Norwegian Cruise Line (NCLH) AI Stock Analysis

• Market Cap: $8.49B
• Dividend Yield: N/A
• Average Volume (3M): 13.67M
• Price to Earnings (P/E): 13.5
• Beta (1Y): 1.57
• Revenue Growth: 3.59%
• EPS Growth: 19.09%
• Country: US
• Employees: 41,700
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Services
• EPS (TTM): 1.20
• Shares Outstanding: 451,937,070
• 10 Day Avg. Volume: 18,853,322
• 30 Day Avg. Volume: 13,670,245
• PEG Ratio: 0.03
• Price to Book (P/B): 7.86
• Price to Sales (P/S): 1.18
• P/FCF Ratio: 13.35
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $29.68
• Price Target Upside: 59.48% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: $20.00 ▲(7.47% Upside)

Norwegian Cruise Line's overall score reflects strong earnings performance and positive sentiment from the latest earnings call, offset by high leverage and negative cash flow. Technical analysis indicates current bearish momentum, but valuation remains reasonable.

Positive Factors

Revenue Growth

The significant revenue growth demonstrates the company's successful recovery and market demand, supporting long-term business sustainability.

Strong Demand and Booking Trends

Record bookings indicate strong consumer demand and effective marketing strategies, which are crucial for future revenue stability and growth.

Sustainability Initiatives

The focus on sustainability initiatives positions the company as a forward-thinking leader, potentially attracting eco-conscious customers and partners.

Negative Factors

High Leverage

High leverage poses risks to financial stability, potentially limiting the company's ability to invest in growth or weather economic downturns.

Negative Free Cash Flow

Negative free cash flow indicates ongoing challenges in cash generation, which could impact the company's ability to fund operations and growth initiatives.

Pricing Dynamics with Family Demographics

The pricing strategy may impact profitability, as diluted pricing could reduce revenue per passenger, affecting long-term financial performance.

Norwegian Cruise Line Business Overview & Revenue Model

Company Description

Norwegian Cruise Line Holdings Ltd. (NCLH) is a global cruise line operator headquartered in Miami, Florida. The company operates a fleet of modern cruise ships under three distinct brands: Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises. NCLH offers a diverse range of cruise experiences, catering to various customer segments with itineraries spanning across the world's most popular travel destinations. The company is known for its innovative approach to cruising, featuring customizable vacation experiences, onboard entertainment, dining options, and shore excursions.

How the Company Makes Money

Norwegian Cruise Line generates revenue primarily through ticket sales from cruise bookings and ancillary services provided to passengers. The main revenue streams include cruise ticket sales, which contribute the largest portion of income, alongside onboard spending such as dining, beverage packages, shore excursions, and spa services. Additionally, NCLH earns revenue from its vacation packages and land-based offerings, which can include pre- and post-cruise hotel stays, ground transportation, and tours. The company also benefits from partnerships with travel agencies and online travel platforms that help promote and sell its cruise packages. Seasonal promotions and marketing campaigns further enhance bookings and onboard spending, contributing to overall revenue growth.

Norwegian Cruise Line Financial Statement Overview

Summary

Norwegian Cruise Line has shown strong revenue growth and profitability improvements post-pandemic, with a robust gross profit margin and positive net profit margin. However, high leverage and negative free cash flow remain significant concerns.

Income Statement

Norwegian Cruise Line has shown significant improvement in its income statement metrics over the years. The TTM data indicates a strong gross profit margin of 41.98% and a positive net profit margin of 6.85%, reflecting improved profitability. Revenue growth is robust at 137.6% TTM, indicating a strong recovery post-pandemic. However, the EBIT and EBITDA margins have decreased compared to the previous year, suggesting some operational challenges.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 6.62 TTM, which is a concern for financial stability. Although there has been an improvement from previous years, the company remains highly leveraged. The return on equity is strong at 40.19% TTM, indicating effective use of equity to generate profits. However, the equity ratio remains low, reflecting potential risks in financial structure.

Cash Flow

Cash flow analysis shows mixed results. The operating cash flow to net income ratio is 0.38 TTM, indicating moderate cash generation relative to net income. Free cash flow has improved significantly, but remains negative, highlighting ongoing cash flow challenges. The free cash flow to net income ratio is negative, suggesting that the company is not yet generating sufficient free cash flow relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.69B	9.48B	8.55B	4.84B	647.99M	1.28B
Gross Profit	4.07B	3.79B	3.08B	576.67M	-960.05M	-413.15M
EBITDA	2.41B	2.49B	1.77B	-665.14M	-1.67B	-2.78B
Net Income	663.53M	910.26M	166.18M	-2.27B	-4.51B	-4.01B
Balance Sheet
Total Assets	22.21B	19.97B	19.49B	18.56B	18.73B	18.40B
Cash, Cash Equivalents and Short-Term Investments	166.80M	190.76M	402.42M	946.99M	1.75B	3.30B
Total Debt	15.35B	13.92B	14.06B	13.62B	12.45B	11.81B
Total Liabilities	20.02B	18.54B	19.19B	18.49B	16.30B	14.05B
Stockholders Equity	2.19B	1.43B	300.81M	68.59M	2.43B	4.35B
Cash Flow
Free Cash Flow	-1.04B	838.87M	-744.65M	-1.57B	-3.22B	-3.50B
Operating Cash Flow	2.03B	2.05B	2.01B	210.02M	-2.47B	-2.56B
Investing Cash Flow	-3.08B	-1.23B	-2.90B	-1.76B	-1.00B	-975.36M
Financing Cash Flow	879.65M	-1.03B	346.86M	986.22M	1.68B	6.58B

Norwegian Cruise Line Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 18.61
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NCLH, the sentiment is Negative. The current price of 18.61 is below the 20-day moving average (MA) of 22.60, below the 50-day MA of 24.11, and below the 200-day MA of 21.97, indicating a bearish trend. The MACD of -1.04 indicates Positive momentum. The RSI at 19.39 is Positive, neither overbought nor oversold. The STOCH value of 7.47 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NCLH.

Norwegian Cruise Line Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ABNB	79 Outperform	$76.03B	29.52	33.26%	―	10.23%	-44.56%
TCOM	73 Outperform	$46.51B	19.37	12.94%	0.40%	17.73%	27.95%
EXPE	72 Outperform	$26.24B	25.96	129.04%	0.56%	5.69%	47.33%
RCL	68 Neutral	$70.19B	17.38	47.46%	1.19%	8.61%	49.58%
MMYT	65 Neutral	$10.21B	118.54	16.66%	―	14.55%	-68.46%
NCLH	64 Neutral	$8.49B	13.45	39.87%	―	3.59%	19.09%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Norwegian Cruise Line Corporate Events

Norwegian Cruise Line Reports Record Revenue in Q3 2025

Norwegian Cruise Line Holdings Ltd. is a leading global cruise company operating Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises, with a fleet of 34 ships offering itineraries to approximately 700 destinations worldwide.

Norwegian Cruise Line Reports Record Earnings and Growth

The latest earnings call from Norwegian Cruise Line Holdings painted a picture of robust performance, marked by record-breaking achievements in revenue, EBITDA, and bookings. The sentiment throughout the call was overwhelmingly positive, with the company showcasing strong demand and effective cost management strategies. Despite some challenges related to pricing dynamics and increased marketing expenses, the positive aspects of the company’s performance significantly outweighed these hurdles.

Norwegian Cruise Line Completes $2 Billion Note Offering

On September 17, 2025, NCL Corporation Ltd., a subsidiary of Norwegian Cruise Line Holdings Ltd., completed a private offering of $1,200 million in 5.875% senior notes due 2031 and $850 million in 6.250% senior notes due 2033, raising approximately $2,031.1 million. The proceeds were used to fund a cash tender offer and redeem outstanding notes, improving NCLC’s financial structure by addressing existing debt obligations. This strategic move is expected to maintain NCLC’s leverage position while offering flexibility in managing its financial commitments.

The most recent analyst rating on (NCLH) stock is a Hold with a $27.00 price target. To see the full list of analyst forecasts on Norwegian Cruise Line stock, see the NCLH Stock Forecast page.

Norwegian Cruise Line Completes $1.4 Billion Note Offering

On September 11, 2025, NCL Corporation Ltd., a subsidiary of Norwegian Cruise Line Holdings, completed a private offering of $1,407.0 million in exchangeable senior notes due 2030. The proceeds from this offering, along with funds from an equity offering and cash on hand, were used to repurchase existing notes due in 2027. This strategic financial maneuver is aimed at optimizing the company’s debt profile and enhancing its financial flexibility, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (NCLH) stock is a Buy with a $37.00 price target. To see the full list of analyst forecasts on Norwegian Cruise Line stock, see the NCLH Stock Forecast page.

Norwegian Cruise Line Announces Cash Tender Offer

On September 8, 2025, NCL Corporation Ltd., a subsidiary of Norwegian Cruise Line Holdings Ltd., announced a cash tender offer to repurchase its outstanding senior secured notes due 2027 and senior notes due 2026. Concurrently, the company commenced a registered direct offering of its ordinary shares and proposed private offerings of senior notes due 2031 and 2033, and exchangeable senior notes due 2030. The proceeds from these offerings will be used to fund the tender offer, redeem existing notes, and pay related expenses, positioning the company to manage its debt effectively.

The most recent analyst rating on (NCLH) stock is a Buy with a $38.00 price target. To see the full list of analyst forecasts on Norwegian Cruise Line stock, see the NCLH Stock Forecast page.

Norwegian Cruise Line Announces Leadership Change

On August 20, 2025, David Herrera, the President of Norwegian Cruise Line, departed the company as part of a strategic leadership change. Harry Sommer, the President and CEO, will temporarily take over Herrera’s responsibilities while a search for a successor is conducted. Despite this leadership change, the company remains committed to its 2026 financial targets, with its 2025 guidance unchanged from the second quarter earnings release.

The most recent analyst rating on (NCLH) stock is a Hold with a $26.00 price target. To see the full list of analyst forecasts on Norwegian Cruise Line stock, see the NCLH Stock Forecast page.

Norwegian Cruise Line’s Financial Struggles: Navigating Debt Amid Global Challenges

Norwegian Cruise Line faces significant business risks that could impact its financial outcomes, as highlighted in its Annual Report on Form 10-K. The company acknowledges that macroeconomic conditions and global conflicts have intensified existing risks, particularly those related to generating sufficient cash flows to manage its debt obligations. It is crucial for stakeholders to understand that these risks may have already materialized, and any forward-looking statements could differ materially from actual results. There have been no substantial changes in the risk factors since the last report, emphasizing the ongoing challenges the company faces.