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 133 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 8.67%. This is amongst the best in the industry. RCL outperforms 82.71% of its industry peers.
With an excellent Return On Equity value of 40.79%, RCL belongs to the best of the industry, outperforming 89.47% of the companies in the same industry.
RCL has a better Return On Invested Capital (12.57%) than 78.20% 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 93.23% of the companies in the same industry.
RCL's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 25.79%, RCL belongs to the best of the industry, outperforming 90.98% of the companies in the same industry.
RCL's Operating Margin has improved in the last couple of years.
RCL has a Gross Margin of 49.58%. This is comparable to the rest of the industry: RCL outperforms 56.39% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RCL is destroying value.
The number of shares outstanding for RCL has been increased compared to 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
RCL has an Altman-Z score of 2.10. This is not the best score and indicates that RCL is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.10, RCL is in the better half of the industry, outperforming 62.41% of the companies in the same industry.
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.
RCL has a better Debt to FCF ratio (9.19) than 63.16% of its industry peers.
RCL has a Debt/Equity ratio of 2.26. This is a high value indicating a heavy dependency on external financing.
RCL has a Debt to Equity ratio (2.26) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.26 | ||
| Debt/FCF | 9.19 | ||
| Altman-Z | 2.1 |
ROIC/WACC0.94
WACC13.4%
2.3 Liquidity
A Current Ratio of 0.18 indicates that RCL may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.18, RCL is doing worse than 98.50% of the companies in the same industry.
A Quick Ratio of 0.15 indicates that RCL may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.15, RCL is doing worse than 96.99% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.18 | ||
| Quick Ratio | 0.15 |
3. Growth
3.1 Past
RCL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 46.72%, which is quite impressive.
Measured over the past 5 years, RCL shows a small growth in Earnings Per Share. The EPS has been growing by 4.36% on average per year.
RCL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.65%.
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
The Earnings Per Share is expected to grow by 17.89% 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 8.79% yearly.
EPS Next Y30.88%
EPS Next 2Y23.02%
EPS Next 3Y20.04%
EPS Next 5Y17.89%
Revenue Next Year9.16%
Revenue Next 2Y9.31%
Revenue Next 3Y8.9%
Revenue Next 5Y8.79%
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
Based on the Price/Earnings ratio of 20.24, the valuation of RCL can be described as rather expensive.
Based on the Price/Earnings ratio, RCL is valued a bit cheaper than 69.17% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.31. RCL is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 14.44, RCL is valued correctly.
Based on the Price/Forward Earnings ratio, RCL is valued a bit cheaper than 71.43% of the companies in the same industry.
RCL is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.24 | ||
| Fwd PE | 14.44 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RCL is valued a bit more expensive than the industry average as 60.90% of the companies are valued more cheaply.
RCL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.22 | ||
| EV/EBITDA | 14.98 |
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.
A more expensive valuation may be justified as RCL's earnings are expected to grow with 20.04% in the coming years.
PEG (NY)0.66
PEG (5Y)4.64
EPS Next 2Y23.02%
EPS Next 3Y20.04%
5. Dividend
5.1 Amount
With a yearly dividend of 0.92%, RCL is not a good candidate for dividend investing.
RCL's Dividend Yield is a higher than the industry average which is at 3.73.
With a Dividend Yield of 0.92, RCL pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
5.2 History
The dividend of RCL decreases each year by -30.56%.
RCL has paid a dividend for at least 10 years, which is 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
RCL pays out 7.85% of its income as dividend. This is a sustainable payout ratio.
DP7.85%
EPS Next 2Y23.02%
EPS Next 3Y20.04%
258.08
-7.65 (-2.88%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners81.14%
Inst Owner Change2.72%
Ins Owners0.27%
Ins Owner Change-0.27%
Market Cap70.08B
Analysts82.5
Price Target270.78 (4.92%)
Short Float %4.18%
Short Ratio4.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
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)-0.26%
PT rev (3m)-7.04%
EPS NQ rev (1m)0.32%
EPS NQ rev (3m)2.42%
EPS NY rev (1m)0%
EPS NY rev (3m)2.74%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)0.5%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.24 | ||
| Fwd PE | 14.44 | ||
| P/S | 4.18 | ||
| P/FCF | 33.22 | ||
| P/OCF | 12.6 | ||
| P/B | 8.8 | ||
| P/tB | 9.8 | ||
| EV/EBITDA | 14.98 |
EPS(TTM)12.75
EY4.94%
EPS(NY)17.87
Fwd EY6.92%
FCF(TTM)7.77
FCFY3.01%
OCF(TTM)20.49
OCFY7.94%
SpS61.7
BVpS29.31
TBVpS26.34
PEG (NY)0.66
PEG (5Y)4.64
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 | 2.1 |
F-Score7
WACC13.4%
ROIC/WACC0.94
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 Y30.88%
EPS Next 2Y23.02%
EPS Next 3Y20.04%
EPS Next 5Y17.89%
Revenue 1Y (TTM)13.65%
Revenue growth 3Y120.76%
Revenue growth 5Y8.52%
Sales Q2Q%7.27%
Revenue Next Year9.16%
Revenue Next 2Y9.31%
Revenue Next 3Y8.9%
Revenue Next 5Y8.79%
EBIT growth 1Y27.56%
EBIT growth 3YN/A
EBIT growth 5Y14.64%
EBIT Next Year63.67%
EBIT Next 3Y25.7%
EBIT Next 5Y18.71%
FCF growth 1Y192.36%
FCF growth 3YN/A
FCF growth 5Y23.62%
OCF growth 1Y139.76%
OCF growth 3YN/A
OCF growth 5Y7.21%