Stock in Focus: Norwegian Cruise Line Holdings Ltd. (NCLH)

Company Profile:

Norwegian Cruise Line Holdings Ltd., together with its subsidiaries, operates as a cruise company. The company operates the Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises brands. It offers cruise itineraries ranging from a few days to 180-days calling on various locations, including destinations in Scandinavia, Russia, the Mediterranean, the Greek Isles, Alaska, Canada, Asia, Tahiti and the South Pacific, Australia, New Zealand, Africa, India, South America, the Panama Canal, and the Caribbean. As of December 31, 2017, the company had 25 ships with approximately 50,400 berths. The company was founded in 1966 and is headquartered in Miami, Florida.

Recent News:

On Feb. 27, 2018, the company announced the pricing of the previously announced secondary public offering of 19,500,000 of its ordinary shares by certain funds affiliated with Apollo Global Management, LLC and Star NCLC Holdings Ltd. pursuant to an automatic shelf registration statement on Form S-3 filed with the U.S. Securities and Exchange Commission at a price to the public of $56.00 per ordinary share.

The cmpany reported fourth-quarter of 2017 profit of $98.8 million. It posted revenue of $1.25 billion in the period. For the year, the company reported profit of $759.9 million, or $3.31 per share. Revenue was reported as $5.4 billion. For the current quarter ending in April, Norwegian Cruise Line expects its per-share earnings to be 52 cents.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

NCLH’s strengths can be seen in its strong growth, great profitability and robust solvency compared with its peers. Its revenue and net income have increased over recent several years. Technical indicators signal the bullish signs, as there is a bullish crossover in Stochastic Oscillator. The RSI is strong in the bullish zone and the MACD is trying to cross back up. We rate Norwegian Cruise Line Holdings Ltd. (NCLH) a STRONG BUY.