ROYAL CARIBBEAN CRUISES LTD (RCL) Stock Fundamental Analysis
USA - NYSE:RCL - LR0008862868 - Common Stock
264.09 USD
+11.37 (+4.5%)
264.09 USD
0 (0%)
Taking everything into account, RCL scores 5 out of 10 in our fundamental rating. RCL was compared to 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 growing strongly while it is still valued neutral. This is a good combination!
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.
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 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.
The Return On Invested Capital of RCL (12.73%) is better 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
Looking at the Profit Margin, with a value of 23.33%, RCL belongs to the top of the industry, outperforming 94.70% of the companies in the same industry.
In the last couple of years the Profit Margin of RCL has remained more or less at the same level.
With an excellent Operating Margin value of 26.46%, RCL belongs to the best 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's Gross Margin of 50.27% is in line compared to the rest of the industry. RCL outperforms 58.33% of 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RCL is creating some value.
RCL has more shares outstanding than it did 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
An Altman-Z score of 2.09 indicates that RCL is not a great score, but indicates only limited risk for bankruptcy at the moment.
RCL has a better Altman-Z score (2.09) than 61.36% 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 comparable to the rest of the industry.
RCL has a Debt/Equity ratio of 1.70. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.70, RCL is in line with its industry, outperforming 53.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | 9.96 | ||
| Altman-Z | 2.09 |
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.
RCL has a Current ratio of 0.16. This is amonst the worse of the industry: RCL underperforms 96.97% 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 has a Quick ratio of 0.14. This is amonst the worse of the industry: RCL underperforms 97.73% 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.
The Earnings Per Share has been growing slightly by 4.36% on average over the past years.
The Revenue has grown by 8.60% in the past year. This is quite good.
Measured over the past years, RCL shows a quite strong growth in Revenue. The Revenue has been growing by 8.52% on average per year.
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.
Based on estimates for the next years, RCL will show a quite strong growth in Revenue. The Revenue will grow by 8.51% on average per year.
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 18.25, 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.
When comparing the Price/Earnings ratio of RCL to the average of the S&P500 Index (25.45), we can say RCL is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 14.68, the valuation of RCL can be described as correct.
Based on the Price/Forward Earnings ratio, RCL is valued a bit cheaper than 73.48% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of RCL to the average of the S&P500 Index (34.46), we can say RCL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.25 | ||
| Fwd PE | 14.68 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RCL is on the same level as its industry peers.
RCL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.25 | ||
| EV/EBITDA | 14.07 |
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 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 20.38% in the coming years.
PEG (NY)0.54
PEG (5Y)4.18
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.
The stock price of RCL dropped by -23.38% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
RCL's Dividend Yield is a higher than the industry average which is at 4.58.
Compared to an average S&P500 Dividend Yield of 2.45, RCL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
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 2Y23.41%
EPS Next 3Y20.38%
264.09
+11.37 (+4.5%)
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 Cap71.73B
Revenue(TTM)17.44B
Net Income(TTM)4.07B
Analysts81.25
Price Target357.15 (35.24%)
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 | 18.25 | ||
| Fwd PE | 14.68 | ||
| P/S | 4.11 | ||
| P/FCF | 35.25 | ||
| P/OCF | 11.37 | ||
| P/B | 7.11 | ||
| P/tB | 7.73 | ||
| EV/EBITDA | 14.07 |
EPS(TTM)14.47
EY5.48%
EPS(NY)17.99
Fwd EY6.81%
FCF(TTM)7.49
FCFY2.84%
OCF(TTM)23.23
OCFY8.79%
SpS64.19
BVpS37.15
TBVpS34.18
PEG (NY)0.54
PEG (5Y)4.18
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 | 2.09 |
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 18.25 and the Price/Book (PB) ratio is 7.11.
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.