Norwegian Cruise Line (NCLH) AI Stock Analysis

• Market Cap: $10.95B
• Dividend Yield: N/A
• Average Volume (3M): 14.18M
• Price to Earnings (P/E): 17.8
• Beta (1Y): 1.57
• Revenue Growth: 5.23%
• EPS Growth: 66.94%
• Country: US
• Employees: 41,700
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Travel Services
• EPS (TTM): 0.51
• Shares Outstanding: 451,937,070
• 10 Day Avg. Volume: 16,650,937
• 30 Day Avg. Volume: 14,178,626
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.14
• Enterprise Value/Revenue: 2.46
• Enterprise Value/Gross Profit: 5.94
• Enterprise Value/Ebitda: 16.36
• 1Y Price Target: $29.21
• Price Target Upside: 17.97% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

• Rating: 74 Outperform
• Price Target: $27.00 ▲(9.05% Upside)

Norwegian Cruise Line's overall stock score is influenced most significantly by its robust earnings call and strategic corporate events, indicating strong future growth potential. Financial performance shows recovery despite high leverage, and technical analysis points to positive market sentiment. Valuation is fair, though income investors may find the absence of dividends a downside.

Positive Factors

Bookings

Forward bookings have rebounded to an optimal position, indicating strong future demand.

Caribbean Strategy

The Caribbean deployment is set to increase to 40% of capacity, indicating a strategic focus on high-demand regions.

Earnings

The 2Q earnings beat and positive forward commentary are expected to drive a re-rating in the shares.

Negative Factors

Debt

With net debt still elevated compared to peers, the risk-reward is wide.

European Market

Concerns have been raised over weaker commentary around Europe and luxury brands, contributing to a historical discount in valuation compared to peers.

Market Performance

Despite recent gains, the stock remains down 10% year-to-date, underperforming the market and peers.

Norwegian Cruise Line Business Overview & Revenue Model

Company Description

Norwegian Cruise Line Holdings Ltd., together with its subsidiaries, operates as a cruise company in North America, Europe, the Asia-Pacific, and internationally. The company operates the Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises brands. It offers itineraries ranging from three days to a 180-days calling on various locations, including destinations in Scandinavia, Russia, the Mediterranean, the Greek Isles, Alaska, Canada and New England, Hawaii, Asia, Tahiti and the South Pacific, Australia and New Zealand, Africa, India, South America, the Panama Canal, and the Caribbean. As of December 31, 2021, the company had 28 ships with approximately 59,150 berths. It distributes its products through retail/travel advisor and onboard cruise sales channels, as well as meetings, incentives, and charters. Norwegian Cruise Line Holdings Ltd. was founded in 1966 and is based in Miami, Florida.

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 shows a substantial recovery in profitability, with strong net and gross profit margins. However, high leverage and negative free cash flow present significant risks. The company must address these issues for sustainable growth.

Income Statement

Norwegian Cruise Line shows a substantial recovery in revenue and profitability metrics. The gross profit margin for the TTM (Trailing-Twelve-Months) is approximately 38.2%, indicating strong operational efficiency. The net profit margin has improved to 9.1%, showcasing a positive turnaround from previous losses. Revenue growth is evident, although there was a slight decline of 0.67% from 2024 to the TTM. The EBIT and EBITDA margins are healthy at 15.5% and 20.9% respectively, indicating good profitability. However, the slight revenue decline and past years' volatility still pose some risk.

Balance Sheet

The balance sheet presents a challenging picture with a high debt-to-equity ratio of approximately 9.88, indicating substantial leverage which could pose financial risks. The return on equity for the TTM is a strong 60.2%, driven by improved net income, but this is partly due to low equity. The equity ratio is a low 6.6%, reflecting limited shareholder equity in proportion to assets. Despite the strong ROE, the high leverage remains a concern for long-term stability.

Cash Flow

The cash flow statement shows improvement in operating cash flow, with an operating cash flow to net income ratio of 2.25, indicating efficient cash generation relative to earnings. However, free cash flow has declined significantly, showing a negative free cash flow to net income ratio, as capital expenditures outpace cash generated from operations. The free cash flow growth rate is negative, which is a concern for cash sustainability and future investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.56B	9.48B	8.55B	4.84B	647.99M	1.28B
Gross Profit	3.95B	3.79B	3.08B	576.67M	-960.05M	-413.15M
EBITDA	1.44B	2.49B	1.77B	-665.14M	-1.67B	-2.78B
Net Income	719.16M	910.26M	166.18M	-2.27B	-4.51B	-4.01B
Balance Sheet
Total Assets	21.60B	19.97B	19.49B	18.56B	18.73B	18.40B
Cash, Cash Equivalents and Short-Term Investments	184.01M	190.76M	402.42M	946.99M	1.75B	3.30B
Total Debt	13.76B	13.92B	14.73B	13.62B	12.45B	11.81B
Total Liabilities	20.03B	18.54B	19.19B	18.49B	16.30B	14.05B
Stockholders Equity	1.57B	1.43B	300.81M	68.59M	2.43B	4.35B
Cash Flow
Free Cash Flow	-504.48M	838.87M	-744.65M	-1.57B	-3.22B	-3.50B
Operating Cash Flow	1.97B	2.05B	2.01B	210.02M	-2.47B	-2.56B
Investing Cash Flow	-2.48B	-1.23B	-2.90B	-1.76B	-1.00B	-975.36M
Financing Cash Flow	100.66M	-1.03B	346.86M	986.22M	1.68B	6.58B

Norwegian Cruise Line Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.76
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 24.76 is above the 20-day moving average (MA) of 24.17, above the 50-day MA of 21.89, and above the 200-day MA of 22.59, indicating a bullish trend. The MACD of 0.69 indicates Positive momentum. The RSI at 56.20 is Neutral, neither overbought nor oversold. The STOCH value of 40.81 is Neutral, 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
RCL	78 Outperform	$85.04B	23.60	47.48%	0.78%	12.10%	37.89%
NCLH	74 Outperform	$10.95B	17.82	63.57%	―	5.23%	66.94%
TCOM	70 Neutral	$39.67B	17.34	12.49%	0.46%	16.23%	56.05%
ABNB	68 Neutral	$75.57B	30.05	33.26%	―	10.23%	-44.56%
MMYT	65 Neutral	$9.10B	108.45	22.38%	―	18.13%	-55.21%
EXPE	63 Neutral	$25.14B	24.86	129.04%	0.38%	5.69%	47.33%
Sector *	59 Neutral	€9.01B	10.12	-13.89%	4.58%	0.76%	-39.51%

Norwegian Cruise Line Corporate Events

Norwegian Cruise Line Announces Great Stirrup Cay Expansion

On July 29, 2025, Norwegian Cruise Line Holdings Ltd. announced the second phase of expansion plans for Great Stirrup Cay, its private island in the Bahamas. This phase includes the development of Great Tides Waterpark, featuring a dynamic river and a kids splash zone, expected to open in the summer of 2026. This expansion is part of a broader enhancement plan that also includes a two-ship pier and other amenities, set to open by the end of 2025, potentially enhancing the company’s market positioning and customer offerings.

The most recent analyst rating on (NCLH) stock is a Buy with a $31.00 price target. To see the full list of analyst forecasts on Norwegian Cruise Line stock, see the NCLH Stock Forecast page.

Norwegian Cruise Line Secures Financing for New Vessels

On July 17, 2025, NCL Corporation Ltd., a subsidiary of Norwegian Cruise Line Holdings Ltd., entered into credit facility agreements to finance two new cruise vessels, with deliveries expected in 2030 and 2032. The financing, insured by SACE, aims to cover 80% of the delivery payments, with loans bearing a fixed interest rate and secured by ship mortgages, reflecting strategic expansion plans in the cruise industry.

The most recent analyst rating on (NCLH) stock is a Buy with a $31.00 price target. To see the full list of analyst forecasts on Norwegian Cruise Line stock, see the NCLH Stock Forecast page.

Norwegian Cruise Line Amends Credit Agreement June 2025

On June 26, 2025, NCL Corporation Ltd., a subsidiary of Norwegian Cruise Line Holdings Ltd., amended its Seventh Amended and Restated Credit Agreement, increasing its revolving loan facility from $1.7 billion to $2.486 billion, with maturity conditions extending to January 22, 2030. Additionally, a Second Supplemental Indenture was executed to secure NCLC’s 2029 Secured Notes with the same collateral as the revolving loan facility, aligning guarantees and collateral across financial obligations.

The most recent analyst rating on (NCLH) stock is a Buy with a $25.00 price target. To see the full list of analyst forecasts on Norwegian Cruise Line stock, see the NCLH Stock Forecast page.

Norwegian Cruise Line Holds Annual Shareholder Meeting

On June 12, 2025, Norwegian Cruise Line Holdings Ltd. held its annual general meeting of shareholders in Miami, Florida, where four key proposals were voted on. Shareholders elected three directors to serve until 2028, approved executive compensation on a non-binding basis, amended the 2013 Performance Incentive Plan to increase available shares, and ratified PricewaterhouseCoopers LLP as the independent registered public accounting firm for 2025.

The most recent analyst rating on (NCLH) stock is a Buy with a $25.00 price target. To see the full list of analyst forecasts on Norwegian Cruise Line stock, see the NCLH Stock Forecast page.