NYSE:RCL

Stock Analysis Report

Executive Summary

Royal Caribbean Cruises Ltd. operates as a cruise company.

Snowflake

Fundamentals

Proven track record average 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


Market Performance


7 Day Return

-1.3%

NYSE:RCL

0.9%

US Hospitality

0.9%

US Market


1 Year Return

-9.2%

NYSE:RCL

-5.1%

US Hospitality

0.3%

US Market

RCL underperformed the Hospitality industry which returned -5.1% over the past year.

RCL underperformed the Market in United States of America which returned 0.3% over the past year.


Share holder returns

RCLIndustryMarket
7 Day-1.3%0.9%0.9%
30 Day-2.3%-3.0%-1.9%
90 Day-13.9%-1.0%1.6%
1 Year-7.0%-9.2%-2.8%-5.1%2.6%0.3%
3 Year60.4%50.2%43.0%33.8%41.0%31.8%
5 Year85.8%68.1%34.1%19.4%55.2%38.0%

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 based on future cash flows and its price relative to the stock market?

12.18x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Royal Caribbean Cruises's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Royal Caribbean Cruises's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Royal Caribbean Cruises is good value based on earnings compared to the US Hospitality industry average.

Royal Caribbean Cruises is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Royal Caribbean Cruises is poor value based on expected growth next year.


Price Based on Value of Assets

Royal Caribbean Cruises is good value based on assets compared to the US Hospitality industry average.


Next Steps

Future Growth

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

12.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Royal Caribbean Cruises's revenue is expected to grow by 8.6% yearly, however this is not considered high growth (20% yearly).

Royal Caribbean Cruises's earnings are expected to grow by 12.1% yearly, however this is not considered high growth (20% yearly).

Royal Caribbean Cruises's revenue growth is expected to exceed the United States of America market average.

Royal Caribbean Cruises's earnings growth is positive but not above the United States of America market average.

Royal Caribbean Cruises's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Royal Caribbean Cruises is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

24.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Royal Caribbean Cruises has delivered over 20% year on year earnings growth in the past 5 years.

Royal Caribbean Cruises's 1-year earnings growth is less than its 5-year average (7.1% vs 24.7%)

Royal Caribbean Cruises's earnings growth has exceeded the US Hospitality industry average in the past year (7.1% vs -8.7%).


Return on Equity

Royal Caribbean Cruises has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Royal Caribbean Cruises used its assets more efficiently than the US Hospitality industry average last year based on Return on Assets.


Return on Capital Employed

Royal Caribbean Cruises has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Royal Caribbean Cruises's financial position?


Financial Position Analysis

Royal Caribbean Cruises's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Royal Caribbean Cruises's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Royal Caribbean Cruises's level of debt (88.8%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (85.7% vs 88.8% today).

Debt is well covered by operating cash flow (34.9%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 5.7x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

2.72%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Royal Caribbean Cruises's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.48%).

Royal Caribbean Cruises's dividend is below the markets top 25% of dividend payers in United States of America (3.83%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (4.2x coverage).


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?

6.3yrs

Average management tenure


CEO

Richard Fain (71yo)

31.3yrs

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

Richard's remuneration is about average for companies of similar size in United States of America.

Richard's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

6.3yrs

Average Tenure

60yo

Average Age

The average tenure for the Royal Caribbean Cruises management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

12.2yrs

Average Tenure

68.5yo

Average Age

The average tenure for the Royal Caribbean Cruises board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


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 President
President & CEO of Royal Caribbean International
Shares20,084
Max PriceUS$117.72
SellUS$826,41414 Feb 19
Michael Bayley
EntityIndividual
Role
Unit President
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
SellUS$168,17920 Nov 18
Bernt Reitan
EntityIndividual
Shares1,578
Max PriceUS$106.58
SellUS$828,65214 Sep 18
Harri Kulovaara
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Maritime & Newbuilding
Shares6,600
Max PriceUS$125.55

Ownership Breakdown


Management Team

  • Richard Fain (71yo)

    Chairman & CEO

    • Tenure: 31.3yrs
    • Compensation: US$12.42m
  • Michael Bayley (60yo)

    President & CEO of Royal Caribbean International

    • Tenure: 4.7yrs
    • Compensation: US$5.72m
  • Lisa Lutoff-Perlo (61yo)

    President & CEO of Celebrity Cruises

    • Tenure: 4.7yrs
    • Compensation: US$3.84m
  • Harri Kulovaara (66yo)

    Executive Vice President of Maritime & Newbuilding

    • Tenure: 14.6yrs
    • Compensation: US$3.84m
  • Bradley Stein (63yo)

    Senior VP

    • Tenure: 13.1yrs
  • Jason Liberty (43yo)

    Executive VP & CFO

    • Tenure: 6.3yrs
    • Compensation: US$4.75m
  • Henry Pujol (51yo)

    Senior VP

    • Tenure: 6.3yrs
  • Ian Bailey

    Vice President of Investor Relations

    • Tenure: 10.8yrs
  • Martha Poulter (52yo)

    Senior VP & Chief Information Officer

    • Tenure: 1.7yrs
  • Laura Miller (54yo)

    Chief Human Resources Officer & Senior VP

    • Tenure: 1.6yrs

Board Members

  • Bill Reilly (79yo)

    Independent Director

    • Tenure: 21.6yrs
    • Compensation: US$266.70k
  • Bill Kimsey (77yo)

    Lead Director

    • Tenure: 5.9yrs
    • Compensation: US$383.13k
  • Richard Fain (71yo)

    Chairman & CEO

    • Tenure: 31.3yrs
    • Compensation: US$12.42m
  • Don Thompson (55yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$318.95k
  • Ann Moore (68yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: US$266.70k
  • John Brock (70yo)

    Independent Director

    • Tenure: 5.5yrs
    • Compensation: US$284.99k
  • Tom Pritzker (69yo)

    Independent Director

    • Tenure: 20.5yrs
    • Compensation: US$266.70k
  • Eyal Ofer (68yo)

    Independent Director

    • Tenure: 24.3yrs
    • Compensation: US$271.71k
  • Vagn Sørensen (60yo)

    Independent Director

    • Tenure: 8.1yrs
    • Compensation: US$294.20k
  • Arne Wilhelmsen (53yo)

    Independent Director

    • Tenure: 16.3yrs
    • 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$22.555b
  • Shares outstanding: 209.56m
  • 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 Analysis2019/08/20 23:56
End of Day Share Price2019/08/20 00:00
Earnings2019/06/30
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.