ROYAL CARIBBEAN CRUISES LTD (RCL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RCL - LR0008862868 - Common Stock
293.59 USD
+6.86 (+2.39%)
294.25 USD
+0.66 (+0.22%)
RCL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
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.
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
With an excellent Return On Assets value of 10.14%, RCL belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
RCL has a Return On Equity of 40.30%. This is amongst the best in the industry. RCL outperforms 88.64% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.73%, RCL is in the better half of the industry, outperforming 79.55% of the companies in the same industry.
| 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.
In the last couple of years the Profit Margin of RCL has remained more or less at the same level.
RCL has a better Operating Margin (26.46%) than 93.18% of its industry peers.
In the last couple of years the Operating Margin of RCL has grown nicely.
RCL's Gross Margin of 50.27% is in line compared to the rest of the industry. RCL outperforms 56.82% of 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) | 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.
Compared to 1 year ago, RCL has an improved debt to assets ratio.
2.2 Solvency
RCL has an Altman-Z score of 2.28. 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.
The Altman-Z score of RCL (2.28) is better than 63.64% of its industry peers.
RCL has a debt to FCF ratio of 9.96. This is a negative value and a sign of low solvency as RCL would need 9.96 years to pay back of all of its debts.
The Debt to FCF ratio of RCL (9.96) is better than 60.61% 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 has a Debt to Equity ratio of 1.70. This is comparable to the rest of the industry: RCL outperforms 53.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | 9.96 | ||
| Altman-Z | 2.28 |
ROIC/WACC1.54
WACC8.28%
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.
Looking at the Current ratio, with a value of 0.16, RCL is doing worse than 96.97% of the companies in the same industry.
A Quick Ratio of 0.14 indicates that RCL may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.14, RCL is doing worse than 96.97% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing slightly by 4.36% on average over the past years.
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
RCL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.09% yearly.
RCL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.51% yearly.
EPS Next Y33.66%
EPS Next 2Y23.44%
EPS Next 3Y20.45%
EPS Next 5Y18.09%
Revenue Next Year8.77%
Revenue Next 2Y9.15%
Revenue Next 3Y8.6%
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.
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
RCL is valuated rather expensively with a Price/Earnings ratio of 20.29.
Based on the Price/Earnings ratio, RCL is valued a bit cheaper than 69.70% of the companies in the same industry.
When comparing the Price/Earnings ratio of RCL to the average of the S&P500 Index (26.38), we can say RCL is valued slightly cheaper.
The Price/Forward Earnings ratio is 16.31, which indicates a correct valuation of RCL.
RCL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RCL is cheaper than 71.97% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.83. RCL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.29 | ||
| Fwd PE | 16.31 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RCL indicates a slightly more expensive valuation: RCL is more expensive than 61.36% of the companies listed 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 | 39.34 | ||
| EV/EBITDA | 15.59 |
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.
The decent profitability rating of RCL may justify a higher PE ratio.
A more expensive valuation may be justified as RCL's earnings are expected to grow with 20.45% in the coming years.
PEG (NY)0.6
PEG (5Y)4.65
EPS Next 2Y23.44%
EPS Next 3Y20.45%
5. Dividend
5.1 Amount
RCL has a Yearly Dividend Yield of 1.22%.
RCL's Dividend Yield is a higher than the industry average which is at 1.48.
Compared to the average S&P500 Dividend Yield of 1.87, RCL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
5.2 History
The dividend of RCL decreases each year by -30.56%.
RCL has paid a dividend for at least 10 years, which is 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 2Y23.44%
EPS Next 3Y20.45%
293.59
+6.86 (+2.39%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners82.63%
Inst Owner Change-2.68%
Ins Owners0.25%
Ins Owner Change-0.19%
Market Cap80.06B
Revenue(TTM)17.44B
Net Income(TTM)4.07B
Analysts80.63
Price Target337.71 (15.03%)
Short Float %3.8%
Short Ratio4.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
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)-5.44%
PT rev (3m)-5.52%
EPS NQ rev (1m)-0.06%
EPS NQ rev (3m)-3.38%
EPS NY rev (1m)0.02%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)-0.62%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.29 | ||
| Fwd PE | 16.31 | ||
| P/S | 4.59 | ||
| P/FCF | 39.34 | ||
| P/OCF | 12.69 | ||
| P/B | 7.93 | ||
| P/tB | 8.62 | ||
| EV/EBITDA | 15.59 |
EPS(TTM)14.47
EY4.93%
EPS(NY)18
Fwd EY6.13%
FCF(TTM)7.46
FCFY2.54%
OCF(TTM)23.13
OCFY7.88%
SpS63.94
BVpS37.01
TBVpS34.04
PEG (NY)0.6
PEG (5Y)4.65
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 | 2.28 |
F-Score7
WACC8.28%
ROIC/WACC1.54
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 Y33.66%
EPS Next 2Y23.44%
EPS Next 3Y20.45%
EPS Next 5Y18.09%
Revenue 1Y (TTM)8.6%
Revenue growth 3Y120.76%
Revenue growth 5Y8.52%
Sales Q2Q%5.18%
Revenue Next Year8.77%
Revenue Next 2Y9.15%
Revenue Next 3Y8.6%
Revenue Next 5Y8.51%
EBIT growth 1Y12.82%
EBIT growth 3YN/A
EBIT growth 5Y14.65%
EBIT Next Year68.26%
EBIT Next 3Y26.9%
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.
Can you provide the valuation status for ROYAL CARIBBEAN CRUISES LTD?
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.
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 20.29 and the Price/Book (PB) ratio is 7.93.
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 33.66% in the next year.