ROYAL CARIBBEAN CRUISES LTD (RCL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RCL - LR0008862868 - Common Stock
285.67 USD
-8.45 (-2.87%)
285.21 USD
-0.46 (-0.16%)
RCL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 133 industry peers in the Hotels, Restaurants & Leisure industry. There are concerns on the financial health of RCL while its profitability can be described as average. RCL is not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
In the past year RCL was profitable.
In the past year RCL had a positive cash flow from operations.
In multiple years RCL reported negative net income over the last 5 years.
The reported operating cash flow has been mixed in the past 5 years: RCL reported negative operating cash flow in multiple years.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.14%, RCL belongs to the top of the industry, outperforming 81.95% of the companies in the same industry.
The Return On Equity of RCL (40.30%) is better than 88.72% of its industry peers.
RCL has a better Return On Invested Capital (12.73%) than 79.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.14% | ||
| ROE | 40.3% | ||
| ROIC | 12.73% |
ROA(3y)2.07%
ROA(5y)-5.59%
ROE(3y)-0.4%
ROE(5y)-34.16%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
RCL's Profit Margin of 23.33% is amongst the best of the industry. RCL outperforms 94.74% of its industry peers.
RCL's Profit Margin has been stable in the last couple of years.
RCL's Operating Margin of 26.46% is amongst the best of the industry. RCL outperforms 93.23% of its industry peers.
In the last couple of years the Operating Margin of RCL has grown nicely.
RCL has a Gross Margin (50.27%) which is in line with its industry peers.
RCL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.46% | ||
| PM (TTM) | 23.33% | ||
| GM | 50.27% |
OM growth 3YN/A
OM growth 5Y5.64%
PM growth 3YN/A
PM growth 5Y0.34%
GM growth 3YN/A
GM growth 5Y1.42%
2. Health
2.1 Basic Checks
RCL has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, RCL has more shares outstanding
RCL has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, RCL has an improved debt to assets ratio.
2.2 Solvency
RCL has an Altman-Z score of 2.32. This is not the best score and indicates that RCL is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of RCL (2.32) is better than 63.91% of its industry peers.
RCL has a debt to FCF ratio of 9.96. This is a negative value and a sign of low solvency as RCL would need 9.96 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 9.96, RCL is doing good in the industry, outperforming 60.90% of the companies in the same industry.
RCL has a Debt/Equity ratio of 1.70. This is a high value indicating a heavy dependency on external financing.
RCL has a Debt to Equity ratio (1.70) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | 9.96 | ||
| Altman-Z | 2.32 |
ROIC/WACC1.54
WACC8.27%
2.3 Liquidity
RCL has a Current Ratio of 0.16. This is a bad value and indicates that RCL is not financially healthy enough and could expect problems in meeting its short term obligations.
RCL has a worse Current ratio (0.16) than 96.24% of its industry peers.
A Quick Ratio of 0.14 indicates that RCL may have some problems paying its short term obligations.
With a Quick ratio value of 0.14, RCL is not doing good in the industry: 96.24% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.16 | ||
| Quick Ratio | 0.14 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 26.60% over the past year.
RCL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.36% yearly.
Looking at the last year, RCL shows a quite strong growth in Revenue. The Revenue has grown by 8.60% in the last year.
The Revenue has been growing by 8.52% on average over the past years. This is quite good.
EPS 1Y (TTM)26.6%
EPS 3YN/A
EPS 5Y4.36%
EPS Q2Q%10.58%
Revenue 1Y (TTM)8.6%
Revenue growth 3Y120.76%
Revenue growth 5Y8.52%
Sales Q2Q%5.18%
3.2 Future
Based on estimates for the next years, RCL will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.09% on average per year.
RCL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.51% yearly.
EPS Next Y33.66%
EPS Next 2Y23.44%
EPS Next 3Y20.45%
EPS Next 5Y18.09%
Revenue Next Year8.77%
Revenue Next 2Y9.15%
Revenue Next 3Y8.6%
Revenue Next 5Y8.51%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
RCL is valuated rather expensively with a Price/Earnings ratio of 19.74.
Based on the Price/Earnings ratio, RCL is valued a bit cheaper than the industry average as 68.42% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.57. RCL is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 15.87, which indicates a correct valuation of RCL.
72.93% of the companies in the same industry are more expensive than RCL, based on the Price/Forward Earnings ratio.
RCL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.74 | ||
| Fwd PE | 15.87 |
4.2 Price Multiples
61.65% of the companies in the same industry are cheaper than RCL, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RCL is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.28 | ||
| EV/EBITDA | 15.91 |
4.3 Compensation for Growth
RCL's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
RCL has a very decent profitability rating, which may justify a higher PE ratio.
RCL's earnings are expected to grow with 20.45% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.59
PEG (5Y)4.53
EPS Next 2Y23.44%
EPS Next 3Y20.45%
5. Dividend
5.1 Amount
RCL has a Yearly Dividend Yield of 1.19%. Purely for dividend investing, there may be better candidates out there.
RCL's Dividend Yield is a higher than the industry average which is at 1.53.
Compared to an average S&P500 Dividend Yield of 2.00, RCL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
5.2 History
The dividend of RCL decreases each year by -30.56%.
RCL has paid a dividend for at least 10 years, which is a reliable track record.
RCL has decreased its dividend recently.
Dividend Growth(5Y)-30.56%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
16.20% of the earnings are spent on dividend by RCL. This is a low number and sustainable payout ratio.
DP16.2%
EPS Next 2Y23.44%
EPS Next 3Y20.45%
285.67
-8.45 (-2.87%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners82.63%
Inst Owner Change-2.68%
Ins Owners0.25%
Ins Owner Change-0.19%
Market Cap77.91B
Revenue(TTM)17.44B
Net Income(TTM)4.07B
Analysts80.63
Price Target331.68 (16.11%)
Short Float %3.8%
Short Ratio4.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
Yearly Dividend0.41
Dividend Growth(5Y)-30.56%
DP16.2%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.24%
Min EPS beat(2)0.37%
Max EPS beat(2)6.12%
EPS beat(4)4
Avg EPS beat(4)4.95%
Min EPS beat(4)0.37%
Max EPS beat(4)7.78%
EPS beat(8)8
Avg EPS beat(8)9.83%
EPS beat(12)12
Avg EPS beat(12)15.57%
EPS beat(16)14
Avg EPS beat(16)13.06%
Revenue beat(2)0
Avg Revenue beat(2)-1.35%
Min Revenue beat(2)-1.48%
Max Revenue beat(2)-1.22%
Revenue beat(4)0
Avg Revenue beat(4)-1.29%
Min Revenue beat(4)-1.48%
Max Revenue beat(4)-1.08%
Revenue beat(8)1
Avg Revenue beat(8)-0.94%
Revenue beat(12)4
Avg Revenue beat(12)-0.36%
Revenue beat(16)5
Avg Revenue beat(16)-1.07%
PT rev (1m)-5.44%
PT rev (3m)-5.52%
EPS NQ rev (1m)-0.27%
EPS NQ rev (3m)-3.38%
EPS NY rev (1m)0.02%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-0.62%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.74 | ||
| Fwd PE | 15.87 | ||
| P/S | 4.47 | ||
| P/FCF | 38.28 | ||
| P/OCF | 12.35 | ||
| P/B | 7.72 | ||
| P/tB | 8.39 | ||
| EV/EBITDA | 15.91 |
EPS(TTM)14.47
EY5.07%
EPS(NY)18
Fwd EY6.3%
FCF(TTM)7.46
FCFY2.61%
OCF(TTM)23.13
OCFY8.1%
SpS63.94
BVpS37.01
TBVpS34.04
PEG (NY)0.59
PEG (5Y)4.53
Graham Number109.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.14% | ||
| ROE | 40.3% | ||
| ROCE | 16.11% | ||
| ROIC | 12.73% | ||
| ROICexc | 12.92% | ||
| ROICexgc | 13.3% | ||
| OM | 26.46% | ||
| PM (TTM) | 23.33% | ||
| GM | 50.27% | ||
| FCFM | 11.67% |
ROA(3y)2.07%
ROA(5y)-5.59%
ROE(3y)-0.4%
ROE(5y)-34.16%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5Y11.35%
ROICexc growth 3YN/A
ROICexc growth 5Y11.67%
OM growth 3YN/A
OM growth 5Y5.64%
PM growth 3YN/A
PM growth 5Y0.34%
GM growth 3YN/A
GM growth 5Y1.42%
F-Score7
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | 9.96 | ||
| Debt/EBITDA | 2.74 | ||
| Cap/Depr | 255.16% | ||
| Cap/Sales | 24.51% | ||
| Interest Coverage | 5.01 | ||
| Cash Conversion | 100.32% | ||
| Profit Quality | 50.04% | ||
| Current Ratio | 0.16 | ||
| Quick Ratio | 0.14 | ||
| Altman-Z | 2.32 |
F-Score7
WACC8.27%
ROIC/WACC1.54
Cap/Depr(3y)221.58%
Cap/Depr(5y)198.16%
Cap/Sales(3y)26.17%
Cap/Sales(5y)62.6%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)26.6%
EPS 3YN/A
EPS 5Y4.36%
EPS Q2Q%10.58%
EPS Next Y33.66%
EPS Next 2Y23.44%
EPS Next 3Y20.45%
EPS Next 5Y18.09%
Revenue 1Y (TTM)8.6%
Revenue growth 3Y120.76%
Revenue growth 5Y8.52%
Sales Q2Q%5.18%
Revenue Next Year8.77%
Revenue Next 2Y9.15%
Revenue Next 3Y8.6%
Revenue Next 5Y8.51%
EBIT growth 1Y12.82%
EBIT growth 3YN/A
EBIT growth 5Y14.65%
EBIT Next Year68.26%
EBIT Next 3Y26.9%
EBIT Next 5Y19.7%
FCF growth 1Y-16.67%
FCF growth 3YN/A
FCF growth 5Y23.62%
OCF growth 1Y60.22%
OCF growth 3YN/A
OCF growth 5Y7.22%
ROYAL CARIBBEAN CRUISES LTD / RCL FAQ
Can you provide the ChartMill fundamental rating for ROYAL CARIBBEAN CRUISES LTD?
ChartMill assigns a fundamental rating of 5 / 10 to RCL.
Can you provide the valuation status for ROYAL CARIBBEAN CRUISES LTD?
ChartMill assigns a valuation rating of 5 / 10 to ROYAL CARIBBEAN CRUISES LTD (RCL). This can be considered as Fairly Valued.
How profitable is ROYAL CARIBBEAN CRUISES LTD (RCL) stock?
ROYAL CARIBBEAN CRUISES LTD (RCL) has a profitability rating of 6 / 10.
What is the valuation of ROYAL CARIBBEAN CRUISES LTD based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ROYAL CARIBBEAN CRUISES LTD (RCL) is 19.74 and the Price/Book (PB) ratio is 7.72.
Can you provide the expected EPS growth for RCL stock?
The Earnings per Share (EPS) of ROYAL CARIBBEAN CRUISES LTD (RCL) is expected to grow by 33.66% in the next year.