ROYAL CARIBBEAN CRUISES LTD (RCL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RCL - LR0008862868 - Common Stock
268.43 USD
+12.86 (+5.03%)
We assign a fundamental rating of 5 out of 10 to RCL. RCL was compared to 132 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 not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
In the past year RCL was profitable.
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 better Return On Assets (10.14%) than 81.82% of its industry peers.
RCL has a better Return On Equity (40.30%) than 87.88% of its industry peers.
RCL has a Return On Invested Capital of 12.73%. This is in the better half of the industry: RCL outperforms 79.55% 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
With an excellent Profit Margin value of 23.33%, RCL belongs to the best of the industry, outperforming 94.70% of the companies in the same industry.
RCL's Profit Margin has been stable in the last couple of years.
RCL has a Operating Margin of 26.46%. This is amongst the best in the industry. RCL outperforms 93.18% of its industry peers.
RCL's Operating Margin has improved in the last couple of years.
RCL has a Gross Margin (50.27%) 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 | 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RCL is 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
RCL has an Altman-Z score of 2.11. 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 2.11 is fine compared to the rest of the industry. RCL outperforms 60.61% 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 in line compared to the rest of the industry. RCL outperforms 59.09% of its industry peers.
RCL has a Debt/Equity ratio of 1.70. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.70, RCL perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | 9.96 | ||
| Altman-Z | 2.11 |
ROIC/WACC1.61
WACC7.9%
2.3 Liquidity
RCL has a Current 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 has a Current ratio of 0.16. This is amonst the worse of the industry: RCL underperforms 96.97% of its industry peers.
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.
The Quick ratio of RCL (0.14) is worse than 96.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.16 | ||
| Quick Ratio | 0.14 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 26.60% over the past year.
RCL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.36% yearly.
Looking at the last year, RCL shows a quite strong growth in Revenue. The Revenue has grown by 8.60% in the last year.
Measured over the past years, RCL shows a quite strong growth in Revenue. The Revenue has been growing by 8.52% on average per year.
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
Based on estimates for the next years, RCL will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.09% 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 8.51% on average per year.
EPS Next Y33.63%
EPS Next 2Y23.41%
EPS Next 3Y20.38%
EPS Next 5Y18.09%
Revenue Next Year8.74%
Revenue Next 2Y9.11%
Revenue Next 3Y8.64%
Revenue Next 5Y8.51%
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 18.55 indicates a rather expensive valuation of RCL.
71.21% 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 25.65. RCL is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 14.92, RCL is valued correctly.
RCL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RCL is cheaper than 75.76% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of RCL to the average of the S&P500 Index (34.45), we can say RCL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.55 | ||
| Fwd PE | 14.92 |
4.2 Price Multiples
RCL's Enterprise Value to EBITDA is on the same level as the industry average.
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 | 35.83 | ||
| EV/EBITDA | 14.19 |
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.
RCL's earnings are expected to grow with 20.38% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.55
PEG (5Y)4.25
EPS Next 2Y23.41%
EPS Next 3Y20.38%
5. Dividend
5.1 Amount
RCL has a Yearly Dividend Yield of 1.21%.
In the last 3 months the price of RCL has falen by -29.64%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
RCL's Dividend Yield is a higher than the industry average which is at 6.40.
Compared to an average S&P500 Dividend Yield of 2.41, RCL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
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.
The dividend of RCL decreased 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 2Y23.41%
EPS Next 3Y20.38%
NYSE:RCL (11/25/2025, 2:45:06 PM)
268.43
+12.86 (+5.03%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners84.1%
Inst Owner Change-2.71%
Ins Owners0.25%
Ins Owner Change-0.16%
Market Cap72.91B
Revenue(TTM)17.44B
Net Income(TTM)4.07B
Analysts81.25
Price Target339.94 (26.64%)
Short Float %4.01%
Short Ratio5.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
Yearly Dividend0.41
Dividend Growth(5Y)-30.56%
DP16.2%
Div Incr Years1
Div Non Decr Years1
Ex-Date
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)-4.81%
PT rev (3m)-3.77%
EPS NQ rev (1m)-3.35%
EPS NQ rev (3m)-3.13%
EPS NY rev (1m)-0.3%
EPS NY rev (3m)-0.02%
Revenue NQ rev (1m)-0.69%
Revenue NQ rev (3m)-0.72%
Revenue NY rev (1m)-0.34%
Revenue NY rev (3m)-0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.55 | ||
| Fwd PE | 14.92 | ||
| P/S | 4.18 | ||
| P/FCF | 35.83 | ||
| P/OCF | 11.56 | ||
| P/B | 7.22 | ||
| P/tB | 7.85 | ||
| EV/EBITDA | 14.19 |
EPS(TTM)14.47
EY5.39%
EPS(NY)17.99
Fwd EY6.7%
FCF(TTM)7.49
FCFY2.79%
OCF(TTM)23.23
OCFY8.65%
SpS64.19
BVpS37.15
TBVpS34.18
PEG (NY)0.55
PEG (5Y)4.25
Graham Number109.98
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 | 2.11 |
F-Score7
WACC7.9%
ROIC/WACC1.61
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 Y33.63%
EPS Next 2Y23.41%
EPS Next 3Y20.38%
EPS Next 5Y18.09%
Revenue 1Y (TTM)8.6%
Revenue growth 3Y120.76%
Revenue growth 5Y8.52%
Sales Q2Q%5.18%
Revenue Next Year8.74%
Revenue Next 2Y9.11%
Revenue Next 3Y8.64%
Revenue Next 5Y8.51%
EBIT growth 1Y12.82%
EBIT growth 3YN/A
EBIT growth 5Y14.65%
EBIT Next Year65.86%
EBIT Next 3Y27.11%
EBIT Next 5Y19.66%
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.
Can you provide the valuation status for ROYAL CARIBBEAN CRUISES LTD?
ChartMill assigns a valuation rating of 6 / 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.
What is the valuation of ROYAL CARIBBEAN CRUISES LTD based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ROYAL CARIBBEAN CRUISES LTD (RCL) is 18.55 and the Price/Book (PB) ratio is 7.22.
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 33.63% in the next year.