Capital Shares of Carnival Corporation Surpassing Market Competition

Capital Shares of Carnival Corporation Surpassing Market Competition - Worth Purchasing Now?

Carnival Corp., the cruise industry leader, is currently sailing through challenging waters with a total debt of just over $27 billion, a significant burden considering its $10 billion in book value. However, the company is moving forward with ambitious new shipbuilding projects.

In August 2025, the keel laying of the Carnival Festivale took place, a new vessel set to debut in 2027. This family-friendly ship, part of the Excel-class vessels built by Meyer Werft, will feature innovative music entertainment and is expected to set new standards in design and entertainment for families. Another Excel-class vessel, the Carnival Tropicale, is planned for 2028.

Despite the debt, Carnival Corp.'s financial performance has been steadily improving. The company's revenue for the first half of fiscal 2025 increased by 9% year over year to $12 billion. This growth is evident in the company's net income, which stood at $486 million for the first two quarters of 2025, a significant improvement from the $123 million loss in the same year-ago period.

Moreover, Carnival Corp. has been proactive in managing its debt. Over the last year, the company paid off $2 billion in debt, and only about $2.1 billion is due through the end of 2026. The occupancy percentage for Carnival Cruise Lines in the first six months of fiscal 2025 stood at 104%, indicating strong demand for its services.

The company's cost and expense growth was limited to 3% for the first half of fiscal 2025, a testament to its cost management strategies. As a result, Carnival Corp.'s stock price has risen significantly, up over 90% in the last 12 months. The current price of Carnival Corp. (CCL) stock is $31.90.

However, Carnival Corp.'s stock trades at a lower valuation than its competitors, such as Royal Caribbean, Viking Holdings, and Norwegian Cruise Line Holdings. Despite its strong performance and ambitious expansion plans, Carnival Corp. was not included in the Motley Fool Stock Advisor team's list of the 10 best stocks for investors to buy now.

The Motley Fool Stock Advisor team, known for their successful recommendations like Netflix and Nvidia, has identified 10 stocks that could potentially produce higher returns in the coming years. While Carnival Corp. is advancing with new shipbuilding projects, investors might want to consider the 10 stocks identified by the Motley Fool Stock Advisor team for potential higher returns.

Joining Stock Advisor gives access to the latest top 10 list of stocks, providing investors with a diverse range of investment opportunities. As Carnival Corp. continues to navigate its debt and expand its fleet, investors will be watching closely to see how the company performs in the coming years.

Capital Shares of Carnival Corporation Surpassing Market Competition - Worth Purchasing Now?