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Viking Holdings Ltd (VIK)
NYSE:VIK
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Viking Holdings Ltd
(NYSE:VIK)
Rating:67Neutral
Price Target:
$59.00
▲(1.25%Upside)
Positive Factors
Bookings and Revenue
92% of 2025’s capacity is already sold with advanced bookings per PCD growing, indicating strong future revenue potential and customer interest.
Financial Performance
Viking Holdings reported stronger net revenues and margins, leading to an adjusted EBITDA beat versus consensus.
Market Position and Strategy
Viking’s educational, destination-first focus, and 'One Brand' marketing strategy drive strong customer loyalty and high guest repeat rates.
Negative Factors
Competitive Concerns
There is a concern that Viking Holdings Ltd could lose allure over time due to the consistency of ship design compared to the novelty offered by competitors.
Market Uncertainty
Investors had expected an early look into 2026 that was not provided, and the fact that VIK confirmed the February softness seen in other forms of travel just created more uncertainty.
Pricing Concerns
The focus of the call was on what looked to be weakness in River segment pricing not only in 1Q, but embedded in the 2026 booking curve as well.
Viking Holdings Ltd (VIK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$25.43B
Dividend YieldN/A
Average Volume (3M)3.25M
Price to Earnings (P/E)46.6
Beta (1Y)1.34
Revenue Growth14.86%
EPS GrowthN/A
CountryUS
Employees12,000
SectorGeneral
Sector StrengthN/A
IndustryTravel Services
Share Statistics
EPS (TTM)-0.24
Shares Outstanding315,387,270
10 Day Avg. Volume2,700,155
30 Day Avg. Volume3,247,621
Financial Highlights & Ratios
PEG Ratio0.18
Price to Book (P/B)-93.82
Price to Sales (P/S)0.00
P/FCF Ratio21.32
Enterprise Value/Market Cap1.11
Enterprise Value/Revenue1.35
Enterprise Value/Gross Profit12.56
Enterprise Value/Ebitda13.87
Forecast
1Y Price Target
$58.67Price Target Upside0.69% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
Viking Holdings Ltd Business Overview & Revenue Model
Company DescriptionViking Holdings Ltd (VIK) is a diversified investment company engaged in various sectors, including real estate, energy, and technology. The company specializes in acquiring and managing a portfolio of high-growth assets, providing strategic oversight to enhance value and maximize returns. Viking Holdings operates globally, leveraging its extensive expertise and network to identify and capitalize on lucrative investment opportunities.
How the Company Makes MoneyViking Holdings Ltd generates revenue primarily through its diversified investment portfolio, which includes real estate properties, energy projects, and technology ventures. The company earns income from rental and leasing activities in the real estate sector, as well as from the appreciation and sale of these properties. In the energy sector, Viking Holdings invests in renewable energy projects and earns revenue from the sale of energy and carbon credits. Additionally, the company's technology investments involve stakes in startups and more established firms, providing returns through dividends, stock appreciation, and exits. Strategic partnerships with industry leaders and financial institutions further contribute to Viking Holdings' earnings, enhancing its ability to access new markets and investment opportunities.
Viking Holdings Ltd Earnings Call Summary
Earnings Call Date:May 20, 2025
(Q1-2025)
| % Change Since: 23.77%|
Next Earnings Date:Aug 21, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant revenue growth, strong booking performance, and financial stability, offset by a reported net loss and challenges in the River segment. The introduction of innovative, environmentally friendly technology and a positive EBITDA were particularly noteworthy. Despite some economic uncertainties, the company's outlook remains optimistic.Q1-2025 Updates
Positive Updates
Significant Revenue Growth
Total revenue for the quarter increased 24.9% year-over-year to almost $900 million, driven by increased capacity, higher occupancy, and higher revenue per PCDs.
Strong Booking Performance
92% of the 2025 capacity is already sold, with a 21% increase in advance bookings compared to the 2024 season.
Introduction of Hydrogen-Powered Cruise Ship
Announcement of the Viking Libra, the world's first hydrogen-powered cruise ship, capable of operating with zero emissions.
Positive EBITDA Turnaround
Adjusted EBITDA for the first quarter totaled $73 million, improving more than $77 million compared to the same quarter last year.
Strong Financial Position
Net debt to EBITDA ratio improved to two times, with total cash and cash equivalents of $2.8 billion.
Negative Updates
Net Loss Reported
Net loss and adjusted net loss attributable to Viking Holdings Ltd was $105 million, and adjusted EPS was a loss of $0.24.
River Segment Yield Decline
Net yield for the River segment was $593, down 2.7% year-over-year.
Macro-Economic Uncertainties
Acknowledgment of persistent macroeconomic uncertainties that may impact future performance, although current operations are largely insulated.
Company Guidance
During Viking's first quarter 2025 earnings conference call, the company reported a 7.1% increase in net deals and a 14.9% rise in capacity compared to the previous year. Revenue nearly tripled from 2019 levels, reaching almost $900 million for the quarter. Viking's core products saw strong demand, with 92% of 2025 capacity already sold, leading to a focus on 2026, where 37% of capacity is booked. The company's adjusted EBITDA improved by over $77 million year-over-year, totaling $73 million, while adjusted gross margin rose by 23.8% to $613 million. Notably, Viking's net yield increased by 7.1%, and vessel expenses per capacity PCD decreased by 2.3%. The company also highlighted a strong balance sheet with a net debt to EBITDA ratio of two times and minimal near-term maturities. Viking announced the construction of the Viking Libra, the world's first hydrogen-powered cruise ship, set for delivery next year, alongside plans to expand its Ocean and River segments with new ship orders.Viking Holdings Ltd Financial Statement Overview
Summary
Viking Holdings Ltd exhibited strong revenue growth and improved profitability, but is challenged by a weak balance sheet characterized by negative equity and high debt. The company’s robust cash flow generation is a positive aspect, supporting operations and investments despite financial stability concerns.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 | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.51B | 5.33B | 4.71B | 3.18B | 625.10M |
| Gross Profit | 2.25B | 2.22B | 1.86B | 747.10M | -291.59M |
| EBITDA | 1.17B | 811.16M | -1.11B | 1.14B | -1.50B |
| Net Income | 541.08M | 152.33M | -1.86B | 398.56M | -2.11B |
Balance Sheet | |||||
| Total Assets | 10.70B | 10.12B | 8.50B | 7.86B | 7.69B |
| Cash, Cash Equivalents and Short-Term Investments | 2.77B | 2.34B | 1.59B | 1.25B | 1.91B |
| Total Debt | 5.54B | 5.57B | 5.55B | 6.84B | 6.22B |
| Total Liabilities | 10.97B | 10.34B | 13.85B | 11.35B | 11.57B |
| Stockholders Equity | -271.23M | -222.73M | -5.35B | -3.50B | -3.89B |
Cash Flow | |||||
| Free Cash Flow | 1.19B | 1.16B | 695.00M | -970.33M | -599.58M |
| Operating Cash Flow | 2.21B | 2.08B | 1.37B | -15.44M | 359.81M |
| Investing Cash Flow | -919.84M | -853.71M | -634.23M | -856.38M | -677.39M |
| Financing Cash Flow | -149.90M | -247.90M | -479.65M | 322.04M | 1.31B |
Viking Holdings Ltd Technical Analysis
Positive
58.27
Price Trends
50.35
Positive
45.68
Positive
45.27
Positive
Market Momentum
2.36
Positive
73.71
Negative
74.00
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 58.27 is above the 20-day moving average (MA) of 55.71, above the 50-day MA of 50.35, and above the 200-day MA of 45.27, indicating a bullish trend. The MACD of 2.36 indicates Positive momentum. The RSI at 73.71 is Negative, neither overbought nor oversold. The STOCH value of 74.00 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
Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $94.65B | 29.27 | 49.55% | 0.69% | 13.66% | 49.86% | |
74 Outperform | $24.43B | 22.64 | 119.16% | 0.42% | 5.57% | 61.19% | |
73 Outperform | $41.81B | 18.50 | 12.49% | 0.43% | 16.23% | 56.05% | |
69 Neutral | $9.55B | 113.90 | 22.38% | ― | 18.13% | -55.21% | |
69 Neutral | $10.54B | 14.38 | 95.87% | ― | 5.57% | 141.01% | |
67 Neutral | $25.43B | 46.59 | 34.73% | ― | 14.86% | ― | |
56 Neutral | $6.17B | 22.10 | -28.61% | 4.87% | 10.83% | -32.66% |
* General Sector Average
Performance Comparison
VIK
Viking Holdings Ltd
58.27
24.09
70.48%
TCOM
Trip.com Group Sponsored ADR
64.55
21.32
49.32%
EXPE
Expedia
192.19
67.85
54.57%
MMYT
Makemytrip
101.90
12.35
13.79%
RCL
Royal Caribbean
352.84
202.48
134.66%
NCLH
Norwegian Cruise Line
24.32
5.96
32.46%
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.