company background image
CCL

Carnival Corporation & NYSE:CCL Stock Report

Last Price

US$10.85

Market Cap

US$10.9b

7D

13.0%

1Y

-61.4%

Updated

24 Jun, 2022

Data

Company Financials +
CCL fundamental analysis
Snowflake Score
Valuation3/6
Future Growth5/6
Past Performance0/6
Financial Health0/6
Dividends0/6

CCL Stock Overview

Carnival Corporation & plc operates as a leisure travel company.

Carnival Corporation & Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Carnival Corporation &
Historical stock prices
Current Share PriceUS$10.85
52 Week HighUS$28.23
52 Week LowUS$8.70
Beta2.04
1 Month Change-10.92%
3 Month Change-41.00%
1 Year Change-61.43%
3 Year Change-76.69%
5 Year Change-83.45%
Change since IPO117.00%

Recent News & Updates

Jun 20

Carnival: A Prototypical Value Trap

CCL is ostensibly cheap based upon the assumption it can return to pre-pandemic earnings and FCF, but the leverage incurred during the pandemic renders its future FCF generation mute. While it is unlikely that CCL will face insolvency, its lack of prospective cash flow makes the stock extremely overvalued at present levels. CCL's historical capital allocation has been poor, however, there are potential catalysts in place to optimize capital allocation for CCL. Even if prescriptive actions were to be taken to unlock shareholder value, the stock would not prove to be undervalued at today's prices.

Jun 13

Carnival: On Board The Titanic And Set On Collision Course

Carnival Corporation is down 84% off its all-time high and 77% since the offset of the pandemic, but still remains a sell in our opinion. The British-American cruise operator has been without any doubt one of the biggest losers since the offset of the pandemic. Things have been going from bad to worse as macroeconomic headwinds weigh themselves heavily against the most popular cruise operator. As future prospects still look bleak, the company seems to be set on a collision course, with time slowly running out.

Jun 02

Carnival: Enormous Risk For LT Common Stockholders

Carnival has several improving metrics as COVID-19 wanes, which may make the stock tempting to investors. However, the company has taken on so much debt and issued so many shares that there will be nothing left on the bones for long-term common shareholders. Just how bad is it? It's bad. Let's take a look.

Shareholder Returns

CCLUS HospitalityUS Market
7D13.0%4.6%6.6%
1Y-61.4%-30.1%-18.5%

Return vs Industry: CCL underperformed the US Hospitality industry which returned -34.1% over the past year.

Return vs Market: CCL underperformed the US Market which returned -20.5% over the past year.

Price Volatility

Is CCL's price volatile compared to industry and market?
CCL volatility
CCL Average Weekly Movement10.6%
Hospitality Industry Average Movement9.2%
Market Average Movement8.0%
10% most volatile stocks in US Market16.6%
10% least volatile stocks in US Market3.1%

Stable Share Price: CCL is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: CCL's weekly volatility (11%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
197240,000Arnold Donaldhttps://www.carnivalcorp.com

Carnival Corporation & plc operates as a leisure travel company. Its ships visit approximately 700 ports under the Carnival Cruise Line, Princess Cruises, Holland America Line, P&O Cruises (Australia), Seabourn, Costa Cruises, AIDA Cruises, P&O Cruises (UK), and Cunard brand names. The company also provides port destinations and other services, as well as owns and owns and operates hotels, lodges, glass-domed railcars, and motor coaches.

Carnival Corporation & Fundamentals Summary

How do Carnival Corporation &'s earnings and revenue compare to its market cap?
CCL fundamental statistics
Market CapUS$10.89b
Earnings (TTM)-US$9.42b
Revenue (TTM)US$3.51b

3.5x

P/S Ratio

-1.3x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CCL income statement (TTM)
RevenueUS$3.51b
Cost of RevenueUS$3.83b
Gross Profit-US$325.00m
Other ExpensesUS$9.09b
Earnings-US$9.42b

Last Reported Earnings

Feb 28, 2022

Next Earnings Date

Jun 24, 2022

Earnings per share (EPS)-8.31
Gross Margin-9.27%
Net Profit Margin-268.73%
Debt/Equity Ratio338.5%

How did CCL perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is CCL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CCL?

Other financial metrics that can be useful for relative valuation.

CCL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue11.5x
Enterprise Value/EBITDA-10x
PEG Ration/a

Price to Sales Ratio vs Peers

How does CCL's PS Ratio compare to its peers?

CCL PS Ratio vs Peers
The above table shows the PS ratio for CCL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average4.5x

Price-To-Sales vs Peers: CCL is good value based on its Price-To-Sales Ratio (3.5x) compared to the peer average (4.5x).


Price to Earnings Ratio vs Industry

How does CCL's PE Ratio compare vs other companies in the U.S. Hospitality Industry?

Price-To-Sales vs Industry: CCL is expensive based on its Price-To-Sales Ratio (3.5x) compared to the US Hospitality industry average (1.6x)


Price to Sales Ratio vs Fair Ratio

What is CCL's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CCL PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio3.5x
Fair PS Ratio3x

Price-To-Sales vs Fair Ratio: CCL is expensive based on its Price-To-Sales Ratio (3.5x) compared to the estimated Fair Price-To-Sales Ratio (3x).


Share Price vs Fair Value

What is the Fair Price of CCL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CCL ($10.85) is trading below our estimate of fair value ($30.52)

Significantly Below Fair Value: CCL is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CCL's PEG Ratio to determine if it is good value.


Discover undervalued companies

Future Growth

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

Future Growth Score

5/6

Future Growth Score 5/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


58.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CCL is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: CCL is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: CCL is expected to become profitable in the next 3 years.

Revenue vs Market: CCL's revenue (22.3% per year) is forecast to grow faster than the US market (8.3% per year).

High Growth Revenue: CCL's revenue (22.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CCL's Return on Equity is forecast to be low in 3 years time (18.8%).


Discover growth companies

Past Performance

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

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-64.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CCL is currently unprofitable.

Growing Profit Margin: CCL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CCL is unprofitable, and losses have increased over the past 5 years at a rate of 64.1% per year.

Accelerating Growth: Unable to compare CCL's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CCL is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (119.6%).


Return on Equity

High ROE: CCL has a negative Return on Equity (-91.35%), as it is currently unprofitable.


Discover strong past performing companies

Financial Health

How is Carnival Corporation &'s financial position?

Financial Health Score

0/6

Financial Health Score 0/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: CCL's short term assets ($8.1B) do not cover its short term liabilities ($10.9B).

Long Term Liabilities: CCL's short term assets ($8.1B) do not cover its long term liabilities ($32.1B).


Debt to Equity History and Analysis

Debt Level: CCL's net debt to equity ratio (271.3%) is considered high.

Reducing Debt: CCL's debt to equity ratio has increased from 40.3% to 338.5% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: CCL has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if CCL has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Discover healthy companies

Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


0.50%

Forecast Dividend Yield

Dividend Yield vs Market

Notable Dividend: Unable to evaluate CCL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate CCL's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CCL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CCL's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: CCL is not paying a notable dividend for the US market.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as CCL has not reported any payouts.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

8.9yrs

Average management tenure


CEO

Arnold Donald (66 yo)

8.92yrs

Tenure

US$15,063,788

Compensation

Mr. Arnold W. Donald serves as Chairman and Director at World Travel and Tourism Council. He has been President and Chief Executive Officer of Carnival plc and Carnival Corporation & plc since 2013. Recent...


CEO Compensation Analysis

Compensation vs Market: Arnold's total compensation ($USD15.06M) is about average for companies of similar size in the US market ($USD13.59M).

Compensation vs Earnings: Arnold's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: CCL's management team is seasoned and experienced (8.9 years average tenure).


Board Members

Experienced Board: CCL's board of directors are seasoned and experienced ( 14.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CCL insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Carnival Corporation & plc's 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
  • Implied Market Cap: US$10.888b
  • Shares outstanding: 1.13b
  • Website: https://www.carnivalcorp.com

Number of Employees


Location

  • Carnival Corporation & plc
  • Carnival Place
  • 3655 N.W. 87th Avenue
  • Miami
  • Florida
  • 33178-2428
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/24 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/02/28
Annual Earnings2021/11/30


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.