ROYAL CARIBBEAN CRUISES LTD (RCL)
LR0008862868 - Common Stock
Taking everything into account, RCL scores 4 out of 10 in our fundamental rating. RCL was compared to 133 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.
RCL had a positive operating cash flow in the past year.
In multiple years RCL reported negative net income over the last 5 years.
In multiple years RCL reported negative operating cash flow during the last 5 years.
1.2 Ratios
RCL has a Return On Assets of 7.02%. This is in the better half of the industry: RCL outperforms 78.20% of its industry peers.
RCL has a Return On Equity of 36.94%. This is amongst the best in the industry. RCL outperforms 88.72% of its industry peers.
RCL has a better Return On Invested Capital (11.78%) than 78.20% of its industry peers.
| 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
Looking at the Profit Margin, with a value of 16.21%, RCL belongs to the top of the industry, outperforming 89.47% of the companies in the same industry.
In the last couple of years the Profit Margin of RCL has declined.
Looking at the Operating Margin, with a value of 25.47%, RCL belongs to the top of the industry, outperforming 89.47% of the companies in the same industry.
In the last couple of years the Operating Margin of RCL has remained more or less at the same level.
RCL has a Gross Margin (48.65%) which is comparable to the rest of the 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so RCL is still 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
An Altman-Z score of 1.91 indicates that RCL is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.91, RCL is in line with its industry, outperforming 57.14% of the companies in the same industry.
A Debt/Equity ratio of 2.69 is on the high side and indicates that RCL has dependencies on debt financing.
The Debt to Equity ratio of RCL (2.69) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.69 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.91 |
ROIC/WACC1.45
WACC8.1%
2.3 Liquidity
A Current Ratio of 0.19 indicates that RCL may have some problems paying its short term obligations.
RCL's Current ratio of 0.19 is on the low side compared to the rest of the industry. RCL is outperformed by 98.50% 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 98.50% 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%.
The Revenue has been growing slightly by 7.92% on average over the past years.
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
Based on estimates for the next years, RCL will show a very strong growth in Earnings Per Share. The EPS will grow by 27.70% on average per year.
RCL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.08% yearly.
EPS Next Y75.96%
EPS Next 2Y47.61%
EPS Next 3Y36.84%
EPS Next 5Y27.7%
Revenue Next Year18.46%
Revenue Next 2Y13.74%
Revenue Next 3Y12.53%
Revenue Next 5Y10.08%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 20.90 indicates a rather expensive valuation of RCL.
Based on the Price/Earnings ratio, RCL is valued a bit cheaper than the industry average as 69.17% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of RCL to the average of the S&P500 Index (27.37), we can say RCL is valued slightly cheaper.
A Price/Forward Earnings ratio of 16.39 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 75.19% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.85, RCL is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.9 | ||
| Fwd PE | 16.39 |
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 | 14.94 |
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 36.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.28
PEG (5Y)N/A
EPS Next 2Y47.61%
EPS Next 3Y36.84%
5. Dividend
5.1 Amount
RCL has a yearly dividend return of 0.82%, which is pretty low.
RCL's Dividend Yield is a higher than the industry average which is at 2.95.
Compared to an average S&P500 Dividend Yield of 2.36, RCL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
5.2 History
RCL has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y47.61%
EPS Next 3Y36.84%
ROYAL CARIBBEAN CRUISES LTD
NYSE:RCL (12/24/2024, 10:22:08 AM)
238.87
+1 (+0.42%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners83.83%
Inst Owner Change-0.83%
Ins Owners0.41%
Ins Owner Change-0.46%
Market Cap64.23B
Analysts80.69
Price Target239.88 (0.42%)
Short Float %5.05%
Short Ratio6.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.86%
Min EPS beat(2)2.35%
Max EPS beat(2)15.37%
EPS beat(4)4
Avg EPS beat(4)14.71%
Min EPS beat(4)2.35%
Max EPS beat(4)31.57%
EPS beat(8)8
Avg EPS beat(8)20.89%
EPS beat(12)10
Avg EPS beat(12)15.77%
EPS beat(16)12
Avg EPS beat(16)10.88%
Revenue beat(2)1
Avg Revenue beat(2)-0.31%
Min Revenue beat(2)-1.27%
Max Revenue beat(2)0.66%
Revenue beat(4)1
Avg Revenue beat(4)-0.59%
Min Revenue beat(4)-1.71%
Max Revenue beat(4)0.66%
Revenue beat(8)4
Avg Revenue beat(8)0.11%
Revenue beat(12)5
Avg Revenue beat(12)-0.99%
Revenue beat(16)6
Avg Revenue beat(16)-6.15%
PT rev (1m)24.23%
PT rev (3m)29.39%
EPS NQ rev (1m)-0.06%
EPS NQ rev (3m)-15.86%
EPS NY rev (1m)0.07%
EPS NY rev (3m)1.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.78%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.9 | ||
| Fwd PE | 16.39 | ||
| P/S | 4 | ||
| P/FCF | N/A | ||
| P/OCF | 13.07 | ||
| P/B | 9.12 | ||
| P/tB | 10.3 | ||
| EV/EBITDA | 14.94 |
EPS(TTM)11.43
EY4.79%
EPS(NY)14.58
Fwd EY6.1%
FCF(TTM)-1.38
FCFYN/A
OCF(TTM)18.28
OCFY7.65%
SpS59.71
BVpS26.2
TBVpS23.19
PEG (NY)0.28
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.02% | ||
| ROE | 36.94% | ||
| ROCE | 14.91% | ||
| ROIC | 11.78% | ||
| ROICexc | 11.96% | ||
| ROICexgc | 12.33% | ||
| OM | 25.47% | ||
| PM (TTM) | 16.21% | ||
| GM | 48.65% | ||
| FCFM | N/A |
ROA(3y)-5.95%
ROA(5y)-5.9%
ROE(3y)-47.56%
ROE(5y)-38.68%
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 5Y4.65%
ROICexc growth 3YN/A
ROICexc growth 5Y5.02%
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%
F-Score7
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.69 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.36 | ||
| Cap/Depr | 339.16% | ||
| Cap/Sales | 32.91% | ||
| Interest Coverage | 2.97 | ||
| Cash Conversion | 87.01% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.19 | ||
| Quick Ratio | 0.16 | ||
| Altman-Z | 1.91 |
F-Score7
WACC8.1%
ROIC/WACC1.45
Cap/Depr(3y)210.98%
Cap/Depr(5y)205.87%
Cap/Sales(3y)68.07%
Cap/Sales(5y)64.16%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)164.58%
EPS 3YN/A
EPS 5Y-5.49%
EPS Q2Q%35.06%
EPS Next Y75.96%
EPS Next 2Y47.61%
EPS Next 3Y36.84%
EPS Next 5Y27.7%
Revenue 1Y (TTM)21.89%
Revenue growth 3Y84.62%
Revenue growth 5Y7.92%
Sales Q2Q%17.44%
Revenue Next Year18.46%
Revenue Next 2Y13.74%
Revenue Next 3Y12.53%
Revenue Next 5Y10.08%
EBIT growth 1Y76.27%
EBIT growth 3YN/A
EBIT growth 5Y8.87%
EBIT Next Year101.96%
EBIT Next 3Y35.78%
EBIT Next 5Y23.56%
FCF growth 1Y89.17%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y1739.16%
OCF growth 3YN/A
OCF growth 5Y5.17%