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Viking Holdings Ltd (VIK)
NYSE:VIK
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Viking Holdings Ltd
(NYSE:VIK)
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Rating:66Neutral
Price Target:
$78.00
▲(7.48% Upside)
Viking Holdings Ltd's overall stock score is driven by strong earnings call results and positive technical indicators. However, financial performance concerns, particularly high leverage and cash flow issues, and a relatively high P/E ratio, moderate the overall score.
Positive Factors
Revenue Growth
Sustained revenue growth indicates effective business strategies and a strong market position, supporting long-term financial health.
Fleet Expansion
Expanding fleet size enhances operational capacity and market reach, positioning Viking for continued growth in the travel sector.
Strong Booking Environment
High advance bookings reflect strong customer demand and brand loyalty, ensuring stable future revenue streams.
Negative Factors
High Leverage
High leverage can increase financial risk and limit flexibility, potentially impacting long-term sustainability and growth.
Declining Free Cash Flow
Decreasing free cash flow growth may hinder the company's ability to invest in new opportunities and manage debt effectively.
Negative Equity
Negative equity indicates financial instability, posing risks to long-term viability and shareholder value.
Viking Holdings Ltd (VIK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$31.92B
Dividend YieldN/A
Average Volume (3M)1.84M
Price to Earnings (P/E)33.7
Beta (1Y)1.21
Revenue Growth20.04%
EPS GrowthN/A
CountryUS
Employees12,000
SectorConsumer Cyclical
Sector Strength84
IndustryTravel Services
Share Statistics
EPS (TTM)1.20
Shares Outstanding315,839,170
10 Day Avg. Volume1,448,080
30 Day Avg. Volume1,841,845
Financial Highlights & Ratios
PEG Ratio-0.97
Price to Book (P/B)-72.01
Price to Sales (P/S)3.01
P/FCF Ratio13.77
Enterprise Value/Market Cap0.95
Enterprise Value/Revenue4.96
Enterprise Value/Gross Profit12.89
Enterprise Value/Ebitda18.87
Forecast
1Y Price Target
$72.77Price Target Upside0.27% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
EPS Forecast (FY)3.29
Revenue Forecast (FY)$7.33B
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 generates revenue through multiple streams, primarily from its investments in real estate properties that provide rental income and capital appreciation. The company also earns revenue by investing in renewable energy projects, which yield returns through the sale of generated energy and government incentives for sustainable practices. Additionally, Viking Holdings engages in partnerships with technology firms, allowing it to invest in and develop cutting-edge solutions that can be monetized through licensing agreements and joint ventures. The combination of these revenue streams, along with a focus on strategic acquisitions and asset management, contributes significantly to the company's overall earnings.
Viking Holdings Ltd Earnings Call Summary
Earnings Call Date:Nov 19, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 17, 2026
Earnings Call Sentiment Positive
The earnings call reflected a strong performance by Viking, with record-breaking net yields, a robust booking environment, and significant fleet expansion. While there were some challenges, such as increased vessel expenses and debt refinancing charges, the positive aspects outweighed these issues, indicating a strong financial and operational position.Q3-2025 Updates
Positive Updates
Record-Breaking Net Yield
Net yield increased 7.1% year-over-year to $617, the highest in Viking's history.
Strong Booking Environment
96% of 2025 capacity is sold, and 70% of 2026 capacity is already booked, reflecting strong brand momentum.
Fleet Expansion Milestone
Viking now operates a fleet of more than 100 ships, achieving a significant growth milestone.
Top Industry Recognition
Viking was rated #1 for oceans and rivers by Conde Nast Traveler for the fifth consecutive year.
Highest Quarterly Adjusted EBITDA
Adjusted EBITDA reached $704 million, up 26.9% year-over-year, with an adjusted EBITDA margin of 52.8%.
Strong Financial Position
Cash and cash equivalents of $3 billion, with a net debt of $2.8 billion and a net leverage ratio of 1.6x.
Advanced Bookings Growth
Advanced bookings for 2026 are 14% higher than 2025 at the same point in time, with rates increasing by 5.5%.
Negative Updates
Increased Vessel Expenses
Vessel expenses, excluding fuel, increased 9.6% year-over-year due to changes in itinerary mix and higher repair costs.
Debt Refinancing Charges
Nonrecurring charges of $19.7 million were recorded in connection with debt refinancing, impacting interest expense.
Higher Repair and Maintenance Costs
Slightly higher repair and maintenance costs compared to prior years influenced overall expenses.
Company Guidance
During Viking's Third Quarter 2025 Earnings Conference Call, the company reported a record net yield of $617, marking a 7.1% increase year-over-year, and the highest in its history. Viking achieved the highest quarterly adjusted EBITDA of $704 million, a 26.9% increase, with an adjusted EBITDA margin of 52.8%. The company's capacity grew by 11%, contributing to a 21.4% rise in adjusted gross margin. Viking's booking environment remains strong, with 96% of 2025 capacity sold and 70% of 2026 capacity already booked. Advanced bookings for 2026 have reached $4.9 billion, a 14% increase from the previous year, with average rates for ocean cruises at $783 compared to $749 for the 2025 season. The company also highlighted strategic advantages such as priority access to 113 key docking locations and a robust order book, reflecting confidence in sustained growth. Viking's balance sheet remains strong with cash and cash equivalents of $3 billion and a net leverage ratio of 1.6x.Viking Holdings Ltd Financial Statement Overview
Summary
Viking Holdings Ltd shows strong revenue growth and improved profitability, but faces challenges with high leverage and declining free cash flow. The financial health is mixed, with strong revenue trends offset by financial risks and cash flow concerns.Income Statement
Viking Holdings Ltd has shown a consistent increase in revenue, with a TTM revenue growth rate of 5.53%. The company has improved its profitability, as evidenced by the increase in net profit margin from 2.86% in 2024 to 14.20% in TTM. The gross profit margin has remained stable, indicating effective cost management. However, past volatility in EBIT and EBITDA margins suggests potential operational challenges.Balance Sheet
The company's balance sheet reveals a high debt-to-equity ratio of 20.57 in TTM, indicating significant leverage and potential financial risk. The negative return on equity in TTM suggests inefficiencies in generating returns from equity. Despite an increase in total assets, the negative stockholders' equity is a concern for financial stability.Cash Flow
Viking Holdings Ltd has a strong operating cash flow, but the free cash flow has declined by 13.50% in TTM, indicating potential cash management issues. The operating cash flow to net income ratio is healthy at 0.42, suggesting good cash conversion. However, the decline in free cash flow growth and its low ratio to net income highlight potential liquidity challenges.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 6.13B | 5.33B | 4.71B | 3.18B | 625.10M |
| Gross Profit | 2.36B | 1.96B | 1.60B | 747.10M | -291.59M |
| EBITDA | 1.61B | 811.16M | -1.11B | 1.14B | -1.50B |
| Net Income | 951.34M | 152.33M | -1.85B | 398.56M | -2.11B |
Balance Sheet | |||||
| Total Assets | 11.52B | 10.12B | 8.50B | 7.86B | 7.69B |
| Cash, Cash Equivalents and Short-Term Investments | 3.04B | 2.34B | 1.59B | 1.25B | 1.91B |
| Total Debt | 5.65B | 5.57B | 5.55B | 5.45B | 4.85B |
| Total Liabilities | 10.72B | 10.34B | 13.85B | 11.35B | 11.57B |
| Stockholders Equity | 800.42M | -222.73M | -5.35B | -3.50B | -3.89B |
Cash Flow | |||||
| Free Cash Flow | 673.69M | 1.16B | 695.00M | -970.33M | -599.58M |
| Operating Cash Flow | 2.09B | 2.08B | 1.37B | -15.44M | 359.81M |
| Investing Cash Flow | -1.35B | -853.71M | -634.23M | -856.38M | -677.39M |
| Financing Cash Flow | -89.46M | -247.90M | -479.65M | 322.04M | 1.31B |
Viking Holdings Ltd Technical Analysis
Positive
72.57
Price Trends
66.58
Positive
63.91
Positive
56.34
Positive
Market Momentum
1.64
Positive
58.39
Neutral
49.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VIK, the sentiment is Positive. The current price of 72.57 is above the 20-day moving average (MA) of 72.11, above the 50-day MA of 66.58, and above the 200-day MA of 56.34, indicating a bullish trend. The MACD of 1.64 indicates Positive momentum. The RSI at 58.39 is Neutral, neither overbought nor oversold. The STOCH value of 49.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VIK.
Viking Holdings Ltd Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $36.31B | 28.35 | 104.40% | 0.56% | 7.29% | 36.51% | |
71 Outperform | $50.43B | 12.15 | 19.96% | 0.39% | 17.34% | 91.51% | |
67 Neutral | $11.17B | 18.54 | 39.87% | ― | 3.59% | 19.09% | |
67 Neutral | $84.95B | 21.04 | 47.46% | 1.09% | 8.61% | 49.58% | |
66 Neutral | $31.92B | 33.73 | 9999.00% | ― | 20.04% | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
56 Neutral | $7.48B | 118.24 | 16.66% | ― | 14.55% | -68.46% |
* Consumer Cyclical Sector Average
VIK
Viking Holdings Ltd
72.57
29.16
67.17%
TCOM
Trip.com Group Sponsored ADR
78.96
14.85
23.17%
EXPE
Expedia
291.53
109.81
60.43%
MMYT
Makemytrip
78.63
-24.23
-23.56%
RCL
Royal Caribbean
301.13
74.31
32.76%
NCLH
Norwegian Cruise Line
24.34
-1.66
-6.38%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.