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Royal Caribbean Cruises

LSE:0I1W
Snowflake Description

Good value with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
0I1W
LSE
$26B
Market Cap
  1. Home
  2. GB
  3. Consumer Services
Company description

Royal Caribbean Cruises Ltd. operates as a cruise company. The last earnings update was 21 days ago. More info.


Add to Portfolio Compare Print
0I1W Share Price and Events
7 Day Returns
3.2%
LSE:0I1W
0.3%
GB Hospitality
0.5%
GB Market
1 Year Returns
15.7%
LSE:0I1W
-8.7%
GB Hospitality
-5.4%
GB Market
0I1W Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Royal Caribbean Cruises (0I1W) 3.2% 0.1% - 15.7% 82.5% -61%
GB Hospitality 0.3% -0.1% -2.9% -8.7% 9.7% 28.7%
GB Market 0.5% -1.7% 2.1% -5.4% 13.8% 1.8%
1 Year Return vs Industry and Market
  • 0I1W outperformed the Hospitality industry which returned -8.7% over the past year.
  • 0I1W outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -5.4% over the past year.
Price Volatility
0I1W
Industry
5yr Volatility vs Market

Value

 Is Royal Caribbean Cruises undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Royal Caribbean Cruises to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Royal Caribbean Cruises.

LSE:0I1W Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 20 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.1%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:0I1W
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6%
Hospitality Unlevered Beta Simply Wall St/ S&P Global 0.93
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.927 (1 + (1- 21%) (42.47%))
1.16
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.16
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (1.16 * 5.96%)
8.14%

Discounted Cash Flow Calculation for LSE:0I1W using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Royal Caribbean Cruises is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:0I1W DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.14%)
2019 675.75 Analyst x4 624.90
2020 457.03 Analyst x3 390.83
2021 1,877.00 Analyst x2 1,484.33
2022 3,084.00 Analyst x1 2,255.30
2023 4,146.51 Est @ 34.45% 2,804.11
2024 5,161.78 Est @ 24.48% 3,228.00
2025 6,065.47 Est @ 17.51% 3,507.70
2026 6,831.13 Est @ 12.62% 3,653.19
2027 7,459.90 Est @ 9.2% 3,689.23
2028 7,968.01 Est @ 6.81% 3,643.97
Present value of next 10 years cash flows $25,281.56
LSE:0I1W DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $7,968.01 × (1 + 1.23%) ÷ (8.14% – 1.23%)
$116,712.64
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $116,712.64 ÷ (1 + 8.14%)10
$53,375.59
LSE:0I1W Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $25,281.56 + $53,375.59
$78,657.16
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $78,657.16 / 209.65
$375.19
LSE:0I1W Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in LSE:0I1W represents 0.99743x of NYSE:RCL
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.99743x
Value per Share
(Listing Adjusted, USD)
= Value per Share (USD) x Listing Adjustment Factor
= $ 375.19 x 0.99743
$374.22
Value per share (USD) From above. $374.22
Current discount Discount to share price of $124.10
= -1 x ($124.10 - $374.22) / $374.22
66.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Royal Caribbean Cruises is available for.
Intrinsic value
>50%
Share price is $124.1 vs Future cash flow value of $374.22
Current Discount Checks
For Royal Caribbean Cruises to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Royal Caribbean Cruises's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Royal Caribbean Cruises's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Royal Caribbean Cruises's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Royal Caribbean Cruises's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:0I1W PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $8.78
NYSE:RCL Share Price ** NYSE (2019-05-17) in USD $124.42
United Kingdom of Great Britain and Northern Ireland Hospitality Industry PE Ratio Median Figure of 34 Publicly-Listed Hospitality Companies 18.11x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 789 Publicly-Listed Companies 16.47x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Royal Caribbean Cruises.

LSE:0I1W PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:RCL Share Price ÷ EPS (both in USD)

= 124.42 ÷ 8.78

14.17x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Royal Caribbean Cruises is good value based on earnings compared to the GB Hospitality industry average.
  • Royal Caribbean Cruises is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Royal Caribbean Cruises's expected growth come at a high price?
Raw Data
LSE:0I1W PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 14.17x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts
13.2%per year
United Kingdom of Great Britain and Northern Ireland Hospitality Industry PEG Ratio Median Figure of 28 Publicly-Listed Hospitality Companies 2.05x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 574 Publicly-Listed Companies 1.46x

*Line of best fit is calculated by linear regression .

LSE:0I1W PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 14.17x ÷ 13.2%

1.07x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Royal Caribbean Cruises is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Royal Caribbean Cruises's assets?
Raw Data
LSE:0I1W PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $53.78
NYSE:RCL Share Price * NYSE (2019-05-17) in USD $124.42
United Kingdom of Great Britain and Northern Ireland Hospitality Industry PB Ratio Median Figure of 54 Publicly-Listed Hospitality Companies 1.38x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,369 Publicly-Listed Companies 1.5x
LSE:0I1W PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:RCL Share Price ÷ Book Value per Share (both in USD)

= 124.42 ÷ 53.78

2.31x

* Primary Listing of Royal Caribbean Cruises.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Royal Caribbean Cruises is overvalued based on assets compared to the GB Hospitality industry average.
X
Value checks
We assess Royal Caribbean Cruises's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Hospitality industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Hospitality industry average (and greater than 0)? (1 check)
  5. Royal Caribbean Cruises has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Royal Caribbean Cruises expected to perform in the next 1 to 3 years based on estimates from 20 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
13.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Royal Caribbean Cruises expected to grow at an attractive rate?
  • Royal Caribbean Cruises's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Royal Caribbean Cruises's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • Royal Caribbean Cruises's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:0I1W Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:0I1W Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts 13.2%
LSE:0I1W Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 20 Analysts 8.9%
United Kingdom of Great Britain and Northern Ireland Hospitality Industry Earnings Growth Rate Market Cap Weighted Average 12%
United Kingdom of Great Britain and Northern Ireland Hospitality Industry Revenue Growth Rate Market Cap Weighted Average 5.8%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.9%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:0I1W Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:0I1W Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 14,493 5,145 3,247 2
2021-12-31 13,121 4,569 2,633 9
2020-12-31 11,800 3,989 2,260 20
2019-12-31 11,016 3,765 2,057 20
LSE:0I1W Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 9,906 3,633 1,842
2018-12-31 9,494 3,479 1,811
2018-09-30 9,166 3,167 1,783
2018-06-30 8,939 3,147 1,726
2018-03-31 8,797 3,002 1,629
2017-12-31 8,778 2,875 1,625
2017-09-30 8,683 2,970 1,598
2017-06-30 8,677 2,905 1,539
2017-03-31 8,587 2,835 1,399
2016-12-31 8,496 2,517 1,283
2016-09-30 8,489 2,339 1,229
2016-06-30 8,448 2,177 765

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Royal Caribbean Cruises's earnings are expected to grow by 13.2% yearly, however this is not considered high growth (20% yearly).
  • Royal Caribbean Cruises's revenue is expected to grow by 8.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:0I1W Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below

All data from Royal Caribbean Cruises Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:0I1W Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31
2021-12-31 12.55 13.24 11.85 2.00
2020-12-31 10.91 11.78 10.30 8.00
2019-12-31 9.86 9.98 9.70 7.00
LSE:0I1W Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 8.78
2018-12-31 8.60
2018-09-30 8.42
2018-06-30 8.09
2018-03-31 7.61
2017-12-31 7.57
2017-09-30 7.44
2017-06-30 7.16
2017-03-31 6.51
2016-12-31 5.96
2016-09-30 5.68
2016-06-30 3.51

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Royal Caribbean Cruises is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Royal Caribbean Cruises's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Royal Caribbean Cruises has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Royal Caribbean Cruises performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Royal Caribbean Cruises's growth in the last year to its industry (Hospitality).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Royal Caribbean Cruises has delivered over 20% year on year earnings growth in the past 5 years.
  • Royal Caribbean Cruises's 1-year earnings growth is less than its 5-year average (13.1% vs 26.6%)
  • Royal Caribbean Cruises's earnings growth has exceeded the GB Hospitality industry average in the past year (13.1% vs 12.8%).
Earnings and Revenue History
Royal Caribbean Cruises's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Royal Caribbean Cruises Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:0I1W Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 9,905.86 1,842.07 1,396.82
2018-12-31 9,493.85 1,811.04 1,260.13
2018-09-30 9,166.02 1,783.38 1,244.68
2018-06-30 8,939.37 1,725.83 1,219.05
2018-03-31 8,797.04 1,629.06 1,205.91
2017-12-31 8,777.85 1,625.13 1,186.02
2017-09-30 8,682.98 1,598.18 1,129.44
2017-06-30 8,677.18 1,538.60 1,113.23
2017-03-31 8,587.17 1,398.97 1,115.73
2016-12-31 8,496.40 1,283.39 1,100.29
2016-09-30 8,488.85 1,229.10 1,115.27
2016-06-30 8,448.21 764.63 1,113.90
2016-03-31 8,401.27 719.69 1,101.69
2015-12-31 8,299.07 665.78 1,086.50
2015-09-30 8,214.85 568.75 1,085.44
2015-06-30 8,080.51 830.21 1,069.04
2015-03-31 8,002.23 782.92 1,061.11
2014-12-31 8,073.86 764.15 1,040.05
2014-09-30 8,110.19 661.40 1,058.84
2014-06-30 8,033.17 536.85 1,083.23
2014-03-31 7,935.90 423.92 1,074.96
2013-12-31 7,959.89 473.69 1,063.92
2013-09-30 7,911.89 73.87 1,056.53
2013-06-30 7,826.53 75.95 1,054.65
2013-03-31 7,764.76 47.55 1,044.28
2012-12-31 7,688.02 18.29 1,034.84
2012-09-30 7,657.28 447.65 1,012.79
2012-06-30 7,752.88 478.83 982.38

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Royal Caribbean Cruises has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Royal Caribbean Cruises used its assets more efficiently than the GB Hospitality industry average last year based on Return on Assets.
  • Royal Caribbean Cruises has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Royal Caribbean Cruises's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Hospitality industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Royal Caribbean Cruises has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Royal Caribbean Cruises's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Royal Caribbean Cruises's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Royal Caribbean Cruises's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Royal Caribbean Cruises's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Royal Caribbean Cruises's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Royal Caribbean Cruises Company Filings, last reported 1 month ago.

LSE:0I1W Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 11,818.72 11,124.90 248.20
2018-12-31 11,647.48 10,818.17 287.85
2018-09-30 11,875.91 10,226.11 254.82
2018-06-30 10,773.70 8,571.01 109.00
2018-03-31 10,646.80 8,855.99 111.25
2017-12-31 10,702.30 7,585.96 120.11
2017-09-30 10,435.49 7,644.82 139.95
2017-06-30 9,683.41 8,075.05 130.48
2017-03-31 9,266.83 8,622.65 109.31
2016-12-31 9,121.41 9,445.12 132.60
2016-09-30 8,790.15 9,857.17 178.43
2016-06-30 8,145.67 10,212.97 175.16
2016-03-31 7,887.77 8,841.99 117.36
2015-12-31 8,063.04 8,594.61 121.57
2015-09-30 8,255.79 8,583.74 147.42
2015-06-30 8,320.24 8,843.31 159.36
2015-03-31 7,973.91 8,640.03 229.71
2014-12-31 8,284.36 8,509.72 189.24
2014-09-30 9,021.03 7,036.76 183.18
2014-06-30 8,849.24 7,645.24 185.26
2014-03-31 8,776.93 8,056.72 216.51
2013-12-31 8,808.27 8,141.72 204.69
2013-09-30 8,762.08 7,984.30 209.57
2013-06-30 8,366.26 8,315.53 205.17
2013-03-31 8,338.54 8,509.68 215.89
2012-12-31 8,308.75 8,545.42 194.86
2012-09-30 8,702.66 7,839.44 241.24
2012-06-30 8,271.67 8,266.60 212.21
  • Royal Caribbean Cruises's level of debt (94.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (91.7% vs 94.1% today).
  • Debt is well covered by operating cash flow (32.7%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 6.1x coverage).
X
Financial health checks
We assess Royal Caribbean Cruises's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Royal Caribbean Cruises has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Royal Caribbean Cruises's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.25%
Current annual income from Royal Caribbean Cruises dividends. Estimated to be 2.43% next year.
If you bought $2,000 of Royal Caribbean Cruises shares you are expected to receive $45 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Royal Caribbean Cruises's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.98%).
  • Royal Caribbean Cruises's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.3%).
Upcoming dividend payment

Purchase Royal Caribbean Cruises before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:0I1W Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Hospitality Industry Average Dividend Yield Market Cap Weighted Average of 32 Stocks 3.2%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 706 Stocks 4.3%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.3%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:0I1W Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 4.84 1.00
2021-12-31 3.29 7.00
2020-12-31 2.97 15.00
2019-12-31 2.82 15.00
LSE:0I1W Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-10 2.800 2.253
2019-05-02 2.800 2.193
2019-05-01 2.800 2.198
2018-12-04 2.800 2.494
2018-09-06 2.800 2.412
2018-05-09 2.400 2.173
2018-02-13 2.400 2.014
2017-12-05 2.400 1.908
2017-09-06 2.400 1.961
2017-05-03 1.920 1.698
2017-02-07 1.920 1.967
2016-12-06 1.920 2.217
2016-09-19 1.920 2.549
2016-05-17 1.500 2.092
2016-02-09 1.500 1.983
2015-12-08 1.500 1.709
2015-09-03 1.500 1.599
2015-05-06 1.200 1.478
2015-02-06 1.200 1.568
2014-12-09 1.200 1.487
2014-09-09 1.200 1.801
2014-05-07 1.000 1.737
2014-02-05 1.000 1.914
2013-12-04 1.000 2.133
2013-09-11 1.000 2.457
2013-05-08 0.480 1.330
2013-02-08 0.480 1.405
2012-12-05 0.480 1.348
2012-09-12 0.480 1.480
2012-05-09 0.400 1.588
2012-02-15 0.400 1.415
2011-12-07 0.400 1.466
2011-07-27 0.400 1.573
2010-10-26 0.000 0.000
2010-07-23 0.000 0.000
2010-07-22 0.000 0.000
2010-04-29 0.000 0.000
2010-04-28 0.000 0.000
2010-02-23 0.000 0.000
2010-01-28 0.000 0.000
2009-11-03 0.000 0.000
2009-07-29 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Royal Caribbean Cruises has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Royal Caribbean Cruises only paid a dividend in the past 8 years.
Current Payout to shareholders
What portion of Royal Caribbean Cruises's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.6x coverage).
X
Income/ dividend checks
We assess Royal Caribbean Cruises's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Royal Caribbean Cruises afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Royal Caribbean Cruises has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Royal Caribbean Cruises's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Richard Fain
COMPENSATION $12,422,715
AGE 70
TENURE AS CEO 31.1 years
CEO Bio

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 Caribbean, he spent 13 years as Treasurer, Chief Financial Officer and Joint Managing Director of Gotaas-Larsen Shipping Corp. Mr. Fain is a recognized industry leader, having participated in shipping for over 40 years. He serves as Chairman of the University of Miami Board of Trustees as well as on the National Board of the Posse Foundation. He serves as the Chairman of the Board of Azamara Club Cruises, Inc. He serves as the Chairman of Royal Caribbean International. He served as the Chairman of United Way Of Miami-Dade County Inc., Miami Business Forum, Greater Miami Convention & Visitors Bureau and Cruise Lines International Association (now merged with International Council of Cruise Lines). He is the Chairman of Royal Caribbean International, Ltd. Mr. Fain has been the Chairman at Royal Caribbean Cruises Ltd since April 1998 and its Director since 1981. Mr. Fain has been a Director of Celebrity Cruises, Inc. since 1981. He serves as a Director of Royal Caribbean International and International Council of Cruise Lines. Mr. Fain serves as Trustee of University of Miami. He served as a Non-Executive Director of First Choice Holidays PLC from July 14, 2000 to April 1, 2005 and served as a Director of TUI Travel PLC and United Way Of Miami-Dade County Inc. He served as Co-Chair of the United Way Campaign of Miami-Dade County. He served as the Chair of the POW WOW Host Committee in Miami. He is a Member of the National Conference for Community and Justice and serves on the World Wildlife Fund's National Council, the Florida Council of 100. In 2004, Mr. Fain received the Ultimate Chief Executive Officer Award from the South Florida Business Journal and accepted the Ellis Island Medal of Honor from the National Ethnic Coalition Organization. He was inducted into the South Florida Business Hall of Fame in October 2004. He was presented one of France's most distinguished awards, the Chevalier de la Légion d'Honneur (French Legion of Honor), and was named Commander, First Class, of the Order of the Lion by Finland. In addition to being the recipient of the Anti-Defamation League's 2000 Distinguished Community Service award, he was named the 1999 Statesman of the Year by the Wharton School Club of South Florida, as well as the 1998 Humanitarian of the Year by the American Red Cross of Greater Miami and the Keys. Mr. Fain holds a BS in Economics from the University of California at Berkeley and MBA from the Wharton School of Business at the University of Pennsylvania.

CEO Compensation
  • Richard's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Richard's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Royal Caribbean Cruises management team in years:

6
Average Tenure
59
Average Age
  • The average tenure for the Royal Caribbean Cruises management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Richard Fain

TITLE
Chairman & CEO
COMPENSATION
$12M
AGE
70
TENURE
31.1 yrs

Jason Liberty

TITLE
Executive VP & CFO
COMPENSATION
$5M
AGE
42
TENURE
6 yrs

Harri Kulovaara

TITLE
Executive Vice President of Maritime & Newbuilding
COMPENSATION
$4M
AGE
65
TENURE
14.3 yrs

Lisa Lutoff-Perlo

TITLE
President & CEO of Celebrity Cruises
COMPENSATION
$4M
AGE
60
TENURE
4.4 yrs

Michael Bayley

TITLE
President & CEO of Royal Caribbean International
COMPENSATION
$6M
AGE
59
TENURE
4.4 yrs

Henry Pujol

TITLE
Senior VP
AGE
50
TENURE
6 yrs

Martha Poulter

TITLE
Senior VP & Chief Information Officer
AGE
51
TENURE
1.4 yrs

Ian Bailey

TITLE
Vice President of Investor Relations
TENURE
10.6 yrs

Bradley Stein

TITLE
Senior VP
AGE
62
TENURE
12.8 yrs

Laura Miller

TITLE
Chief Human Resources Officer & Senior VP
AGE
53
TENURE
1.3 yrs
Board of Directors Tenure

Average tenure and age of the Royal Caribbean Cruises board of directors in years:

15.3
Average Tenure
68.5
Average Age
  • The average tenure for the Royal Caribbean Cruises board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Richard Fain

TITLE
Chairman & CEO
COMPENSATION
$12M
AGE
70
TENURE
31.1 yrs

Tom Pritzker

TITLE
Independent Director
COMPENSATION
$267K
AGE
68
TENURE
20.3 yrs

Bill Reilly

TITLE
Independent Director
COMPENSATION
$267K
AGE
78
TENURE
21.3 yrs

Bill Kimsey

TITLE
Lead Director
COMPENSATION
$383K
AGE
76
TENURE
5.7 yrs

Bernt Reitan

TITLE
Independent Director
COMPENSATION
$297K
AGE
70
TENURE
14.7 yrs

Eyal Ofer

TITLE
Independent Director
COMPENSATION
$272K
AGE
67
TENURE
24 yrs

Arne Wilhelmsen

TITLE
Independent Director
COMPENSATION
$264K
AGE
52
TENURE
16 yrs

Vagn Sørensen

TITLE
Independent Director
COMPENSATION
$294K
AGE
59
TENURE
7.8 yrs

Ann Moore

TITLE
Independent Director
COMPENSATION
$267K
AGE
67
TENURE
7 yrs

John Brock

TITLE
Independent Director
COMPENSATION
$285K
AGE
69
TENURE
5.3 yrs
Who owns this company?
Recent Insider Trading
  • Royal Caribbean Cruises insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
03. May 19 Sell Henry Pujol Individual 02. May 19 02. May 19 -4,134 $128.20 $-529,979
03. May 19 Sell Maritza Montiel Individual 02. May 19 02. May 19 -2,700 $126.49 $-341,523
06. Mar 19 Sell Bradley Stein Individual 05. Mar 19 05. Mar 19 -5,909 $119.46 $-704,777
06. Mar 19 Buy Stephen Howe Individual 05. Mar 19 05. Mar 19 420 $119.50 $50,190
01. Mar 19 Sell Maritza Montiel Individual 01. Mar 19 01. Mar 19 -510 $118.77 $-60,574
26. Feb 19 Sell Jason Liberty Individual 25. Feb 19 25. Feb 19 -13,000 $121.79 $-1,583,270
26. Feb 19 Sell Lisa Lutoff-Perlo Individual 25. Feb 19 25. Feb 19 -14,187 $120.75 $-1,713,103
19. Feb 19 Sell Michael Bayley Individual 15. Feb 19 15. Feb 19 -20,084 $117.72 $-2,364,288
19. Feb 19 Sell Harri Kulovaara Individual 15. Feb 19 15. Feb 19 -8,642 $117.90 $-1,018,892
14. Feb 19 Sell Michael Bayley Individual 12. Feb 19 12. Feb 19 -7,115 $116.47 $-826,414
07. Feb 19 Sell A. Wilhelmsen Capital AS Company 05. Feb 19 05. Feb 19 -4,800,000 $115.57 $-554,736,000
13. Dec 18 Buy Richard Fain Individual 13. Dec 18 13. Dec 18 18,900 $105.60 $1,995,808
20. Nov 18 Sell Bernt Reitan Individual 19. Nov 18 19. Nov 18 -1,578 $106.58 $-168,179
14. Sep 18 Sell Harri Kulovaara Individual 13. Sep 18 13. Sep 18 -6,600 $125.55 $-828,652
X
Management checks
We assess Royal Caribbean Cruises's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Royal Caribbean Cruises has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

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 December 31, 2018, the company operated 60 ships providing services to approximately 1,000 destinations in 126 countries. Royal Caribbean Cruises Ltd. was founded in 1968 and is headquartered in Miami, Florida.

Details
Name: Royal Caribbean Cruises Ltd.
0I1W
Exchange: LSE
Founded: 1968
$26,197,598,335
209,647,874
Website: http://www.rclcorporate.com
Address: Royal Caribbean Cruises Ltd.
1050 Caribbean Way,
Miami,
Florida, 33132,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE RCL Common Shares New York Stock Exchange US USD 28. Apr 1993
DB RC8 Common Shares Deutsche Boerse AG DE EUR 28. Apr 1993
LSE 0I1W Common Shares London Stock Exchange GB USD 28. Apr 1993
BMV RCL * Common Shares Bolsa Mexicana de Valores MX MXN 28. Apr 1993
Number of employees
Current staff
Staff numbers
76,950
Royal Caribbean Cruises employees.
Industry
Hotels, Resorts and Cruise Lines
Consumer Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/23 21:26
End of day share price update: 2019/05/17 00:00
Last estimates confirmation: 2019/05/13
Last earnings filing: 2019/05/02
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.