ROYAL CARIBBEAN CRUISES LTD (RCL) Stock Fundamental Analysis
NYSE:RCL - New York Stock Exchange, Inc. - LR0008862868 - Common Stock - Currency: USD
Taking everything into account, RCL scores 5 out of 10 in our fundamental rating. RCL was compared to 135 industry peers in the Hotels, Restaurants & Leisure industry. There are concerns on the financial health of RCL while its profitability can be described as average. 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.
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
Looking at the Return On Assets, with a value of 8.67%, RCL belongs to the top of the industry, outperforming 83.46% of the companies in the same industry.
RCL has a better Return On Equity (40.79%) than 89.47% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.57%, RCL is in the better half of the industry, outperforming 78.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.67% | ||
| ROE | 40.79% | ||
| ROIC | 12.57% |
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
The Profit Margin of RCL (19.38%) is better than 93.23% of its industry peers.
RCL's Profit Margin has been stable in the last couple of years.
RCL has a better Operating Margin (25.79%) than 90.98% of its industry peers.
RCL's Operating Margin has improved in the last couple of years.
RCL has a Gross Margin (49.58%) 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 | 25.79% | ||
| PM (TTM) | 19.38% | ||
| GM | 49.58% |
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.
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 2.54. 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 (2.54) is better than 69.17% of its industry peers.
RCL has a debt to FCF ratio of 9.19. This is a negative value and a sign of low solvency as RCL would need 9.19 years to pay back of all of its debts.
RCL has a Debt to FCF ratio of 9.19. This is in the better half of the industry: RCL outperforms 63.16% of its industry peers.
A Debt/Equity ratio of 2.26 is on the high side and indicates that RCL has dependencies on debt financing.
RCL has a Debt to Equity ratio of 2.26. This is comparable to the rest of the industry: RCL outperforms 51.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.26 | ||
| Debt/FCF | 9.19 | ||
| Altman-Z | 2.54 |
ROIC/WACC1.4
WACC8.99%
2.3 Liquidity
RCL has a Current Ratio of 0.18. 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 (0.18) is worse than 96.99% of its industry peers.
A Quick Ratio of 0.15 indicates that RCL may have some problems paying its short term obligations.
RCL has a worse Quick ratio (0.15) than 96.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.18 | ||
| Quick Ratio | 0.15 |
3. Growth
3.1 Past
RCL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 46.72%, which is quite impressive.
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.
RCL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.65%.
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)46.72%
EPS 3YN/A
EPS 5Y4.36%
EPS Q2Q%53.11%
Revenue 1Y (TTM)13.65%
Revenue growth 3Y120.76%
Revenue growth 5Y8.52%
Sales Q2Q%7.27%
3.2 Future
The Earnings Per Share is expected to grow by 18.55% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.19% on average over the next years. This is quite good.
EPS Next Y31.8%
EPS Next 2Y23.82%
EPS Next 3Y20.68%
EPS Next 5Y18.55%
Revenue Next Year9.32%
Revenue Next 2Y9.46%
Revenue Next 3Y9%
Revenue Next 5Y8.19%
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 26.55, RCL can be considered very expensive at the moment.
Based on the Price/Earnings ratio, RCL is valued a bit cheaper than 60.90% of the companies in the same industry.
RCL's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.30.
A Price/Forward Earnings ratio of 18.70 indicates a rather expensive valuation of RCL.
63.16% of the companies in the same industry are more expensive than RCL, based on the Price/Forward Earnings ratio.
RCL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.55 | ||
| Fwd PE | 18.7 |
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 63.16% of the companies listed in the same industry.
RCL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.57 | ||
| EV/EBITDA | 18.66 |
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 20.68% in the coming years.
PEG (NY)0.84
PEG (5Y)6.09
EPS Next 2Y23.82%
EPS Next 3Y20.68%
5. Dividend
5.1 Amount
With a yearly dividend of 0.72%, RCL is not a good candidate for dividend investing.
RCL's Dividend Yield is a higher than the industry average which is at 3.53.
With a Dividend Yield of 0.72, RCL pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
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
7.85% of the earnings are spent on dividend by RCL. This is a low number and sustainable payout ratio.
DP7.85%
EPS Next 2Y23.82%
EPS Next 3Y20.68%
338.51
-2.85 (-0.83%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners81.14%
Inst Owner Change0%
Ins Owners0.27%
Ins Owner Change-0.28%
Market Cap91.93B
Analysts82.58
Price Target275.66 (-18.57%)
Short Float %4.21%
Short Ratio4.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
Yearly Dividend0.41
Dividend Growth(5Y)-30.56%
DP7.85%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.65%
Min EPS beat(2)5.52%
Max EPS beat(2)7.78%
EPS beat(4)4
Avg EPS beat(4)7.75%
Min EPS beat(4)2.35%
Max EPS beat(4)15.37%
EPS beat(8)8
Avg EPS beat(8)11.94%
EPS beat(12)12
Avg EPS beat(12)18.7%
EPS beat(16)12
Avg EPS beat(16)11.13%
Revenue beat(2)0
Avg Revenue beat(2)-1.23%
Min Revenue beat(2)-1.38%
Max Revenue beat(2)-1.08%
Revenue beat(4)1
Avg Revenue beat(4)-0.77%
Min Revenue beat(4)-1.38%
Max Revenue beat(4)0.66%
Revenue beat(8)3
Avg Revenue beat(8)-0.19%
Revenue beat(12)5
Avg Revenue beat(12)0.08%
Revenue beat(16)5
Avg Revenue beat(16)-6.31%
PT rev (1m)1.8%
PT rev (3m)-4%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)2.91%
EPS NY rev (1m)0.7%
EPS NY rev (3m)3.17%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)0.57%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.55 | ||
| Fwd PE | 18.7 | ||
| P/S | 5.49 | ||
| P/FCF | 43.57 | ||
| P/OCF | 16.52 | ||
| P/B | 11.55 | ||
| P/tB | 12.85 | ||
| EV/EBITDA | 18.66 |
EPS(TTM)12.75
EY3.77%
EPS(NY)18.1
Fwd EY5.35%
FCF(TTM)7.77
FCFY2.3%
OCF(TTM)20.49
OCFY6.05%
SpS61.7
BVpS29.31
TBVpS26.34
PEG (NY)0.84
PEG (5Y)6.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.67% | ||
| ROE | 40.79% | ||
| ROCE | 15.91% | ||
| ROIC | 12.57% | ||
| ROICexc | 12.75% | ||
| ROICexgc | 13.15% | ||
| OM | 25.79% | ||
| PM (TTM) | 19.38% | ||
| GM | 49.58% | ||
| FCFM | 12.59% |
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
ROICexcg growth 3YN/A
ROICexcg 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 Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.26 | ||
| Debt/FCF | 9.19 | ||
| Debt/EBITDA | 3.03 | ||
| Cap/Depr | 212.55% | ||
| Cap/Sales | 20.61% | ||
| Interest Coverage | 4.01 | ||
| Cash Conversion | 93.58% | ||
| Profit Quality | 64.98% | ||
| Current Ratio | 0.18 | ||
| Quick Ratio | 0.15 | ||
| Altman-Z | 2.54 |
F-Score7
WACC8.99%
ROIC/WACC1.4
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)46.72%
EPS 3YN/A
EPS 5Y4.36%
EPS Q2Q%53.11%
EPS Next Y31.8%
EPS Next 2Y23.82%
EPS Next 3Y20.68%
EPS Next 5Y18.55%
Revenue 1Y (TTM)13.65%
Revenue growth 3Y120.76%
Revenue growth 5Y8.52%
Sales Q2Q%7.27%
Revenue Next Year9.32%
Revenue Next 2Y9.46%
Revenue Next 3Y9%
Revenue Next 5Y8.19%
EBIT growth 1Y27.56%
EBIT growth 3YN/A
EBIT growth 5Y14.64%
EBIT Next Year63.67%
EBIT Next 3Y25.7%
EBIT Next 5Y18.33%
FCF growth 1Y192.36%
FCF growth 3YN/A
FCF growth 5Y23.62%
OCF growth 1Y139.76%
OCF growth 3YN/A
OCF growth 5Y7.21%