Skip to Content

Norwegian Cruise Line Holdings Ltd - Stock Quote NCLH

Rating as of

Morningstar's Norwegian Cruise Line Holdings Ltd Stock Analysis

Valuation
Currency in USD
Is it the right time to buy or sell?
Is it the right time to buy or sell?

1-Star Price

INVESTOR

5-Star Price

INVESTOR

Economic Moat

INVESTOR

Capital Allocation

INVESTOR

Norwegian's Return to Profitability on the Near-Term Horizon With Entire Fleet Deployed

Jaime M. Katz, CFA Senior Equity Analyst

Business Strategy and Outlook

| Jaime M. Katz, CFA |

Changes to consumer behavior surrounding travel as a result of the coronavirus have altered the economic performance of Norwegian Cruise Line Holdings, affecting its ability to generate excess economic rents over an extended horizon. As consumers returned to cruising after the 15-month sailing halt that ended in July 2021, cruise operators added COVID-19-related protocols, which have proven successful (as evidenced by lower positivity rates than on land) to reassure passengers of the safety of cruising in addition to the value proposition the holiday provides. Still, we expect Norwegian could intermittently see pricing competition as global supply returns to market, limiting near-term yield upside (also impacted by the redemption of future cruise credits through year end). On the cost side, inflated spending on the procurement of goods and higher oil prices could keep costs exacerbated in 2022. However, we expect both pricing and costs to normalize over time, rising at a low single digit rate longer-term.

Unlock Our Full Analysis With Morningstar Investor

Key Statistics - NCLH

Norwegian Cruise Line Holdings Ltd's Company Profile

Business Description

Norwegian Cruise Line is the world's third-largest cruise company by berths (at nearly 60,000), operating 28 ships across three brands (Norwegian, Oceania, and Regent Seven Seas), offering both freestyle and luxury cruising. The company has redeployed its entire fleet as of May 2022. With nine passenger vessels on order among its brands through 2027 (representing 24,000 incremental berths), Norwegian is increasing capacity faster than its peers, expanding its brand globally. Norwegian sailed to around 500 global destinations before the pandemic.

Contact
7665 Corporate Center Drive
Miami, FL, 33126
T +1 305 436-4000
Industry Travel Services
Most Recent Earnings Mar 31, 2022
Fiscal Year End Dec 31, 2022
Stock Type
Employees 34,700

Norwegian Cruise Line Holdings Ltd's Related News