Norwegian Cruise Line (NCLH) AI Stock Analysis

• Market Cap: $10.49B
• Dividend Yield: N/A
• Average Volume (3M): 16.51M
• Price to Earnings (P/E): 17.6
• 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: 455,257,480
• 10 Day Avg. Volume: 20,066,604
• 30 Day Avg. Volume: 16,510,839
• 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: 2.61
• Enterprise Value/Revenue: 2.83
• Enterprise Value/Gross Profit: 6.73
• Enterprise Value/Ebitda: 11.35
• 1Y Price Target: $26.92
• Price Target Upside: 16.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): 2.08
• Revenue Forecast (FY): $9.93B

• Rating: 64 Neutral
• Price Target: $20.50 ▼(-11.02% Downside)

Norwegian Cruise Line's strong earnings performance and strategic financial maneuvers are significant positives. However, high leverage and technical indicators suggest caution. The stock is fairly valued, with potential for growth if financial stability improves.

Positive Factors

Revenue Growth

The significant revenue growth reflects a strong recovery and expanding market reach, enhancing long-term business sustainability.

Strategic Expansion

The expansion into the ultra-luxury segment with new vessels strengthens market position and supports future revenue growth.

Sustainability Initiatives

Commitment to sustainability through renewable fuels can enhance brand reputation and align with global environmental trends.

Negative Factors

High Leverage

High leverage can strain financial flexibility and increase risk, potentially impacting long-term financial health.

Negative Free Cash Flow

Negative free cash flow indicates ongoing cash flow challenges, which can limit investment and growth opportunities.

Operational Challenges

Decreasing margins suggest operational challenges that could impact profitability and require strategic adjustments.

Norwegian Cruise Line Business Overview & Revenue Model

Company Description

Norwegian Cruise Line Holdings Ltd. (NCLH) is a leading global cruise company that operates the Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises brands. The company is headquartered in Miami, Florida, and offers a diverse range of cruise experiences across various destinations worldwide. NCLH is known for its innovative ship designs, flexible cruise options, and premium services, catering to a broad demographic of travelers seeking leisure and adventure on the high seas.

How the Company Makes Money

Norwegian Cruise Line generates revenue primarily through ticket sales for its cruise voyages, which constitute the largest portion of its income. Additionally, the company earns significant income from onboard spending, including dining, beverages, excursions, and retail sales. NCLH also benefits from ancillary services such as travel insurance and pre- and post-cruise hotel accommodations. Partnerships with various travel agencies and online travel platforms further enhance its market reach and sales. The company may also engage in promotional activities and loyalty programs, encouraging repeat business and customer loyalty, which contribute to its overall earnings.

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: Positive
• Last Price: 23.04
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NCLH, the sentiment is Positive. The current price of 23.04 is above the 20-day moving average (MA) of 19.63, above the 50-day MA of 20.46, and above the 200-day MA of 20.94, indicating a bullish trend. The MACD of 0.60 indicates Negative momentum. The RSI at 75.30 is Negative, neither overbought nor oversold. The STOCH value of 84.89 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NCLH.

Norwegian Cruise Line Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXPE	80 Outperform	$35.44B	27.67	104.40%	0.55%	7.29%	36.51%
TCOM	71 Outperform	$47.44B	11.60	19.96%	0.39%	17.34%	91.51%
RCL	67 Neutral	$80.07B	19.83	47.46%	1.09%	8.61%	49.58%
VIK	66 Neutral	$32.50B	34.05	9999.00%	―	20.04%	―
MMYT	65 Neutral	$8.22B	129.91	16.66%	―	14.55%	-68.46%
NCLH	64 Neutral	$10.49B	17.55	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 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.

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.