Royal Caribbean Cruises Ltd. operates as a cruise company.
+ 1 more risk
High growth potential second-rate dividend payer.
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: 0I1W's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: 0I1W underperformed the UK Hospitality industry which returned -29.8% over the past year.
Return vs Market: 0I1W underperformed the UK Market which returned -12.4% 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: 0I1W ($50.5) is trading above our estimate of fair value ($11.3)
Significantly Below Fair Value: 0I1W is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: 0I1W is poor value based on its PE Ratio (58.8x) compared to the Hospitality industry average (17.8x).
PE vs Market: 0I1W is poor value based on its PE Ratio (58.8x) compared to the UK market (14.7x).
Price to Earnings Growth Ratio
PEG Ratio: 0I1W is good value based on its PEG Ratio (0.5x)
Price to Book Ratio
PB vs Industry: 0I1W is overvalued based on its PB Ratio (1.1x) compared to the GB Hospitality industry average (1x).
How is Royal Caribbean Cruises forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 0I1W's forecast earnings growth (114% per year) is above the savings rate (1.2%).
Earnings vs Market: 0I1W's earnings (114% per year) are forecast to grow faster than the UK market (20.3% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: 0I1W's revenue (28.2% per year) is forecast to grow faster than the UK market (3.7% per year).
High Growth Revenue: 0I1W's revenue (28.2% per year) is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 0I1W's Return on Equity is forecast to be low in 3 years time (16%).
How has Royal Caribbean Cruises performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 0I1W has a large one-off loss of $1.1B impacting its March 31 2020 financial results.
Growing Profit Margin: 0I1W's current net profit margins (1.8%) are lower than last year (18.6%).
Past Earnings Growth Analysis
Earnings Trend: 0I1W's earnings have grown by 15.2% per year over the past 5 years.
Accelerating Growth: 0I1W's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: 0I1W had negative earnings growth (-90%) over the past year, making it difficult to compare to the Hospitality industry average (-10.9%).
Return on Equity
High ROE: 0I1W's Return on Equity (2%) is considered low.
How is Royal Caribbean Cruises's financial position?
Financial Position Analysis
Short Term Liabilities: 0I1W's short term assets ($4.6B) do not cover its short term liabilities ($9.0B).
Long Term Liabilities: 0I1W's short term assets ($4.6B) do not cover its long term liabilities ($13.7B).
Debt to Equity History and Analysis
Debt Level: 0I1W's debt to equity ratio (147.2%) is considered high.
Reducing Debt: 0I1W's debt to equity ratio has increased from 107.6% to 147.2% over the past 5 years.
Debt Coverage: 0I1W's debt is not well covered by operating cash flow (17.8%).
Interest Coverage: 0I1W's interest payments on its debt are well covered by EBIT (4.1x coverage).
What is Royal Caribbean Cruises's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 0I1W's dividend (6.02%) is higher than the bottom 25% of dividend payers in the UK market (2.04%).
High Dividend: 0I1W's dividend (6.02%) is in the top 25% of dividend payers in the UK market (5.67%)
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, 0I1W has been paying a dividend for less than 10 years.
Growing Dividend: 0I1W's dividend payments have increased, but the company has only paid a dividend for 9 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (344.5%), 0I1W's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 0I1W's dividends in 3 years are forecast to be well covered by earnings (25.6% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Richard Fain (71yo)
Mr. Richard D. Fain has been the Chief Executive Officer at Royal Caribbean Cruises Ltd. since April 1988. Mr. Fain serves as the Chief Executive Officer of Azamara Club Cruises, Inc. Prior to Royal Caribb ...
CEO Compensation Analysis
Compensation vs Market: Richard's total compensation ($USD14.36M) is above average for companies of similar size in the UK market ($USD4.59M).
Compensation vs Earnings: Richard's compensation has been consistent with company performance over the past year.
|Chairman & CEO||32.08yrs||US$14.36m||0.50% $54.7m|
|Executive VP & CFO||7yrs||US$5.42m||0.011% $1.2m|
|Executive Vice President of Maritime & Newbuilding||15.33yrs||US$3.42m||0.0072% $779.8k|
|President & CEO of Celebrity Cruises||5.42yrs||US$4.43m||0.0085% $923.2k|
|President & CEO of Royal Caribbean International||5.42yrs||US$7.06m||0.018% $2.0m|
|Senior VP||7yrs||no data||0.019% $2.1m|
|Senior VP & Chief Information Officer||2.42yrs||no data||no data|
|Vice President of Investor Relations||no data||no data||no data|
|Senior VP||13.83yrs||no data||0.0064% $699.4k|
|Chief Human Resources Officer & Senior VP||2.33yrs||no data||no data|
Experienced Management: 0I1W's management team is seasoned and experienced (7 years average tenure).
|Chairman & CEO||32.08yrs||US$14.36m||0.50% $54.7m|
|Independent Director||22.33yrs||US$284.47k||0.0082% $894.9k|
|Independent Lead Director||6.67yrs||US$381.97k||0.010% $1.1m|
|Independent Director||5yrs||US$273.25k||0.013% $1.4m|
|Independent Director||8yrs||US$265.75k||0.0080% $863.4k|
|Independent Director||6.17yrs||US$273.25k||0.0071% $770.0k|
|Independent Director||21.17yrs||US$265.75k||0.39% $42.5m|
|Independent Director||8.83yrs||US$291.89k||0.011% $1.2m|
|Independent Director||4.42yrs||US$307.50k||0.0015% $159.7k|
Experienced Board: 0I1W's board of directors are considered experienced (8.4 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: 0I1W insiders have bought more shares than they have sold 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: 0I1W
- Exchange: LSE
- Founded: 1968
- Industry: Hotels, Resorts and Cruise Lines
- Sector: Consumer Services
- Market Cap: US$10.861b
- Shares outstanding: 209.39m
- 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 19 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 to destinations, including Asia, Australia/New Zealand, Northern and Western Europe, the Mediterranean, Cuba, and South America with cruise lengths ranging from 3 to 26 nights. The Silversea Cruises brand provides itineraries to destinations, including the Galapagos Islands, Antarctica, and the Arctic with cruise lengths ranging from 6 to 25 nights. As of December 31, 2019, the company operated 61 ships and had 17 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||2020/05/30 23:37|
|End of Day Share Price||2020/05/29 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.