CUK

Navigating CUK Stock – Editor's Insights

Carnival logged a 5.4% change during today's morning session, and is now trading at a price of $14.41 per share.

Carnival returned gains of 37.0% last year, with its stock price reaching a high of $17.95 and a low of $9.23. Over the same period, the stock outperformed the S&P 500 index by 10.5%. More recently, the company's 50-day average price was $13.87. Carnival Corporation & plc engages in the provision of leisure travel services in North America, Australia, Europe, Asia, and internationally. Based in Miami, FL, the Large-Cap Consumer Discretionary company has 106,000 full time employees. Carnival has not offered a dividend during the last year.

The Company's Revenues Are Declining:

2018 2019 2020 2021 2022 2023
Revenue (M) $18,881 $20,825 $5,595 $1,908 $12,168 $21,593
Operating Margins 18% 16% -158% -372% -36% 9%
Net Margins 17% 14% -183% -498% -50% 0%
Net Income (M) $3,152 $2,990 -$10,236 -$9,501 -$6,093 -$74
Net Interest Expense (M) -$194 -$206 -$895 -$1,601 -$1,609 -$2,066
Depreciation & Amort. (M) $2,017 $2,160 $2,241 $2,233 $2,275 $2,370
Diluted Shares (M) 744 719 710 932,669 1,171 1,300
Earnings Per Share $4.24 $4.16 -$14.41 -$0.01 -$5.2 -$0.06
EPS Growth n/a -1.89% -446.39% 99.93% -51900.0% 98.85%
Avg. Price $57.93 $46.41 $18.52 $21.29 $15.79 $14.28
P/E Ratio 13.66 11.16 -1.29 -2129.0 -3.04 -238.0
CAPEX (M) $3,749 $5,429 $3,620 $3,607 $4,940 $3,284
EV / EBITDA 9.65 8.11 -4.15 -4093.5 -23.2 10.8
Total Debt (M) $9,475 $11,271 $23,872 $30,436 $34,346 $30,572
Net Debt / EBITDA 1.59 1.98 -2.17 -4.43 -14.41 6.51
Current Ratio 1.41 1.29 6.06 5.26 3.13 2.52

Carnival's financial statements include several red flags such as slight revenue growth and decreasing reinvestment in the business, weak operating margins with a negative growth trend, and declining EPS growth. Additionally, the firm has a highly leveraged balance sheet. On the other hand, the company has an excellent current ratio of 2.52 working in its favor.

Carnival's Valuation Is in Line With Its Sector Averages:

Carnival has a trailing twelve month P/E ratio of 43.3, compared to an average of 22.96 for the Consumer Discretionary sector. Based on its EPS guidance of $1.37, the company has a forward P/E ratio of 10.1. The -14.9% compound average growth rate of Carnival's historical and projected earnings per share yields a PEG ratio of -2.91. This indicates that its shares are overvalued.In contrast, the market is likely undervaluing Carnival in terms of its equity because its P/B ratio is 2.73 while the sector average is 4.24.

Overview of Carnival's Market Factors:

The largest shareholder is Aristeia Capital, LLC, whose 8% stake in the company is worth $164,403,270.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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