This company, which is a primarily cruise company earning revenue from passenger tickets (more than 70%) and onboard service, has been grouped into cruise line sector in packaged tour industry.
It seems that the demand for cruise line has been getting stronger since 2016 as indicated by increased ticket price (average 2-5% in 2017 and 2018) and capacity for most of companies in this sector. Spending on board has been seen growing as well during the same period (average 4% in 2017 and 2018.
It seems that the rising price and the saving on fuel costs has helped companies to improve their gross margin as revenue increased. We have seen the increased gross margins and EBI/sales ratio from those companies since 2015 by about 300 and 200 basis points respectively. The typical gross margin is about 32%, SG&A is about 16%, operating margin is about 19%, and EBI/sales is about 13% in 2018.
The typical enterprise price/EBI (adjusted with tax field) ratio is 27.
It seems that the demand for cruise line of this company has been getting stronger since 2016 as indicated by increased revenue resulted from the raising price of ticket and from more spending on board.
The first three months of fiscal 2018 compared with the same period of 2017 (ended Mar 31 2018)
Passenger tickets revenue (organic) increased about 2% due to higher price.
Onboard revenue (organic) increased about 4% due to higher spending per guest.
Fiscal 2017 compared with fiscal 2016
Passenger tickets revenue (organic) increased about 5% due to higher price.
Onboard revenue (organic) increased about 5% due to higher spending per guest.
Fiscal 2016 compared with fiscal 2015
Passenger tickets revenue (organic) increased about 1% due to higher price.
Onboard revenue (organic) increased about 4% due to higher spending per guest.
Its gross margin (including direct operating costs and depreciation) went up from about 29% to 34% due primarily to price rise and efficient management of fuel costs. While its SG&A as percentage of sales went up slightly to about 20%, its operating margin was improved to about 20% in 2018.
Stock performance
This company is having an enterprise price/EBI ratio of 26. We think that its stock was relatively slightly undervalued compared with company -Carnival and NORWEGIAN Cruise line holding.
