David Abrams (52yo)

    Independent Director

    • Tenure: 5.5yrs
    • 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$10.728b
  • Shares outstanding: 215.50m
  • 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

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,  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 00:33
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
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.