ROYAL CARIBBEAN CRUISES LTD (RCL)
LR0008862868 - Common Stock
RCL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 135 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 not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year RCL was profitable.
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
With a decent Return On Assets value of 4.83%, RCL is doing good in the industry, outperforming 65.67% of the companies in the same industry.
RCL's Return On Equity of 35.92% is amongst the best of the industry. RCL outperforms 85.82% of its industry peers.
RCL's Return On Invested Capital of 8.88% is fine compared to the rest of the industry. RCL outperforms 67.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.83% | ||
| ROE | 35.92% | ||
| ROIC | 8.88% |
ROA(3y)-5.95%
ROA(5y)-5.9%
ROE(3y)-47.56%
ROE(5y)-38.68%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
RCL's Profit Margin of 12.21% is fine compared to the rest of the industry. RCL outperforms 79.10% of its industry peers.
In the last couple of years the Profit Margin of RCL has declined.
RCL has a better Operating Margin (20.81%) than 79.85% of its industry peers.
RCL's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 45.53%, RCL perfoms like the industry average, outperforming 41.79% of the companies in the same industry.
RCL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.81% | ||
| PM (TTM) | 12.21% | ||
| GM | 45.53% |
OM growth 3YN/A
OM growth 5Y0.88%
PM growth 3YN/A
PM growth 5Y-8.54%
GM growth 3YN/A
GM growth 5Y0.44%
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.
The number of shares outstanding for RCL has been increased compared to 5 years ago.
RCL has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.10, we must say that RCL is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of RCL (1.10) is worse than 62.69% of its industry peers.
The Debt to FCF ratio of RCL is 36.99, which is on the high side as it means it would take RCL, 36.99 years of fcf income to pay off all of its debts.
RCL has a Debt to FCF ratio of 36.99. This is comparable to the rest of the industry: RCL outperforms 41.79% of its industry peers.
A Debt/Equity ratio of 4.18 is on the high side and indicates that RCL has dependencies on debt financing.
The Debt to Equity ratio of RCL (4.18) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.18 | ||
| Debt/FCF | 36.99 | ||
| Altman-Z | 1.1 |
ROIC/WACC1.02
WACC8.72%
2.3 Liquidity
RCL has a Current Ratio of 0.19. This is a bad value and indicates that RCL is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.19, RCL is doing worse than 97.76% of the companies in the same industry.
A Quick Ratio of 0.16 indicates that RCL may have some problems paying its short term obligations.
RCL's Quick ratio of 0.16 is on the low side compared to the rest of the industry. RCL is outperformed by 97.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.19 | ||
| Quick Ratio | 0.16 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 189.08% over the past year.
The Earnings Per Share has been decreasing by -5.49% on average over the past years.
The Revenue has grown by 57.23% in the past year. This is a very strong growth!
Measured over the past years, RCL shows a small growth in Revenue. The Revenue has been growing by 7.92% on average per year.
EPS 1Y (TTM)189.08%
EPS 3YN/A
EPS 5Y-5.49%
EPS growth Q2Q211.61%
Revenue 1Y (TTM)57.23%
Revenue growth 3Y84.62%
Revenue growth 5Y7.92%
Revenue growth Q2Q27.94%
3.2 Future
The Earnings Per Share is expected to grow by 20.47% on average over the next years. This is a very strong growth
RCL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.28% yearly.
EPS Next Y51.91%
EPS Next 2Y32.79%
EPS Next 3Y25.78%
EPS Next 5Y20.47%
Revenue Next Year15.69%
Revenue Next 2Y11.75%
Revenue Next 3Y10.58%
Revenue Next 5Y8.28%
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 20.43 indicates a rather expensive valuation of RCL.
Based on the Price/Earnings ratio, RCL is valued a bit cheaper than the industry average as 67.16% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of RCL to the average of the S&P500 Index (25.20), we can say RCL is valued inline with the index average.
RCL is valuated correctly with a Price/Forward Earnings ratio of 13.45.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RCL indicates a somewhat cheap valuation: RCL is cheaper than 78.36% of the companies listed in the same industry.
RCL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.60.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.43 | ||
| Fwd PE | 13.45 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as RCL.
The rest of the industry has a similar Price/Free Cash Flow ratio as RCL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 60.48 | ||
| EV/EBITDA | 12.89 |
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.
RCL's earnings are expected to grow with 25.78% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.39
PEG (5Y)N/A
EPS Next 2Y32.79%
EPS Next 3Y25.78%
5. Dividend
5.1 Amount
No dividends for RCL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ROYAL CARIBBEAN CRUISES LTD
NYSE:RCL (4/23/2024, 7:22:01 PM)
Premarket: 137.07 +0.4 (+0.29%)136.67
+4.68 (+3.55%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap35.08B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.43 | ||
| Fwd PE | 13.45 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.39
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.83% | ||
| ROE | 35.92% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 20.81% | ||
| PM (TTM) | 12.21% | ||
| GM | 45.53% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.18 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.19 | ||
| Quick Ratio | 0.16 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)189.08%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y51.91%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)57.23%
Revenue growth 3Y84.62%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y