Norwegian Cruise Line Holdings (WBO:NCLH) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Norwegian Cruise Line Holdings had a gross margin of 40.89% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Norwegian Cruise Line Holdings Gross Margin % Related Terms
Norwegian Cruise Line Holdings Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Norwegian Cruise Line Holdings Gross Margin % Chart
WBO:NCLH vs MMYT, GBTG, TNL: Gross Margin % Comparison
For the Travel Services subindustry, Norwegian Cruise Line Holdings's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Norwegian Cruise Line Holdings Gross Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Norwegian Cruise Line Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Norwegian Cruise Line Holdings's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Norwegian Cruise Line Holdings (WBO:NCLH) has a Gross Margin % of 40.89% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Norwegian Cruise Line Holdings and its competitors. This is near median its historical median of 40.76. According to the industry distribution chart, Norwegian Cruise Line Holdings ranks #408 out of 790 companies in the Travel & Leisure industry, placing it in the top 51.6%.
Is Norwegian Cruise Line Holdings' Gross Margin % too high?
Norwegian Cruise Line Holdings' current Gross Margin % of 40.89% is near median its 10-year median of 40.76. The Travel & Leisure industry median Gross Margin % is 44.09. Norwegian Cruise Line Holdings' value of 40.89% is 7.3% below this industry median. Based on the distribution chart, Norwegian Cruise Line Holdings ranks #408 out of 790 companies in the Travel & Leisure industry, which is below the industry midpoint. Overall, Norwegian Cruise Line Holdings has a GF Score™ of 69/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Norwegian Cruise Line Holdings' Gross Margin % compare to MMYT and GBTG?
According to the Travel & Leisure industry distribution chart, Norwegian Cruise Line Holdings ranks #408 out of 790 companies for Gross Margin %. This places Norwegian Cruise Line Holdings in the lower half of its industry. The industry median Gross Margin % is 44.09. Norwegian Cruise Line Holdings' value of 40.89% is 7.3% below this benchmark. While the company's 10-year median is 40.76 vs. the industry median of 44.09, Norwegian Cruise Line Holdings has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Travel & Leisure company?
The median Gross Margin % among Travel & Leisure companies is 44.09, based on 790 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Norwegian Cruise Line Holdings's current Gross Margin % of 40.89% is 7.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Norwegian Cruise Line Holdings and its competitors. For the Travel & Leisure industry, the median Gross Margin % is 44.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Norwegian Cruise Line Holdings's current Gross Margin % is 40.89%, which is near median its own 10-year median of 40.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Norwegian Cruise Line Holdings stock overvalued right now?
Based on GuruFocus' analysis, Norwegian Cruise Line Holdings (WBO:NCLH) is currently considered Fairly Valued. The stock's GF Value™ is €19.55, compared to a current price of €17.57 — trading 10.1% below its estimated fair value. The current Gross Margin % is 40.89%, which is near median its 10-year median of 40.76 and 7.3% below the Travel & Leisure industry median of 44.09. Norwegian Cruise Line Holdings' overall GF Score™ is 69/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Norwegian Cruise Line Holdings (WBO:NCLH), the current Gross Margin % is 40.89% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Norwegian Cruise Line Holdings (WBO:NCLH) Overvalued in 2026?
Based on GuruFocus' analysis, Norwegian Cruise Line Holdings stock appears to be undervalued.
The current stock price of €17.57 is trading 10.1% below its estimated GF Value™ of €19.55.
GuruFocus considers Norwegian Cruise Line Holdings to be Fairly Valued.
Key valuation signals for WBO:NCLH:
Gross Margin %: 40.89% (near median its 10-year median of 40.76)
GF Value™: €19.55 vs. price of €17.57 (10.1% below fair value)
Industry Position: 7.3% below the Travel & Leisure median (#408 of 790)
No single metric tells the full story. See the WBO:NCLH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Norwegian Cruise Line Holdings Business Description
Norwegian Cruise Line is the world's third-largest publicly traded cruise company by berths (around 75,000). It operates 35 ships across three brands—Norwegian, Oceania, and Regent Seven Seas—offering both freestyle and luxury cruising. The company redeployed its entire fleet as of May 2022. With 16 passenger vessels on order among its brands through 2037, representing 43,000 incremental berths, Norwegian is increasing capacity faster than its peers, expanding its brand globally. Norwegian sails to around 700 global destinations.
69GF Score
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