Royal Caribbean Cruises
Market Cap
US$10.7b
Last Updated
2020/08/07 00:49 UTC
Data Sources
Company Financials +
Executive Summary
Royal Caribbean Cruises Ltd. operates as a cruise company.
Rewards
Risk Analysis
+ 1 more risk
Snowflake Analysis
High growth potential second-rate dividend payer.
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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
4.9%
RCL
3.8%
US Hospitality
3.0%
US Market
1 Year Return
-53.2%
RCL
-26.4%
US Hospitality
15.8%
US Market
Return vs Industry: RCL underperformed the US Hospitality industry which returned -27.9% over the past year.
Return vs Market: RCL underperformed the US Market which returned 15.4% over the past year.
Shareholder returns
| RCL | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.9% | 3.8% | 3.0% |
| 30 Day | 2.1% | 4.3% | 6.0% |
| 90 Day | 28.0% | 11.9% | 16.4% |
| 1 Year | -52.1%-53.2% | -24.8%-26.4% | 18.4%15.8% |
| 3 Year | -53.4%-56.4% | -17.2%-22.8% | 44.8%35.4% |
| 5 Year | -36.7%-43.2% | -1.1%-11.7% | 75.7%56.7% |
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
3 months ago | Simply Wall St
What Is Royal Caribbean Cruises's (NYSE:RCL) P/E Ratio After Its Share Price Rocketed?3 months ago | Simply Wall St
News Flash: 17 Analysts Think Royal Caribbean Cruises Ltd. (NYSE:RCL) Earnings Are Under Threat3 months ago | Simply Wall St
How Does Royal Caribbean Cruises's (NYSE:RCL) P/E Compare To Its Industry, After Its Big Share Price Gain?Valuation
Is Royal Caribbean Cruises undervalued compared to its fair value and its price relative to the market?
57.91x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: RCL ($51.1) is trading above our estimate of fair value ($6.84)
Significantly Below Fair Value: RCL is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: RCL is poor value based on its PE Ratio (57.9x) compared to the US Hospitality industry average (24.1x).
PE vs Market: RCL is poor value based on its PE Ratio (57.9x) compared to the US market (18.5x).
Price to Earnings Growth Ratio
PEG Ratio: RCL is good value based on its PEG Ratio (0.5x)
Price to Book Ratio
PB vs Industry: RCL is good value based on its PB Ratio (1x) compared to the US Hospitality industry average (1.7x).
Next Steps
Future Growth
How is Royal Caribbean Cruises forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
111.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RCL's forecast earnings growth (111.8% per year) is above the savings rate (2.2%).
Earnings vs Market: RCL's earnings (111.8% per year) are forecast to grow faster than the US market (22.6% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: RCL's revenue (34% per year) is forecast to grow faster than the US market (9.4% per year).
High Growth Revenue: RCL's revenue (34% per year) is forecast to grow faster 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 (8.6%).
Next Steps
Past Performance
How has Royal Caribbean Cruises performed over the past 5 years?
15.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RCL has a large one-off loss of $1.1B impacting its March 31 2020 financial results.
Growing Profit Margin: RCL's current net profit margins (1.8%) are lower than last year (18.6%).
Past Earnings Growth Analysis
Earnings Trend: RCL's earnings have grown by 15.2% per year over the past 5 years.
Accelerating Growth: RCL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: RCL had negative earnings growth (-90%) over the past year, making it difficult to compare to the Hospitality industry average (-44.7%).
Return on Equity
High ROE: RCL's Return on Equity (2%) is considered low.
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Financial Health
How is Royal Caribbean Cruises's financial position?
Financial Position Analysis
Short Term Liabilities: RCL's short term assets ($4.6B) do not cover its short term liabilities ($9.0B).
Long Term Liabilities: RCL's short term assets ($4.6B) do not cover its long term liabilities ($13.7B).
Debt to Equity History and Analysis
Debt Level: RCL's debt to equity ratio (147.2%) is considered high.
Reducing Debt: RCL's debt to equity ratio has increased from 107.6% to 147.2% over the past 5 years.
Debt Coverage: RCL's debt is not well covered by operating cash flow (17.8%).
Interest Coverage: RCL's interest payments on its debt are well covered by EBIT (4.1x coverage).
Balance Sheet
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Dividend
What is Royal Caribbean Cruises's current dividend yield, its reliability and sustainability?
6.11%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: RCL's dividend (6.11%) is higher than the bottom 25% of dividend payers in the US market (1.65%).
High Dividend: RCL's dividend (6.11%) is in the top 25% of dividend payers in the US market (4.45%)
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 9 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (344.5%), RCL's dividend payments are not 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 (15.4% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
7.3yrs
Average management tenure
CEO
Richard Fain (72 yo)
32.33yrs
Tenure
US$14,358,919
Compensation
Mr. Richard D. Fain has been the Chief Executive Officer at Royal Caribbean Cruises Ltd. since April 1988. Mr. Fain serves as the Chief Executive Officer of Azamara Club Cruises, Inc. Prior to Royal Caribb ...
CEO Compensation Analysis
Compensation vs Market: Richard's total compensation ($USD14.36M) is about average for companies of similar size in the US market ($USD11.29M).
Compensation vs Earnings: Richard's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Chairman | 32.33yrs | US$14.36m | 0.50% $ 53.9m | |
| Executive VP & CFO | 7.25yrs | US$5.42m | 0.011% $ 1.2m | |
| Executive Vice President of Maritime & Newbuilding | 15.58yrs | US$3.42m | 0.0072% $ 768.2k | |
| President & CEO of Celebrity Cruises | 5.67yrs | US$4.43m | 0.0085% $ 909.5k | |
| President & CEO of Royal Caribbean International | 5.67yrs | US$7.06m | 0.018% $ 2.0m | |
| Senior VP | 7.25yrs | no data | 0.019% $ 2.0m | |
| Senior VP & Chief Information Officer | 2.67yrs | no data | no data | |
| Vice President of Investor Relations | no data | no data | no data | |
| Senior VP | 9.5yrs | no data | 0.0064% $ 689.1k | |
| Chief Human Resources Officer & Senior VP | 2.58yrs | no data | no data | |
| Senior Vice President of International | 11.67yrs | no data | no data | |
| Global Chief Communications Officer & VP | no data | no data | no data |
7.3yrs
Average Tenure
61yo
Average Age
Experienced Management: RCL's management team is seasoned and experienced (7.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Chairman | 32.33yrs | US$14.36m | 0.50% $ 53.9m | |
| Independent Director | 22.58yrs | US$284.47k | 0.0082% $ 881.6k | |
| Independent Lead Director | 6.92yrs | US$381.97k | 0.010% $ 1.1m | |
| Independent Director | 5.25yrs | US$273.25k | 0.013% $ 1.4m | |
| Independent Director | 8.25yrs | US$265.75k | 0.0080% $ 850.6k | |
| Independent Director | 6.5yrs | US$273.25k | 0.0071% $ 758.6k | |
| Director | 25.25yrs | US$270.75k | 0.015% $ 1.6m | |
| Independent Director | 9.08yrs | US$291.89k | 0.011% $ 1.2m | |
| Independent Director | 1.67yrs | US$273.42k | 0.00093% $ 99.5k | |
| Independent Director | 4.67yrs | US$307.50k | 0.0015% $ 157.3k |
7.6yrs
Average Tenure
69yo
Average Age
Experienced Board: RCL's board of directors are considered experienced (7.6 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: RCL 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
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$10.700b
- Shares outstanding: 209.39m
- Website: https://www.rclinvestor.com
Number of Employees
Location
- Royal Caribbean Cruises Ltd.
- 1050 Caribbean Way
- Miami
- Florida
- 33132-2096
- 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 | 2020/08/07 00:49 |
| End of Day Share Price | 2020/08/06 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/12/31 |
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.