ROYAL CARIBBEAN CRUISES LTD (RCL) Stock Fundamental Analysis
USA - NYSE:RCL - LR0008862868 - Common Stock
256 USD
+4.58 (+1.82%)
258.5 USD
+2.5 (+0.98%)
Overall RCL gets a fundamental rating of 5 out of 10. We evaluated RCL against 132 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 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.
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
Looking at the Return On Assets, with a value of 10.14%, RCL belongs to the top of the industry, outperforming 82.58% of the companies in the same industry.
The Return On Equity of RCL (40.30%) is better than 87.12% of its industry peers.
RCL has a better Return On Invested Capital (12.73%) than 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
RCL's Profit Margin of 23.33% is amongst the best of the industry. RCL outperforms 94.70% of its industry peers.
RCL's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 26.46%, RCL belongs to the top of the industry, outperforming 93.18% of the companies in the same industry.
RCL's Operating Margin has improved in the last couple of years.
RCL has a Gross Margin (50.27%) which is in line with its industry peers.
In the last couple of years the Gross Margin of RCL has remained more or less at the same level.
| 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
RCL has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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
Compared to 1 year ago, RCL has an improved debt to assets ratio.
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 has a Altman-Z score of 2.11. This is in the better half 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 has a Debt to FCF ratio (9.96) which is in line with its industry peers.
RCL has a Debt/Equity ratio of 1.70. This is a high value indicating a heavy dependency on external 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 | 2.11 |
ROIC/WACC1.63
WACC7.83%
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 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.
With a Quick ratio value of 0.14, RCL is not doing good in the industry: 97.73% of the companies in the same industry are doing better.
| 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.
Measured over the past 5 years, RCL shows a small growth in Earnings Per Share. The EPS has been growing by 4.36% on average per year.
Looking at the last year, RCL shows a quite strong growth in Revenue. The Revenue has grown by 8.60% in the last year.
RCL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.52% yearly.
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.
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 Y33.63%
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.
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
With a Price/Earnings ratio of 17.69, RCL is valued on the expensive side.
Based on the Price/Earnings ratio, RCL is valued a bit cheaper than 70.45% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.47, RCL is valued a bit cheaper.
The Price/Forward Earnings ratio is 14.23, which indicates a correct valuation of RCL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RCL indicates a somewhat cheap valuation: RCL is cheaper than 73.48% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of RCL to the average of the S&P500 Index (35.42), we can say RCL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.69 | ||
| Fwd PE | 14.23 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as RCL.
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 | 34.17 | ||
| EV/EBITDA | 14.21 |
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.
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 20.38% in the coming years.
PEG (NY)0.53
PEG (5Y)4.06
EPS Next 2Y23.41%
EPS Next 3Y20.38%
5. Dividend
5.1 Amount
RCL has a Yearly Dividend Yield of 1.19%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of RCL has falen by -25.73%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 4.59, RCL pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.19, RCL pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
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.
The dividend of RCL decreased 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 2Y23.41%
EPS Next 3Y20.38%
256
+4.58 (+1.82%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners84.1%
Inst Owner Change-2.73%
Ins Owners0.25%
Ins Owner Change-6.1%
Market Cap69.54B
Revenue(TTM)17.44B
Net Income(TTM)4.07B
Analysts81.25
Price Target357.15 (39.51%)
Short Float %4.01%
Short Ratio5.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
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)0.01%
PT rev (3m)1.81%
EPS NQ rev (1m)-3.6%
EPS NQ rev (3m)-3.33%
EPS NY rev (1m)-0.12%
EPS NY rev (3m)1.39%
Revenue NQ rev (1m)-0.78%
Revenue NQ rev (3m)-0.76%
Revenue NY rev (1m)-0.35%
Revenue NY rev (3m)-0.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.69 | ||
| Fwd PE | 14.23 | ||
| P/S | 3.99 | ||
| P/FCF | 34.17 | ||
| P/OCF | 11.02 | ||
| P/B | 6.89 | ||
| P/tB | 7.49 | ||
| EV/EBITDA | 14.21 |
EPS(TTM)14.47
EY5.65%
EPS(NY)17.99
Fwd EY7.03%
FCF(TTM)7.49
FCFY2.93%
OCF(TTM)23.23
OCFY9.07%
SpS64.19
BVpS37.15
TBVpS34.18
PEG (NY)0.53
PEG (5Y)4.06
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
WACC7.83%
ROIC/WACC1.63
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 17.69 and the Price/Book (PB) ratio is 6.89.
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.