ROYAL CARIBBEAN CRUISES LTD (RCL) Stock Fundamental Analysis
NYSE:RCL - New York Stock Exchange, Inc. - LR0008862868 - Common Stock - Currency: USD
Overall RCL gets a fundamental rating of 5 out of 10. We evaluated RCL 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
RCL had positive earnings in the past year.
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
Looking at the Return On Assets, with a value of 9.35%, RCL belongs to the top of the industry, outperforming 83.97% of the companies in the same industry.
RCL has a better Return On Equity (39.30%) than 88.55% of its industry peers.
RCL has a better Return On Invested Capital (12.84%) than 79.39% 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
Looking at the Profit Margin, with a value of 20.97%, RCL belongs to the top of the industry, outperforming 93.89% of the companies in the same industry.
RCL's Profit Margin has been stable in the last couple of years.
RCL has a Operating Margin of 26.46%. This is amongst the best in the industry. RCL outperforms 93.13% 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 in line with 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) | 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
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
Compared to 5 years ago, RCL has more shares outstanding
RCL has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.48 indicates that RCL is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of RCL (2.48) is better than 64.89% 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 77.86% of the companies in the same industry.
A Debt/Equity ratio of 1.92 is on the high side and indicates that RCL has dependencies on debt financing.
RCL has a Debt to Equity ratio (1.92) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.92 | ||
| Debt/FCF | 5.3 | ||
| Altman-Z | 2.48 |
ROIC/WACC1.45
WACC8.86%
2.3 Liquidity
RCL has a Current Ratio of 0.23. 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 Current ratio of 0.23 is on the low side compared to the rest of the industry. RCL is outperformed by 96.18% of its industry peers.
RCL has a Quick Ratio of 0.23. 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 worse Quick ratio (0.21) than 95.42% of its industry peers.
| 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.
The Earnings Per Share has been growing slightly by 4.36% on average over the past years.
The Revenue has grown by 12.09% 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)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
The Earnings Per Share is expected to grow by 18.55% on average over the next years. This is quite good.
RCL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.19% yearly.
EPS Next Y31.8%
EPS Next 2Y23.82%
EPS Next 3Y20.68%
EPS Next 5Y18.55%
Revenue Next Year9.41%
Revenue Next 2Y9.62%
Revenue Next 3Y9.2%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 22.22, which indicates a rather expensive current valuation of RCL.
RCL's Price/Earnings ratio is a bit cheaper when compared to the industry. RCL is cheaper than 62.60% of the companies in the same industry.
RCL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.99, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 17.08, the valuation of RCL can be described as rather expensive.
Based on the Price/Forward Earnings ratio, RCL is valued a bit cheaper than 65.65% of the companies in the same industry.
RCL is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.36, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.22 | ||
| Fwd PE | 17.08 |
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 60.31% 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 68.70% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.42 | ||
| EV/EBITDA | 16.72 |
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.
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)0.7
PEG (5Y)5.09
EPS Next 2Y23.82%
EPS Next 3Y20.68%
5. Dividend
5.1 Amount
RCL has a yearly dividend return of 0.79%, which is pretty low.
Compared to an average industry Dividend Yield of 4.71, RCL pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.79, RCL pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
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 2Y23.82%
EPS Next 3Y20.68%
NYSE:RCL (8/7/2025, 3:04:59 PM)
309.3
-4.72 (-1.5%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners81.14%
Inst Owner Change-0.19%
Ins Owners0.27%
Ins Owner Change-0.31%
Market Cap84.02B
Analysts81.25
Price Target350.8 (13.42%)
Short Float %4.53%
Short Ratio5.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
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)10.59%
PT rev (3m)11.19%
EPS NQ rev (1m)-4.65%
EPS NQ rev (3m)-4.97%
EPS NY rev (1m)0.32%
EPS NY rev (3m)3.22%
Revenue NQ rev (1m)-0.74%
Revenue NQ rev (3m)-0.91%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.22 | ||
| Fwd PE | 17.08 | ||
| P/S | 4.89 | ||
| P/FCF | 23.42 | ||
| P/OCF | 14.64 | ||
| P/B | 9.16 | ||
| P/tB | 10.05 | ||
| EV/EBITDA | 16.72 |
EPS(TTM)13.92
EY4.5%
EPS(NY)18.1
Fwd EY5.85%
FCF(TTM)13.21
FCFY4.27%
OCF(TTM)21.12
OCFY6.83%
SpS63.26
BVpS33.76
TBVpS30.78
PEG (NY)0.7
PEG (5Y)5.09
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 | 2.48 |
F-Score8
WACC8.86%
ROIC/WACC1.45
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 Y31.8%
EPS Next 2Y23.82%
EPS Next 3Y20.68%
EPS Next 5Y18.55%
Revenue 1Y (TTM)12.09%
Revenue growth 3Y120.76%
Revenue growth 5Y8.52%
Sales Q2Q%10.41%
Revenue Next Year9.41%
Revenue Next 2Y9.62%
Revenue Next 3Y9.2%
Revenue Next 5Y8.19%
EBIT growth 1Y22.28%
EBIT growth 3YN/A
EBIT growth 5Y14.65%
EBIT Next Year65.93%
EBIT Next 3Y27.19%
EBIT Next 5Y18.33%
FCF growth 1Y100.1%
FCF growth 3YN/A
FCF growth 5Y23.62%
OCF growth 1Y77.43%
OCF growth 3YN/A
OCF growth 5Y7.22%