ROYAL CARIBBEAN CRUISES LTD (RCL) Stock Fundamental Analysis
USA - NYSE:RCL - LR0008862868 - Common Stock
314.2 USD
+11.36 (+3.75%)
Taking everything into account, RCL scores 5 out of 10 in our fundamental rating. RCL was compared to 134 industry peers in the Hotels, Restaurants & Leisure industry. There are concerns on the financial health of RCL while its profitability can be described as average. RCL is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
In the past year RCL was profitable.
RCL had a positive operating cash flow in the past year.
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
RCL has a Return On Assets of 9.35%. This is amongst the best in the industry. RCL outperforms 83.58% of its industry peers.
The Return On Equity of RCL (39.30%) is better than 86.57% of its industry peers.
RCL's Return On Invested Capital of 12.84% is amongst the best of the industry. RCL outperforms 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
The Profit Margin of RCL (20.97%) is better than 94.78% of its industry peers.
In the last couple of years the Profit Margin of RCL has remained more or less at the same level.
RCL's Operating Margin of 26.46% is amongst the best of the industry. RCL outperforms 94.03% of its industry peers.
RCL's Operating Margin has improved in the last couple of years.
RCL has a Gross Margin of 50.06%. This is comparable to the rest of the industry: RCL outperforms 58.21% 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) | 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
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.
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 2.41 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 (2.41) than 64.93% of its industry peers.
RCL has a debt to FCF ratio of 5.30. This is a neutral value as RCL would need 5.30 years to pay back of all of its debts.
RCL has a better Debt to FCF ratio (5.30) than 73.88% of its industry peers.
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 | 2.41 |
ROIC/WACC1.63
WACC7.87%
2.3 Liquidity
A Current Ratio of 0.23 indicates that RCL may have some problems paying its short term obligations.
The Current ratio of RCL (0.23) is worse than 93.28% 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's Quick ratio of 0.21 is on the low side compared to the rest of the industry. RCL is outperformed by 93.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.23 | ||
| Quick Ratio | 0.21 |
3. Growth
3.1 Past
RCL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 38.10%, which is quite impressive.
The Earnings Per Share has been growing slightly by 4.36% on average over the past years.
RCL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.09%.
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
Based on estimates for the next years, RCL will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.77% on average per year.
RCL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.50% yearly.
EPS Next Y33.79%
EPS Next 2Y24.83%
EPS Next 3Y21.45%
EPS Next 5Y18.77%
Revenue Next Year9.11%
Revenue Next 2Y9.45%
Revenue Next 3Y9.16%
Revenue Next 5Y8.5%
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
With a Price/Earnings ratio of 22.57, RCL is valued on the expensive side.
Based on the Price/Earnings ratio, RCL is valued a bit cheaper than 64.93% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.69. RCL is around the same levels.
Based on the Price/Forward Earnings ratio of 17.07, the valuation of RCL can be described as rather expensive.
RCL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RCL is cheaper than 69.40% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.18. RCL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.57 | ||
| Fwd PE | 17.07 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as RCL.
68.66% of the companies in the same industry are more expensive than RCL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.79 | ||
| EV/EBITDA | 16.23 |
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 21.45% in the coming years.
PEG (NY)0.67
PEG (5Y)5.18
EPS Next 2Y24.83%
EPS Next 3Y21.45%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.02%, RCL has a reasonable but not impressive dividend return.
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 1.02, RCL pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
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
12.63% of the earnings are spent on dividend by RCL. This is a low number and sustainable payout ratio.
DP12.63%
EPS Next 2Y24.83%
EPS Next 3Y21.45%
NYSE:RCL (10/21/2025, 2:49:10 PM)
314.2
+11.36 (+3.75%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners84.1%
Inst Owner Change-0.1%
Ins Owners0.25%
Ins Owner Change-0.26%
Market Cap85.35B
Analysts81.25
Price Target357.1 (13.65%)
Short Float %4.37%
Short Ratio5.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
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)-0.09%
PT rev (3m)17.14%
EPS NQ rev (1m)0.27%
EPS NQ rev (3m)-4.16%
EPS NY rev (1m)0.09%
EPS NY rev (3m)1.51%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)-1.16%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.57 | ||
| Fwd PE | 17.07 | ||
| P/S | 4.97 | ||
| P/FCF | 23.79 | ||
| P/OCF | 14.88 | ||
| P/B | 9.31 | ||
| P/tB | 10.21 | ||
| EV/EBITDA | 16.23 |
EPS(TTM)13.92
EY4.43%
EPS(NY)18.4
Fwd EY5.86%
FCF(TTM)13.21
FCFY4.2%
OCF(TTM)21.12
OCFY6.72%
SpS63.26
BVpS33.76
TBVpS30.78
PEG (NY)0.67
PEG (5Y)5.18
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 | 2.41 |
F-Score8
WACC7.87%
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)38.1%
EPS 3YN/A
EPS 5Y4.36%
EPS Q2Q%36.45%
EPS Next Y33.79%
EPS Next 2Y24.83%
EPS Next 3Y21.45%
EPS Next 5Y18.77%
Revenue 1Y (TTM)12.09%
Revenue growth 3Y120.76%
Revenue growth 5Y8.52%
Sales Q2Q%10.41%
Revenue Next Year9.11%
Revenue Next 2Y9.45%
Revenue Next 3Y9.16%
Revenue Next 5Y8.5%
EBIT growth 1Y22.28%
EBIT growth 3YN/A
EBIT growth 5Y14.65%
EBIT Next Year65.86%
EBIT Next 3Y27.11%
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%