ROYAL CARIBBEAN CRUISES LTD (RCL) Stock Fundamental Analysis
NYSE:RCL - LR0008862868 - Common Stock
363.22 USD
-2.62 (-0.72%)
363.22 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to RCL. RCL was compared to 134 industry peers in the Hotels, Restaurants & Leisure industry. RCL has a medium profitability rating, but doesn't score so well on its financial health evaluation. RCL is not overvalued while it is showing excellent growth. This is an interesting combination.
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.
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 9.35% is amongst the best of the industry. RCL outperforms 83.58% of its industry peers.
The Return On Equity of RCL (39.30%) is better than 87.31% of its industry peers.
RCL has a better Return On Invested Capital (12.84%) than 80.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.35% | ||
| ROE | 39.3% | ||
| ROIC | 12.84% |
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
RCL has a Profit Margin of 20.97%. This is amongst the best in the industry. RCL outperforms 94.78% of its industry peers.
RCL's Profit Margin has been stable in the last couple of years.
The Operating Margin of RCL (26.46%) is better than 94.03% of its industry peers.
RCL's Operating Margin has improved in the last couple of years.
RCL has a Gross Margin (50.06%) 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 | 26.46% | ||
| PM (TTM) | 20.97% | ||
| GM | 50.06% |
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.
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
An Altman-Z score of 2.75 indicates that RCL is not a great score, but indicates only limited risk for bankruptcy at the moment.
RCL's Altman-Z score of 2.75 is fine compared to the rest of the industry. RCL outperforms 69.40% of its industry peers.
The Debt to FCF ratio of RCL is 5.30, which is a neutral value as it means it would take RCL, 5.30 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 5.30, RCL is doing good in the industry, outperforming 73.88% of the companies in the same industry.
RCL has a Debt/Equity ratio of 1.92. This is a high value indicating a heavy dependency on external financing.
RCL's Debt to Equity ratio of 1.92 is in line compared to the rest of the industry. RCL outperforms 52.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.92 | ||
| Debt/FCF | 5.3 | ||
| Altman-Z | 2.75 |
ROIC/WACC1.44
WACC8.92%
2.3 Liquidity
A Current Ratio of 0.23 indicates that RCL may have some problems paying its short term obligations.
RCL has a worse Current ratio (0.23) than 94.03% of its industry peers.
A Quick Ratio of 0.21 indicates that RCL may have some problems paying its short term obligations.
With a Quick ratio value of 0.21, RCL is not doing good in the industry: 93.28% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.23 | ||
| Quick Ratio | 0.21 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 38.10% over the past year.
RCL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.36% yearly.
Looking at the last year, RCL shows a quite strong growth in Revenue. The Revenue has grown by 12.09% in the last year.
The Revenue has been growing by 8.52% on average over the past years. This is quite good.
EPS 1Y (TTM)38.1%
EPS 3YN/A
EPS 5Y4.36%
EPS Q2Q%36.45%
Revenue 1Y (TTM)12.09%
Revenue growth 3Y120.76%
Revenue growth 5Y8.52%
Sales Q2Q%10.41%
3.2 Future
RCL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.77% yearly.
The Revenue is expected to grow by 8.50% on average over the next years. This is quite good.
EPS Next Y33.66%
EPS Next 2Y25.02%
EPS Next 3Y21.62%
EPS Next 5Y18.77%
Revenue Next Year9.07%
Revenue Next 2Y9.42%
Revenue Next 3Y9.14%
Revenue Next 5Y8.5%
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 26.09, RCL can be considered very expensive at the moment.
Based on the Price/Earnings ratio, RCL is valued a bit cheaper than the industry average as 61.19% of the companies are valued more expensively.
RCL's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.13.
A Price/Forward Earnings ratio of 19.68 indicates a rather expensive valuation of RCL.
61.94% of the companies in the same industry are more expensive than RCL, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.76. RCL is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.09 | ||
| Fwd PE | 19.68 |
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 60.45% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, RCL is valued a bit cheaper than the industry average as 66.42% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.51 | ||
| EV/EBITDA | 18.87 |
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.
RCL's earnings are expected to grow with 21.62% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.78
PEG (5Y)5.98
EPS Next 2Y25.02%
EPS Next 3Y21.62%
5. Dividend
5.1 Amount
With a yearly dividend of 0.67%, RCL is not a good candidate for dividend investing.
RCL's Dividend Yield is a higher than the industry average which is at 4.09.
With a Dividend Yield of 0.67, RCL pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
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
12.63% of the earnings are spent on dividend by RCL. This is a low number and sustainable payout ratio.
DP12.63%
EPS Next 2Y25.02%
EPS Next 3Y21.62%
363.22
-2.62 (-0.72%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners81.33%
Inst Owner Change3.63%
Ins Owners0.26%
Ins Owner Change-0.25%
Market Cap98.66B
Analysts81.25
Price Target353.26 (-2.74%)
Short Float %3.97%
Short Ratio4.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
Yearly Dividend0.41
Dividend Growth(5Y)-30.56%
DP12.63%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.82%
Min EPS beat(2)5.52%
Max EPS beat(2)6.12%
EPS beat(4)4
Avg EPS beat(4)5.44%
Min EPS beat(4)2.35%
Max EPS beat(4)7.78%
EPS beat(8)8
Avg EPS beat(8)11.04%
EPS beat(12)12
Avg EPS beat(12)18.69%
EPS beat(16)13
Avg EPS beat(16)12.39%
Revenue beat(2)0
Avg Revenue beat(2)-1.3%
Min Revenue beat(2)-1.38%
Max Revenue beat(2)-1.22%
Revenue beat(4)0
Avg Revenue beat(4)-1.24%
Min Revenue beat(4)-1.38%
Max Revenue beat(4)-1.08%
Revenue beat(8)2
Avg Revenue beat(8)-0.62%
Revenue beat(12)4
Avg Revenue beat(12)-0.25%
Revenue beat(16)5
Avg Revenue beat(16)-2.24%
PT rev (1m)15.88%
PT rev (3m)30.12%
EPS NQ rev (1m)-0.81%
EPS NQ rev (3m)-5.74%
EPS NY rev (1m)1.42%
EPS NY rev (3m)2.12%
Revenue NQ rev (1m)-0.36%
Revenue NQ rev (3m)-1.27%
Revenue NY rev (1m)-0.32%
Revenue NY rev (3m)-0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.09 | ||
| Fwd PE | 19.68 | ||
| P/S | 5.74 | ||
| P/FCF | 27.51 | ||
| P/OCF | 17.2 | ||
| P/B | 10.76 | ||
| P/tB | 11.8 | ||
| EV/EBITDA | 18.87 |
EPS(TTM)13.92
EY3.83%
EPS(NY)18.46
Fwd EY5.08%
FCF(TTM)13.21
FCFY3.64%
OCF(TTM)21.12
OCFY5.81%
SpS63.26
BVpS33.76
TBVpS30.78
PEG (NY)0.78
PEG (5Y)5.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.35% | ||
| ROE | 39.3% | ||
| ROCE | 16.26% | ||
| ROIC | 12.84% | ||
| ROICexc | 13.19% | ||
| ROICexgc | 13.59% | ||
| OM | 26.46% | ||
| PM (TTM) | 20.97% | ||
| GM | 50.06% | ||
| FCFM | 20.88% |
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-Score8
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.92 | ||
| Debt/FCF | 5.3 | ||
| Debt/EBITDA | 2.84 | ||
| Cap/Depr | 130.38% | ||
| Cap/Sales | 12.51% | ||
| Interest Coverage | 4.41 | ||
| Cash Conversion | 92.59% | ||
| Profit Quality | 99.56% | ||
| Current Ratio | 0.23 | ||
| Quick Ratio | 0.21 | ||
| Altman-Z | 2.75 |
F-Score8
WACC8.92%
ROIC/WACC1.44
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)38.1%
EPS 3YN/A
EPS 5Y4.36%
EPS Q2Q%36.45%
EPS Next Y33.66%
EPS Next 2Y25.02%
EPS Next 3Y21.62%
EPS Next 5Y18.77%
Revenue 1Y (TTM)12.09%
Revenue growth 3Y120.76%
Revenue growth 5Y8.52%
Sales Q2Q%10.41%
Revenue Next Year9.07%
Revenue Next 2Y9.42%
Revenue Next 3Y9.14%
Revenue Next 5Y8.5%
EBIT growth 1Y22.28%
EBIT growth 3YN/A
EBIT growth 5Y14.65%
EBIT Next Year65.93%
EBIT Next 3Y27.19%
EBIT Next 5Y19.45%
FCF growth 1Y100.1%
FCF growth 3YN/A
FCF growth 5Y23.62%
OCF growth 1Y77.43%
OCF growth 3YN/A
OCF growth 5Y7.22%