CARNIVAL

Analysis of Carnival share price

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Before starting to speculate on the Carnival share price you should first ensure you can complete a comprehensive analysis of this asset by using pertinent and reliable stock market data. In this article we offer assistance relating to the stock market and economical information you will need to successfully complete your analyses. Here we will explain the factors you should follow for your fundamental analysis including information relating to the company’s activities, its major competitors and recent partnerships this company has implemented.  

Elements that can influence the price of this asset:

Analysis N°1

We would notably follow operations implemented by Carnival with the objective of diversifying its activities in the luxury travel sector that would enable a higher profitability and a more advantageous pricing strategy.

Analysis N°2

The purchase and construction of new cruise ships are also promising signs of the company’s growth and would enable it to respond to a higher demand.

Analysis N°3

Merger or partnership operations with other companies of all sizes are also events to follow regarding your fundamental analysis of the Carnival share price.

Analysis N°4

We would also monitor operations aimed at promoting the penetration of certain promising markets such as the emerging markets in Asia where demand is increasing.

Analysis N°5

All the events susceptible to impact tourism are also important such as border crossing restrictions, pandemics or climatic catastrophes.

Analysis N°6

The fiscal regulations should also be studied closely as Carnival has already reaped the benefits of certain loopholes to pay less tax. The same is true for environmental regulations that could represent a setback to the company activities.

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General presentation of Carnival

We shall now continue with a review of the Carnival Company’s activities and its different sources of revenue. This will assist you in anticipating the challenges to its future growth.

The Carnival Group is an American company specialised in the cruise ship sector that owns and operates a number of related brands including Carnival Cruise Line, Holland America Line, Princess Cruises, Seabourn, Cunard, AIDA Cruises, Costa Cruises, P & O Cruises and P & O Cruises Australia.

To better understand the group’s activities it is possible to divide them amongst a number of sectors depending on the amount of turnover generated in each way:

  • The sale of cruises represents the major part of this company’s activities with 98.1% of its turnover. This particularly relates to the sale of tickets and the optional services available aboard the cruise ships.
  • The remaining 1.9% of this company’s turnover is from the sale of holidays in Alaska and Canada through its travel agents Holland America Tours and Princess Tours.

The Carnival group currently operates a fleet of 104 cruise ships with a total capacity of 236,910 passengers.

It can also be advantageous to know the geographical distribution of the Carnival Group’s revenue that is generated as follows: 55.2% of this company’s turnover is from North America, 30.4% in Europe, 12.6% in Australia and Asia and 1.8% from the rest of the world.

Analysis of Carnival share price
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The major competitors of Carnival

Although Carnival is currently one of the international leaders in the cruise sector there are a few serious major competitors to this company that you should monitor closely for your analyses of this company. These are the major competitors to Carnival:

Marriott International

This American company is also specialised in cruises as well as the hotel sector and mainly exercises its activities in North America and Pacific Asia.

Royal Caribbean Cruises

This group holds second position worldwide in the cruise ship sector with activities under the following brands


The major partners of Carnival

Carnival therefore has some serious competitors on the market but can also count upon certain allies. Here for example is a recent strategic partnership that the group implemented which significantly influenced its stock market share price:

CSSC

This partnership was implemented by CSSC, the China State Shipbuilding Corporation, with the creation of a joint venture named CSSC Carnival Cruise Shipping. The Chinese Group thereby held the majority of the capital in this joint venture and purchased two cruise ships from Costa capable of transporting 2,000 passengers with the option of ordering other ships that would be built in China. The programme also included two firm purchases from the Shanghai shipyard with an initial delivery in 2023 and an option for two new ships. It should be noted that CSSC also signed concurrently a partnership with the Italian company Fincantieri still with the objective of creating a joint company for the construction of cruise ships which would enable the creation of Chinese cruises.

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Frequently Asked Questions

How to complete a technical analysis of the Carnival share price?

To create a pertinent technical analysis of the Carnival share price it is strongly recommended that you use a personalised stock market chart that enables you to choose the period of analysis and can display certain technical indicators simultaneously. We particularly recommend the trend and volatility indicators such as the MACD or mobile averages as well as the reversal points such as the pivot points and the support and resistance levels.

Which financial elements should be analysed for Carnival shares?

Of course, a financial analysis of the Carnival Group is also important if you wish to invest in this asset. Here we would notably draw your attention to the publication of this company’s financial results, annual and quarterly. You will need to compare the true results of the group with the objectives fixed by the company and the analysts’ projections to be able to be more precise regarding the probable forthcoming trends of the company’s share price. You could also compare these figures to those of its competitors.

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