ROYAL CARIBBEAN CRUISES LTD (RCL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RCL - LR0008862868 - Common Stock
278.11 USD
-1.22 (-0.44%)
278.59 USD
+0.48 (+0.17%)
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
- RCL had positive earnings in the past year.
- 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.
- In multiple years RCL reported negative operating cash flow during the last 5 years.
1.2 Ratios
- The Return On Assets of RCL (10.14%) is better than 81.95% of its industry peers.
- RCL's Return On Equity of 40.30% is amongst the best of the industry. RCL outperforms 88.72% of its industry peers.
- RCL's Return On Invested Capital of 12.73% is fine compared to the rest of the industry. RCL outperforms 79.70% of its industry peers.
| 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
- The Profit Margin of RCL (23.33%) is better than 94.74% of its industry peers.
- In the last couple of years the Profit Margin of RCL has remained more or less at the same level.
- With an excellent Operating Margin value of 26.46%, RCL belongs to the best of the industry, outperforming 93.23% of the companies in the same industry.
- RCL's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 50.27%, RCL is in line with its industry, outperforming 57.14% 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 | 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so RCL is still 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.
- The debt/assets ratio for RCL has been reduced compared to a year ago.
2.2 Solvency
- RCL has an Altman-Z score of 2.23. 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 2.23 is fine compared to the rest of the industry. RCL outperforms 60.90% of its industry peers.
- The Debt to FCF ratio of RCL is 9.96, which is on the high side as it means it would take RCL, 9.96 years of fcf income to pay off all of its debts.
- RCL's Debt to FCF ratio of 9.96 is fine compared to the rest of the industry. RCL outperforms 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's Debt to Equity ratio of 1.70 is in line compared to the rest of the industry. RCL outperforms 53.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | 9.96 | ||
| Altman-Z | 2.23 |
ROIC/WACC1.59
WACC7.98%
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's Quick ratio of 0.14 is on the low side compared to the rest of the industry. RCL is outperformed by 93.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.16 | ||
| Quick Ratio | 0.14 |
3. Growth
3.1 Past
- RCL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.60%, 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 8.60%.
- 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
- The Price/Earnings ratio is 19.22, which indicates a rather expensive current valuation of RCL.
- Based on the Price/Earnings ratio, RCL is valued a bit cheaper than 73.68% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.54. RCL is valued slightly cheaper when compared to this.
- With a Price/Forward Earnings ratio of 15.51, RCL is valued correctly.
- RCL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RCL is cheaper than 74.44% of the companies in the same industry.
- RCL is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.31, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.22 | ||
| Fwd PE | 15.51 |
4.2 Price Multiples
- RCL's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. RCL is more expensive than 60.15% 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 | 37.27 | ||
| EV/EBITDA | 15.22 |
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 20.35% in the coming years.
PEG (NY)0.57
PEG (5Y)4.41
EPS Next 2Y23.21%
EPS Next 3Y20.35%
5. Dividend
5.1 Amount
- RCL has a Yearly Dividend Yield of 1.15%.
- Compared to an average industry Dividend Yield of 6.32, RCL pays a bit more dividend than its industry peers.
- 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 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
- RCL pays out 16.20% of its income as dividend. This is a sustainable payout ratio.
DP16.2%
EPS Next 2Y23.21%
EPS Next 3Y20.35%
278.11
-1.22 (-0.44%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)10-28 2025-10-28/bmo
Earnings (Next)01-29 2026-01-29/amc
Inst Owners82.68%
Inst Owner Change0.43%
Ins Owners0.25%
Ins Owner Change-0.18%
Market Cap75.84B
Revenue(TTM)17.44B
Net Income(TTM)4.07B
Analysts80.63
Price Target331.68 (19.26%)
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 | 19.22 | ||
| Fwd PE | 15.51 | ||
| P/S | 4.35 | ||
| P/FCF | 37.27 | ||
| P/OCF | 12.02 | ||
| P/B | 7.52 | ||
| P/tB | 8.17 | ||
| EV/EBITDA | 15.22 |
EPS(TTM)14.47
EY5.2%
EPS(NY)17.93
Fwd EY6.45%
FCF(TTM)7.46
FCFY2.68%
OCF(TTM)23.13
OCFY8.32%
SpS63.94
BVpS37.01
TBVpS34.04
PEG (NY)0.57
PEG (5Y)4.41
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 | 2.23 |
F-Score7
WACC7.98%
ROIC/WACC1.59
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%.