ROYAL CARIBBEAN CRUISES LTD (RCL)
LR0008862868 - Common Stock
Overall RCL gets a fundamental rating of 4 out of 10. We evaluated RCL against 135 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
RCL had positive earnings in the past year.
RCL had a positive operating cash flow in the past year.
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 (7.02%) than 78.36% of its industry peers.
The Return On Equity of RCL (36.94%) is better than 88.81% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.78%, RCL is in the better half of the industry, outperforming 76.12% 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 88.81% of its industry peers.
In the last couple of years the Profit Margin of RCL has declined.
RCL has a better Operating Margin (25.47%) than 89.55% of its industry peers.
RCL's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 48.65%, RCL is in line with its industry, outperforming 50.00% of the companies in the same industry.
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 | 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
RCL has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, RCL has more shares outstanding
RCL has more shares outstanding than it did 5 years ago.
RCL has a better debt/assets ratio than last year.
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 (1.90) which is in line with its industry peers.
A Debt/Equity ratio of 2.69 is on the high side and indicates that RCL has dependencies on debt financing.
RCL has a Debt to Equity ratio (2.69) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.69 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.9 |
ROIC/WACC1.44
WACC8.15%
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 98.51% of its industry peers.
RCL has a Quick Ratio of 0.19. 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 (0.16) is worse than 97.76% 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.
The Earnings Per Share has been decreasing by -5.49% on average over the past years.
RCL shows a strong growth in Revenue. In the last year, the Revenue has grown by 21.89%.
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 23.13% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 9.55% on average over the next years. This is quite good.
EPS Next Y75.83%
EPS Next 2Y46.87%
EPS Next 3Y36.15%
EPS Next 5Y23.13%
Revenue Next Year18.47%
Revenue Next 2Y13.77%
Revenue Next 3Y12.48%
Revenue Next 5Y9.55%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 20.78, RCL is valued on the expensive side.
Based on the Price/Earnings ratio, RCL is valued a bit cheaper than 73.13% of the companies in the same industry.
RCL is valuated rather cheaply when we compare the Price/Earnings ratio to 28.96, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 16.46 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 77.61% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, RCL is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.78 | ||
| Fwd PE | 16.46 |
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 | 14.93 |
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's earnings are expected to grow with 36.15% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.27
PEG (5Y)N/A
EPS Next 2Y46.87%
EPS Next 3Y36.15%
5. Dividend
5.1 Amount
With a yearly dividend of 0.69%, RCL is not a good candidate for dividend investing.
RCL's Dividend Yield is a higher than the industry average which is at 2.83.
Compared to an average S&P500 Dividend Yield of 2.23, RCL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
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 2Y46.87%
EPS Next 3Y36.15%
ROYAL CARIBBEAN CRUISES LTD
NYSE:RCL (11/21/2024, 8:04:00 PM)
Premarket: 238.949 +1.38 (+0.58%)237.57
+1.7 (+0.72%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap63.88B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
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Surprises & Revisions
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.78 | ||
| Fwd PE | 16.46 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.27
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.02% | ||
| ROE | 36.94% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 25.47% | ||
| PM (TTM) | 16.21% | ||
| GM | 48.65% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.69 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.19 | ||
| Quick Ratio | 0.16 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)164.58%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y75.83%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)21.89%
Revenue growth 3Y84.62%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y