ROYAL CARIBBEAN CRUISES LTD (RCL) Stock Fundamental Analysis
USA - NYSE:RCL - LR0008862868 - Common Stock
256.01 USD
+2.44 (+0.96%)
256.21 USD
+0.2 (+0.08%)
Taking everything into account, RCL scores 5 out of 10 in our fundamental rating. RCL was compared to 132 industry peers in the Hotels, Restaurants & Leisure industry. RCL has a medium profitability rating, but doesn't score so well on its financial health evaluation. RCL is not overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
RCL had positive earnings in the past year.
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 84.85% of the companies in the same industry.
The Return On Equity of RCL (40.30%) is better than 87.12% of its industry peers.
RCL has a Return On Invested Capital of 12.73%. This is in the better half of the industry: RCL outperforms 79.55% 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
Looking at the Profit Margin, with a value of 23.33%, RCL belongs to the top of the industry, outperforming 96.21% of the companies in the same industry.
In the last couple of years the Profit Margin of RCL has remained more or less at the same level.
RCL has a Operating Margin of 26.46%. This is amongst the best in the industry. RCL outperforms 93.94% of its industry peers.
RCL's Operating Margin has improved in the last couple of years.
RCL has a Gross Margin of 50.27%. This is comparable to the rest of the industry: RCL outperforms 58.33% of 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.
RCL has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, RCL has more shares outstanding
The debt/assets ratio for RCL has been reduced compared to a year ago.
2.2 Solvency
RCL has an Altman-Z score of 2.09. 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.
With a Altman-Z score value of 2.09, RCL perfoms like the industry average, outperforming 59.09% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 9.96, RCL is in line with its industry, outperforming 59.85% 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 | 2.09 |
ROIC/WACC1.63
WACC7.8%
2.3 Liquidity
A Current Ratio of 0.16 indicates that RCL may have some problems paying its short term obligations.
The Current ratio of RCL (0.16) is worse than 96.97% of its industry peers.
A Quick Ratio of 0.14 indicates that RCL may have some problems paying its short term obligations.
The Quick ratio of RCL (0.14) is worse than 96.97% of its industry peers.
| 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.
Measured over the past 5 years, RCL shows a small growth in Earnings Per Share. The EPS has been growing by 4.36% on average per year.
The Revenue has grown by 8.60% in the past year. This is quite good.
Measured over the past years, RCL shows a quite strong growth in Revenue. The Revenue has been growing by 8.52% on average per year.
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
RCL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.09% yearly.
Based on estimates for the next years, RCL will show a quite strong growth in Revenue. The Revenue will grow by 8.51% on average per year.
EPS Next Y33.63%
EPS Next 2Y23.41%
EPS Next 3Y20.38%
EPS Next 5Y18.09%
Revenue Next Year8.74%
Revenue Next 2Y9.11%
Revenue Next 3Y8.64%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
RCL is valuated rather expensively with a Price/Earnings ratio of 17.69.
71.21% of the companies in the same industry are more expensive than RCL, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.83, RCL is valued a bit cheaper.
The Price/Forward Earnings ratio is 14.23, which indicates a correct valuation of RCL.
Based on the Price/Forward Earnings ratio, RCL is valued a bit cheaper than the industry average as 74.24% of the companies are valued more expensively.
RCL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 32.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.69 | ||
| Fwd PE | 14.23 |
4.2 Price Multiples
RCL's Enterprise Value to EBITDA is on the same level as the industry average.
RCL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.17 | ||
| EV/EBITDA | 14.11 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of RCL may justify a higher PE ratio.
RCL's earnings are expected to grow with 20.38% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.53
PEG (5Y)4.06
EPS Next 2Y23.41%
EPS Next 3Y20.38%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.19%, RCL has a reasonable but not impressive dividend return.
RCL's Dividend Yield is a higher than the industry average which is at 4.33.
Compared to an average S&P500 Dividend Yield of 2.39, 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 2Y23.41%
EPS Next 3Y20.38%
256.01
+2.44 (+0.96%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners84.1%
Inst Owner Change-0.33%
Ins Owners0.25%
Ins Owner Change-0.26%
Market Cap69.54B
Revenue(TTM)17.44B
Net Income(TTM)4.07B
Analysts81.25
Price Target357.15 (39.51%)
Short Float %3.9%
Short Ratio5.78
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)-0.08%
PT rev (3m)17.16%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)2%
EPS NY rev (1m)0.18%
EPS NY rev (3m)1.7%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)0.28%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.69 | ||
| Fwd PE | 14.23 | ||
| P/S | 3.99 | ||
| P/FCF | 34.17 | ||
| P/OCF | 11.02 | ||
| P/B | 6.89 | ||
| P/tB | 7.49 | ||
| EV/EBITDA | 14.11 |
EPS(TTM)14.47
EY5.65%
EPS(NY)17.99
Fwd EY7.03%
FCF(TTM)7.49
FCFY2.93%
OCF(TTM)23.23
OCFY9.07%
SpS64.19
BVpS37.15
TBVpS34.18
PEG (NY)0.53
PEG (5Y)4.06
Graham Number109.98
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 | 2.09 |
F-Score7
WACC7.8%
ROIC/WACC1.63
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 Y33.63%
EPS Next 2Y23.41%
EPS Next 3Y20.38%
EPS Next 5Y18.09%
Revenue 1Y (TTM)8.6%
Revenue growth 3Y120.76%
Revenue growth 5Y8.52%
Sales Q2Q%5.18%
Revenue Next Year8.74%
Revenue Next 2Y9.11%
Revenue Next 3Y8.64%
Revenue Next 5Y8.51%
EBIT growth 1Y12.82%
EBIT growth 3YN/A
EBIT growth 5Y14.65%
EBIT Next Year65.86%
EBIT Next 3Y27.11%
EBIT Next 5Y19.66%
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 6 / 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 17.69 and the Price/Book (PB) ratio is 6.89.
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 33.63% in the next year.