Now trading at a price of $101.2, Royal Caribbean Cruises has moved -1.9% so far today.
Royal Caribbean Cruises Ltd. operates as a cruise company worldwide. Based in Miami, FL, the mid-cap Consumer Discretionary company has 102,400 full time employees. Royal Caribbean Cruises has not offered a dividend during the last year.
The Company's Revenues Are Declining:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue (MM) | $10,951 | $2,209 | $1,532 | $8,841 |
| Gross Margins | 44.6% | -25.2% | -73.4% | 25.2% |
| Operating Margins | 19.0% | -137.4% | -247.3% | -8.6% |
| Net Margins | 17.16% | -262.47% | -343.34% | -24.39% |
| Net Income (MM) | $1,879 | -$5,797 | -$5,260 | -$2,156 |
| Net Interest Expense (MM) | -$382 | -$823 | -$1,275 | -$1,328 |
| Depreciation & Amort. (MM) | -$1,246 | -$1,279 | -$1,293 | -$1,407 |
| Earnings Per Share | $8.95 | -$27.05 | -$20.89 | -$4.02 |
| EPS Growth | n/a | -402.23% | 22.77% | 80.76% |
| Diluted Shares (MM) | 210 | 214 | 252 | 256 |
| Free Cash Flow (MM) | $692 | -$5,697 | -$4,108 | -$2,228 |
| Capital Expenditures (MM) | -$3,025 | -$1,965 | -$2,230 | -$2,710 |
| Net Current Assets (MM) | -$16,424 | -$19,393 | -$23,573 | -$27,703 |
| Current Ratio | 0.15 | 0.95 | 0.49 | 0.37 |
| Long Term Debt (MM) | $8,414 | $17,958 | $18,847 | $21,303 |
| Net Debt / EBITDA | 2.76 | -5.57 | -13.18 | 11.08 |
Royal Caribbean Cruises has declining revenues and a flat capital expenditure trend, slimmer gross margins than its peers, and consistently negative margins with a negative growth trend. Additional warning signs include declining EPS growth, negative and highly variable cash flows, and a highly leveraged balance sheet.
Royal Caribbean Cruises does not have a meaningful trailing P/E ratio since its earnings per share are currently in the red. Based on its EPS guidance of $6.96, the company has a forward P/E ratio of 12.4. In comparison, the average P/E ratio for the Consumer Discretionary sector is 22.33. Furthermore, Royal Caribbean Cruises is likely overvalued compared to the book value of its equity, since its P/B ratio of 9.08 is higher than the sector average of 3.12.
Royal Caribbean Cruises Has an Average Rating of Buy:
The 13 analysts following Royal Caribbean Cruises have set target prices ranging from $70.0 to $120.0 per share, for an average of $94.88 with a buy rating. As of April 2023, the company is trading -9.1% away from its average target price, indicating that there is an analyst consensus of little upside potential.
Royal Caribbean Cruises has an above average percentage of its shares sold short because 12.0% of the company's shares are sold short. Institutions own 74.8% of the company's shares, and the insider ownership rate stands at 13.21%, suggesting a large amount of insider shareholders. The largest shareholder is Capital Research Global Investors, whose 11% stake in the company is worth $2,906,544,298.
