Norwegian Cruise Line Stock Buy Hold or Sell Recommendation

NCLH Stock  USD 19.19  0.66  3.56%   
Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Norwegian Cruise Line is 'Sell'. The recommendation algorithm takes into account all of Norwegian Cruise's available fundamental, technical, and predictive indicators you will find on this site.
  
Check out Norwegian Cruise Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
In addition, we conduct extensive research on individual companies such as Norwegian and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Norwegian Cruise Line. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of economic analysis.

Execute Norwegian Cruise Buy or Sell Advice

The Norwegian recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Norwegian Cruise Line. Macroaxis does not own or have any residual interests in Norwegian Cruise Line or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Norwegian Cruise's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Norwegian CruiseBuy Norwegian Cruise
Sell

Market Performance

Very WeakDetails

Volatility

Not too volatileDetails

Hype Condition

Over hypedDetails

Current Valuation

UndervaluedDetails

Odds Of Distress

Below AverageDetails

Economic Sensitivity

Responds to the marketDetails

Investor Sentiment

ImpartialDetails

Analyst Consensus

Strong BuyDetails

Financial Strenth (F Score)

StrongDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Norwegian Cruise Line has a Mean Deviation of 2.17, Standard Deviation of 2.85 and Variance of 8.12
Our investment recommendation tool can cross-verify current analyst consensus on Norwegian Cruise Line and to analyze the entity potential to grow in the current economic cycle. To make sure Norwegian Cruise Line is not overpriced, please verify all Norwegian Cruise Line fundamentals, including its book value per share, market capitalization, and the relationship between the cash and equivalents and price to earnings to growth . Given that Norwegian Cruise Line has a number of shares shorted of 24.76 M, we recommend you to check Norwegian Cruise market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your last-minute risk tolerance and investing horizon.

Norwegian Cruise Trading Alerts and Improvement Suggestions

Norwegian Cruise generated a negative expected return over the last 90 days
Norwegian Cruise Line currently holds 13.1 B in liabilities. Norwegian Cruise Line has a current ratio of 0.45, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Note, when we think about Norwegian Cruise's use of debt, we should always consider it together with its cash and equity.
Norwegian Cruise has a strong financial position based on the latest SEC filings
Over 81.0% of the company shares are owned by institutional investors
Latest headline from thelincolnianonline.com: Rakuten Securities Inc. Buys 7 Shares of Norwegian Cruise Line Holdings Ltd.

Norwegian Cruise Returns Distribution Density

The distribution of Norwegian Cruise's historical returns is an attempt to chart the uncertainty of Norwegian Cruise's future price movements. The chart of the probability distribution of Norwegian Cruise daily returns describes the distribution of returns around its average expected value. We use Norwegian Cruise Line price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Norwegian Cruise returns is essential to provide solid investment advice for Norwegian Cruise.
Mean Return
-0.51
Value At Risk
-6.1
Potential Upside
3.56
Standard Deviation
2.85
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Norwegian Cruise historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Norwegian Stock Institutional Investors

Shares
Renaissance Technologies Corp2024-12-31
5.6 M
T. Rowe Price Associates, Inc.2024-12-31
M
Dimensional Fund Advisors, Inc.2024-12-31
M
Millennium Management Llc2024-12-31
4.6 M
D. E. Shaw & Co Lp2024-12-31
4.5 M
Norges Bank2024-12-31
4.4 M
Northern Trust Corp2024-12-31
4.2 M
Ariel Investments, Llc2024-12-31
M
Charles Schwab Investment Management Inc2024-12-31
3.5 M
Capital Research & Mgmt Co - Division 32024-12-31
55.2 M
Vanguard Group Inc2024-12-31
53.3 M
Note, although Norwegian Cruise's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Norwegian Cruise Cash Flow Accounts

202020212022202320242025 (projected)
Change To Inventory10.6M(37.5M)(33.6M)(11.0M)7.0M7.3M
Change In Cash3.0B(1.8B)(559.7M)(544.6M)(211.7M)(201.1M)
Free Cash Flow(3.5B)(3.2B)(1.6B)(744.6M)838.9M880.8M
Depreciation739.6M758.6M810.1M883.2M973.5M1.0B
Other Non Cash Items1.7B1.4B197.9M28.0M74.3M70.6M
Capital Expenditures946.5M752.8M1.8B2.8B1.2B1.1B
Net Income(4.0B)(4.5B)(2.3B)166.2M910.3M955.8M
End Period Cash Flow3.3B1.5B947.0M402.4M190.8M181.2M
Change Receivables(15.9M)(14.1M)30.8M(1.2B)(1.0B)(991.8M)
Net Borrowings285.5M5.0B488.3M1.2B1.4B964.5M
Dividends Paid6.1B2.6B15.7M346.9M398.9M378.9M
Change To Netincome80.4M1.8B1.5B310.3M356.8M448.4M
Investments(31.5M)(240M)(1.8B)(2.4B)(1.2B)(1.2B)

Norwegian Cruise Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Norwegian Cruise or Hotels, Restaurants & Leisure sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Norwegian Cruise's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Norwegian stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over Dow Jones
-0.38
β
Beta against Dow Jones1.29
σ
Overall volatility
2.79
Ir
Information ratio -0.14

Norwegian Cruise Volatility Alert

Norwegian Cruise Line exhibits very low volatility with skewness of 0.01 and kurtosis of 0.47. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Norwegian Cruise's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Norwegian Cruise's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

Norwegian Cruise Implied Volatility

Norwegian Cruise's implied volatility exposes the market's sentiment of Norwegian Cruise Line stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Norwegian Cruise's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Norwegian Cruise stock will not fluctuate a lot when Norwegian Cruise's options are near their expiration.

Norwegian Cruise Fundamentals Vs Peers

Comparing Norwegian Cruise's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Norwegian Cruise's direct or indirect competition across all of the common fundamentals between Norwegian Cruise and the related equities. This way, we can detect undervalued stocks with similar characteristics as Norwegian Cruise or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Norwegian Cruise's fundamental indicators could also be used in its relative valuation, which is a method of valuing Norwegian Cruise by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Norwegian Cruise to competition
FundamentalsNorwegian CruisePeer Average
Return On Equity1.05-0.31
Return On Asset0.0464-0.14
Profit Margin0.1 %(1.27) %
Operating Margin0.10 %(5.51) %
Current Valuation21.35 B16.62 B
Shares Outstanding439.94 M571.82 M
Shares Owned By Insiders0.79 %10.09 %
Shares Owned By Institutions80.56 %39.21 %
Number Of Shares Shorted24.76 M4.71 M
Price To Earning12.65 X28.72 X
Price To Book5.72 X9.51 X
Price To Sales0.89 X11.42 X
Revenue9.48 B9.43 B
Gross Profit3.79 B27.38 B
EBITDA2.49 B3.9 B
Net Income910.26 M570.98 M
Cash And Equivalents1.19 B2.7 B
Cash Per Share2.82 X5.01 X
Total Debt13.1 B5.32 B
Current Ratio0.46 X2.16 X
Book Value Per Share3.24 X1.93 K
Cash Flow From Operations2.05 B971.22 M
Short Ratio2.21 X4.00 X
Earnings Per Share1.89 X3.12 X
Price To Earnings To Growth0.45 X4.89 X
Target Price30.67
Number Of Employees41.7 K18.84 K
Beta2.63-0.15
Market Capitalization8.44 B19.03 B
Total Asset19.97 B29.47 B
Retained Earnings(5.99 B)9.33 B
Working Capital(4.77 B)1.48 B
Current Asset340.41 M9.34 B
Note: Disposition of 2082 shares by Andrea DeMarco of Norwegian Cruise at 19.29 subject to Rule 16b-3 [view details]

Norwegian Cruise Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Norwegian . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Norwegian Cruise Buy or Sell Advice

When is the right time to buy or sell Norwegian Cruise Line? Buying financial instruments such as Norwegian Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

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In addition to having Norwegian Cruise in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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When determining whether Norwegian Cruise Line offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Norwegian Cruise's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Norwegian Cruise Line Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Norwegian Cruise Line Stock:
Check out Norwegian Cruise Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
You can also try the Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Is Hotels, Resorts & Cruise Lines space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Norwegian Cruise. If investors know Norwegian will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Norwegian Cruise listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.34
Earnings Share
1.89
Revenue Per Share
21.778
Quarterly Revenue Growth
0.062
Return On Assets
0.0464
The market value of Norwegian Cruise Line is measured differently than its book value, which is the value of Norwegian that is recorded on the company's balance sheet. Investors also form their own opinion of Norwegian Cruise's value that differs from its market value or its book value, called intrinsic value, which is Norwegian Cruise's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Norwegian Cruise's market value can be influenced by many factors that don't directly affect Norwegian Cruise's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Norwegian Cruise's value and its price as these two are different measures arrived at by different means. Investors typically determine if Norwegian Cruise is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Norwegian Cruise's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.