Carnival is ready to benefit from the strong cruise demand in 2025.
The 2025 wave season is forecasted to be strong, with industry bookings already exceeding past levels by 10-15%, supporting continuous free cash flow and debt reduction.
Despite high infrastructure investments, the cruise line forecasts $3 billion in free cash flow for the fiscal year 2024, aiming for $6 billion in adjusted EBITDA.
Stocks are traded at a 9x EV/EBITDA multiple, which is attractive considering the strong booking environment and the potential for higher cash flow to further repay debt.
I am Mark Holder, also known as Stone Fox Capital, a certified public accountant with a degree in accounting and finance. Leading the investment group Outfox The Street, I aim to uncover potential multibaggers while managing portfolio risks through diversification.