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• Norwegian Cruise Line-stock

Norwegian Cruise Line Ltd Stock , NCLH

Norwegian Cruise Line Stock Snapshot

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Norwegian Cruise Line Holdings Ltd NCLH

Company report, narrow-moat norwegian charts a detailed course to improving profits.

With pandemic-related changes in consumer behavior around travel in the rearview mirror, economic performance of Norwegian Cruise Line Holdings is on a path to the generation of excess economic rents. As consumers returned to cruising after the 15-month sailing halt that ended in July 2021, they regained their appetite for travel, bolstered by the value proposition the holiday provides, an interest that continues to persist. With ships fully deployed at historical occupancy levels, pricing surpassed prepandemic levels in 2023 and continues to show momentum in 2024. While Norwegian could intermittently see pricing competition in periods of macroeconomic distress, we believe its attractive itineraries, tactical revenue management, and data-driven marketing will keep elevating sales across the brands. On the cost side, while higher oil prices and unfavorable foreign exchange could elevate costs at times, we expect management will focus on extracting further efficiencies as the business continues to scale. Over time, we expect both pricing and costs to normalize at low-single-digit rates.

Price vs Fair Value

Bulls say, bears say.

As Norwegian is smaller than its North American cruise peers, it has the ability to deploy its assets nimbly as cruising demand rises, allowing for strategic pricing tactics.

Weakness in consumer spending spurred by an economic downturn could affect discretionary spending, leading pricing to soften and lower onboard spending.

Oceania Cruises Relaunches Personalized Cruise Vacation Guide

Norwegian cruise line holdings publishes 2023 “sail & sustain” report showcasing progress in sustainability initiatives, oceania cruises' marina returns to service after extensive refurbishment including all-new penthouse suites in addition to three new culinary venues, norwegian cruise line's stock looks very attractive for these reasons, analyst says, oceania cruises to bring newest ship allura to service early, norwegian cruise's stock rises as profit outlook raised for 2nd time in 3 weeks, norwegian cruise line holdings ltd. announces “charting the course” strategy and new 2026 financial targets; increases full year 2024 guidance, norwegian cruise line holdings to host 2024 investor day, trading information, key statistics, company profile, competitors.

• Royal Caribbean Group RCL
• Carnival Corp CCL

Financial Strength

Profitability, travel services industry comparables, sponsor center.

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norwegian cruise line holdings ltd.

Closed Market

-0.11 (0.61%)

Volume: 9.59M

Last Updated:

Jun 13, 2024, 4:00 PM EDT

• Analyst Estimates
• SEC Filings

Norwegian cruise worker arrested in Alaska for allegedly stabbing 3 people onboard: report

The FBI says it has arrested a cruise ship worker in Juneau, Alaska after he allegedly stabbed three people onboard with scissors, including ship security.

Norwegian Cruise Line ship to dock after testing showed no traces of cholera onboard

Concerns about a possible cholera outbreak onboard the Norwegian Dawn prompted Mauritius officials to keep the ship out of Port Louis over the weekend.

Norwegian Cruise Line scrapping Israel voyages in 2024 due to war with Hamas

Norwegian Cruise Line Holdings is scrapping visits to Israel in 2024 due to the Israel-Hamas conflict, the company said Wednesday as it put out its third-quarter earnings report.

Norwegian Cruise Line introducing tons of solo rooms for travelers

Norwegian Cruise Line recently announced a move that will see it further embrace solo travelers, bringing almost 1,000 new solo staterooms to its ships.

Norwegian Cruise Line reveals new routes for 2024 and 2025: 'Ultimate cruise vacation'

Norwegian Cruise Line announces its new sail itineraries for winter 2024, summer 2025 and winter 2025. Six ships will travel to the Greek Isles, the Caribbean, Alaska and more.

Norwegian Cruise Line eliminating COVID-19 testing, masking and vaccination requirements

Norwegian Cruise Line announced it is removing all coronavirus-related protocols effective Tuesday, Oct, 4, 2022. That includes testing, masking and vaccination requirements.

Carnival Cruise Line applies curfew for minor guests: 'Commitment to safety'

Carnival Cruise Line has implemented an age-based curfew for passengers who are 17 years old or younger. The company told FOX Business why it made the change.

Cruise ship operators are hard hit by labor crisis, recession anxiety

Labor shortages, inflation, and threats of a recessionary are creating a perfect storm for the cruise industry. Analysts have cut their revenue estimates for cruise operators by 5%.

CDC lifts travel warning for the cruise industry two years into pandemic

The CDC lifted its travel warning for cruises on Wednesday after two years of shifting advisories, lawsuits, and criticism from industry leaders who accused the agency of heavy-handed regulations.

Norwegian cruise ship hit with COVID-19 wave cancels mid-voyage

A spokesperson for Norwegian told FOX Business the ship docked overnight in St. Maarten on Thursday and will be back in New York "soon." The company did not offer an estimated arrival time.

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Norwegian Cruise Ord (NCLH)

Fundamentals.

• Market Capitalization, $K 7,722,738
• Shares Outstanding, K 429,041
• Annual Sales, $ 8,550 M
• Annual Income, $ 166,180 K
• 60-Month Beta 2.62
• Price/Sales 0.88
• Price/Cash Flow 7.01
• Price/Book 20.74
• Price/Earnings ttm 22.15
• Earnings Per Share ttm 0.79
• Most Recent Earnings $0.16 on 05/01/24
• Next Earnings Date 08/06/24
• Annual Dividend & Yield N/A (0.00%)
• Most Recent Dividend N/A on N/A

SIC-4400 Water Transportation

Leisure & Recreation Services

Indices S&P 500

Indices S&P 500 Consumer Discret

Indices Russell 1000

Indices Russell 3000

Indices S&P 500 ESG

Indices S&P 500 Growth

Options Overview Details

• Implied Volatility 40.26% ( +2.12% )
• Historical Volatility 40.16%
• IV Percentile 15%
• IV Rank 22.16%
• IV High 64.48% on 02/26/24
• IV Low 33.37% on 10/09/23
• Put/Call Vol Ratio 0.24
• Today's Volume 17,911
• Volume Avg (30-Day) 46,479
• Put/Call OI Ratio 1.40
• Today's Open Interest 650,835
• Open Int (30-Day) 661,130

Analyst Rating / Earnings Estimates

Current rating, earnings estimates - current qtr 06/30/24.

• Average Estimate 0.26
• Number of Estimates 6
• High Estimate 0.32
• Low Estimate 0.23
• Prior Year 0.20
• Growth Rate Est. (year over year) +30.00%

Price Performance

Most recent stories.

With many stocks near all-time highs, finding those not in the spotlight is important.

An assessment of two of the world's major cruise lines.

The S&P 500 Index ($SPX ) (SPY ) Tuesday closed up +0.15%, the Dow Jones Industrials Index ($DOWI ) (DIA ) closed up +0.36%, and the Nasdaq 100 Index ($IUXX ) (QQQ ) closed up +0.29%. On Tuesday, stocks...

The third-largest cruise line operator is a bargain even after you consider the reasons for the relatively lower multiples.

The S&P 500 Index ($SPX ) (SPY ) today is down -0.31%, the Dow Jones Industrials Index ($DOWI ) (DIA ) is down -0.07%, and the Nasdaq 100 Index ($IUXX ) (QQQ ) is down -0.25%. Stocks today are moderately...

The S&P 500 Index ($SPX ) (SPY ) today is down -0.24%, the Dow Jones Industrials Index ($DOWI ) (DIA ) is up +0.05%, and the Nasdaq 100 Index ($IUXX ) (QQQ ) is down -0.27%. Stocks today are mostly lower,...

Analysts at Mizuho Securities believe the cruise line operator's profits are headed higher.

June S&P 500 E-Mini futures (ESM24) are down -0.53%, and June Nasdaq 100 E-Mini futures (NQM24) are down -0.58% this morning as U.S. Treasury yields continued to rise following weak debt auctions, resilient...

Q1 Earnings Highlights: Choice Hotels (NYSE:CHH) Vs The Rest Of The Hotels, Resorts and Cruise Lines Stocks

The S&P 500 Index ($SPX ) (SPY ) Tuesday closed up +0.02%, the Dow Jones Industrials Index ($DOWI ) (DIA ) closed down -0.55%, and the Nasdaq 100 Index ($IUXX ) (QQQ ) closed up +0.32%. US stock indexes...

Barchart Technical Opinion

The Barchart Technical Opinion rating is a 8% Buy with a Weakest short term outlook on maintaining the current direction.

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Business Summary

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Here's Why Investors Should Retain Norwegian Cruise (NCLH) Now

Norwegian Cruise Line Holdings Ltd. ( NCLH Quick Quote NCLH - Free Report ) is likely to benefit from strong booking activities, digital initiatives and fleet expansion efforts. This and the focus on the Charting the Course initiative bode well. However, geopolitical uncertainties and a rise in dry-dock days are a headwind. Let us discuss why investors should hold on to the stock for now.

Key Catalysts

NCLH is benefitting from record bookings, successful wave seasons and increased forward-booked positions. This and the focus on continuous innovation and service delivery bode well. As of Mar 31, 2024, the company's advance ticket sales balance reached a record high of $3.8 billion, up around 13% year over year. Robust pricing, capacity growth, a dynamic deployment mix and enhanced pre-sold onboard revenues drove the upside. The company anticipates the momentum to continue on the back of higher pricing and robust yield growth.

Increased focus on digital initiatives bodes well. NCLH created a simplified booking process that employs generative AI technology to personalize the experience for visitors. The initiative paves a path for optimization in pricing and marketing approaches. It is optimistic about the strategies and anticipates it to increase yields, guest satisfaction and guest repeat rates.

The company prioritizes achieving measured capacity growth and optimizing its fleet to bolster financial returns. During the first quarter, the company’s new build pipeline expanded from five to 13 ships, indicating a capacity compound annual growth rate (CAGR) of 6% from 2023 to 2028 and 4% from 2023 to 2036. Historically, such capacity expansion has driven revenues and adjusted EBITDA growth, a trend expected to persist with the integration of larger and more efficient vessels into the fleet. NCLH recently unveiled the commencement of this strategy with the announcement of eight groundbreaking new ships and enhancements to infrastructure on their private island in the Bahamas, Great Stirrup Cay.

The company recently announced a better-than-expected outlook for 2024, courtesy of strong demand and onboard revenue strengths. It unveiled a new comprehensive initiative — Charting the Course — articulating longer-term financial objectives. The program emphasizes financial coordinates, including adjusted operational EBITDA margin, adjusted earnings per share (EPS) and ROIC, with an intent to achieve it by 2026-end. By the end of 2026, the company aims to achieve an Adjusted Operational EBITDA Margin of approximately 39%. The company expects a reduction in net leverage to mid-four turn levels. Adjusted ROIC is expected to be 12%. The company expects adjusted EPS to be $2.45.

In the past six months, the stock has declined 4.7% against the industry ’s growth of 5.5%. Voyage cancellations and redeployment of itineraries in the Middle East and the Red Sea caused the downside. The company anticipates the headwind to persist for some time. A rise in dry-dock days is a concern. For second-quarter 2024, the company projects 70 more dry-dock days scheduled compared with the previous year’s figure. The uptick is expected to have a $9 impact or a 550-basis point impact on adjusted net cruise costs, excluding fuel, for the quarter.

Zacks Rank & Stocks to Consider

Norwegian Cruise currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the Zacks Consumer Discretionary sector include Strategic Education, Inc. ( STRA Quick Quote STRA - Free Report ) currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here. STRA has a trailing four-quarter earnings surprise of 36.2%, on average. The stock has surged 46.1% in the past year. The Zacks Consensus Estimate for STRA’s 2024 sales and EPS indicates an increase of 6.4% and 33.3%, respectively, from year-ago levels. Royal Caribbean Cruises Ltd. ( RCL Quick Quote RCL - Free Report ) currently sports a Zacks Rank of 1. RCL has a trailing four-quarter earnings surprise of 18.3%, on average. The stock has rallied 65.2% in the past year. The Zacks Consensus Estimate for RCL’s 2024 sales and EPS calls for growth of 16.8% and 63.7%, respectively, from year-ago levels. Hasbro, Inc. ( HAS Quick Quote HAS - Free Report ) presently flaunts a Zacks Rank of 1. The company has a trailing four-quarter earnings surprise of 17.5%, on average. The stock has gained 14.6% in the year-to-date period. The Zacks Consensus Estimate for HAS’ 2025 sales and EPS suggests an improvement of 4% and 14%, respectively, from year-ago levels.

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New York Stock Exchange

Norwegian Cruise Line Holdings Ltd. (NCLH) went public on January 18, 2013 at a price of $19 per share.

Shares of Norwegian Cruise Line Holdings Ltd. (NCLH) can be purchased on the open market through any registered broker.

Norwegian Cruise Line Holdings Ltd. (NCLH) currently does not declare or pay dividends.

7665 Corporate Center Drive, Miami, FL 33126

Norwegian Cruise Line Holdings Ltd. is the parent company of NCL Corporation Ltd.

December 31

Members of the Company’s Board of Directors may be found here .

PricewaterhouseCoopers LLP.

American Stock Transfer & Trust Company, LLC is the transfer agent and registrar. They may be contacted at:

American Stock Transfer & Trust Company, LLC 6201 - 15th Avenue Brooklyn, NY 11219 Telephone: (800) 937-5449 – toll free (718) 921-8124 - international Website: www.astfinancial.com

The company was founded in 1966 as Norwegian Caribbean Lines and was the first cruise line to offer weekly departures to the Caribbean.

Prestige Cruises International, Inc. was acquired on November 19, 2014 for a total purchase price of $3.025 billion, including the assumption of debt.

The Company operates 32 ships under the Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises brands, totaling approximately 65,500 berths. The company’s brands will introduce five additional ships through 2028.

You can reach our Investor Relations department at

Norwegian Cruise Line Holdings Ltd. Investor Relations Department 7665 Corporate Center Drive Miami, FL 33126

Telephone: (305) 468-2463

email: [email protected]

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News & Insights

Better Cruise Line Stock: Royal Caribbean vs. Norwegian

June 08, 2024 — 04:10 am EDT

Written by Will Healy for The Motley Fool  ->

After a brutal pandemic, the cruise line industry has not only recovered but also benefited from record bookings. This has been a boon, especially to the second- and third-largest cruise line stocks , Royal Caribbean (NYSE: RCL) and Norwegian Cruise Line Holdings (NYSE: NCLH) , which are locked in a competitive battle with the largest company in this space, Carnival Corp .

Although both Royal Caribbean and Norwegian face similar challenges, one probably holds greater potential to sail to higher returns. Let's take a closer look to see how each company compares.

Royal Caribbean vs. Norwegian

The cruise industry appears to have bounced back from the worst period in its history, the COVID-19 pandemic. During the 15-month shutdown induced by the pandemic, each company had to let most of its staff go and borrow money to keep their businesses afloat while they earned almost no revenue. And even when they sailed again in mid-2021, it took several quarters to fill ships back to capacity.

Fortunately, both companies have moved on from that time, and their customers have returned. Admittedly, neither company matches the 37% revenue share claimed by Carnival. Still, each owns more than one brand and stands out over smaller cruise lines such as Disney , Viking Cruises, and Switzerland-based MSC Cruises, the fourth-largest cruise line.

Royal Caribbean includes its namesake cruise line, as well as Celebrity and Silversea. These three cruise lines claim about 24% of the industry's revenue, according to Cruise Market Watch.

Norwegian operates its flagship cruise line and owns two smaller lines, Oceania and Regent Seven Seas. Cruise Market Watch says it generates 14% of the industry's revenue.

Moreover, both companies have benefited from record bookings. The industry defines 100% booking as having two passengers in every cabin. By that definition, Royal Caribbean claimed a 107% load factor in the first quarter of 2024, while Norwegian's cabins were 105% occupied during the same period.

How they compare financially

This recovery has dramatically boosted the financials of both companies. In Q1, Royal Caribbean reported $3.7 billion in revenue, a 29% yearly surge. That increase far exceeded the growth rate, allowing it to report $360 million in net income attributable to the company, well above the $48 million loss in the year-ago quarter.

Norwegian did not grow as fast, but its $2.2 billion in Q1 revenue rose 20% over the previous year. As with Royal Caribbean, slower growth in operating expenses allowed it to earn $17 million in profits, up from the $159 million loss in the same quarter last year.

Still, the major difference between the two is debt loads. Royal Caribbean holds a total debt of around $20.5 billion, far above its $5.3 billion in stockholders' equity. Norwegian's total debt is $13.7 billion, but its shareholders' equity is $362 million, making its debt burden much heavier in relative terms.

That may explain why Royal Caribbean plans to spend $3.4 billion in capital expenditures , versus just $575 million for Norwegian. That means Royal will add more ships to its fleet, which should help it grow its market share faster.

Valuations seem to offer a mixed picture of which stock is more expensive. Despite its larger size, Royal Caribbean stock sells for 20 times earnings, lower than Norwegian's 26 price-to-earnings (P/E) ratio . Conversely, from a price-to-sales (P/S) ratio perspective, Royal trades at a 3.0 P/S ratio versus just 0.9 for Norwegian.

Since profits can vary more than sales, one would have to assume Norwegian is the lower-cost stock. Still, the relatively lower debt burden and the greater capacity to add new ships could make Royal Caribbean stock worth the premium.

A solid choice for setting sail

Royal Caribbean and Norwegian have recovered from the pandemic and will probably continue to benefit from record bookings. Still, Royal Caribbean is likely the more solid choice for investors.

Admittedly, Royal Caribbean's debt level is higher, and its stock is more expensive when measured by P/S ratios. Nonetheless, its greater capacity to add ships makes it more likely to increase its market share. That situation should allow it to generate more profit and pay off more debt, which should ultimately lead to higher returns for shareholders.

Should you invest $1,000 in Royal Caribbean Cruises right now?

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Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Walt Disney. The Motley Fool recommends Carnival Corp. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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