ROYAL CARIBBEAN CRUISES LTD (RCL) Stock Fundamental Analysis
USA - NYSE:RCL - LR0008862868 - Common Stock
329.79 USD
-6.63 (-1.97%)
329.986 USD
+0.2 (+0.06%)
We assign a fundamental rating of 5 out of 10 to RCL. RCL was compared to 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 priced too expensively while it is growing strongly. 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
The Return On Assets of RCL (9.35%) is better than 83.46% of its industry peers.
With an excellent Return On Equity value of 39.30%, RCL belongs to the best of the industry, outperforming 87.97% of the companies in the same industry.
The Return On Invested Capital of RCL (12.84%) is better than 80.45% of its industry peers.
| 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
RCL has a Profit Margin of 20.97%. This is amongst the best in the industry. RCL outperforms 94.74% of its industry peers.
RCL's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 26.46%, RCL belongs to the best of the industry, outperforming 93.98% of the companies in the same industry.
RCL's Operating Margin has improved in the last couple of years.
RCL has a Gross Margin (50.06%) which is in line with 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
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.
The number of shares outstanding for RCL has been increased compared to 5 years ago.
RCL has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.56 indicates that RCL is not a great score, but indicates only limited risk for bankruptcy at the moment.
RCL has a better Altman-Z score (2.56) than 66.92% of its industry peers.
The Debt to FCF ratio of RCL is 5.30, which is a neutral value as it means it would take RCL, 5.30 years of fcf income to pay off all of its debts.
RCL has a Debt to FCF ratio of 5.30. This is in the better half of the industry: RCL outperforms 74.44% 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.
With a Debt to Equity ratio value of 1.92, RCL perfoms like the industry average, outperforming 52.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.92 | ||
| Debt/FCF | 5.3 | ||
| Altman-Z | 2.56 |
ROIC/WACC1.46
WACC8.81%
2.3 Liquidity
RCL has a Current Ratio of 0.23. 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 0.23, RCL is not doing good in the industry: 93.98% of the companies in the same industry are doing better.
A Quick Ratio of 0.21 indicates that RCL may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.21, RCL is doing worse than 93.23% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing slightly by 4.36% on average over the past years.
RCL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.09%.
RCL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.52% yearly.
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
The Earnings Per Share is expected to grow by 18.77% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.50% on average over the next years. This is quite good.
EPS Next Y33.66%
EPS Next 2Y25.02%
EPS Next 3Y21.62%
EPS Next 5Y18.77%
Revenue Next Year9.07%
Revenue Next 2Y9.42%
Revenue Next 3Y9.14%
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
A Price/Earnings ratio of 23.69 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 63.91% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.27, RCL is valued at the same level.
A Price/Forward Earnings ratio of 17.87 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 66.92% 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 22.77.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.69 | ||
| Fwd PE | 17.87 |
4.2 Price Multiples
RCL's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RCL indicates a somewhat cheap valuation: RCL is cheaper than 69.92% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.97 | ||
| EV/EBITDA | 17.41 |
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.
A more expensive valuation may be justified as RCL's earnings are expected to grow with 21.62% in the coming years.
PEG (NY)0.7
PEG (5Y)5.43
EPS Next 2Y25.02%
EPS Next 3Y21.62%
5. Dividend
5.1 Amount
RCL has a yearly dividend return of 0.87%, which is pretty low.
Compared to an average industry Dividend Yield of 3.93, RCL pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, RCL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
5.2 History
The dividend of RCL decreases each year by -30.56%.
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)-30.56%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
12.63% of the earnings are spent on dividend by RCL. This is a low number and sustainable payout ratio.
DP12.63%
EPS Next 2Y25.02%
EPS Next 3Y21.62%
329.79
-6.63 (-1.97%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners81.33%
Inst Owner Change3.63%
Ins Owners0.26%
Ins Owner Change-0.25%
Market Cap89.58B
Analysts81.25
Price Target357.43 (8.38%)
Short Float %3.87%
Short Ratio4.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
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)1.89%
PT rev (3m)32%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.54%
EPS NY rev (1m)1.42%
EPS NY rev (3m)2.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.21%
Revenue NY rev (1m)-0.31%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.69 | ||
| Fwd PE | 17.87 | ||
| P/S | 5.21 | ||
| P/FCF | 24.97 | ||
| P/OCF | 15.61 | ||
| P/B | 9.77 | ||
| P/tB | 10.71 | ||
| EV/EBITDA | 17.41 |
EPS(TTM)13.92
EY4.22%
EPS(NY)18.46
Fwd EY5.6%
FCF(TTM)13.21
FCFY4%
OCF(TTM)21.12
OCFY6.4%
SpS63.26
BVpS33.76
TBVpS30.78
PEG (NY)0.7
PEG (5Y)5.43
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 | 2.56 |
F-Score8
WACC8.81%
ROIC/WACC1.46
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 Y33.66%
EPS Next 2Y25.02%
EPS Next 3Y21.62%
EPS Next 5Y18.77%
Revenue 1Y (TTM)12.09%
Revenue growth 3Y120.76%
Revenue growth 5Y8.52%
Sales Q2Q%10.41%
Revenue Next Year9.07%
Revenue Next 2Y9.42%
Revenue Next 3Y9.14%
Revenue Next 5Y8.5%
EBIT growth 1Y22.28%
EBIT growth 3YN/A
EBIT growth 5Y14.65%
EBIT Next Year65.93%
EBIT Next 3Y27.19%
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%