ROYAL CARIBBEAN CRUISES LTD (RCL) Stock Fundamental Analysis
USA - NYSE:RCL - LR0008862868 - Common Stock
316.78 USD
+13.94 (+4.6%)
315.63 USD
-1.15 (-0.36%)
We assign a fundamental rating of 5 out of 10 to RCL. RCL was compared to 134 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
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
RCL has a Return On Assets of 9.35%. This is amongst the best in the industry. RCL outperforms 83.58% of its industry peers.
With an excellent Return On Equity value of 39.30%, RCL belongs to the best of the industry, outperforming 86.57% of the companies in the same industry.
With an excellent Return On Invested Capital value of 12.84%, RCL belongs to the best of the industry, outperforming 80.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.35% | ||
| ROE | 39.3% | ||
| ROIC | 12.84% |
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
The Profit Margin of RCL (20.97%) is better than 94.78% of its industry peers.
RCL's Profit Margin has been stable in the last couple of years.
The Operating Margin of RCL (26.46%) is better than 94.03% of its industry peers.
In the last couple of years the Operating Margin of RCL has grown nicely.
RCL's Gross Margin of 50.06% is in line compared to the rest of the industry. RCL outperforms 58.21% 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) | 20.97% | ||
| GM | 50.06% |
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.
Compared to 5 years ago, RCL has more shares outstanding
RCL has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.41 indicates that RCL is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.41, RCL is in the better half of the industry, outperforming 64.93% of the companies in the same industry.
RCL has a debt to FCF ratio of 5.30. This is a neutral value as RCL would need 5.30 years to pay back of all of its debts.
RCL's Debt to FCF ratio of 5.30 is fine compared to the rest of the industry. RCL outperforms 73.88% of its industry peers.
A Debt/Equity ratio of 1.92 is on the high side and indicates that RCL has dependencies on debt financing.
RCL has a Debt to Equity ratio of 1.92. This is comparable to the rest of the industry: RCL outperforms 52.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.92 | ||
| Debt/FCF | 5.3 | ||
| Altman-Z | 2.41 |
ROIC/WACC1.63
WACC7.86%
2.3 Liquidity
A Current Ratio of 0.23 indicates that RCL may have some problems paying its short term obligations.
RCL has a Current ratio of 0.23. This is amonst the worse of the industry: RCL underperforms 93.28% of its industry peers.
A Quick Ratio of 0.21 indicates that RCL may have some problems paying its short term obligations.
RCL has a Quick ratio of 0.21. This is amonst the worse of the industry: RCL underperforms 93.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.23 | ||
| Quick Ratio | 0.21 |
3. Growth
3.1 Past
RCL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 38.10%, which is quite impressive.
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.
Looking at the last year, RCL shows a quite strong growth in Revenue. The Revenue has grown by 12.09% 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)38.1%
EPS 3YN/A
EPS 5Y4.36%
EPS Q2Q%36.45%
Revenue 1Y (TTM)12.09%
Revenue growth 3Y120.76%
Revenue growth 5Y8.52%
Sales Q2Q%10.41%
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 18.77% on average per year.
Based on estimates for the next years, RCL will show a quite strong growth in Revenue. The Revenue will grow by 8.50% on average per year.
EPS Next Y33.79%
EPS Next 2Y24.83%
EPS Next 3Y21.45%
EPS Next 5Y18.77%
Revenue Next Year9.11%
Revenue Next 2Y9.45%
Revenue Next 3Y9.16%
Revenue Next 5Y8.5%
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
Based on the Price/Earnings ratio of 22.76, the valuation of RCL can be described as rather expensive.
64.93% of the companies in the same industry are more expensive than RCL, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.77. RCL is around the same levels.
With a Price/Forward Earnings ratio of 17.21, RCL is valued on the expensive side.
Based on the Price/Forward Earnings ratio, RCL is valued a bit cheaper than the industry average as 69.40% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of RCL to the average of the S&P500 Index (23.23), we can say RCL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.76 | ||
| Fwd PE | 17.21 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as RCL.
68.66% 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 | 23.99 | ||
| EV/EBITDA | 16.23 |
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.
A more expensive valuation may be justified as RCL's earnings are expected to grow with 21.45% in the coming years.
PEG (NY)0.67
PEG (5Y)5.22
EPS Next 2Y24.83%
EPS Next 3Y21.45%
5. Dividend
5.1 Amount
RCL has a Yearly Dividend Yield of 1.02%. 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 3.84.
Compared to an average S&P500 Dividend Yield of 2.36, RCL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
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
RCL pays out 12.63% of its income as dividend. This is a sustainable payout ratio.
DP12.63%
EPS Next 2Y24.83%
EPS Next 3Y21.45%
316.78
+13.94 (+4.6%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners84.1%
Inst Owner Change-0.1%
Ins Owners0.25%
Ins Owner Change-0.26%
Market Cap86.05B
Analysts81.25
Price Target357.1 (12.73%)
Short Float %4.37%
Short Ratio5.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
Yearly Dividend0.41
Dividend Growth(5Y)-30.56%
DP12.63%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.82%
Min EPS beat(2)5.52%
Max EPS beat(2)6.12%
EPS beat(4)4
Avg EPS beat(4)5.44%
Min EPS beat(4)2.35%
Max EPS beat(4)7.78%
EPS beat(8)8
Avg EPS beat(8)11.04%
EPS beat(12)12
Avg EPS beat(12)18.69%
EPS beat(16)13
Avg EPS beat(16)12.39%
Revenue beat(2)0
Avg Revenue beat(2)-1.3%
Min Revenue beat(2)-1.38%
Max Revenue beat(2)-1.22%
Revenue beat(4)0
Avg Revenue beat(4)-1.24%
Min Revenue beat(4)-1.38%
Max Revenue beat(4)-1.08%
Revenue beat(8)2
Avg Revenue beat(8)-0.62%
Revenue beat(12)4
Avg Revenue beat(12)-0.25%
Revenue beat(16)5
Avg Revenue beat(16)-2.24%
PT rev (1m)-0.09%
PT rev (3m)17.14%
EPS NQ rev (1m)0.27%
EPS NQ rev (3m)-4.16%
EPS NY rev (1m)0.09%
EPS NY rev (3m)1.51%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)-1.16%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.76 | ||
| Fwd PE | 17.21 | ||
| P/S | 5.01 | ||
| P/FCF | 23.99 | ||
| P/OCF | 15 | ||
| P/B | 9.38 | ||
| P/tB | 10.29 | ||
| EV/EBITDA | 16.23 |
EPS(TTM)13.92
EY4.39%
EPS(NY)18.4
Fwd EY5.81%
FCF(TTM)13.21
FCFY4.17%
OCF(TTM)21.12
OCFY6.67%
SpS63.26
BVpS33.76
TBVpS30.78
PEG (NY)0.67
PEG (5Y)5.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.35% | ||
| ROE | 39.3% | ||
| ROCE | 16.26% | ||
| ROIC | 12.84% | ||
| ROICexc | 13.19% | ||
| ROICexgc | 13.59% | ||
| OM | 26.46% | ||
| PM (TTM) | 20.97% | ||
| GM | 50.06% | ||
| FCFM | 20.88% |
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-Score8
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.92 | ||
| Debt/FCF | 5.3 | ||
| Debt/EBITDA | 2.84 | ||
| Cap/Depr | 130.38% | ||
| Cap/Sales | 12.51% | ||
| Interest Coverage | 4.41 | ||
| Cash Conversion | 92.59% | ||
| Profit Quality | 99.56% | ||
| Current Ratio | 0.23 | ||
| Quick Ratio | 0.21 | ||
| Altman-Z | 2.41 |
F-Score8
WACC7.86%
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)38.1%
EPS 3YN/A
EPS 5Y4.36%
EPS Q2Q%36.45%
EPS Next Y33.79%
EPS Next 2Y24.83%
EPS Next 3Y21.45%
EPS Next 5Y18.77%
Revenue 1Y (TTM)12.09%
Revenue growth 3Y120.76%
Revenue growth 5Y8.52%
Sales Q2Q%10.41%
Revenue Next Year9.11%
Revenue Next 2Y9.45%
Revenue Next 3Y9.16%
Revenue Next 5Y8.5%
EBIT growth 1Y22.28%
EBIT growth 3YN/A
EBIT growth 5Y14.65%
EBIT Next Year65.86%
EBIT Next 3Y27.11%
EBIT Next 5Y19.45%
FCF growth 1Y100.1%
FCF growth 3YN/A
FCF growth 5Y23.62%
OCF growth 1Y77.43%
OCF growth 3YN/A
OCF growth 5Y7.22%