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Viking Holdings Ltd (VIK)
NYSE:VIK
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Viking Holdings Ltd
(NYSE:VIK)
53Neutral
Positive Factors
Demand
FY25 is already 88% booked with solid 7% pricing, indicating strong demand.
Financial Performance
Viking Holdings reported a 40% year-over-year growth in adjusted EBITDA, beating market expectations.
Growth Potential
The company has plans for significant expansion and scalability, which shows strong growth potential.
Negative Factors
Competition
The entry of RCL into the River market presents a potentially legitimate competitor who's a well-known operator.
Consumer Spending
There are concerns about heightened consumer spending fears, particularly around travel, given weaker trends from competitors.
Demand Uncertainty
Lack of FY26 booking data does not allay demand concerns.
Viking Holdings Ltd (VIK) vs. S&P 500 (SPY)
Market Cap
$17.42B
Dividend YieldN/A
Average Volume (3M)3.44M
Price to Earnings (P/E)122.5
Beta (1Y)1.02
Revenue Growth13.23%
EPS GrowthN/A
CountryUS
Employees12,000
SectorGeneral
Sector StrengthN/A
IndustryTravel Services
Share Statistics
EPS (TTM)0.32
Shares Outstanding314,950,560
10 Day Avg. Volume3,789,163
30 Day Avg. Volume3,437,426
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.77
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$50.00Price Target Upside27.10% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
Viking Holdings Ltd Business Overview & Revenue Model
Company DescriptionViking Holdings Ltd engages in the passenger shipping and other forms of passenger transport in North America, the United Kingdom, and internationally. It operates through River and Ocean segments. The company also operates as a tour entrepreneur for passengers and related activities in tourism. As of December 31, 2023, it operated a fleet of 92 ships, including 81 river vessels comprising 58 Longships, 10 smaller classes based on the Longship design, 11 other river vessels, and 1 river vessel charter and the Viking Mississippi; 9 ocean ships; and 2 expedition ships. The company was founded in 1997 and is based in Pembroke, Bermuda.
How the Company Makes MoneyViking Holdings Ltd generates revenue through a diversified business model. In the real estate sector, the company earns income from leasing commercial properties, as well as from property development and sales. In renewable energy, Viking Holdings Ltd invests in and operates wind and solar power projects, selling generated electricity to utility companies and other large consumers under long-term power purchase agreements. The financial services arm of the company offers a range of products, including investment management and financial advisory services, earning fees and commissions. Strategic partnerships with government entities and private organizations also contribute to revenue, providing opportunities for joint ventures and shared projects that enhance earnings.
Viking Holdings Ltd Financial Statement Overview
Summary
Viking Holdings Ltd demonstrated robust revenue growth and improved profitability. However, the balance sheet shows negative equity and high debt, indicating potential solvency issues. Strong cash flow generation supports operations, though capital expenditures are a significant cash drain. Overall, financial stability remains a concern despite operational efficiency improvements.Income Statement
Viking Holdings Ltd showed substantial revenue growth, from $625 million in 2021 to $5.33 billion in 2024, indicating a strong recovery and expansion. The gross profit margin improved significantly, reflecting enhanced operational efficiency. However, net income volatility remains a concern despite reaching profitability in 2024, with a net profit margin of 2.86%. The fluctuation in EBITDA margins, including a negative figure in 2023, suggests potential operational challenges.65
Positive
Balance Sheet
The balance sheet reveals a challenging financial structure with negative stockholders' equity due to accumulated losses. The debt-to-equity ratio is unfavorable as equity is negative, indicating potential solvency issues. Despite this, the company has been able to maintain significant cash reserves, suggesting liquidity management is a priority.30
Negative
Cash Flow
Cash flow analysis shows strong operating cash flow, with positive free cash flow growth from 2023 to 2024. The operating cash flow to net income ratio indicates efficient conversion of profits to cash, although the free cash flow to net income ratio suggests that capital expenditures are a significant cash drain. The positive trend in free cash flow is a strong signal of financial health.72
Positive
| Breakdown | |||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|
| Income Statement | Total Revenue | ||
| 5.33B | 4.71B | 3.18B | 625.10M | Gross Profit |
| 2.22B | 1.86B | 747.10M | -291.59M | EBIT |
| 1.08B | 818.36M | 63.09M | -753.75M | EBITDA |
| 807.51M | -1.11B | 1.14B | -1.50B | Net Income Common Stockholders |
| 152.33M | -1.86B | 398.56M | -2.11B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||
| 2.34B | 1.59B | 1.25B | 1.91B | Total Assets |
| 10.12B | 8.50B | 7.86B | 7.69B | Total Debt |
| 5.57B | 5.55B | 6.84B | 6.22B | Net Debt |
| 3.23B | 4.01B | 5.58B | 4.41B | Total Liabilities |
| 10.34B | 13.85B | 11.35B | 11.57B | Stockholders Equity |
| -222.73M | -5.35B | -3.50B | -3.89B |
| Cash Flow | Free Cash Flow | ||
| 1.16B | 695.00M | -970.33M | -599.58M | Operating Cash Flow |
| 2.08B | 1.37B | -15.44M | 359.81M | Investing Cash Flow |
| -853.71M | -634.23M | -856.38M | -677.39M | Financing Cash Flow |
| -247.90M | -479.65M | 322.04M | 1.31B |
Viking Holdings Ltd Technical Analysis
Negative
39.34
Price Trends
46.62
Negative
45.69
Negative
40.27
Negative
Market Momentum
-1.82
Negative
38.12
Neutral
49.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VIK, the sentiment is Negative. The current price of 39.34 is below the 20-day moving average (MA) of 41.58, below the 50-day MA of 46.62, and below the 200-day MA of 40.27, indicating a bearish trend. The MACD of -1.82 indicates Negative momentum. The RSI at 38.12 is Neutral, neither overbought nor oversold. The STOCH value of 49.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VIK.
Viking Holdings Ltd Peers Comparison
Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $49.64B | 24.38 | 7.27% | 3.78% | -2.81% | -68.00% | |
67 Neutral | $44.89B | 14.28 | 16.33% | 2.41% | -6.70% | -57.85% | |
63 Neutral | $41.35B | 15.33 | 10.86% | 3.30% | -10.37% | -65.69% | |
54 Neutral | $4.11B | -18.71 | -17.06% | 5.82% | 26.02% | -79.79% | |
53 Neutral | $17.42B | 122.50 | 34.73% | ― | 13.23% | ― | |
47 Neutral | $968.20M | ― | -108.21% | 6.42% | -28.68% | -4373.94% | |
46 Neutral | $2.19B | ― | -8.87% | 5.54% | -13.59% | -127.47% |
* General Sector Average
Performance Comparison
VIK
Viking Holdings Ltd
39.75
12.76
47.28%
DK
Delek US Holdings
15.07
-14.11
-48.36%
MPC
Marathon Petroleum
145.69
-54.46
-27.21%
PSX
Phillips 66
123.48
-34.40
-21.79%
VLO
Valero Energy
132.07
-35.60
-21.23%
PBF
PBF Energy
19.09
-37.54
-66.29%
Viking Holdings Ltd Earnings Call Summary
Earnings Call Date: Mar 11, 2025 | % Change Since: -7.96% | Next Earnings Date: May 28, 2025
Earnings Call Sentiment Positive
The earnings call conveyed a positive outlook with strong financial performance, significant growth in bookings, and successful fleet expansion. However, there was some concern about the recent slowdown in booking pace due to global uncertainties.Highlights
Record Revenue and Growth
Viking achieved a 14% year-over-year increase in adjusted gross margin to more than $3.5 billion and a 23.7% increase in adjusted EBITDA to $1.3 billion.
Strong Booking and Occupancy Rates
For 2025, Viking is already 88% booked with $5.3 billion of advance bookings, 26% higher than the previous year. Occupancy rates for river and ocean segments were 95.4% and 93.9% respectively.
IPO and Awards
Viking became a publicly traded company on the New York Stock Exchange and received the 2024 North America IPO of the Year award. They were also ranked number one by Conde Nast traveler for the second consecutive year.
Fleet Expansion
Viking is expanding its fleet with 12% capacity growth planned for 2025, including the delivery of 10 river ships and one ocean ship.
Financial Health and Rating Upgrade
Moody's upgraded Viking's corporate rating to BA3 from B1, aligning with S&P's ratings. Viking has a total cash and cash equivalents of $2.5 billion.
Lowlights
February Booking Slowdown
February experienced a slowdown in bookings, likely reflecting uncertainties in the world, despite a record revenue booking month in January.
Impact of Market Uncertainty
Uncertain macroeconomic conditions and geopolitical factors could potentially impact future booking trends and consumer behavior.
Company Guidance
During Viking's fourth quarter and full year 2024 earnings call, the company reported strong financial performance with a 6.3% increase in capacity and a 7.4% rise in net yield, driving a 14% year-over-year growth in adjusted gross margin to over $3.5 billion. This was complemented by a disciplined expense strategy, resulting in a 23.7% increase in adjusted EBITDA to $1.3 billion. Viking ended the year with a 40.8% return on invested capital and a net leverage ratio of 2.4 times. The company achieved a repeat guest rate of 53% and direct bookings exceeding 50%, solidifying its market share of 52% in rivers and 24% in oceans. Viking celebrated its public listing on the New York Stock Exchange and received multiple accolades, including the 2024 North America IPO of the Year award and top rankings from Conde Nast Traveler and Travel and Leisure. Looking ahead, Viking anticipates a strong 2025, with 88% of its capacity already booked and plans to increase core capacity by 12% through the delivery of 10 river ships and one ocean ship.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.