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RCL

Royal Caribbean Cruises NYSE:RCL Stock Report

Last Price

US$59.60

Market Cap

US$16.3b

7D

-0.6%

1Y

-29.0%

Updated

18 May, 2022

Data

Company Financials +
RCL fundamental analysis
Snowflake Score
Valuation2/6
Future Growth6/6
Past Performance0/6
Financial Health0/6
Dividends0/6

RCL Stock Overview

Royal Caribbean Cruises Ltd. operates as a cruise company worldwide.

Royal Caribbean Cruises Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Royal Caribbean Cruises
Historical stock prices
Current Share PriceUS$59.60
52 Week HighUS$98.27
52 Week LowUS$56.15
Beta2.39
1 Month Change-26.71%
3 Month Change-30.00%
1 Year Change-29.04%
3 Year Change-52.31%
5 Year Change-44.91%
Change since IPO553.15%

Recent News & Updates

Apr 22
Is Royal Caribbean Cruises (NYSE:RCL) Using Debt Sensibly?

Is Royal Caribbean Cruises (NYSE:RCL) Using Debt Sensibly?

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Shareholder Returns

RCLUS HospitalityUS Market
7D-0.6%2.1%2.7%
1Y-29.0%-21.1%-8.1%

Return vs Industry: RCL underperformed the US Hospitality industry which returned -21.1% over the past year.

Return vs Market: RCL underperformed the US Market which returned -8.1% over the past year.

Price Volatility

Is RCL's price volatile compared to industry and market?
RCL volatility
RCL Average Weekly Movement7.9%
Hospitality Industry Average Movement9.2%
Market Average Movement7.8%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market2.9%

Stable Share Price: RCL is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: RCL's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
196884,950Jason Libertyhttps://www.rclinvestor.com

Royal Caribbean Cruises Ltd. operates as a cruise company worldwide. The company operates cruises under the Royal Caribbean International, Celebrity Cruises, Azamara, and Silversea Cruises brands, which comprise a range of itineraries that call on approximately 1,000 destinations. As of February 25, 2022, it operated 61 ships.

Royal Caribbean Cruises Fundamentals Summary

How do Royal Caribbean Cruises's earnings and revenue compare to its market cap?
RCL fundamental statistics
Market CapUS$16.30b
Earnings (TTM)-US$5.30b
Revenue (TTM)US$2.55b

6.0x

P/S Ratio

-2.9x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RCL income statement (TTM)
RevenueUS$2.55b
Cost of RevenueUS$3.49b
Gross Profit-US$944.25m
Other ExpensesUS$4.35b
Earnings-US$5.30b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-20.77
Gross Margin-37.04%
Net Profit Margin-207.74%
Debt/Equity Ratio553.4%

How did RCL perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


33.4%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: RCL ($59.6) is trading below our estimate of fair value ($89.46)

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


Price To Earnings Ratio

PE vs Industry: RCL is unprofitable, so we can't compare its PE Ratio to the US Hospitality industry average.

PE vs Market: RCL is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: RCL is overvalued based on its PB Ratio (3.8x) compared to the US Hospitality industry average (2.6x).


Future Growth

How is Royal Caribbean Cruises forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

Future Growth Score

6/6

Future Growth Score 6/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


74.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

High Growth Earnings: RCL's is expected to become profitable in the next 3 years.

Revenue vs Market: RCL's revenue (25.7% per year) is forecast to grow faster than the US market (7.8% per year).

High Growth Revenue: RCL's revenue (25.7% 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 very high in 3 years time (53.9%).


Past Performance

How has Royal Caribbean Cruises 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


-64.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: RCL is currently unprofitable.

Growing Profit Margin: RCL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RCL is unprofitable, and losses have increased over the past 5 years at a rate of 64.4% per year.

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

Earnings vs Industry: RCL is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (86.7%).


Return on Equity

High ROE: RCL has a negative Return on Equity (-132.77%), as it is currently unprofitable.


Financial Health

How is Royal Caribbean Cruises'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: RCL's short term assets ($3.2B) do not cover its short term liabilities ($8.0B).

Long Term Liabilities: RCL's short term assets ($3.2B) do not cover its long term liabilities ($20.9B).


Debt to Equity History and Analysis

Debt Level: RCL's net debt to equity ratio (504%) is considered high.

Reducing Debt: RCL's debt to equity ratio has increased from 92.5% to 553.4% 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: RCL has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: RCL has less than a year of cash runway if free cash flow continues to reduce at historical rates of 55.1% each year


Dividend

What is Royal Caribbean Cruises's 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


0.40%

Forecast Dividend Yield

Dividend Yield vs Market

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

High Dividend: Unable to evaluate RCL'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 RCL's dividends per share have been stable in the past.

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


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

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


Next Steps

Management

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

6.7yrs

Average management tenure


CEO

Jason Liberty (45 yo)

0.33

Tenure

US$13,034,682

Compensation

Mr. Jason T. Liberty serves as President and Chief Executive Officer for Royal Caribbean Group at Royal Caribbean International, Ltd. Mr. Liberty serves as an Independent Director at WNS (Holdings) Limited...


CEO Compensation Analysis

Compensation vs Market: Jason's total compensation ($USD13.03M) is about average for companies of similar size in the US market ($USD13.27M).

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


Leadership Team

Experienced Management: RCL's management team is seasoned and experienced (6.7 years average tenure).


Board Members

Experienced Board: RCL's board of directors are seasoned and experienced ( 10.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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 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
  • Implied Market Cap: US$16.297b
  • Shares outstanding: 254.96m
  • Website: https://www.rclinvestor.com

Number of Employees


Location

  • Royal Caribbean Cruises Ltd.
  • 1050 Caribbean Way
  • Miami
  • Florida
  • 33132-2096
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/18 00:00
End of Day Share Price2022/05/18 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.