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Viking Holdings Ltd (VIK)
NYSE:VIK
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Viking Holdings Ltd
(NYSE:VIK)
Rating:63Neutral
Price Target:
$46.00
▲( 2.84% Upside)
Positive Factors
Financial Performance
Viking Holdings reported stronger net revenues and margins, leading to an adjusted EBITDA beat versus consensus.
Future Revenue Potential
92% of 2025’s capacity is already sold with advanced bookings per PCD growing, indicating strong future revenue potential and customer interest.
Market Position
VIK is well positioned to gain market share within the expanding global vacation market, driven by its insulated target demographic and scalable business model.
Negative Factors
Booking Environment
VIK mentioned some softness in the bookings environment in February and did not give a look into 2026 bookings at this time.
Competitive Pressure
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.
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
$20.84B
Dividend YieldN/A
Average Volume (3M)2.50M
Price to Earnings (P/E)137.8
Beta (1Y)1.25
Revenue Growth14.86%
EPS GrowthN/A
CountryUS
Employees12,000
SectorGeneral
Sector StrengthN/A
IndustryTravel Services
Share Statistics
EPS (TTM)-0.24
Shares Outstanding314,950,560
10 Day Avg. Volume2,143,605
30 Day Avg. Volume2,499,249
Financial Highlights & Ratios
PEG Ratio1.75
Price to Book (P/B)-81.52
Price to Sales (P/S)0.00
P/FCF Ratio18.54
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$50.15Price Target Upside12.12% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering14
Viking Holdings Ltd Business Overview & Revenue Model
Company DescriptionViking Holdings Ltd (VIK) is a diversified conglomerate operating across several sectors, including real estate, renewable energy, and financial services. The company focuses on developing sustainable infrastructure projects, offering innovative financial solutions, and managing a portfolio of commercial properties. With a commitment to environmental responsibility, Viking Holdings Ltd aims to deliver long-term value to its stakeholders through strategic investments and partnerships.
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
Neutral
44.73
Price Trends
41.15
Positive
44.37
Negative
41.63
Positive
Market Momentum
1.32
Negative
49.04
Neutral
38.58
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VIK, the sentiment is Neutral. The current price of 44.73 is above the 20-day moving average (MA) of 43.55, above the 50-day MA of 41.15, and above the 200-day MA of 41.63, indicating a neutral trend. The MACD of 1.32 indicates Negative momentum. The RSI at 49.04 is Neutral, neither overbought nor oversold. The STOCH value of 38.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $68.98B | 21.33 | 49.55% | 0.68% | 13.66% | 49.86% | |
75 Outperform | $11.51B | 122.93 | 8.33% | ― | 28.51% | 367.34% | |
74 Outperform | $20.66B | 19.15 | 119.16% | 0.25% | 5.57% | 61.19% | |
74 Outperform | $43.54B | 19.61 | 12.49% | 0.44% | 16.23% | 56.05% | |
65 Neutral | $8.12B | 10.50 | 95.87% | ― | 5.57% | 141.01% | |
63 Neutral | $20.84B | 137.84 | 34.73% | ― | 14.86% | ― | |
56 Neutral | $4.82B | 18.20 | -17.81% | 5.19% | 13.68% | -27.95% |
* General Sector Average
Performance Comparison
VIK
Viking Holdings Ltd
43.08
14.40
50.21%
TCOM
Trip.com Group Sponsored ADR
62.25
10.53
20.36%
EXPE
Expedia
159.34
49.08
44.51%
MMYT
Makemytrip
100.64
25.99
34.82%
RCL
Royal Caribbean
237.75
92.63
63.83%
NCLH
Norwegian Cruise Line
17.22
1.65
10.60%
Viking Holdings Ltd Earnings Call Summary
Earnings Call Date:May 20, 2025
(Q1-2025)
| % Change Since: -4.99%|
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.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.