This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Royal Caribbean Cruises Ltd
RCL : NYSE : Services
$75.61 -0.29 | -0.38%
Today's Range: 75.36 - 76.53
Avg. Daily Volume: 3,122,600
05/05/16 - 3:59 PM ET

Financial Analysis


ROYAL CARIBBEAN CRUISES LTD's gross profit margin for the first quarter of its fiscal year 2016 has increased when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. ROYAL CARIBBEAN CRUISES LTD has very weak liquidity. Currently, the Quick Ratio is 0.08 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 1.08% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)1917.81815.6
EBITDA ($mil)377.05306.15
EBIT ($mil)166.29105.68
Net Income ($mil)99.1445.23


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)117.36229.71
Total Assets ($mil)20963.4120869.59
Total Debt ($mil)8702.188559.61
Equity ($mil)7887.777973.91


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin35.4132.66
EBITDA Margin19.6616.86
Operating Margin8.675.82
Sales Turnover0.40.38
Return on Assets3.433.75
Return on Equity9.129.81
Debt Q1 FY16 Q1 FY15
Current Ratio0.20.22
Debt/Capital0.520.52
Interest Expense65.4570.16
Interest Coverage2.541.51


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)215.85219.89
Div / share0.380.3
EPS0.460.2
Book value / share36.5436.26
Institutional Own % n/a n/a
Avg Daily Volume3656110.02290925.0

Valuation


BUY. ROYAL CARIBBEAN CRUISES LTD's P/E ratio indicates a discount compared to an average of 28.73 for the Hotels, Restaurants & Leisure industry and a value on par with the S&P 500 average of 23.87. To use another comparison, its price-to-book ratio of 2.12 indicates a discount versus the S&P 500 average of 2.72 and a significant discount versus the industry average of 27.91. The price-to-sales ratio is above the S&P 500 average, but well below the industry average. Upon assessment of these and other key valuation criteria, ROYAL CARIBBEAN CRUISES LTD proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
RCL 23.67 Peers 28.73   RCL 8.41 Peers 14.26

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

RCL is trading at a discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

RCL is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
RCL 10.90 Peers 24.83   RCL 0.23 Peers 2.57

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

RCL is trading at a significant discount to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

RCL trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
RCL 2.12 Peers 27.91   RCL -6.58 Peers 25.10

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

RCL is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, RCL is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
RCL 1.99 Peers 2.92   RCL 4.98 Peers 5.16

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

RCL is trading at a significant discount to its industry on this measurement.

 

Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.

RCL is keeping pace with its peers on the basis of sales growth.

 

 

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free

Latest Stock Upgrades/Downgrades


Top Rated Stocks Top Rated Funds Top Rated ETFs