The firm shows a Beta (market volatility) of -0.8196, which signifies possible diversification benefits within a given portfolio. Let's try to break down what Carnival's beta means in this case. As returns on the market increase, returns on owning Carnival are expected to decrease at a much lower rate. During the bear market, Carnival is likely to outperform the market. Even though it is essential to pay attention to
Carnival historical returns, it is always good to be careful when utilizing equity current trending patterns. Our philosophy towards foreseeing any stock's
future performance is to check both, its past performance charts as well as the business as a whole, including all available
technical indicators. Carnival exposes twenty-one different technical indicators, which can help you to evaluate its performance.
Carnival has an expected return of -0.16%. Please be advised to confirm Carnival
value at risk, and the
relationship between the
jensen alpha and
semi variance to decide if
Carnival stock performance from the past will be repeated at some point in the near future.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Carnival income statement, its balance sheet, and the statement of cash flows. Potential Carnival investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Carnival investors may use each financial statement separately, they are all related. The changes in Carnival's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Carnival's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Carnival
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Carnival performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Carnival shares is the value that is considered the true value of the share. If
the intrinsic value of Carnival is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Carnival. Please read more on our
fundamental analysis page.
How effective is Carnival in utilizing its assets?
Carnival reports assets on its Balance Sheet. It represents the amount of Carnival resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Carnival aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Hotels, Resorts & Cruise Lines space. To get a better handle on how balance sheet or income statements item affect Carnival volatility, please check the breakdown of all its
fundamentals.
Are Carnival Earnings Expected to grow?
The
future earnings power of Carnival involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Carnival factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Carnival
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Carnival
expected earnings.
Carnival Gross Profit
Carnival Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Carnival previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Carnival Gross Profit growth over the last 10 years. Please check Carnival's
gross profit and other
fundamental indicators for more details.
Is Carnival valued adequately by the market?
Although in the United States, the Securities and Exchange Commission has enforced strong rules to prevent insiders from engaging in insider trading, finding insiders among active shareholders of Carnival is not uncomon. Many companies such as Carnival have both institutions investors and insiders sharing the ownership. Retail investors typically buy and sell stocks in round lots of 100 shares or more. Other other hand institutional investors are known to buy and sell in block trades of 10,000 shares or more. Let's take a look at how the ownership of Carnival is distributed among investors.
Ownership Allocation
Carnival retains a total of 700.03 Million outstanding shares. The majority of Carnival
outstanding shares are owned by
other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Carnival to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Carnival. Please pay attention to any change in the institutional holdings of Carnival as this could imply that something significant has changed or about to change at the company. Remember, it does not matter who owns the company or if the company is currently
losing money. If the true value of the company is more than the market pays for it currently, you can still have a good investment opportunity.
| Retail Investors8.44% | Insiders15.44% | Institutions76.12% |
| Retail Investors | 8.44 |
| Insiders | 15.44 |
| Institutions | 76.12 |
Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Carnival has an asset utilization ratio of 43.25 percent. This denotes that the company is making $0.43 for each dollar of assets. An increasing asset utilization means that Carnival is more efficient with each dollar of assets it utilizes for everyday operations.
| Current Assets | 2.26 Billion | 4.18 |
| Assets Non Current | 48.06 Billion | 88.82 |
| Goodwill | 3.79 Billion | 7.0 |
Our Carnival analysis denotes possible reversion in October
The market risk adjusted performance is down to 0.24 as of today. Carnival exhibits very low volatility with skewness of 0.51 and kurtosis of 1.23. However, we advise investors to further study Carnival technical indicators to make sure all market info is available and is reliable.
The Current Takeaway on Carnival Investment
While some other firms in the travel services industry are either recovering or due for a correction, Carnival may not be performing as strong as the other in terms of long-term growth potentials. The inconsistency in the assessment between current Carnival valuation and our trade advice on Carnival is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Carnival.
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of Carnival. Please refer to our
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