ROYAL CARIBBEAN CRUISES LTD (RCL) Fundamental Analysis & Valuation
NYSE:RCL • LR0008862868
Current stock price
273.39 USD
-5.57 (-2%)
At close:
278.74 USD
+5.35 (+1.96%)
After Hours:
This RCL fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. RCL Profitability Analysis
1.1 Basic Checks
- RCL had positive earnings in the past year.
- RCL had a positive operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: RCL reported negative net income in multiple years.
- Of the past 5 years RCL 4 years had a positive operating cash flow.
1.2 Ratios
- RCL has a better Return On Assets (10.26%) than 83.33% of its industry peers.
- RCL's Return On Equity of 42.53% is amongst the best of the industry. RCL outperforms 90.48% of its industry peers.
- With a decent Return On Invested Capital value of 13.14%, RCL is doing good in the industry, outperforming 79.37% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for RCL is in line with the industry average of 10.61%.
- The last Return On Invested Capital (13.14%) for RCL is above the 3 year average (11.33%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.26% | ||
| ROE | 42.53% | ||
| ROIC | 13.14% |
ROA(3y)7.62%
ROA(5y)0.03%
ROE(3y)38.83%
ROE(5y)-12.42%
ROIC(3y)11.33%
ROIC(5y)N/A
1.3 Margins
- RCL has a better Profit Margin (23.80%) than 96.83% of its industry peers.
- RCL has a Operating Margin of 27.41%. This is amongst the best in the industry. RCL outperforms 92.86% of its industry peers.
- RCL's Gross Margin of 50.62% is in line compared to the rest of the industry. RCL outperforms 57.14% of its industry peers.
- In the last couple of years the Gross Margin of RCL has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.41% | ||
| PM (TTM) | 23.8% | ||
| GM | 50.62% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y23.5%
GM growth 5YN/A
2. RCL Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so RCL is still creating some value.
- RCL has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, RCL has more shares outstanding
- Compared to 1 year ago, RCL has an improved debt to assets ratio.
2.2 Solvency
- RCL has an Altman-Z score of 2.17. 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 Altman-Z score (2.17) which is in line with its industry peers.
- The Debt to FCF ratio of RCL is 17.27, which is on the high side as it means it would take RCL, 17.27 years of fcf income to pay off all of its debts.
- With a Debt to FCF ratio value of 17.27, RCL perfoms like the industry average, outperforming 46.03% of the companies in the same industry.
- RCL has a Debt/Equity ratio of 1.81. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 1.81, RCL perfoms like the industry average, outperforming 48.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.81 | ||
| Debt/FCF | 17.27 | ||
| Altman-Z | 2.17 |
ROIC/WACC1.7
WACC7.74%
2.3 Liquidity
- RCL has a Current Ratio of 0.18. This is a bad value and indicates that RCL is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Current ratio value of 0.18, RCL is not doing good in the industry: 96.83% of the companies in the same industry are doing better.
- A Quick Ratio of 0.16 indicates that RCL may have some problems paying its short term obligations.
- The Quick ratio of RCL (0.16) is worse than 96.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.18 | ||
| Quick Ratio | 0.16 |
3. RCL Growth Analysis
3.1 Past
- RCL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 32.43%, which is quite impressive.
- RCL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.80%.
- The Revenue has been growing by 52.02% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)32.43%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%71.78%
Revenue 1Y (TTM)8.8%
Revenue growth 3Y26.59%
Revenue growth 5Y52.02%
Sales Q2Q%13.21%
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 13.82% on average per year.
- The Revenue is expected to grow by 8.15% on average over the next years. This is quite good.
EPS Next Y16.83%
EPS Next 2Y15.65%
EPS Next 3Y15.37%
EPS Next 5Y13.82%
Revenue Next Year10.09%
Revenue Next 2Y8.73%
Revenue Next 3Y8.8%
Revenue Next 5Y8.15%
3.3 Evolution
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. RCL Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 17.48, RCL is valued on the expensive side.
- 71.43% of the companies in the same industry are more expensive than RCL, based on the Price/Earnings ratio.
- RCL is valuated rather cheaply when we compare the Price/Earnings ratio to 25.50, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 14.96 indicates a correct valuation of RCL.
- Based on the Price/Forward Earnings ratio, RCL is valued a bit cheaper than the industry average as 70.63% 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 22.67.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.48 | ||
| Fwd PE | 14.96 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, RCL is valued a bit more expensive than 61.11% 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 | 59.84 | ||
| EV/EBITDA | 14.47 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of RCL may justify a higher PE ratio.
- RCL's earnings are expected to grow with 15.37% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.04
PEG (5Y)N/A
EPS Next 2Y15.65%
EPS Next 3Y15.37%
5. RCL Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 1.56%, RCL has a reasonable but not impressive dividend return.
- RCL's Dividend Yield is a higher than the industry average which is at 1.09.
- RCL's Dividend Yield is comparable with the S&P500 average which is at 1.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
5.2 History
- The dividend of RCL has a limited annual growth rate of 1.16%.
- RCL has been paying a dividend for at least 10 years, so it has a reliable track record.
- RCL has decreased its dividend recently.
Dividend Growth(5Y)1.16%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- RCL pays out 19.30% of its income as dividend. This is a sustainable payout ratio.
- The dividend of RCL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP19.3%
EPS Next 2Y15.65%
EPS Next 3Y15.37%
RCL Fundamentals: All Metrics, Ratios and Statistics
273.39
-5.57 (-2%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)01-29 2026-01-29/bmo
Earnings (Next)04-27 2026-04-27/bmo
Inst Owners83.93%
Inst Owner Change0.07%
Ins Owners0.31%
Ins Owner Change0.71%
Market Cap73.96B
Revenue(TTM)17.93B
Net Income(TTM)4.27B
Analysts80.59
Price Target363.17 (32.84%)
Short Float %4.4%
Short Ratio4.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
Yearly Dividend3.06
Dividend Growth(5Y)1.16%
DP19.3%
Div Incr Years1
Div Non Decr Years1
Ex-Date03-06 2026-03-06 (1.5)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.28%
Min EPS beat(2)-0.94%
Max EPS beat(2)0.37%
EPS beat(4)3
Avg EPS beat(4)2.77%
Min EPS beat(4)-0.94%
Max EPS beat(4)6.12%
EPS beat(8)7
Avg EPS beat(8)8.52%
EPS beat(12)11
Avg EPS beat(12)14.05%
EPS beat(16)14
Avg EPS beat(16)14.3%
Revenue beat(2)0
Avg Revenue beat(2)-1.28%
Min Revenue beat(2)-1.48%
Max Revenue beat(2)-1.09%
Revenue beat(4)0
Avg Revenue beat(4)-1.29%
Min Revenue beat(4)-1.48%
Max Revenue beat(4)-1.09%
Revenue beat(8)1
Avg Revenue beat(8)-0.86%
Revenue beat(12)4
Avg Revenue beat(12)-0.34%
Revenue beat(16)5
Avg Revenue beat(16)-0.71%
PT rev (1m)2.02%
PT rev (3m)7.54%
EPS NQ rev (1m)-0.14%
EPS NQ rev (3m)4.06%
EPS NY rev (1m)0.76%
EPS NY rev (3m)1.53%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.72%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.48 | ||
| Fwd PE | 14.96 | ||
| P/S | 4.12 | ||
| P/FCF | 59.84 | ||
| P/OCF | 11.44 | ||
| P/B | 7.37 | ||
| P/tB | 8.01 | ||
| EV/EBITDA | 14.47 |
EPS(TTM)15.64
EY5.72%
EPS(NY)18.27
Fwd EY6.68%
FCF(TTM)4.57
FCFY1.67%
OCF(TTM)23.9
OCFY8.74%
SpS66.3
BVpS37.1
TBVpS34.11
PEG (NY)1.04
PEG (5Y)N/A
Graham Number114.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.26% | ||
| ROE | 42.53% | ||
| ROCE | 16.63% | ||
| ROIC | 13.14% | ||
| ROICexc | 13.51% | ||
| ROICexgc | 13.9% | ||
| OM | 27.41% | ||
| PM (TTM) | 23.8% | ||
| GM | 50.62% | ||
| FCFM | 6.89% |
ROA(3y)7.62%
ROA(5y)0.03%
ROE(3y)38.83%
ROE(5y)-12.42%
ROIC(3y)11.33%
ROIC(5y)N/A
ROICexc(3y)11.58%
ROICexc(5y)N/A
ROICexgc(3y)12.12%
ROICexgc(5y)N/A
ROCE(3y)14.35%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y23.5%
GM growth 5YN/A
F-Score8
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.81 | ||
| Debt/FCF | 17.27 | ||
| Debt/EBITDA | 2.74 | ||
| Cap/Depr | 304.37% | ||
| Cap/Sales | 29.16% | ||
| Interest Coverage | 5.69 | ||
| Cash Conversion | 97.45% | ||
| Profit Quality | 28.95% | ||
| Current Ratio | 0.18 | ||
| Quick Ratio | 0.16 | ||
| Altman-Z | 2.17 |
F-Score8
WACC7.74%
ROIC/WACC1.7
Cap/Depr(3y)258.82%
Cap/Depr(5y)228.31%
Cap/Sales(3y)25.67%
Cap/Sales(5y)50.64%
Profit Quality(3y)44.18%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)32.43%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%71.78%
EPS Next Y16.83%
EPS Next 2Y15.65%
EPS Next 3Y15.37%
EPS Next 5Y13.82%
Revenue 1Y (TTM)8.8%
Revenue growth 3Y26.59%
Revenue growth 5Y52.02%
Sales Q2Q%13.21%
Revenue Next Year10.09%
Revenue Next 2Y8.73%
Revenue Next 3Y8.8%
Revenue Next 5Y8.15%
EBIT growth 1Y19.15%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year58.65%
EBIT Next 3Y24.47%
EBIT Next 5Y16.91%
FCF growth 1Y-38.11%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y22.79%
OCF growth 3Y137.62%
OCF growth 5YN/A
ROYAL CARIBBEAN CRUISES LTD / RCL Fundamental Analysis 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 4 / 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 7 / 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 16.83% in the next year.
Is the dividend of ROYAL CARIBBEAN CRUISES LTD sustainable?
The dividend rating of ROYAL CARIBBEAN CRUISES LTD (RCL) is 5 / 10 and the dividend payout ratio is 19.3%.