NCLHNorwegian Cruise Line Holdings

$17.08

Is the business good?

How good a business is NCLH?

Norwegian Cruise Line Holdings earns 7.0% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.

7.0%

Return on invested capital · cost of capital 9.0% · 2.0 points below what the capital costs: growth destroys value

Operating margin
15%

Operating margin · Travel Services median 16% · 12 months to Q2 2026

Cash conversion
−1.56×

Cash conversion · −0.70× a year ago · some of the reported profit has not turned into cash yet

Share count, year on year
+3.5%

Share count, year on year · shareholders own a smaller slice than a year ago

Operating margin by fiscal year
YearOperating margin
FY2020−272%
FY2021−394%
FY2022−32%
FY202311%
FY202415%
FY202516%
Details
Gross margin12 months to Q2 2026
42%
Operating margin12 months to Q2 2026
15%
Net margin12 months to Q2 2026
7.5%
Free cash flow margin
−12%
Revenue, trailing twelve months
$10.2B
Free cash flow, trailing twelve months
−$1.19B
Net income, trailing twelve months
$761M
Return on invested capitaloperating profit after tax ÷ debt + equity − cash
7.0%

Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.