Now trading at a price of $307.94, Royal Caribbean Cruises has moved -0.1% so far today.
Royal Caribbean Cruises returned gains of 59.3% last year, with its stock price reaching a high of $366.5 and a low of $164.01. Over the same period, the stock outperformed the S&P 500 index by 42.4%. More recently, the company's 50-day average price was $329.35. Royal Caribbean Cruises Ltd. operates as a cruise company worldwide. Based in Miami, FL, the Large-Cap Consumer Discretionary company has 105,950 full time employees. Royal Caribbean Cruises has offered a 0.8% dividend yield over the last 12 months.
A Positive EPS Growth Rate at the Expense of a Highly Leveraged Balance Sheet:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $10,951 | $2,209 | $1,532 | $8,840 | $13,900 | $16,484 |
| Operating Margins | 19% | -208% | -252% | -9% | 21% | 25% |
| Net Margins | 17% | -262% | -343% | -24% | 12% | 17% |
| Net Income (M) | $1,879 | -$5,797 | -$5,260 | -$2,156 | $1,704 | $2,877 |
| Net Interest Expense (M) | $409 | $844 | $1,292 | $137 | -$1,402 | $1,210 |
| Depreciation & Amort. (M) | $1,246 | $1,279 | $1,293 | $1,407 | $1,455 | $1,600 |
| Diluted Shares (M) | 210 | 214 | 252 | 255 | 283 | 279 |
| Earnings Per Share | $8.95 | -$27.05 | -$20.89 | -$8.45 | $6.31 | $10.94 |
| EPS Growth | n/a | -402.23% | 22.77% | 59.55% | 174.67% | 73.38% |
| Avg. Price | $112.57 | $65.95 | $82.16 | $69.1 | $129.49 | $308.31 |
| P/E Ratio | 12.55 | -2.44 | -3.93 | -8.18 | 19.53 | 28.03 |
| Free Cash Flow (M) | $692 | -$5,697 | -$4,108 | -$2,229 | $580 | $1,997 |
| CAPEX (M) | $3,025 | $1,965 | $2,230 | $2,710 | $3,897 | $3,268 |
| EV / EBITDA | 10.32 | -8.86 | -14.71 | 60.96 | 12.47 | 17.32 |
| Total Debt (M) | $11,035 | $19,329 | $21,090 | $23,391 | $21,452 | $20,076 |
| Net Debt / EBITDA | 3.24 | -4.71 | -7.14 | 33.47 | 4.84 | 3.45 |
| Current Ratio | 0.15 | 0.95 | 0.49 | 0.37 | 0.19 | 0.17 |
Royal Caribbean Cruises's Valuation Is in Line With Its Sector Averages:
Royal Caribbean Cruises has a trailing twelve month P/E ratio of 24.5, compared to an average of 20.93 for the Consumer Discretionary sector. Based on its EPS guidance of $14.29, the company has a forward P/E ratio of 23.0. The 6.9% compound average growth rate of Royal Caribbean Cruises's historical and projected earnings per share yields a PEG ratio of 3.54. This suggests that these shares are overvalued. Furthermore, Royal Caribbean Cruises is likely overvalued compared to the book value of its equity, since its P/B ratio of 9.12 is higher than the sector average of 2.93. The company's shares are currently trading 277.0% below their Graham number. Ultimately, Royal Caribbean Cruises's strong cash flows, decent earnings multiple, and healthy debt levels factor towards it being fairly valued, its elevated P/B ratio notwithstanding.
Royal Caribbean Cruises Has an Average Rating of Buy:
The 23 analysts following Royal Caribbean Cruises have set target prices ranging from $218.0 to $420.0 per share, for an average of $355.7 with a buy rating. The company is trading -13.4% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Royal Caribbean Cruises has an average amount of shares sold short because 5.3% of the company's shares are sold short. Institutions own 91.0% of the company's shares, and the insider ownership rate stands at 0.25%, suggesting a small amount of insider investors. The largest shareholder is Capital International Investors, whose 12% stake in the company is worth $10,051,505,181.
