NYSE:CCL

Stock Analysis Report

Executive Summary

Carnival Corporation & plc operates as a leisure travel company.

Snowflake

Fundamentals

6 star dividend payer and undervalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

3.6%

CCL

1.6%

US Hospitality

1.8%

US Market


1 Year Return

-26.2%

CCL

3.9%

US Hospitality

7.3%

US Market

Return vs Industry: CCL underperformed the US Hospitality industry which returned 3.9% over the past year.

Return vs Market: CCL underperformed the US Market which returned 7.3% over the past year.


Shareholder returns

CCLIndustryMarket
7 Day3.6%1.6%1.8%
30 Day-14.0%-4.8%-0.7%
90 Day-5.9%-4.0%0.06%
1 Year-23.4%-26.2%6.4%3.9%9.7%7.3%
3 Year-1.4%-10.1%41.7%32.4%46.3%36.9%
5 Year29.2%12.2%41.3%25.7%64.5%46.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Carnival Corporation & undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: CCL ($42.44) is trading below our estimate of fair value ($110.27)

Significantly Undervalued: CCL is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CCL is good value based on its PE Ratio (9.6x) compared to the Hospitality industry average (22.3x).

PE vs Market: CCL is good value based on its PE Ratio (9.6x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: CCL is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: CCL is good value based on its PB Ratio (1.2x) compared to the US Hospitality industry average (2.1x).


Next Steps

Future Growth

How is Carnival Corporation & forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

3.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CCL's forecast earnings growth (3.8% per year) is above the savings rate (2.7%).

Earnings vs Market: CCL's earnings (3.8% per year) are forecast to grow slower than the US market (14.6% per year).

High Growth Earnings: CCL's earnings are forecast to grow, but not significantly.

Revenue vs Market: CCL's revenue (4.6% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: CCL's revenue (4.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: CCL's Return on Equity is forecast to be low in 3 years time (12.2%).


Next Steps

Past Performance

How has Carnival Corporation & performed over the past 5 years?

17.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CCL's earnings have grown by 17.6% per year over the past 5 years.

Accelerating Growth: CCL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CCL had negative earnings growth (-4.5%) over the past year, making it difficult to compare to the Hospitality industry average (-13.9%).


Return on Equity

High ROE: CCL's Return on Equity (12.1%) is considered low.


Return on Assets

ROA vs Industry: CCL has a higher Return on Assets than the Hospitality industry average last year.


Return on Capital Employed

ROCE Improving: CCL has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Carnival Corporation &'s financial position?


Financial Position Analysis

Short Term Liabilities: CCL's short term assets ($2.7B) do not cover its short term liabilities ($8.9B)

Long Term Liabilities: CCL's short term assets (2.7B) do not cover its long term liabilities (9.8B)


Debt to Equity History and Analysis

Debt Level: CCL's debt to equity ratio (42.5%) is considered high

Reducing Debt: CCL's debt to equity ratio has increased from 35.5% to 42.5% over the past 5 years.

Debt Coverage: CCL's debt is well covered by operating cash flow (51.4%).

Interest Coverage: CCL's interest payments on its debt are well covered by EBIT (18.2x coverage).


Balance Sheet

Inventory Level: CCL has a high level of physical assets or inventory.

Debt Coverage by Assets: CCL's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

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

4.71%

Current Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield vs Market

company4.7%marketbottom25%1.5%markettop25%3.7%industryaverage2.9%forecastin3Years4.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CCL's dividend (4.71%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: CCL's dividend (4.71%) is in the top 25% of dividend payers in the US market (3.72%)

Stable Dividend: CCL's dividends per share have been stable in the past 10 years.

Growing Dividend: CCL's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (45.3%), CCL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CCL's dividends in 3 years are forecast to be well covered by earnings (43.1% payout ratio).


Next Steps

Management

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

6.3yrs

Average management tenure


CEO

Arnold Donald (64yo)

6.3yrs

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

Compensation vs. Market: Arnold's total compensation ($USD13.51M) is about average for companies of similar size in the US market ($USD11.21M).

Compensation vs Earnings: Arnold's compensation has been consistent with company performance over the past year.


Management Age and Tenure

6.3yrs

Average Tenure

60.5yo

Average Age

Experienced Management: CCL's management team is seasoned and experienced (6.3 years average tenure).


Board Age and Tenure

14.0yrs

Average Tenure

66.5yo

Average Age

Experienced Board: CCL's board of directors are seasoned and experienced ( 14 years average tenure).


Insider Trading

Insider Buying: CCL insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$204,15107 Oct 19
Jonathon Band
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$40.83
SellUS$324,86320 Feb 19
Arnaldo Perez
EntityIndividual
Role
Chief Legal Officer
General Counsel & Company Secretary
Shares5,691
Max PriceUS$57.08
SellUS$1,835,98320 Feb 19
Stein Kruse
EntityIndividual
Role
Unit CEO
Group Chief Executive Officer of Holland America Group & Carnival UK
Shares32,163
Max PriceUS$57.08
SellUS$1,408,94020 Feb 19
David Bernstein
EntityIndividual
Role
Chief Financial Officer
CFO & Chief Accounting Officer
Shares24,682
Max PriceUS$57.08
SellUS$119,68815 Jan 19
Arnaldo Perez
EntityIndividual
Role
Chief Legal Officer
General Counsel & Company Secretary
Shares2,290
Max PriceUS$52.27
SellUS$364,08215 Jan 19
Stein Kruse
EntityIndividual
Role
Unit CEO
Group Chief Executive Officer of Holland America Group & Carnival UK
Shares6,966
Max PriceUS$52.27
BuyUS$1,002,61228 Dec 18
Arnold Donald
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares21,595
Max PriceUS$46.51

Ownership Breakdown


Management Team

  • Arnold Donald (64yo)

    CEO, President & Director

    • Tenure: 6.3yrs
    • Compensation: US$13.51m
  • Stein Kruse (60yo)

    Group Chief Executive Officer of Holland America Group & Carnival UK

    • Tenure: 5.8yrs
    • Compensation: US$5.52m
  • Arnaldo Perez (59yo)

    General Counsel & Company Secretary

    • Tenure: 24.2yrs
    • Compensation: US$2.41m
  • Greg Sullivan

    Chief Information Officer

    • Tenure: 0.8yrs
  • Roger Frizzell

    Chief Communications Officer & Senior VP of Corporate Communications

    • Tenure: 6.3yrs
  • David Bernstein (61yo)

    CFO & Chief Accounting Officer

    • Tenure: 12.3yrs
    • Compensation: US$4.56m
  • Michael Thamm (55yo)

    Chief Executive Officer of the Costa Group & Carnival Asia

    • Tenure: 2.8yrs
    • Compensation: US$5.28m
  • Beth Roberts

    Senior Vice President of Investor Relations

    • Tenure: 0yrs
  • Jerry Montgomery (62yo)

    Chief Human Resources Officer

    • Tenure: 8.6yrs
  • Peter Anderson

    Chief Ethics & Compliance Officer

    • Tenure: 0.2yrs

Board Members

  • Arnold Donald (64yo)

    CEO, President & Director

    • Tenure: 6.3yrs
    • Compensation: US$13.51m
  • Micky Arison (69yo)

    Chairman of the Board

    • Tenure: 29yrs
    • Compensation: US$1.10m
  • Richard Glasier (73yo)

    Independent Director

    • Tenure: 15.3yrs
    • Compensation: US$323.18k
  • Laura Weil (62yo)

    Non-Executive Director

    • Tenure: 12.8yrs
    • Compensation: US$284.95k
  • Stuart Subotnick (77yo)

    Independent Director

    • Tenure: 32.3yrs
    • Compensation: US$303.47k
  • Randy Weisenburger (61yo)

    Senior Independent & Presiding Director

    • Tenure: 2.3yrs
    • Compensation: US$339.95k
  • Debra Kelly-Ennis (62yo)

    Independent Director

    • Tenure: 7.5yrs
    • Compensation: US$293.68k
  • David Dingle (61yo)

    Chairman of Carnival UK

    • Tenure: 5yrs
  • John Parker (77yo)

    Independent Director

    • Tenure: 16.5yrs
    • Compensation: US$290.39k
  • Jonathon Band (69yo)

    Independent Director

    • Tenure: 9.5yrs
    • Compensation: US$320.26k

Company Information

Carnival Corporation & Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Carnival Corporation & Plc
  • Ticker: CCL
  • Exchange: NYSE
  • Founded: 1972
  • Industry: Hotels, Resorts and Cruise Lines
  • Sector: Consumer Services
  • Market Cap: US$29.658b
  • Shares outstanding: 711.21m
  • Website: https://www.carnivalcorp.com

Number of Employees


Location

  • Carnival Corporation & Plc
  • 3655 NW 87th Avenue
  • Miami
  • Florida
  • 33178
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CCLNYSE (New York Stock Exchange)YesCorporation Common StockUSUSDJul 1987
CCL1 NBMV (Bolsa Mexicana de Valores)YesCorporation Common StockMXMXNJul 1987
0EV1LSE (London Stock Exchange)YesCorporation Common StockGBUSDJul 1987
CVC1DB (Deutsche Boerse AG)YesCorporation Common StockDEEURJul 1987
CCLLSE (London Stock Exchange)PLC Ordinary SharesGBGBPJan 2003
POH1DB (Deutsche Boerse AG)PLC Ordinary SharesDEEURJan 2003
CCLLBATS-CHIXE (BATS 'Chi-X Europe')PLC Ordinary SharesGBGBPJan 2003
CUKP.FOTCPK (Pink Sheets LLC)PLC Ordinary SharesUSUSDJan 2003
CCL NBMV (Bolsa Mexicana de Valores)PLC Ordinary SharesMXMXNJan 2003
CUKNYSE (New York Stock Exchange)ADRUSUSDJan 2003
POH3DB (Deutsche Boerse AG)ADRDEEURJan 2003

Biography

Carnival Corporation & plc operates as a leisure travel company. As of August 21, 2019, the company operated 102 ships. Its ships visit approximately 700 ports under the Carnival Cruise Line, Princess Crui ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 23:33
End of Day Share Price2019/10/17 00:00
Earnings2019/08/31
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.