Royal Caribbean Cruises
Market Cap
US$24.5b
Last Updated
2019/11/20 23:46 UTC
Data Sources
Company Financials +
Executive Summary
Royal Caribbean Cruises Ltd. operates as a cruise company.
Snowflake
Fair value with acceptable track record.
Similar Companies
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
| RCL | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.9% | 1.3% | 0.9% |
| 30 Day | 4.4% | 3.9% | 4.5% |
| 90 Day | 9.3% | 4.3% | 6.2% |
| 1 Year | 11.8%9.0% | 14.0%11.2% | 19.4%16.8% |
| 3 Year | 51.4%41.7% | 32.2%22.9% | 47.5%38.0% |
| 5 Year | 84.5%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
1 week ago | Simply Wall St
Is Royal Caribbean Cruises Ltd. (NYSE:RCL) Creating Value For Shareholders?2 weeks ago | Simply Wall St
Royal Caribbean Cruises Ltd. Just Reported Third-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?4 weeks ago | Simply Wall St
Royal Caribbean Cruises Ltd. (NYSE:RCL) Is Yielding 2.8% - But Is It A Buy?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
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
| Entity | Individual |
| Role | Chief Accounting Officer Senior VP |
| Shares | 4,134 |
| Max Price | US$128.20 |
| Entity | Individual |
| Shares | 2,700 |
| Max Price | US$126.49 |
| Entity | Individual |
| Shares | 420 |
| Max Price | US$119.50 |
| Entity | Individual |
| Role | Chief Legal Officer Senior VP |
| Shares | 5,909 |
| Max Price | US$119.46 |
| Entity | Individual |
| Shares | 510 |
| Max Price | US$118.77 |
| Entity | Individual |
| Role | Unit CEO President & CEO of Celebrity Cruises |
| Shares | 14,187 |
| Max Price | US$120.75 |
| Entity | Individual |
| Role | Chief Financial Officer Executive VP & CFO |
| Shares | 13,000 |
| Max Price | US$121.79 |
| Entity | Individual |
| Role | Senior Key Executive Executive Vice President of Maritime & Newbuilding |
| Shares | 8,642 |
| Max Price | US$117.90 |
| Entity | Individual |
| Role | Unit CEO President & CEO of Royal Caribbean International |
| Shares | 20,084 |
| Max Price | US$117.72 |
| Entity | Individual |
| Role | Unit CEO President & CEO of Royal Caribbean International |
| Shares | 7,115 |
| Max Price | US$116.47 |
| Entity | Company |
| Shares | 4,800,000 |
| Max Price | US$115.57 |
| Entity | Individual |
| Role | Chief Executive Officer Chairman & CEO |
| Shares | 18,900 |
| Max Price | US$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
| 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 |
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/11/20 23:46 |
| End of Day Share Price | 2019/11/20 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.