ROYAL CARIBBEAN CRUISES LTD (RCL) Stock Fundamental Analysis
NYSE:RCL - New York Stock Exchange, Inc. - LR0008862868 - Common Stock - Currency: USD
RCL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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.
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's Return On Assets of 8.67% is amongst the best of the industry. RCL outperforms 82.58% of its industry peers.
RCL's Return On Equity of 40.79% is amongst the best of the industry. RCL outperforms 89.39% of its industry peers.
RCL's Return On Invested Capital of 12.57% is fine compared to the rest of the industry. RCL outperforms 78.03% of its industry peers.
| 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
Looking at the Profit Margin, with a value of 19.38%, RCL belongs to the top of the industry, outperforming 92.42% 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.
RCL has a Operating Margin of 25.79%. This is amongst the best in the industry. RCL outperforms 90.91% of its industry peers.
In the last couple of years the Operating Margin of RCL has grown nicely.
RCL has a Gross Margin of 49.58%. This is comparable to the rest of the industry: RCL outperforms 56.82% 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 | 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
RCL has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for RCL has been increased compared to 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 2.54 indicates that RCL is not a great score, but indicates only limited risk for bankruptcy at the moment.
RCL has a Altman-Z score of 2.54. This is in the better half of the industry: RCL outperforms 65.91% of its industry peers.
The Debt to FCF ratio of RCL is 9.19, which is on the high side as it means it would take RCL, 9.19 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 9.19, RCL is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
RCL has a Debt/Equity ratio of 2.26. This is a high value indicating a heavy dependency on external financing.
RCL's Debt to Equity ratio of 2.26 is in line compared to the rest of the industry. RCL outperforms 49.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.26 | ||
| Debt/FCF | 9.19 | ||
| Altman-Z | 2.54 |
ROIC/WACC1.38
WACC9.13%
2.3 Liquidity
A Current Ratio of 0.18 indicates that RCL may have some problems paying its short term obligations.
RCL's Current ratio of 0.18 is on the low side compared to the rest of the industry. RCL is outperformed by 97.73% of its industry peers.
RCL has a Quick 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.
With a Quick ratio value of 0.15, RCL is not doing good in the industry: 96.97% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.18 | ||
| Quick Ratio | 0.15 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 46.72% over the past year.
The Earnings Per Share has been growing slightly by 4.36% on average over the past years.
The Revenue has grown by 13.65% in the past year. This is quite good.
The Revenue has been growing by 8.52% on average over the past years. This is quite good.
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
Based on estimates for the next years, RCL will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.55% on average per year.
Based on estimates for the next years, RCL will show a quite strong growth in Revenue. The Revenue will grow by 8.19% on average per year.
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
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
A Price/Earnings ratio of 26.82 indicates a quite expensive valuation of RCL.
Compared to the rest of the industry, the Price/Earnings ratio of RCL is on the same level as its industry peers.
RCL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 18.89, RCL is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RCL indicates a somewhat cheap valuation: RCL is cheaper than 64.39% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.19, RCL is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.82 | ||
| Fwd PE | 18.89 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RCL is valued a bit more expensive than the industry average as 62.88% of the companies are valued more cheaply.
RCL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.01 | ||
| 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)6.15
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.
Compared to an average industry Dividend Yield of 3.47, RCL pays a bit more dividend than its industry peers.
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 been paying a dividend for at least 10 years, so it has a reliable track record.
RCL has decreased its dividend 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%
NYSE:RCL (7/14/2025, 10:24:10 AM)
341.93
+3.42 (+1.01%)
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 Cap92.85B
Analysts82.58
Price Target275.66 (-19.38%)
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 | 26.82 | ||
| Fwd PE | 18.89 | ||
| P/S | 5.54 | ||
| P/FCF | 44.01 | ||
| P/OCF | 16.69 | ||
| P/B | 11.67 | ||
| P/tB | 12.98 | ||
| EV/EBITDA | 18.66 |
EPS(TTM)12.75
EY3.73%
EPS(NY)18.1
Fwd EY5.29%
FCF(TTM)7.77
FCFY2.27%
OCF(TTM)20.49
OCFY5.99%
SpS61.7
BVpS29.31
TBVpS26.34
PEG (NY)0.84
PEG (5Y)6.15
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
WACC9.13%
ROIC/WACC1.38
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%