Recent News
Feb 17–18, 2026: Activist investor Elliott Investment Management disclosed a stake above 10% and signaled intent to push for structural and strategic changes at the company. Feb 16–25, 2026: Norwegian Cruise Line Holdings confirmed newbuild orders for three additional ships—one for each brand—bringing the pipeline of future deliveries higher. Feb 13, 2026: At least one major house cut its price target for the company during mid‑February analyst revisions.
Technical Analysis
Directional indicators show a bearish directional bias: DI+ at 16.33 with a decreasing trend and DI‑ at 27.61 with an increasing trend, while ADX registers 28.93, indicating a strong directional move; that combination favors downside momentum and argues against immediate breakout strength.
MACD reads -0.72 with a labeled dip & reversal; the value remains below the signal line (-0.42), so momentum shows early improvement but lacks a confirmed bullish crossover to signal a durable shift in momentum.
MRO sits at -9.55 and is decreasing; the negative reading implies the market price sits below the model target (supporting potential upward pressure if value reversion occurs), but the falling oscillator suggests that potential is weakening near term.
RSI at 47.66 with a decreasing trend indicates neither overbought nor oversold conditions and tilts toward the downside bias; RSI under 50 aligns with the DI/MACD mix to favor consolidation or modest declines before a sustainable recovery.
Price sits below short and medium moving averages—close $20.27 versus the 20‑day average $21.09, 50‑day $22.34 and 200‑day $22.21—so mean reversion implies resistance into the $21–$22 range. The 12‑day EMA trend decreases, reinforcing near‑term pressure. Bollinger bands place the close between the 1‑std lower ($19.07) and 1‑std upper ($23.11), implying limited immediate range expansion but heightened sensitivity to single‑day moves given elevated 42‑day beta (2.66).
Volume metrics show the most recent session thin relative to 10/50/200‑day averages, which reduces confidence in directional conviction; expect volatility spikes when institutional or activist developments surface.
Fundamental Analysis
Profitability compresses: EBIT of $175,927,000 yields an EBIT margin of 7.84%, down 69.80% quarter‑over‑quarter and down 41.60% year‑over‑year. That EBIT margin sits below the industry peer mean (≈14.68%) and below the industry peer median (≈11.36%), indicating weaker operating profitability versus peers.
Earnings disappointed the recent quarter: reported EPS $0.03 versus an estimate $0.21, an EPS miss of $0.18 and an EPS surprise ratio of -85.71%. Trailing PE expands to ~752x driven by the very low trailing EPS, while forward PE sits at ~31.6x, implying materially higher expected forward earnings; forward PE sits below the industry peer mean for forward PE but reflects restoration expectations rather than current profitability.
Liquidity and leverage present material risk. Cash on hand stands at $209,893,000 against total current liabilities $5,452,577,000 (current ratio ~0.21; quick ratio ~0.18). Net debt totals ~$14.396B with enterprise value ~$24.669B and an enterprise multiple near 44.8x. Debt‑to‑assets at ~64.80% and debt‑to‑equity near 6.61x underscore heavy leverage. Interest coverage reads ~1.03x, below the industry peer mean (~2.75x), reducing financial flexibility to absorb shocks.
Cash flow shows operating cash flow $459,110,000 and free cash flow $21,463,000 (free cash flow yield ~0.21%), with free cash flow contracting QoQ and YoY. Cash conversion ratio negative and net working capital negative ~$4.314B point to seasonal and working capital stress that management must manage alongside capital spending commitments—the company recorded capital expenditures of -$437,647,000 for the period.
Revenue totaled $2,244,400,000 with YoY revenue change modestly negative (-4.95% YoY); gross margin stands at 41.03% while operating margin reads 8.32% and declined sharply QoQ. Return metrics remain minimal: ROE ~0.65% and ROA ~0.06%.
Valuation conclusion: WMDST values the stock as over‑valued. Market capitalization (~$10.27B) versus enterprise value and elevated leverage generate a stretched enterprise multiple, while margin contraction, the large EPS miss, and tight interest coverage reduce margin for error even though management continues fleet investments and analysts project improving forward earnings.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-12-31 |
| REPORT DATE: | 2026-03-02 |
| NEXT REPORT DATE: | 2026-06-01 |
| CASH FLOW | Begin Period Cash Flow | $ 166.8 M |
| Operating Cash Flow | $ 459.1 M | |
| Capital Expenditures | $ -437.65 M | |
| Change In Working Capital | $ 38.6 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 43.1 M | |
| End Period Cash Flow | $ 209.9 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 2.2 B | |
| Forward Revenue | $ 12.0 B | |
| COSTS | ||
| Cost Of Revenue | $ 1.3 B | |
| Depreciation | $ 374.3 M | |
| Depreciation and Amortization | $ 374.3 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 2.1 B | |
| PROFITABILITY | ||
| Gross Profit | $ 920.9 M | |
| EBITDA | $ 550.3 M | |
| EBIT | $ 175.9 M | |
| Operating Income | $ 186.6 M | |
| Interest Income | — | |
| Interest Expense | $ 170.0 M | |
| Net Interest Income | $ -170.04 M | |
| Income Before Tax | $ 5.9 M | |
| Tax Provision | $ -8.36 M | |
| Tax Rate | 21.0 % | |
| Net Income | $ 14.3 M | |
| Net Income From Continuing Operations | $ 14.3 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.21 | |
| EPS Actual | $ 0.03 | |
| EPS Difference | $ -0.18 | |
| EPS Surprise | -85.714 % | |
| Forward EPS | $ 0.67 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 22.5 B | |
| Intangible Assets | $ 636.3 M | |
| Net Tangible Assets | $ 1.6 B | |
| Total Current Assets | $ 1.1 B | |
| Cash and Short-Term Investments | $ 209.9 M | |
| Cash | $ 209.9 M | |
| Net Receivables | $ 291.7 M | |
| Inventory | $ 138.2 M | |
| Long-Term Investments | $ 1.7 B | |
| LIABILITIES | ||
| Accounts Payable | $ 169.7 M | |
| Short-Term Debt | $ 875.9 M | |
| Total Current Liabilities | $ 5.5 B | |
| Net Debt | $ 14.4 B | |
| Total Debt | $ 14.6 B | |
| Total Liabilities | $ 20.3 B | |
| EQUITY | ||
| Total Equity | $ 2.2 B | |
| Retained Earnings | $ -5.57 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 4.85 | |
| Shares Outstanding | 455.257 M | |
| Revenue Per-Share | $ 4.93 | |
| VALUATION | Market Capitalization | $ 10.3 B |
| Enterprise Value | $ 24.7 B | |
| Enterprise Multiple | 44.829 | |
| Enterprise Multiple QoQ | 84.944 % | |
| Enterprise Multiple YoY | 88.842 % | |
| Enterprise Multiple IPRWA | high: 82.881 median: 62.908 mean: 56.947 NCLH: 44.829 low: -62.655 |
|
| EV/R | 10.991 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 10.2 | |
| Asset To Liability | 1.109 | |
| Debt To Capital | 0.869 | |
| Debt To Assets | 0.648 | |
| Debt To Assets QoQ | -0.881 % | |
| Debt To Assets YoY | 877.478 % | |
| Debt To Assets IPRWA | high: 0.848 NCLH: 0.648 mean: 0.549 median: 0.542 low: 0.529 |
|
| Debt To Equity | 6.609 | |
| Debt To Equity QoQ | -0.182 % | |
| Debt To Equity YoY | 611.712 % | |
| Debt To Equity IPRWA | high: 21.858 NCLH: 6.609 mean: 2.737 median: 2.195 low: -5.845 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 4.648 | |
| Price To Book QoQ | -5.073 % | |
| Price To Book YoY | -42.091 % | |
| Price To Book IPRWA | high: 7.702 mean: 5.001 NCLH: 4.648 median: 2.943 low: -4.498 |
|
| Price To Earnings (P/E) | 752.119 | |
| Price To Earnings QoQ | 3726.119 % | |
| Price To Earnings YoY | 651.755 % | |
| Price To Earnings IPRWA | NCLH: 752.119 high: 102.093 median: 102.093 mean: 86.009 low: -28.092 |
|
| PE/G Ratio | -7.714 | |
| Price To Sales (P/S) | 4.577 | |
| Price To Sales QoQ | 25.221 % | |
| Price To Sales YoY | -15.624 % | |
| Price To Sales IPRWA | high: 19.378 median: 18.155 mean: 11.826 NCLH: 4.577 low: 0.039 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 31.616 | |
| Forward PE/G | -0.324 | |
| Forward P/S | 0.852 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 3.258 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.1 | |
| Asset Turnover Ratio QoQ | -25.222 % | |
| Asset Turnover Ratio YoY | -5.484 % | |
| Asset Turnover Ratio IPRWA | high: 0.196 mean: 0.113 median: 0.104 NCLH: 0.1 low: 0.047 |
|
| Receivables Turnover | 8.247 | |
| Receivables Turnover Ratio QoQ | -27.243 % | |
| Receivables Turnover Ratio YoY | -17.454 % | |
| Receivables Turnover Ratio IPRWA | high: 12.654 mean: 10.5 median: 9.526 NCLH: 8.247 low: 0.463 |
|
| Inventory Turnover | 9.013 | |
| Inventory Turnover Ratio QoQ | -8.391 % | |
| Inventory Turnover Ratio YoY | 1.591 % | |
| Inventory Turnover Ratio IPRWA | high: 9.459 NCLH: 9.013 median: 8.409 mean: 7.831 low: 0.208 |
|
| Days Sales Outstanding (DSO) | 11.064 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 9.029 | |
| Cash Conversion Cycle Days QoQ | 37.056 % | |
| Cash Conversion Cycle Days YoY | 17.683 % | |
| Cash Conversion Cycle Days IPRWA | high: 259.029 NCLH: 9.029 mean: -1.426 median: -5.383 low: -15.748 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | -0.52 | |
| CapEx To Revenue | -0.195 | |
| CapEx To Depreciation | -1.169 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 15.9 B | |
| Net Invested Capital | $ 16.8 B | |
| Invested Capital | $ 16.8 B | |
| Net Tangible Assets | $ 1.6 B | |
| Net Working Capital | $ -4.31 B | |
| LIQUIDITY | ||
| Cash Ratio | 0.038 | |
| Current Ratio | 0.209 | |
| Current Ratio QoQ | 7.253 % | |
| Current Ratio YoY | 19.504 % | |
| Current Ratio IPRWA | high: 4.104 mean: 0.487 median: 0.322 NCLH: 0.209 low: 0.183 |
|
| Quick Ratio | 0.183 | |
| Quick Ratio QoQ | 10.784 % | |
| Quick Ratio YoY | 23.275 % | |
| Quick Ratio IPRWA | high: 2.984 mean: 0.388 median: 0.284 NCLH: 0.183 low: 0.162 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 26.543 | |
| Cost Of Debt | 0.922 % | |
| Interest Coverage Ratio | 1.035 | |
| Interest Coverage Ratio QoQ | -55.38 % | |
| Interest Coverage Ratio YoY | -35.907 % | |
| Interest Coverage Ratio IPRWA | high: 4.169 mean: 2.749 median: 2.283 NCLH: 1.035 low: -10.273 |
|
| Operating Cash Flow Ratio | 0.063 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 10.653 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 1.477 % | |
| Revenue Growth | -23.612 % | |
| Revenue Growth QoQ | -241.313 % | |
| Revenue Growth YoY | -4.951 % | |
| Revenue Growth IPRWA | high: 30.778 % median: -17.143 % mean: -17.689 % NCLH: -23.612 % low: -26.555 % |
|
| Earnings Growth | -97.5 % | |
| Earnings Growth QoQ | -172.065 % | |
| Earnings Growth YoY | 32.227 % | |
| Earnings Growth IPRWA | high: 46.667 % mean: -50.57 % median: -51.304 % NCLH: -97.5 % low: -194.253 % |
|
| MARGINS | ||
| Gross Margin | 41.03 % | |
| Gross Margin QoQ | -12.85 % | |
| Gross Margin YoY | 7.942 % | |
| Gross Margin IPRWA | high: 75.707 % median: 47.37 % NCLH: 41.03 % mean: 39.528 % low: -11.769 % |
|
| EBIT Margin | 7.838 % | |
| EBIT Margin QoQ | -69.796 % | |
| EBIT Margin YoY | -41.595 % | |
| EBIT Margin IPRWA | high: 26.139 % mean: 14.684 % median: 11.359 % NCLH: 7.838 % low: -75.927 % |
|
| Return On Sales (ROS) | 8.316 % | |
| Return On Sales QoQ | -67.398 % | |
| Return On Sales YoY | -38.033 % | |
| Return On Sales IPRWA | high: 21.935 % mean: 13.439 % median: 11.611 % NCLH: 8.316 % low: -79.489 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 21.5 M | |
| Free Cash Flow Yield | 0.209 % | |
| Free Cash Flow Yield QoQ | -103.089 % | |
| Free Cash Flow Yield YoY | -84.655 % | |
| Free Cash Flow Yield IPRWA | high: 4.651 % mean: 0.366 % NCLH: 0.209 % median: 0.15 % low: -20.819 % |
|
| Free Cash Growth | -102.954 % | |
| Free Cash Growth QoQ | -64.57 % | |
| Free Cash Growth YoY | -42.708 % | |
| Free Cash Growth IPRWA | high: 67.632 % NCLH: -102.954 % mean: -106.709 % median: -111.729 % low: -207.371 % |
|
| Free Cash To Net Income | 1.506 | |
| Cash Flow Margin | 15.29 % | |
| Cash Flow To Earnings | 24.075 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.02 | |
| Return On Assets (ROA) | 0.064 % | |
| Return On Assets QoQ | -96.656 % | |
| Return On Assets YoY | -95.0 % | |
| Return On Assets IPRWA | high: 1.845 % mean: 1.058 % median: 0.823 % NCLH: 0.064 % low: -4.33 % |
|
| Return On Capital Employed (ROCE) | 1.029 % | |
| Return On Equity (ROE) | 0.006 | |
| Return On Equity QoQ | -96.626 % | |
| Return On Equity YoY | -96.388 % | |
| Return On Equity IPRWA | high: 0.075 median: 0.062 mean: 0.052 NCLH: 0.006 low: -0.32 |
|
| DuPont ROE | 0.647 % | |
| Return On Invested Capital (ROIC) | 0.826 % | |
| Return On Invested Capital QoQ | -81.274 % | |
| Return On Invested Capital YoY | -95.815 % | |
| Return On Invested Capital IPRWA | high: 2.802 % mean: 1.754 % median: 1.459 % NCLH: 0.826 % low: -5.254 % |
|