LSE:CCL

Stock Analysis Report

Executive Summary

Carnival plc operates as a leisure travel company in North America, Australia, Europe, and Asia.

Snowflake

Fundamentals

Established dividend payer with proven track record.


Similar Companies

Share Price & News

How has Carnival's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.6%

LSE:CCL

-1.8%

GB Hospitality

-2.0%

GB Market


1 Year Return

-23.7%

LSE:CCL

-4.3%

GB Hospitality

-5.8%

GB Market

CCL underperformed the Hospitality industry which returned -4.3% over the past year.

CCL underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -5.8% over the past year.


Share holder returns

CCLIndustryMarket
7 Day-2.6%-1.8%-2.0%
30 Day0.5%-1.1%-5.1%
90 Day-12.8%1.5%-3.3%
1 Year-20.9%-23.7%-1.0%-4.3%-1.5%-5.8%
3 Year6.2%-2.9%16.8%5.3%17.7%3.9%
5 Year75.4%53.8%62.7%38.6%26.9%0.2%

Price Volatility Vs. Market

How volatile is Carnival's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

9.99x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Carnival's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Carnival's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Carnival is good value based on earnings compared to the GB Hospitality industry average.

Carnival is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.


Price Based on Expected Growth

Carnival is poor value based on expected growth next year.


Price Based on Value of Assets

Carnival is overvalued based on assets compared to the GB Hospitality industry average.


Next Steps

Future Growth

How is Carnival expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

4.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Carnival's revenue is expected to grow by 7% yearly, however this is not considered high growth (20% yearly).

Carnival's earnings are expected to grow by 4.9% yearly, however this is not considered high growth (20% yearly).

Carnival's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

Carnival's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

Carnival's earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Carnival is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Carnival performed over the past 5 years?

19.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Carnival's year on year earnings growth rate has been positive over the past 5 years.

Carnival's 1-year earnings growth is less than its 5-year average (5.7% vs 19.6%)

Carnival's earnings growth has exceeded the GB Hospitality industry average in the past year (5.7% vs 4.7%).


Return on Equity

Carnival has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Carnival used its assets more efficiently than the GB Hospitality industry average last year based on Return on Assets.


Return on Capital Employed

Carnival has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Carnival's financial position?


Financial Position Analysis

Carnival's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Carnival's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Carnival's level of debt (46.4%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (38.8% vs 46.4% today).

Debt is well covered by operating cash flow (50.3%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 17.7x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.3x debt.


Next Steps

Dividend

What is Carnival's current dividend yield, its reliability and sustainability?

4.99%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Carnival before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Carnival's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.09%).

Carnival's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.76%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.1x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.4x coverage).


Next Steps

Management

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

6.8yrs

Average management tenure


CEO

Arnold Donald (64yo)

6.1yrs

Tenure

US$13,506,884

Compensation

Mr. Arnold W. Donald has been President and Chief Executive Officer of Carnival Corporation and Carnival plc since 2013. Mr. Donald is Director of Bank of America Corporation since January 23, 2013. Mr. Do ...


CEO Compensation Analysis

Arnold's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

Arnold's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

6.8yrs

Average Tenure

61yo

Average Age

The average tenure for the Carnival management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

13.8yrs

Average Tenure

66.5yo

Average Age

The average tenure for the Carnival board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUK£93,31915 Jan 19
Arnaldo Perez
EntityIndividual
Role
Company Secretary & General Counsel
Shares2,290
Max PriceUK£40.75
SellUK£2,004,61017 Oct 18
Michael Thamm
EntityIndividual
Role
Group Chief Executive Officer of Costa Group & Carnival Asia
Shares46,290
Max PriceUK£43.31

Ownership Breakdown


Management Team

  • Stein Kruse (60yo)

    Group Chief Executive Officer of Holland America Group & Carnival UK

    • Tenure: 6.6yrs
    • Compensation: $5.52m
  • Beth Roberts

    Senior Vice President of Investor Relations

  • Arnaldo Perez (59yo)

    Company Secretary & General Counsel

    • Tenure: 24.6yrs
    • Compensation: $2.41m
  • Roger Frizzell

    Chief Communications Officer & Senior VP of Corporate Communications

    • Tenure: 6.2yrs
  • David Bernstein (61yo)

    CFO & Chief Accounting Officer

    • Tenure: 12.1yrs
    • Compensation: $4.56m
  • Peter Anderson

    Chief Ethics & Compliance Officer

  • Arnold Donald (64yo)

    CEO, President & Director

    • Tenure: 6.1yrs
    • Compensation: $13.51m
  • Jerry Montgomery (62yo)

    Chief Human Resources Officer

    • Tenure: 8.4yrs
  • Michael Thamm (55yo)

    Group Chief Executive Officer of Costa Group & Carnival Asia

    • Tenure: 7.1yrs
    • Compensation: $5.28m
  • Alan Buckelew (70yo)

    Chief Information Officer

    • Tenure: 2.7yrs
    • Compensation: $4.79m

Board Members

  • Richard Glasier (73yo)

    Director

    • Tenure: 15.1yrs
    • Compensation: $323.18k
  • Micky Arison (69yo)

    Chairman of the Board

    • Tenure: 29.6yrs
    • Compensation: $1.10m
  • Jonathon Band (69yo)

    Director

    • Tenure: 9.3yrs
    • Compensation: $320.26k
  • Stuart Subotnick (77yo)

    Director

    • Tenure: 16.3yrs
    • Compensation: $303.47k
  • Arnold Donald (64yo)

    CEO, President & Director

    • Tenure: 18.6yrs
    • Compensation: $13.51m
  • John Parker (77yo)

    Director

    • Tenure: 18.8yrs
    • Compensation: $290.39k
  • Randy Weisenburger (61yo)

    Senior Independent & Presiding Director

    • Tenure: 2.1yrs
    • Compensation: $339.95k
  • Laura Weil (62yo)

    Director

    • Tenure: 12.6yrs
    • Compensation: $284.95k
  • Debra Kelly-Ennis (62yo)

    Director

    • Tenure: 7.3yrs
    • Compensation: $293.68k
  • David Dingle (61yo)

    Chairman of Carnival UK

    • Tenure: 5.6yrs

Company Information

Carnival plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Carnival plc
  • Ticker: CCL
  • Exchange: LSE
  • Founded: 1850
  • Industry: hotels, resorts and cruise lines
  • Sector: consumer services
  • Market Cap: UK£24.242b
  • Shares outstanding: 687.90m
  • Website: Click here

Number of Employees


Location

  • Carnival plc
  • Carnival House
  • 100 Harbour Parade
  • Southampton
  • Hampshire
  • SO15 1ST
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CUKP.FOTCPK (Pink Sheets LLC)YesPLC Ordinary SharesUSUSDOct 2000
CCLLSE (London Stock Exchange)YesPLC Ordinary SharesGBGBPOct 2000
POH1DB (Deutsche Boerse AG)YesPLC Ordinary SharesDEEUROct 2000
CCLLBATS-CHIXE (BATS 'Chi-X Europe')YesPLC Ordinary SharesGBGBPOct 2000
CCL NBMV (Bolsa Mexicana de Valores)YesPLC Ordinary SharesMXMXNOct 2000
CUKNYSE (New York Stock Exchange)ADRUSUSDOct 2000
POH3DB (Deutsche Boerse AG)ADRDEEUROct 2000

Biography

Carnival plc operates as a leisure travel company in North America, Australia, Europe, and Asia. It operates in four segments: North America and Australia Cruise Operations, Europe and Asia Cruise Operatio ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/17 20:43
End of Day Share Price2019/08/16 00:00
Earnings2019/05/31
Annual Earnings2018/11/30


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.