NYSE:RCL

Stock Analysis Report

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Executive Summary

Royal Caribbean Group operates as a cruise company. More Details


Snowflake Analysis

High growth potential and fair value.


Similar Companies

Share Price & News

How has Royal Caribbean Group'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

9.6%

RCL

3.2%

US Hospitality

-0.4%

US Market


1 Year Return

-42.1%

RCL

-13.5%

US Hospitality

18.3%

US Market

Return vs Industry: RCL underperformed the US Hospitality industry which returned -13.5% over the past year.

Return vs Market: RCL underperformed the US Market which returned 18.3% over the past year.


Shareholder returns

RCLIndustryMarket
7 Day9.6%3.2%-0.4%
30 Day-0.2%6.9%8.0%
90 Day30.8%19.5%9.4%
1 Year-41.2%-42.1%-12.1%-13.5%21.0%18.3%
3 Year-44.8%-48.1%-7.2%-13.0%42.1%32.7%
5 Year-27.3%-34.4%19.3%6.7%85.6%64.7%

Price Volatility Vs. Market

How volatile is Royal Caribbean Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RCL ($64.48) is trading below our estimate of fair value ($152.89)

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 good value based on its PB Ratio (1.5x) compared to the US Hospitality industry average (2.4x).


Next Steps

Future Growth

How is Royal Caribbean Group forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

87.6%

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 (2.2%).

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 (38.9% per year) is forecast to grow faster than the US market (9.9% per year).

High Growth Revenue: RCL's revenue (38.9% 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 (11.1%).


Next Steps

Past Performance

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

0.1%

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, but has reduced losses over the past 5 years at a rate of 0.1% 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 (-46.5%).


Return on Equity

High ROE: RCL has a negative Return on Equity (-19.88%), as it is currently unprofitable.


Next Steps

Financial Health

How is Royal Caribbean Group's financial position?


Financial Position Analysis

Short Term Liabilities: RCL's short term assets ($4.7B) do not cover its short term liabilities ($4.7B).

Long Term Liabilities: RCL's short term assets ($4.7B) do not cover its long term liabilities ($19.0B).


Debt to Equity History and Analysis

Debt Level: RCL's debt to equity ratio (196%) is considered high.

Reducing Debt: RCL's debt to equity ratio has increased from 105.6% to 196% over the past 5 years.

Debt Coverage: RCL's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if RCL's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Royal Caribbean Group current dividend yield, its reliability and sustainability?

0.84%

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.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RCL's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

7.4yrs

Average management tenure


CEO

Richard Fain (72 yo)

32.5yrs

Tenure

US$14,358,919

Compensation

Mr. Richard D. Fain has been the Chief Executive Officer at Royal Caribbean Group (formerly known as Royal Caribbean Cruises Ltd.). since April 1988. Mr. Fain serves as the Chief Executive Officer of Azama ...


CEO Compensation Analysis

Compensation vs Market: Richard's total compensation ($USD14.36M) is about average for companies of similar size in the US market ($USD11.16M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Richard Fain
CEO & Chairman32.5yrsUS$14.36m0.47%
$ 68.0m
Jason Liberty
Executive VP & CFO7.42yrsUS$5.42m0.012%
$ 1.8m
Harri Kulovaara
Executive Vice President of Maritime & Newbuilding15.75yrsUS$3.42m0.0076%
$ 1.1m
Lisa Lutoff-Perlo
President & CEO of Celebrity Cruises5.83yrsUS$4.43m0.0099%
$ 1.4m
Michael Bayley
President & CEO of Royal Caribbean International5.83yrsUS$7.06m0.019%
$ 2.7m
Henry Pujol
Senior VP7.42yrsno data0.018%
$ 2.6m
Martha Poulter
Senior VP & Chief Information Officer2.83yrsno datano data
Carola Mengolini
Vice President of Investor Relationsno datano datano data
Bradley Stein
Senior VP14.25yrsno data0.0067%
$ 970.6k
Laura Miller
Chief Human Resources Officer & Senior VP2.75yrsno datano data
Gavin Smith
Senior Vice President of International11.83yrsno datano data
Rob Zeiger
Global Chief Communications Officer & VPno datano datano data

7.4yrs

Average Tenure

61yo

Average Age

Experienced Management: RCL's management team is seasoned and experienced (7.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Richard Fain
CEO & Chairman32.5yrsUS$14.36m0.47%
$ 68.0m
William Reilly
Independent Director22.75yrsUS$284.47k0.0077%
$ 1.1m
William Kimsey
Independent Lead Director7.08yrsUS$381.97k0.0094%
$ 1.3m
Donald Thompson
Independent Director5.42yrsUS$273.25k0.012%
$ 1.8m
Ann Moore
Independent Director8.42yrsUS$265.75k0.0075%
$ 1.1m
John Brock
Independent Director6.67yrsUS$273.25k0.0067%
$ 957.6k
Eyal Ofer
Director25.42yrsUS$270.75k0.014%
$ 2.0m
Vagn Sørensen
Independent Director9.25yrsUS$291.89k0.010%
$ 1.5m
Stephen Howe
Independent Director1.83yrsUS$273.42k0.00087%
$ 125.1k
Maritza Montiel
Independent Director4.83yrsUS$307.50k0.0014%
$ 198.4k

7.8yrs

Average Tenure

69yo

Average Age

Experienced Board: RCL's board of directors are considered experienced (7.8 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 been diluted in the past year, with total shares outstanding growing by 6.4%.


Top Shareholders

Company Information

Royal Caribbean Group's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Royal Caribbean Group
  • Ticker: RCL
  • Exchange: NYSE
  • Founded: 1968
  • Industry: Hotels, Resorts and Cruise Lines
  • Sector: Consumer Services
  • Market Cap: US$14.379b
  • Shares outstanding: 223.00m
  • Website: https://www.rclinvestor.com

Number of Employees


Location

  • Royal Caribbean Group
  • 1050 Caribbean Way
  • Miami
  • Florida
  • 33132-2096
  • 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
R1CL34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 SHS UNSPONBRBRLJan 2020

Biography

Royal Caribbean Group operates as a cruise company. The company operates cruises under the Royal Caribbean International, Celebrity Cruises, Azamara Club Cruises, and Silversea Cruises brands. The Royal Ca ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/25 01:04
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.