Carnival Corporation & Plc operates as a leisure travel company. The company currently operates 105 cruise ships. STOCK VALUE Good value based on its PE Ratio (3.3x) compared to the Hospitality industry average (12.1x). FINANCIAL HEALTH Their debt to equity ratio (45.4%) is considered high and has increased significantly over the past 5 years. Their current debts are currently covered by operating cash flow. Recent developments regarding COVID-19 leave future revenue at a high level of uncertainty. BULLISH OUTLOOK If COVID-19 recedes quickly, they will be able to resume business and would bounce back financially as well. Fuel prices are rapidly declining. The nascent Asia-Pacific market remains promising post COVID-19. This provides an opportunity for long-term growth. BEARISH OUTLOOK COVID-19 has unleashed a handful of problems for them financially. In the event that the pandemic continues it is likely that they will either face an enormous amount of debt or will need intervention from the government in order to stay in business. As of this writing the government has not announced any financial support for the cruise ship industry. In the event that the government provides financial support for them it may be possible that the government will demand an equity stake in their business in return. CHART SAYS
Heavily Oversold The stock has dropped from $32 to $7.90 in the last 2 months. Support levels of $37 and $17 has broken down and may become a levels of resistance in the future.
Stock is currently lower than all support lines (potential buy targets). This indicates the most optimal buying opportunity. FULL COMPANY OVERVIEW Carnival Corporation & Plc operates as a leisure travel company. The company’s ships visit approximately 700 ports under the Carnival Cruise Line, Princess Cruises, Holland America Line, Seabourn, P&O Cruises (Australia), Costa Cruises, AIDA Cruises, P&O Cruises (UK), and Cunard brand names. It also provides vacations to various cruise destinations, as well as owns and operates hotels, lodges, glass-domed railcars, and motor coaches. The company sells its cruises primarily through travel agents and tour operators. It operates in the United States, Canada, Continental Europe, the United Kingdom, Australia, New Zealand, Asia, and internationally. As of January 28, 2020, the company operated 105 ships with 254,000 lower berths. Carnival Corporation & Plc was incorporated in 1972 and is headquartered in Miami, Florida.