VIKViking Holdings Ltd
Is the business good?
The checks split: earnings fully cash-backed (1.7×), but returns that lean on debt.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Leverage-amplified, a high assets-to-equity ratio does much of the work. ROE 78% = margin × turnover × leverage.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is VIK?
Viking Holdings Ltd earns 35% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 26 points above what the capital costs: growth creates value
- Operating margin
- 23%
Operating margin · Travel Services median 16% · 12 months to Q4 2025
- Cash conversion
- 1.73×
Cash conversion · 2.15× a year ago · operating cash flow covers the operating profit after tax
- Gross margin
- 43%
Gross margin
| Year | Operating margin |
|---|---|
| FY2022 | 2.0% |
| FY2023 | 17% |
| FY2024 | 20% |
| FY2025 | 23% |
Details›
- Gross margin12 months to Q4 2025
- 43%
- Operating margin12 months to Q4 2025
- 23%
- Net margin12 months to Q4 2025
- 18%
- Revenue, trailing twelve months
- $6.50B
- Net income, trailing twelve months
- $1.15B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 35%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.