ROYAL CARIBBEAN CRUISES LTD (RCL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RCL - LR0008862868 - Common Stock
311.5 USD
+7.17 (+2.36%)
311.5 USD
0 (0%)
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. While RCL is still in line with the averages on profitability rating, there are concerns on its financial health. RCL is not overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year RCL was profitable.
RCL had a positive operating cash flow in the past year.
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
With an excellent Return On Assets value of 10.14%, RCL belongs to the best of the industry, outperforming 81.95% of the companies in the same industry.
With an excellent Return On Equity value of 40.30%, RCL belongs to the best of the industry, outperforming 88.72% of the companies in the same industry.
With a decent Return On Invested Capital value of 12.73%, RCL is doing good in the industry, outperforming 79.70% of the companies in the same industry.
| 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
With an excellent Profit Margin value of 23.33%, RCL belongs to the best of the industry, outperforming 94.74% 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'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 comparable to the rest of the industry.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RCL is creating some value.
RCL has more shares outstanding than it did 1 year ago.
The number of shares outstanding for RCL has been increased compared to 5 years ago.
The debt/assets ratio for RCL has been reduced compared to a year ago.
2.2 Solvency
RCL has an Altman-Z score of 2.42. 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 has a better Altman-Z score (2.42) than 63.16% 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.
RCL has a better Debt to FCF ratio (9.96) than 60.90% of its industry peers.
A Debt/Equity ratio of 1.70 is on the high side and indicates that RCL has dependencies on debt 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 | 2.42 |
ROIC/WACC1.54
WACC8.24%
2.3 Liquidity
A Current Ratio of 0.16 indicates that RCL may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.16, RCL is doing worse than 93.23% of the companies in the same industry.
RCL has a Quick 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 Quick ratio (0.14) than 93.23% 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.
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 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
The Earnings Per Share is expected to grow by 18.09% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.51% on average over the next years. This is quite good.
EPS Next Y33.79%
EPS Next 2Y23.21%
EPS Next 3Y20.35%
EPS Next 5Y18.09%
Revenue Next Year8.75%
Revenue Next 2Y9.05%
Revenue Next 3Y8.52%
Revenue Next 5Y8.51%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 21.53.
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.
RCL's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.19.
A Price/Forward Earnings ratio of 17.38 indicates a rather expensive valuation of RCL.
Based on the Price/Forward Earnings ratio, RCL is valued a bit cheaper than the industry average as 69.92% 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 23.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.53 | ||
| Fwd PE | 17.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RCL is valued a bit more expensive than 60.90% of the companies in the same industry.
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 | 41.74 | ||
| EV/EBITDA | 16.66 |
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 20.35% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.64
PEG (5Y)4.94
EPS Next 2Y23.21%
EPS Next 3Y20.35%
5. Dividend
5.1 Amount
RCL has a Yearly Dividend Yield of 1.15%.
RCL's Dividend Yield is a higher than the industry average which is at 6.32.
Compared to an average S&P500 Dividend Yield of 1.92, RCL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
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.
The dividend of RCL decreased 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 2Y23.21%
EPS Next 3Y20.35%
311.5
+7.17 (+2.36%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners82.68%
Inst Owner Change0.43%
Ins Owners0.25%
Ins Owner Change-0.18%
Market Cap84.95B
Revenue(TTM)17.44B
Net Income(TTM)4.07B
Analysts80.63
Price Target331.68 (6.48%)
Short Float %4.06%
Short Ratio4.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
Yearly Dividend0.41
Dividend Growth(5Y)-30.56%
DP16.2%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
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)-1.79%
PT rev (3m)-7.12%
EPS NQ rev (1m)0.47%
EPS NQ rev (3m)-3.03%
EPS NY rev (1m)0.1%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-0.67%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.53 | ||
| Fwd PE | 17.38 | ||
| P/S | 4.87 | ||
| P/FCF | 41.74 | ||
| P/OCF | 13.46 | ||
| P/B | 8.42 | ||
| P/tB | 9.15 | ||
| EV/EBITDA | 16.66 |
EPS(TTM)14.47
EY4.65%
EPS(NY)17.93
Fwd EY5.76%
FCF(TTM)7.46
FCFY2.4%
OCF(TTM)23.13
OCFY7.43%
SpS63.94
BVpS37.01
TBVpS34.04
PEG (NY)0.64
PEG (5Y)4.94
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 | 2.42 |
F-Score7
WACC8.24%
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 Y33.79%
EPS Next 2Y23.21%
EPS Next 3Y20.35%
EPS Next 5Y18.09%
Revenue 1Y (TTM)8.6%
Revenue growth 3Y120.76%
Revenue growth 5Y8.52%
Sales Q2Q%5.18%
Revenue Next Year8.75%
Revenue Next 2Y9.05%
Revenue Next 3Y8.52%
Revenue Next 5Y8.51%
EBIT growth 1Y12.82%
EBIT growth 3YN/A
EBIT growth 5Y14.65%
EBIT Next Year68.28%
EBIT Next 3Y26.89%
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.
What is the valuation status of ROYAL CARIBBEAN CRUISES LTD (RCL) stock?
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.
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 33.79% in the next year.
Is the dividend of ROYAL CARIBBEAN CRUISES LTD sustainable?
The dividend rating of ROYAL CARIBBEAN CRUISES LTD (RCL) is 4 / 10 and the dividend payout ratio is 16.2%.