ROYAL CARIBBEAN CRUISES LTD (RCL) Stock Fundamental Analysis
NYSE:RCL - New York Stock Exchange, Inc. - LR0008862868 - Common Stock - Currency: USD
Taking everything into account, RCL scores 4 out of 10 in our fundamental rating. RCL was compared to 134 industry peers in the Hotels, Restaurants & Leisure industry. RCL has a medium profitability rating, but doesn't score so well on its financial health evaluation. RCL is growing strongly while it is still valued neutral. This is a good 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.
The reported net income has been mixed in the past 5 years: RCL reported negative net income in multiple 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
Looking at the Return On Assets, with a value of 7.02%, RCL is in the better half of the industry, outperforming 77.86% of the companies in the same industry.
With an excellent Return On Equity value of 36.94%, RCL belongs to the best of the industry, outperforming 88.55% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 11.78%, RCL is in the better half of the industry, outperforming 77.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.02% | ||
| ROE | 36.94% | ||
| ROIC | 11.78% |
ROA(3y)-5.95%
ROA(5y)-5.9%
ROE(3y)-47.56%
ROE(5y)-38.68%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
RCL has a better Profit Margin (16.21%) than 89.31% of its industry peers.
RCL's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 25.47%, RCL belongs to the best of the industry, outperforming 89.31% of the companies in the same industry.
In the last couple of years the Operating Margin of RCL has remained more or less at the same level.
RCL has a Gross Margin (48.65%) 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 | 25.47% | ||
| PM (TTM) | 16.21% | ||
| GM | 48.65% |
OM growth 3YN/A
OM growth 5Y0.88%
PM growth 3YN/A
PM growth 5Y-8.54%
GM growth 3YN/A
GM growth 5Y0.44%
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.
Compared to 5 years ago, RCL has more shares outstanding
The debt/assets ratio for RCL has been reduced compared to a year ago.
2.2 Solvency
RCL has an Altman-Z score of 1.90. 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 of 1.90. This is comparable to the rest of the industry: RCL outperforms 55.73% of its industry peers.
RCL has a Debt/Equity ratio of 2.69. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.69, RCL perfoms like the industry average, outperforming 50.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.69 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.9 |
ROIC/WACC1.44
WACC8.19%
2.3 Liquidity
A Current Ratio of 0.19 indicates that RCL may have some problems paying its short term obligations.
The Current ratio of RCL (0.19) is worse than 98.47% of its industry peers.
A Quick Ratio of 0.16 indicates that RCL may have some problems paying its short term obligations.
RCL's Quick ratio of 0.16 is on the low side compared to the rest of the industry. RCL is outperformed by 98.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.19 | ||
| Quick Ratio | 0.16 |
3. Growth
3.1 Past
RCL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 164.58%, which is quite impressive.
Measured over the past years, RCL shows a decrease in Earnings Per Share. The EPS has been decreasing by -5.49% on average per year.
The Revenue has grown by 21.89% in the past year. This is a very strong growth!
Measured over the past years, RCL shows a small growth in Revenue. The Revenue has been growing by 7.92% on average per year.
EPS 1Y (TTM)164.58%
EPS 3YN/A
EPS 5Y-5.49%
EPS Q2Q%35.06%
Revenue 1Y (TTM)21.89%
Revenue growth 3Y84.62%
Revenue growth 5Y7.92%
Sales Q2Q%17.44%
3.2 Future
The Earnings Per Share is expected to grow by 27.70% on average over the next years. This is a very strong growth
Based on estimates for the next years, RCL will show a quite strong growth in Revenue. The Revenue will grow by 10.08% on average per year.
EPS Next Y75.96%
EPS Next 2Y47.61%
EPS Next 3Y36.84%
EPS Next 5Y27.7%
Revenue Next Year18.46%
Revenue Next 2Y13.77%
Revenue Next 3Y12.58%
Revenue Next 5Y10.08%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 23.21 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 68.70% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of RCL to the average of the S&P500 Index (28.42), we can say RCL is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 18.20, the valuation of RCL can be described as rather expensive.
76.34% of the companies in the same industry are more expensive than RCL, based on the Price/Forward Earnings ratio.
RCL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.21 | ||
| Fwd PE | 18.2 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as RCL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.89 |
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's earnings are expected to grow with 36.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.31
PEG (5Y)N/A
EPS Next 2Y47.61%
EPS Next 3Y36.84%
5. Dividend
5.1 Amount
RCL has a yearly dividend return of 0.80%, which is pretty low.
Compared to an average industry Dividend Yield of 2.89, RCL pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.80, RCL pays less dividend than the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
5.2 History
RCL has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y47.61%
EPS Next 3Y36.84%
ROYAL CARIBBEAN CRUISES LTD
NYSE:RCL (1/28/2025, 8:04:00 PM)
After market: 265.2 -0.05 (-0.02%)265.25
+28.43 (+12%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners83.83%
Inst Owner Change0.17%
Ins Owners0.41%
Ins Owner Change-0.46%
Market Cap71.32B
Analysts80.69
Price Target257.22 (-3.03%)
Short Float %4.56%
Short Ratio6.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.86%
Min EPS beat(2)2.35%
Max EPS beat(2)15.37%
EPS beat(4)4
Avg EPS beat(4)14.71%
Min EPS beat(4)2.35%
Max EPS beat(4)31.57%
EPS beat(8)8
Avg EPS beat(8)20.89%
EPS beat(12)10
Avg EPS beat(12)15.77%
EPS beat(16)12
Avg EPS beat(16)10.88%
Revenue beat(2)1
Avg Revenue beat(2)-0.31%
Min Revenue beat(2)-1.27%
Max Revenue beat(2)0.66%
Revenue beat(4)1
Avg Revenue beat(4)-0.59%
Min Revenue beat(4)-1.71%
Max Revenue beat(4)0.66%
Revenue beat(8)4
Avg Revenue beat(8)0.11%
Revenue beat(12)5
Avg Revenue beat(12)-0.99%
Revenue beat(16)6
Avg Revenue beat(16)-6.15%
PT rev (1m)7.23%
PT rev (3m)33.21%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-15.86%
EPS NY rev (1m)0%
EPS NY rev (3m)1.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.78%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.21 | ||
| Fwd PE | 18.2 | ||
| P/S | 4.44 | ||
| P/FCF | N/A | ||
| P/OCF | 14.51 | ||
| P/B | 10.12 | ||
| P/tB | 11.44 | ||
| EV/EBITDA | 14.89 |
EPS(TTM)11.43
EY4.31%
EPS(NY)14.58
Fwd EY5.5%
FCF(TTM)-1.38
FCFYN/A
OCF(TTM)18.28
OCFY6.89%
SpS59.71
BVpS26.2
TBVpS23.19
PEG (NY)0.31
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.02% | ||
| ROE | 36.94% | ||
| ROCE | 14.91% | ||
| ROIC | 11.78% | ||
| ROICexc | 11.96% | ||
| ROICexgc | 12.33% | ||
| OM | 25.47% | ||
| PM (TTM) | 16.21% | ||
| GM | 48.65% | ||
| FCFM | N/A |
ROA(3y)-5.95%
ROA(5y)-5.9%
ROE(3y)-47.56%
ROE(5y)-38.68%
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 5Y4.65%
ROICexc growth 3YN/A
ROICexc growth 5Y5.02%
OM growth 3YN/A
OM growth 5Y0.88%
PM growth 3YN/A
PM growth 5Y-8.54%
GM growth 3YN/A
GM growth 5Y0.44%
F-Score7
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.69 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.36 | ||
| Cap/Depr | 339.16% | ||
| Cap/Sales | 32.91% | ||
| Interest Coverage | 2.97 | ||
| Cash Conversion | 87.01% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.19 | ||
| Quick Ratio | 0.16 | ||
| Altman-Z | 1.9 |
F-Score7
WACC8.19%
ROIC/WACC1.44
Cap/Depr(3y)210.98%
Cap/Depr(5y)205.87%
Cap/Sales(3y)68.07%
Cap/Sales(5y)64.16%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)164.58%
EPS 3YN/A
EPS 5Y-5.49%
EPS Q2Q%35.06%
EPS Next Y75.96%
EPS Next 2Y47.61%
EPS Next 3Y36.84%
EPS Next 5Y27.7%
Revenue 1Y (TTM)21.89%
Revenue growth 3Y84.62%
Revenue growth 5Y7.92%
Sales Q2Q%17.44%
Revenue Next Year18.46%
Revenue Next 2Y13.77%
Revenue Next 3Y12.58%
Revenue Next 5Y10.08%
EBIT growth 1Y76.27%
EBIT growth 3YN/A
EBIT growth 5Y8.87%
EBIT Next Year101.15%
EBIT Next 3Y36.22%
EBIT Next 5Y23.56%
FCF growth 1Y89.17%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y1739.16%
OCF growth 3YN/A
OCF growth 5Y5.17%