NYSE:RCL

Stock Analysis Report

Executive Summary

Royal Caribbean Cruises Ltd. operates as a cruise company.

Snowflake

Fair value with acceptable track record.


Similar Companies

Norwegian Cruise Line Holdings

NYSE:NCLH

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: RCL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.9%

RCL

1.3%

US Hospitality

0.9%

US Market


1 Year Return

9.0%

RCL

11.2%

US Hospitality

16.8%

US Market

Return vs Industry: RCL underperformed the US Hospitality industry which returned 11.2% over the past year.

Return vs Market: RCL underperformed the US Market which returned 16.8% over the past year.


Shareholder returns

RCLIndustryMarket
7 Day1.9%1.3%0.9%
30 Day4.4%3.9%4.5%
90 Day9.3%4.3%6.2%
1 Year11.8%9.0%14.0%11.2%19.4%16.8%
3 Year51.4%41.7%32.2%22.9%47.5%38.0%
5 Year84.5%66.6%35.4%20.9%62.0%44.1%

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

Valuation

Is Royal Caribbean Cruises undervalued compared to its fair value and its price relative to the market?

12.75x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RCL ($117) is trading above our estimate of fair value ($50.61)

Significantly Below Fair Value: RCL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: RCL is good value based on its PE Ratio (12.7x) compared to the Hospitality industry average (22.1x).

PE vs Market: RCL is good value based on its PE Ratio (12.7x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: RCL is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: RCL is good value based on its PB Ratio (2x) compared to the US Hospitality industry average (2.2x).


Next Steps

Future Growth

How is Royal Caribbean Cruises forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

12.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RCL's forecast earnings growth (12.6% per year) is above the savings rate (2.7%).

Earnings vs Market: RCL's earnings (12.6% per year) are forecast to grow slower than the US market (14.4% per year).

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

Revenue vs Market: RCL's revenue (8.2% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: RCL's revenue (8.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RCL's Return on Equity is forecast to be low in 3 years time (17.5%).


Next Steps

Past Performance

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

23.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RCL has high quality earnings.

Growing Profit Margin: RCL's current net profit margins (17.8%) are lower than last year (19.5%).


Past Earnings Growth Analysis

Earnings Trend: RCL's earnings have grown significantly by 23.2% per year over the past 5 years.

Accelerating Growth: RCL's earnings growth over the past year (7.7%) is below its 5-year average (23.2% per year).

Earnings vs Industry: RCL earnings growth over the past year (7.7%) exceeded the Hospitality industry -15.7%.


Return on Equity

High ROE: RCL's Return on Equity (15.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Royal Caribbean Cruises's financial position?


Financial Position Analysis

Short Term Liabilities: RCL's short term assets ($1.2B) do not cover its short term liabilities ($7.1B)

Long Term Liabilities: RCL's short term assets ($1.2B) do not cover its long term liabilities (10.2B)


Debt to Equity History and Analysis

Debt Level: RCL's debt to equity ratio (84%) is considered high.

Reducing Debt: RCL's debt to equity ratio has increased from 77.6% to 84% over the past 5 years.

Debt Coverage: RCL's debt is well covered by operating cash flow (36.5%).

Interest Coverage: RCL's interest payments on its debt are well covered by EBIT (5.6x coverage).


Balance Sheet

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

Debt Coverage by Assets: RCL's debt is not covered by short term assets (assets are 0.1x debt).


Next Steps

Dividend

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

2.67%

Current Dividend Yield


Dividend Yield vs Market

company2.7%marketbottom25%1.4%markettop25%3.7%industryaverage3.1%forecastin3Years2.6%

Current dividend yield vs market & industry

Notable Dividend: RCL's dividend (2.67%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: RCL's dividend (2.67%) is low compared to the top 25% of dividend payers in the US market (3.68%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, RCL has been paying a dividend for less than 10 years.

Growing Dividend: RCL's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (31.4%), RCL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RCL's dividends in 3 years are forecast to be well covered by earnings (24.3% payout ratio).


Next Steps

Management

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

6.5yrs

Average management tenure


CEO

Richard Fain (71yo)

31.6yrs

Tenure

US$12,422,715

Compensation

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 ($USD12.42M) is about average for companies of similar size in the US market ($USD11.07M).

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


Management Age and Tenure

6.5yrs

Average Tenure

60yo

Average Age

Experienced Management: RCL's management team is seasoned and experienced (6.5 years average tenure).


Board Age and Tenure

12.4yrs

Average Tenure

68.5yo

Average Age

Experienced Board: RCL's board of directors are seasoned and experienced ( 12.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$529,97903 May 19
Henry Pujol
EntityIndividual
Role
Chief Accounting Officer
Senior VP
Shares4,134
Max PriceUS$128.20
SellUS$341,52303 May 19
Maritza Montiel
EntityIndividual
Shares2,700
Max PriceUS$126.49
BuyUS$50,19006 Mar 19
Stephen Howe
EntityIndividual
Shares420
Max PriceUS$119.50
SellUS$704,77706 Mar 19
Bradley Stein
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares5,909
Max PriceUS$119.46
SellUS$60,57401 Mar 19
Maritza Montiel
EntityIndividual
Shares510
Max PriceUS$118.77
SellUS$1,713,10326 Feb 19
Lisa Lutoff-Perlo
EntityIndividual
Role
Unit CEO
President & CEO of Celebrity Cruises
Shares14,187
Max PriceUS$120.75
SellUS$1,583,27026 Feb 19
Jason Liberty
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares13,000
Max PriceUS$121.79
SellUS$1,018,89219 Feb 19
Harri Kulovaara
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Maritime & Newbuilding
Shares8,642
Max PriceUS$117.90
SellUS$2,364,28819 Feb 19
Michael Bayley
EntityIndividual
Role
Unit CEO
President & CEO of Royal Caribbean International
Shares20,084
Max PriceUS$117.72
SellUS$826,41414 Feb 19
Michael Bayley
EntityIndividual
Role
Unit CEO
President & CEO of Royal Caribbean International
Shares7,115
Max PriceUS$116.47
SellUS$554,736,00007 Feb 19
A. Wilhelmsen Capital AS
EntityCompany
Shares4,800,000
Max PriceUS$115.57
BuyUS$1,995,80813 Dec 18
Richard Fain
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares18,900
Max PriceUS$105.60

Ownership Breakdown

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


Management Team

  • Richard Fain (71yo)

    Chairman & CEO

    • Tenure: 31.6yrs
    • Compensation: US$12.42m
  • Michael Bayley (60yo)

    President & CEO of Royal Caribbean International

    • Tenure: 4.9yrs
    • Compensation: US$5.72m
  • Lisa Lutoff-Perlo (61yo)

    President & CEO of Celebrity Cruises

    • Tenure: 4.9yrs
    • Compensation: US$3.84m
  • Harri Kulovaara (66yo)

    Executive Vice President of Maritime & Newbuilding

    • Tenure: 14.8yrs
    • Compensation: US$3.84m
  • Bradley Stein (63yo)

    Senior VP

    • Tenure: 13.3yrs
  • Jason Liberty (43yo)

    Executive VP & CFO

    • Tenure: 6.5yrs
    • Compensation: US$4.75m
  • Henry Pujol (51yo)

    Senior VP

    • Tenure: 6.5yrs
  • Ian Bailey

    Vice President of Investor Relations

    • Tenure: 11.1yrs
  • Martha Poulter (52yo)

    Senior VP & Chief Information Officer

    • Tenure: 1.9yrs
  • Laura Miller (54yo)

    Chief Human Resources Officer & Senior VP

    • Tenure: 1.8yrs

Board Members

  • Bill Reilly (79yo)

    Independent Director

    • Tenure: 21.8yrs
    • Compensation: US$266.70k
  • Bill Kimsey (77yo)

    Lead Director

    • Tenure: 6.2yrs
    • Compensation: US$383.13k
  • Richard Fain (71yo)

    Chairman & CEO

    • Tenure: 31.6yrs
    • Compensation: US$12.42m
  • Don Thompson (55yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: US$318.95k
  • Ann Moore (68yo)

    Independent Director

    • Tenure: 7.5yrs
    • Compensation: US$266.70k
  • John Brock (70yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$284.99k
  • Tom Pritzker (69yo)

    Independent Director

    • Tenure: 20.8yrs
    • Compensation: US$266.70k
  • Eyal Ofer (68yo)

    Independent Director

    • Tenure: 24.5yrs
    • Compensation: US$271.71k
  • Vagn Sørensen (60yo)

    Independent Director

    • Tenure: 8.3yrs
    • Compensation: US$294.20k
  • Arne Wilhelmsen (53yo)

    Independent Director

    • Tenure: 16.5yrs
    • Compensation: US$264.20k

Company Information

Royal Caribbean Cruises Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Royal Caribbean Cruises Ltd.
  • Ticker: RCL
  • Exchange: NYSE
  • Founded: 1968
  • Industry: Hotels, Resorts and Cruise Lines
  • Sector: Consumer Services
  • Market Cap: US$24.527b
  • Shares outstanding: 209.63m
  • Website: https://www.rclinvestor.com

Number of Employees


Location

  • Royal Caribbean Cruises Ltd.
  • 1050 Caribbean Way
  • Miami
  • Florida
  • 33132
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RCLNYSE (New York Stock Exchange)YesCommon SharesUSUSDApr 1993
RC8DB (Deutsche Boerse AG)YesCommon SharesDEEURApr 1993
0I1WLSE (London Stock Exchange)YesCommon SharesGBUSDApr 1993
RCL *BMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNApr 1993

Biography

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 R ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/20 23:46
End of Day Share Price2019/11/20 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.