ROYAL CARIBBEAN CRUISES LTD (RCL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RCL - LR0008862868 - Common Stock
286.11 USD
+0.56 (+0.2%)
286.11 USD
0 (0%)
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. 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
- In the past year RCL was profitable.
- 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.
- 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 Return On Assets of 10.14%. This is amongst the best in the industry. RCL outperforms 81.95% of its industry peers.
- RCL has a better Return On Equity (40.30%) than 88.72% 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 79.70% 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
- Looking at the Profit Margin, with a value of 23.33%, RCL belongs to the top of the industry, outperforming 94.74% 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 Operating Margin of 26.46%. This is amongst the best in the industry. RCL outperforms 93.23% of its industry peers.
- RCL's Operating Margin has improved in the last couple of years.
- With a Gross Margin value of 50.27%, RCL perfoms like the industry average, 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.
- RCL has more shares outstanding than it did 1 year ago.
- RCL has more shares outstanding than it did 5 years ago.
- RCL has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.27 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 (2.27) than 63.16% 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.
- RCL has a better Debt to FCF ratio (9.96) than 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 has a Debt to Equity ratio of 1.70. This is comparable 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 | 2.27 |
ROIC/WACC1.57
WACC8.09%
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.
- The Current ratio of RCL (0.16) is worse than 93.23% 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 93.23% 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.
- 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.
- 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 Y33.79%
EPS Next 2Y23.21%
EPS Next 3Y20.35%
EPS Next 5Y18.09%
Revenue Next Year8.75%
Revenue Next 2Y9.03%
Revenue Next 3Y8.51%
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
- RCL is valuated rather expensively with a Price/Earnings ratio of 19.77.
- Based on the Price/Earnings ratio, RCL is valued a bit cheaper than the industry average as 72.18% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, RCL is valued a bit cheaper.
- A Price/Forward Earnings ratio of 15.96 indicates a correct valuation of RCL.
- 72.93% of the companies in the same industry are more expensive than RCL, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of RCL to the average of the S&P500 Index (24.26), we can say RCL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.77 | ||
| Fwd PE | 15.96 |
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 60.15% 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 | 38.34 | ||
| EV/EBITDA | 15.54 |
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.
- RCL's earnings are expected to grow with 20.35% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.59
PEG (5Y)4.53
EPS Next 2Y23.21%
EPS Next 3Y20.35%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.23%, RCL has a reasonable but not impressive dividend return.
- RCL's Dividend Yield is a higher than the industry average which is at 1.20.
- Compared to the average S&P500 Dividend Yield of 1.81, RCL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
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
- 16.20% of the earnings are spent on dividend by RCL. This is a low number and sustainable payout ratio.
DP16.2%
EPS Next 2Y23.21%
EPS Next 3Y20.35%
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%.