HelloSafe » Investing » Stocks » Carnival
James updated on 2023-03-06
Summary
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If you are looking for a cheap stock to add to your portfolio, Carnival stock may be an attractive investment.
How much can you make with Carnival stock?
Get up-to-date and precise information on Carnival stock with its current price, dividend yield, analysis and our opinion.
Watch out!
This page is for information purposes only and does not constitute investment advice. Remember that investing can be risky.
Want to buy shares in Carnival: Our key take-aways
- Stock exchange: NYSE
- Stock market index: S&P500
- Dividend 2021: $0
- Dividend forecast 2022: $0
- 1 year performance: -37.38%
Should I buy Carnival stock?
Carnival is not a growth stock or a yield stock, however, it could soon pay a dividend again.
Given its very attractive price at the moment, it may be worth investing in this stock in order to benefit from the return of its dividend in the years to come.
This company used to offer a yield close to 4% before suspending this dividend due to the consequences of the Covid-19 pandemic on its activities.
Technical analysis of CCL from TradingView
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How can I buy shares in Carnival ?
To buy Carnival on the stock market:
- Find an online broker offering stock investments.
- Open your trading account by filling out a simple form.
- Deposit funds into your account.
- Search for the stock
- Place a buy order to add Carnival to your stock portfolio.
To invest in Carnival, you can go through a traditional investment firm, an online brokerage or speak with a financial advisor.
How much are Carnival shares?
See price chart below to follow Carnival stock price in real time.
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Why Carnival shares could go up:
Current data regarding Carnival's position in its industry is sending several strong bullish signals:
- A strong position in its industry: Carnival is currently one of the largest cruise operators in the world with a large fleet and 11 cruise brands.
- A portfolio that targets a broad customer base: Carnival's brand portfolio is very broad and addresses a variety of niche markets including economy, luxury and contemporary cruises.
- Cost-effective strategy: Carnival's size and scale allow it to pursue an effective cost strategy against its direct competitors.
- Profitable business: With the exception of recent years, which have been impacted by the Covid-19 pandemic, Carnival's business used to be among the most profitable in the industry.
- Strong communication: To reach a broader customer base, Carnival Group is investing heavily in communication and advertising through various channels with strong logos and taglines.
- Strong market share: Carnival has strong market share in several markets, including 47 percent of the UK market, 68 percent of the Italian market, 51 percent of the German market and 45 percent of the French market.
Why Carnival shares could go down:
On the other hand, some current elements are more indicative of a decline in the price of this stock:
- Declining profits: Carnival's profits have of course been heavily impacted by the Covid-19 crisis and have suffered numerous losses over the past two years.
- Heavy dependence on the U.S. market: despite its efforts to internationalize its revenue sources, the company still derives the majority of its profits from the U.S. market, which represents a risk from an economic perspective.
- High exposure to foreign exchange: Because a significant portion of Carnival's revenues are generated in currencies other than the U.S. dollar, profitability may be impacted by unfavourable exchange rates.
- A halt in dividend payments: Carnival has also stopped paying dividends to its shareholders in 2020 and 2021 and does not plan to pay dividends in 2022, which may deter some investors from buying the stock.
Can I buy Carnival stock online?
Yes! You can buy Carnival shares online. For many buyers this is the best way to do it. Here's why:
- The commissions are lower
- You can choose your own investments
- You benefit from analysis and decision support tools
- You can invest in stocks directly or through derivatives like ETFs.
How can I sell my Carnival shares?
While short selling is not possible with a Canadian registered investment vehicle, you can of course sell any shares of this company that you own.
Shorting Carnival stock is possible with a margin account that you can open with some brokers.
You can also bet on the decline in value of this stock with CFDs or options.
What investment vehicles in Canada can hold Carnival stock?
Carnival shares can be placed in several different savings vehicles including"
- RRSPs: these registered retirement savings plans offer funds that are accessible at the time of retirement and offer an income tax deferral.
- TFSAs: tax-free savings accounts is an incredibly popular short-and long-term tax-free investment vehicle.
- Margin accounts: This account offers leverage and allows you to borrow against the value of the securities you hold to make other investments. It allows you to sell short.
- Cash accounts: This account allows you to trade stocks on North American markets only.
There are two different ways to invest in Carnival stock.
The first is to buy shares of this company for cash and on a per share basis through an online broker.
The second is to use funds such as ETFs or mutual funds to invest in this and other stocks.
Carnival share price history over 10 years:
| Time period | Growth | High | Low |
|---|---|---|---|
| 1 week | -6.99% | 21.50 | 18.04 |
| 1 month | 6.31% | 21.50 | 16.72 |
| 3 months | -14.13% | 23.86 | 14.94 |
| 6 months | -23.21% | 23.08 | 14.94 |
| 1 year | -37.38% | 23.08 | 14.94 |
| 3 years | -64.64% | 23.08 | 7.80 |
| 5 years | -68.58% | 23.08 | 7.80 |
| 10 years | -40.83% | 23.08 | 7.80 |
Carnival dividends and payment dates
In 2021, Carnival Group did not pay any dividend to its shareholders.
In fact, for the past two years, the company has stopped paying a dividend to its shareholders due to the economic crisis it is currently experiencing and the decline in its results and profits in recent years.
Of course, it is likely that the company will decide to resume paying a dividend in the coming years and when its financial situation allows it.
What is the dividend yield for Carnival over the last 10 years?
| Year | Dividend amount | Variance | Performance |
|---|---|---|---|
| 2012 | 1.50 | 50% | 3.97 |
| 2013 | 1 | -33.33% | 4.21 |
| 2014 | 1.10 | 10% | 2.37 |
| 2015 | 1.70 | 54.55% | 1.99 |
| 2016 | 1.60 | -5.88% | 2.73 |
| 2017 | 1.95 | 21.88% | 2.69 |
| 2018 | 2 | 2.56% | 3.34 |
| 2019 | 0.5 | -75% | 4.35 |
| 2020 | 0 | -100% | 0 |
| 2021 | 0 | -100% | 0 |
The yield on Carnival shares is obtained by dividing the annual dividend by the annual average price.
A stock's yield provides key information about a company's dividend policy and its evolution over time and performance.
Good to know
Annual gross shareholder return = Total dividend for the year ÷ average share price for the same year
Good to know
The 10-year average return = Sum of annual returns ÷ 10
What analysts are saying about Carnival stock:
A critical analysis of Carnival stock:
Current fundamental analysis of Carnival stock shows weak signals for the medium to long-term with the following:
- Expected growth: Analysts expect Carnival Group's revenue growth to resume in the coming years.
- Low margins: On a per-revenue basis and excluding depreciation and amortization, the company has low margins and insufficient profitability.
- A problematic financial situation: the company's financial situation is worrisome with high net debt and low EBITDA.
- Downgraded expectations: over the last 12 months, the group's revenue expectations have been revised downwards several times.
- Analysts' opinions are not consistent: the current estimates of the various analysts show significant divergences, which suggests poor visibility of the group's activities.
- A lowered average price target: the average price target set by analysts has also been lowered several times in recent months.
A technical analysis of Carnival stock:
As for the technical analysis of Carnival shares over the long-term, the signals are also rather negative according to the following indicators:
- The RSI is currently at the 39.761 level, which sends a strong sell signal.
- The short and medium-term stochastics are also sending a sell signal while the long-term stochastic is sending an oversold signal.
- The MACD is negative and is currently at -5.1, which also sends a sell signal.
- The simple and exponential moving averages over all time frames are sending a sell signal.
- The next technical support levels for this stock are at 16.60 and 12.97 and the next resistance levels are at 22.20 and 24.17.
Who is Carnival?
Carnival Corp is an American company that operates in the cruise industry. More specifically, this company is currently the leader in this sector and develops activities under different brands with Carnival Cruise Line, Holland America Line, Princess Cruises, Seabourn, Cunard, AIDA Cruises, Costa Cruises, P&O Cruises and P&O Cruises Australia.
The Carnival group's revenues are divided among its various activities as follows:
- The sale of cruises with 52.4% of revenues, itself divided between the sale of services on board the ships for 61% and the sale of tickets for 39%.
- Other activities account for 47.6% of revenues with sales of trips to Alaska through the Holland America Princess Alaska Tours subsidiary.
Currently, the Carnival Corporation group operates a fleet of 91 ships with a total capacity of 243,180 berths.
The geographic breakdown of Carnival Group's revenues is as follows:
- North America with 55.9% of revenues
- Europe with 42.5% of revenues
- Australia and Asia with 0.9% of revenues
- Rest of the world with 0.7% of revenues
Who are Carnival’s competitors?
Carnival is of course not the only one operating in this sector, although it is still the leader today. Here are its main competitors:
- MSC Cruises: this Geneva-based company belongs to the Mediterranean Shipping Company and owns the Italian tour operator Bluvacanze and the Italian ferry companies SNAV and Grandi Navi Veloci.
- Norwegian Cruise Line: this American cruise ship company is based in Florida and is Carnival's main local competitor.
- Royal Caribbean Group: This company is a global cruise holding company that is also based in Florida. It is the world's number two cruise company. It currently owns three cruise lines with Royal Caribbean International, Celebrity Cruises and Silversea Cruises.
- Expedia: this American company owns several online travel agencies and also operates in the cruise sector. It is therefore an indirect competitor of Carnival.
- Disney Cruise Line: This cruise line is a subsidiary of the Walt Disney Company. Its ships, the Disney Magic and the Disney Wonder, offer family cruises, one stop of which is a private island in the Bahamas also owned by the group.
Who are Carnival’s partners?
While Carnival faces strong competition from many actors in its industry, it also has some allies. Here are a few examples of recent partnerships:
- Marioff: the two companies are linked by a service contract via the subsidiary BluEdgetm, which provides preventive maintenance services for water mist fire protection systems on the fleet's ships.
- Jabil Inc: This company has partnered with Carnival to manufacture the Princess Medallion in the Dominican Republic, a facility with more than 60,000 square feet of manufacturing space.
- Discover the World: Carnival recently named Discover the World as its new general sales agent in two Latin American markets with Argentina and Brazil. The company is one of the world's leading sales organizations in the travel industry.
- China State Shipbuilding Corporation: The two companies have formed a joint venture called CSSC Carnival Cruise Shipping, which is majority-owned by the Chinese group. It has recently acquired two existing Costa ships and plans to build new ships in China.
- Shamal Holding: this partnership aims to make Dubai the leading maritime tourism hub in the region.
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