Royal Caribbean Cruises Ltd. operates as a cruise company.
Fair value with moderate growth potential.
Share Price & News
How has Royal Caribbean Cruises's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: RC8 has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: RC8 underperformed the German Hospitality industry which returned 2.7% over the past year.
Return vs Market: RC8 underperformed the German Market which returned 14.1% over the past year.
Price Volatility Vs. Market
How volatile is Royal Caribbean Cruises's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Is Royal Caribbean Cruises undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: RC8 (€102.78) is trading above our estimate of fair value (€44.16)
Significantly Below Fair Value: RC8 is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: RC8 is good value based on its PE Ratio (12.4x) compared to the Hospitality industry average (25.4x).
PE vs Market: RC8 is good value based on its PE Ratio (12.4x) compared to the German market (20.9x).
Price to Earnings Growth Ratio
PEG Ratio: RC8 is poor value based on its PEG Ratio (1.2x)
Price to Book Ratio
PB vs Industry: RC8 is good value based on its PB Ratio (1.9x) compared to the DE Hospitality industry average (2.3x).
How is Royal Caribbean Cruises forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RC8's forecast earnings growth (10.4% per year) is above the savings rate (-0.4%).
Earnings vs Market: RC8's earnings (10.4% per year) are forecast to grow slower than the German market (13.3% per year).
High Growth Earnings: RC8's earnings are forecast to grow, but not significantly.
Revenue vs Market: RC8's revenue (8% per year) is forecast to grow faster than the German market (5% per year).
High Growth Revenue: RC8's revenue (8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: RC8's Return on Equity is forecast to be high in 3 years time (22%)
How has Royal Caribbean Cruises performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RC8 has high quality earnings.
Growing Profit Margin: RC8's current net profit margins (17.2%) are lower than last year (19.1%).
Past Earnings Growth Analysis
Earnings Trend: RC8's earnings have grown significantly by 21.9% per year over the past 5 years.
Accelerating Growth: RC8's earnings growth over the past year (3.7%) is below its 5-year average (21.9% per year).
Earnings vs Industry: RC8 earnings growth over the past year (3.7%) exceeded the Hospitality industry -36.8%.
Return on Equity
High ROE: RC8's Return on Equity (15%) is considered low.
Return on Assets
Return on Capital Employed
How is Royal Caribbean Cruises's financial position?
Financial Position Analysis
Short Term Liabilities: RC8's short term assets ($1.2B) do not cover its short term liabilities ($8.0B).
Long Term Liabilities: RC8's short term assets ($1.2B) do not cover its long term liabilities ($9.6B).
Debt to Equity History and Analysis
Debt Level: RC8's debt to equity ratio (86.7%) is considered high.
Reducing Debt: RC8's debt to equity ratio has reduced from 102.1% to 86.7% over the past 5 years.
Debt Coverage: RC8's debt is well covered by operating cash flow (33.7%).
Interest Coverage: RC8's interest payments on its debt are well covered by EBIT (5.5x coverage).
Inventory Level: RC8 has a high level of physical assets or inventory.
Debt Coverage by Assets: RC8's debt is not covered by short term assets (assets are 0.1x debt).
What is Royal Caribbean Cruises's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: RC8's dividend (2.8%) is higher than the bottom 25% of dividend payers in the German market (1.31%).
High Dividend: RC8's dividend (2.8%) is low compared to the top 25% of dividend payers in the German market (3.57%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, RC8 has been paying a dividend for less than 10 years.
Growing Dividend: RC8's dividend payments have increased, but the company has only paid a dividend for 9 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (33%), RC8's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: RC8's dividends in 3 years are forecast to be well covered by earnings (26.4% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Richard Fain (71yo)
Mr. Richard D. Fain has been the Chief Executive Officer at Royal Caribbean Cruises Ltd. since April 1988. Mr. Fain serves as the Chief Executive Officer of Azamara Club Cruises, Inc. Prior to Royal Caribb ...
CEO Compensation Analysis
Compensation vs Market: Richard's total compensation ($USD12.42M) is above average for companies of similar size in the German market ($USD4.36M).
Compensation vs Earnings: Richard's compensation has been consistent with company performance over the past year.
|Chairman & CEO||31.8yrs||US$12.42m||0.47% $101.0m|
|Executive VP & CFO||6.8yrs||US$4.75m||0.0034% $730.2k|
|Executive Vice President of Maritime & Newbuilding||15.1yrs||US$3.84m||0.0028% $601.4k|
|President & CEO of Celebrity Cruises||5.2yrs||US$3.84m||0.015% $3.3m|
|President & CEO of Royal Caribbean International||5.2yrs||US$5.72m||0.0055% $1.2m|
|Senior VP||6.8yrs||no data||0.018% $3.8m|
|Senior VP & Chief Information Officer||2.2yrs||no data||no data|
|Vice President of Investor Relations||11.3yrs||no data||no data|
|Senior VP||13.6yrs||no data||0.0045% $962.2k|
|Chief Human Resources Officer & Senior VP||2.1yrs||no data||no data|
Experienced Management: RC8's management team is seasoned and experienced (6.8 years average tenure).
|Chairman & CEO||31.8yrs||US$12.42m||0.47% $101.0m|
|Independent Director||22.1yrs||US$266.70k||0.0075% $1.6m|
|Lead Director||6.4yrs||US$383.13k||0.0093% $2.0m|
|Independent Director||4.8yrs||US$318.95k||0.0027% $584.2k|
|Independent Director||7.8yrs||US$266.70k||0.0072% $1.6m|
|Independent Director||6yrs||US$284.99k||0.0064% $1.4m|
|Independent Director||21yrs||US$266.70k||0.39% $84.0m|
|Independent Director||24.8yrs||US$271.71k||0.014% $3.0m|
|Independent Director||8.6yrs||US$294.20k||0.010% $2.2m|
|Independent Director||16.8yrs||US$264.20k||0.0042% $906.4k|
Experienced Board: RC8's board of directors are seasoned and experienced ( 12.7 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: RC8 insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Royal Caribbean Cruises Ltd.'s company bio, employee growth, exchange listings and data sources
- Name: Royal Caribbean Cruises Ltd.
- Ticker: RC8
- Exchange: DB
- Founded: 1968
- Industry: Hotels, Resorts and Cruise Lines
- Sector: Consumer Services
- Market Cap: US$23.179b
- Listing Market Cap: US$21.478b
- Shares outstanding: 208.80m
- Website: https://www.rclinvestor.com
Number of Employees
- Royal Caribbean Cruises Ltd.
- 1050 Caribbean Way
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|RCL||NYSE (New York Stock Exchange)||Yes||Common Shares||US||USD||Apr 1993|
|RC8||DB (Deutsche Boerse AG)||Yes||Common Shares||DE||EUR||Apr 1993|
|0I1W||LSE (London Stock Exchange)||Yes||Common Shares||GB||USD||Apr 1993|
|RCL *||BMV (Bolsa Mexicana de Valores)||Yes||Common Shares||MX||MXN||Apr 1993|
Royal Caribbean Cruises Ltd. operates as a cruise company. The company operates cruises under the Royal Caribbean International, Celebrity Cruises, Azamara Club Cruises, and Silversea Cruises brands. The Royal Caribbean International brand provides itineraries to destinations worldwide, including Alaska, Asia, Australia, Bahamas, Bermuda, Canada, the Caribbean, Europe, the Panama Canal, and New Zealand with cruise lengths that range from 2 to 23 nights. The Celebrity Cruises brand offers itineraries to destinations, such as Alaska, Asia, Australia, Bermuda, Canada, the Caribbean, Europe, the Galapagos Islands, Hawaii, India, New Zealand, the Panama Canal, and South America with cruise lengths ranging from 2 to 19 nights. The Azamara Club Cruises brand offers cruise itineraries ranging from 4 to 21 nights to destinations, including Asia, Australia/New Zealand, Northern and Western Europe, the Mediterranean, Cuba, and South America. The Silversea Cruises brand provides itineraries to destinations, including the Galapagos Islands, Antarctica, and the Arctic. As of March 31, 2019, the company operated 61 ships and had 15 ships on order. Royal Caribbean Cruises Ltd. was founded in 1968 and is headquartered in Miami, Florida.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/20 20:31|
|End of Day Share Price||2020/02/20 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.