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History and Development of the Company Norwegian commenced operations from Miami, Florida in 1966, launching the modern cruise industry by offering weekly departures from Miami, Florida to destinations in the Caribbean. In January 2013, NCLH completed its initial public offering and the ordinary shares of NCLC were exchanged for the ordinary shares of NCLH, and NCLH became the owner of 100% of …
Margins and capital returns are both well above average: 26.86% operating margin, ROIC at 15.92%. Consistent with durable pricing power, though that alone doesn't make it a buy.
Revenue grew 3.7%, steady but not accelerating. Free cash flow declined 239% despite revenue growth, conversion is weakening.
Free cash flow declined 239% versus the prior year, cash generation momentum has weakened. Negative free cash flow of -$1.17B. The business is consuming cash, not generating it.
Profitability & Returns
Revenue (TTM)
$10.03B
▲ +3.7% YoY
Net Income (TTM)
$568M
▼ -53.5% YoY
Op. Margin
26.63%
▲ +11.4pp YoY
ROIC
15.22%
▲ +8.3pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
-$949M
▼ -239.5% YoY
Op. Cash Flow (TTM)
$2.22B
▲ +1.9% YoY
Net Debt
$15.90B
Cash & Equiv.
$185M
5Y CAGR: +50.3%
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