ROYAL CARIBBEAN CRUISES LTD (RCL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RCL - LR0008862868 - Common Stock
279.73 USD
+0.03 (+0.01%)
RCL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 131 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 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.
In multiple years RCL reported negative operating cash flow during the last 5 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 81.68% of the companies in the same industry.
Looking at the Return On Equity, with a value of 40.30%, RCL belongs to the top of the industry, outperforming 88.55% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 12.73%, RCL is in the better half of the industry, outperforming 79.39% 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
The Profit Margin of RCL (23.33%) is better than 94.66% of its industry peers.
RCL's Profit Margin has been stable in the last couple of years.
RCL has a better Operating Margin (26.46%) than 93.13% of its industry peers.
RCL's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 50.27%, RCL is in line with its industry, outperforming 57.25% 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 | 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.
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
RCL has an Altman-Z score of 2.24. 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 better Altman-Z score (2.24) than 61.83% 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.
With a decent Debt to FCF ratio value of 9.96, RCL is doing good in the industry, outperforming 60.31% of the companies in the same industry.
A Debt/Equity ratio of 1.70 is on the high side and indicates that RCL has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.70, RCL is in line with its industry, outperforming 54.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | 9.96 | ||
| Altman-Z | 2.24 |
ROIC/WACC1.54
WACC8.26%
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.
RCL has a Current ratio of 0.16. This is amonst the worse of the industry: RCL underperforms 97.71% 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.
RCL's Quick ratio of 0.14 is on the low side compared to the rest of the industry. RCL is outperformed by 97.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.16 | ||
| Quick Ratio | 0.14 |
3. Growth
3.1 Past
RCL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.60%, which is quite impressive.
RCL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.36% yearly.
RCL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.60%.
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
Based on estimates for the next years, RCL will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.09% on average per year.
The Revenue is expected to grow by 8.51% on average over the next years. This is quite good.
EPS Next Y33.66%
EPS Next 2Y23.44%
EPS Next 3Y20.45%
EPS Next 5Y18.09%
Revenue Next Year8.77%
Revenue Next 2Y9.15%
Revenue Next 3Y8.6%
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 19.33.
Compared to the rest of the industry, the Price/Earnings ratio of RCL indicates a somewhat cheap valuation: RCL is cheaper than 69.47% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.76, RCL is valued a bit cheaper.
With a Price/Forward Earnings ratio of 15.54, RCL is valued correctly.
Based on the Price/Forward Earnings ratio, RCL is valued a bit cheaper than the industry average as 73.28% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.96. RCL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.33 | ||
| Fwd PE | 15.54 |
4.2 Price Multiples
RCL's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. RCL is more expensive than 61.83% of the companies 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 | 37.49 | ||
| EV/EBITDA | 15.28 |
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.
RCL has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as RCL's earnings are expected to grow with 20.45% in the coming years.
PEG (NY)0.57
PEG (5Y)4.43
EPS Next 2Y23.44%
EPS Next 3Y20.45%
5. Dividend
5.1 Amount
RCL has a Yearly Dividend Yield of 1.18%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.84, RCL pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.18, RCL pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
5.2 History
The dividend of RCL decreases each year by -30.56%.
RCL has been paying a dividend for at least 10 years, so it has 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 2Y23.44%
EPS Next 3Y20.45%
NYSE:RCL (12/12/2025, 2:53:03 PM)
279.73
+0.03 (+0.01%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners82.63%
Inst Owner Change-2.68%
Ins Owners0.25%
Ins Owner Change-0.19%
Market Cap76.29B
Revenue(TTM)17.44B
Net Income(TTM)4.07B
Analysts80.63
Price Target337.71 (20.73%)
Short Float %4.05%
Short Ratio5.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
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)-5.44%
PT rev (3m)-5.52%
EPS NQ rev (1m)-0.06%
EPS NQ rev (3m)-3.38%
EPS NY rev (1m)0.02%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)-0.62%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.33 | ||
| Fwd PE | 15.54 | ||
| P/S | 4.38 | ||
| P/FCF | 37.49 | ||
| P/OCF | 12.09 | ||
| P/B | 7.56 | ||
| P/tB | 8.22 | ||
| EV/EBITDA | 15.28 |
EPS(TTM)14.47
EY5.17%
EPS(NY)18
Fwd EY6.43%
FCF(TTM)7.46
FCFY2.67%
OCF(TTM)23.13
OCFY8.27%
SpS63.94
BVpS37.01
TBVpS34.04
PEG (NY)0.57
PEG (5Y)4.43
Graham Number109.77
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 | 2.24 |
F-Score7
WACC8.26%
ROIC/WACC1.54
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 Y33.66%
EPS Next 2Y23.44%
EPS Next 3Y20.45%
EPS Next 5Y18.09%
Revenue 1Y (TTM)8.6%
Revenue growth 3Y120.76%
Revenue growth 5Y8.52%
Sales Q2Q%5.18%
Revenue Next Year8.77%
Revenue Next 2Y9.15%
Revenue Next 3Y8.6%
Revenue Next 5Y8.51%
EBIT growth 1Y12.82%
EBIT growth 3YN/A
EBIT growth 5Y14.65%
EBIT Next Year68.26%
EBIT Next 3Y26.9%
EBIT Next 5Y19.7%
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 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.
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 19.33 and the Price/Book (PB) ratio is 7.56.
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 33.66% in the next year.