ROYAL CARIBBEAN CRUISES LTD (RCL) Stock Fundamental Analysis
NYSE:RCL - New York Stock Exchange, Inc. - LR0008862868 - Common Stock - Currency: USD
RCL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 135 industry peers in the Hotels, Restaurants & Leisure industry. While RCL is still in line with the averages on profitability rating, there are concerns on its financial health. RCL has a decent growth rate and is not valued too expensively.
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.
The reported net income has been mixed in the past 5 years: RCL reported negative net income in multiple 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
RCL's Return On Assets of 7.76% is fine compared to the rest of the industry. RCL outperforms 77.86% of its industry peers.
RCL has a better Return On Equity (38.04%) than 90.08% of its industry peers.
With a decent Return On Invested Capital value of 11.96%, RCL is doing good in the industry, outperforming 77.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.76% | ||
| ROE | 38.04% | ||
| ROIC | 11.96% |
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 17.45%, RCL belongs to the top of the industry, outperforming 90.08% 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 better Operating Margin (25.03%) than 87.02% of its industry peers.
In the last couple of years the Operating Margin of RCL has grown nicely.
Looking at the Gross Margin, with a value of 48.93%, RCL is in line with its industry, outperforming 51.91% of the companies in the same industry.
RCL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.03% | ||
| PM (TTM) | 17.45% | ||
| GM | 48.93% |
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.
The number of shares outstanding for RCL has been increased compared to 1 year ago.
RCL has more shares outstanding than it did 5 years ago.
RCL has a better debt/assets ratio than last year.
2.2 Solvency
RCL has an Altman-Z score of 1.99. 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.
RCL's Altman-Z score of 1.99 is in line compared to the rest of the industry. RCL outperforms 58.78% of its industry peers.
RCL has a debt to FCF ratio of 10.05. This is a negative value and a sign of low solvency as RCL would need 10.05 years to pay back of all of its debts.
RCL's Debt to FCF ratio of 10.05 is fine compared to the rest of the industry. RCL outperforms 61.07% of its industry peers.
RCL has a Debt/Equity ratio of 2.44. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of RCL (2.44) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.44 | ||
| Debt/FCF | 10.05 | ||
| Altman-Z | 1.99 |
ROIC/WACC1.31
WACC9.15%
2.3 Liquidity
A Current Ratio of 0.17 indicates that RCL may have some problems paying its short term obligations.
RCL has a Current ratio of 0.17. This is amonst the worse of the industry: RCL underperforms 98.47% of its industry peers.
A Quick Ratio of 0.15 indicates that RCL may have some problems paying its short term obligations.
RCL has a worse Quick ratio (0.15) than 98.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.17 | ||
| Quick Ratio | 0.15 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 76.53% over the past year.
The Earnings Per Share has been growing slightly by 4.36% on average over the past years.
Looking at the last year, RCL shows a quite strong growth in Revenue. The Revenue has grown by 18.59% 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)76.53%
EPS 3YN/A
EPS 5Y4.36%
EPS Q2Q%30.4%
Revenue 1Y (TTM)18.59%
Revenue growth 3Y120.76%
Revenue growth 5Y8.52%
Sales Q2Q%12.91%
3.2 Future
The Earnings Per Share is expected to grow by 15.11% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.59% on average over the next years.
EPS Next Y27.39%
EPS Next 2Y22.78%
EPS Next 3Y19.77%
EPS Next 5Y15.11%
Revenue Next Year9.46%
Revenue Next 2Y9.9%
Revenue Next 3Y9.33%
Revenue Next 5Y7.59%
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
A Price/Earnings ratio of 20.84 indicates a rather expensive valuation of RCL.
Compared to the rest of the industry, the Price/Earnings ratio of RCL indicates a somewhat cheap valuation: RCL is cheaper than 69.47% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of RCL to the average of the S&P500 Index (29.98), we can say RCL is valued slightly cheaper.
With a Price/Forward Earnings ratio of 16.36, RCL is valued correctly.
Based on the Price/Forward Earnings ratio, RCL is valued a bit cheaper than the industry average as 76.34% of the companies are valued more expensively.
RCL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.66.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.84 | ||
| Fwd PE | 16.36 |
4.2 Price Multiples
RCL's Enterprise Value to EBITDA is on the same level as the industry average.
61.07% of the companies in the same industry are more expensive than RCL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.14 | ||
| EV/EBITDA | 15 |
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.
RCL has a very decent profitability rating, which may justify a higher PE ratio.
RCL's earnings are expected to grow with 19.77% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.76
PEG (5Y)4.78
EPS Next 2Y22.78%
EPS Next 3Y19.77%
5. Dividend
5.1 Amount
RCL has a yearly dividend return of 0.95%, which is pretty low.
RCL's Dividend Yield is a higher than the industry average which is at 3.13.
Compared to an average S&P500 Dividend Yield of 2.30, RCL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
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.
Dividend Growth(5Y)-30.56%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
RCL pays out 3.72% of its income as dividend. This is a sustainable payout ratio.
DP3.72%
EPS Next 2Y22.78%
EPS Next 3Y19.77%
246.1
+7.94 (+3.33%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners80.59%
Inst Owner Change1.99%
Ins Owners0.41%
Ins Owner Change-0.54%
Market Cap66.18B
Analysts81.38
Price Target291.28 (18.36%)
Short Float %4.31%
Short Ratio5.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
Yearly Dividend0.41
Dividend Growth(5Y)-30.56%
DP3.72%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.06%
Min EPS beat(2)2.35%
Max EPS beat(2)7.78%
EPS beat(4)4
Avg EPS beat(4)14.27%
Min EPS beat(4)2.35%
Max EPS beat(4)31.57%
EPS beat(8)8
Avg EPS beat(8)19.7%
EPS beat(12)11
Avg EPS beat(12)18.14%
EPS beat(16)12
Avg EPS beat(16)11.09%
Revenue beat(2)0
Avg Revenue beat(2)-1.18%
Min Revenue beat(2)-1.27%
Max Revenue beat(2)-1.08%
Revenue beat(4)1
Avg Revenue beat(4)-0.44%
Min Revenue beat(4)-1.27%
Max Revenue beat(4)0.66%
Revenue beat(8)4
Avg Revenue beat(8)0.13%
Revenue beat(12)5
Avg Revenue beat(12)-0.52%
Revenue beat(16)6
Avg Revenue beat(16)-5.89%
PT rev (1m)11.43%
PT rev (3m)25.73%
EPS NQ rev (1m)7.1%
EPS NQ rev (3m)6.96%
EPS NY rev (1m)3.39%
EPS NY rev (3m)3.77%
Revenue NQ rev (1m)-0.59%
Revenue NQ rev (3m)-0.39%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.84 | ||
| Fwd PE | 16.36 | ||
| P/S | 4.01 | ||
| P/FCF | 33.14 | ||
| P/OCF | 12.57 | ||
| P/B | 8.75 | ||
| P/tB | 9.8 | ||
| EV/EBITDA | 15 |
EPS(TTM)11.81
EY4.8%
EPS(NY)15.05
Fwd EY6.11%
FCF(TTM)7.43
FCFY3.02%
OCF(TTM)19.58
OCFY7.96%
SpS61.3
BVpS28.13
TBVpS25.12
PEG (NY)0.76
PEG (5Y)4.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.76% | ||
| ROE | 38.04% | ||
| ROCE | 15.14% | ||
| ROIC | 11.96% | ||
| ROICexc | 12.13% | ||
| ROICexgc | 12.51% | ||
| OM | 25.03% | ||
| PM (TTM) | 17.45% | ||
| GM | 48.93% | ||
| FCFM | 12.11% |
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
ROICexcg growth 3YN/A
ROICexcg 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 Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.44 | ||
| Debt/FCF | 10.05 | ||
| Debt/EBITDA | 3.23 | ||
| Cap/Depr | 204.25% | ||
| Cap/Sales | 19.83% | ||
| Interest Coverage | 3.41 | ||
| Cash Conversion | 91.95% | ||
| Profit Quality | 69.41% | ||
| Current Ratio | 0.17 | ||
| Quick Ratio | 0.15 | ||
| Altman-Z | 1.99 |
F-Score7
WACC9.15%
ROIC/WACC1.31
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)76.53%
EPS 3YN/A
EPS 5Y4.36%
EPS Q2Q%30.4%
EPS Next Y27.39%
EPS Next 2Y22.78%
EPS Next 3Y19.77%
EPS Next 5Y15.11%
Revenue 1Y (TTM)18.59%
Revenue growth 3Y120.76%
Revenue growth 5Y8.52%
Sales Q2Q%12.91%
Revenue Next Year9.46%
Revenue Next 2Y9.9%
Revenue Next 3Y9.33%
Revenue Next 5Y7.59%
EBIT growth 1Y42.32%
EBIT growth 3YN/A
EBIT growth 5Y14.64%
EBIT Next Year63.03%
EBIT Next 3Y25.71%
EBIT Next 5Y15.76%
FCF growth 1Y244.31%
FCF growth 3YN/A
FCF growth 5Y23.62%
OCF growth 1Y17.6%
OCF growth 3YN/A
OCF growth 5Y7.21%