Royal Caribbean Cruises Ltd

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RCL : NYSE : Services
$116.19 up 1.25 | 1.09%
Today's Range: 114.07 - 116.75
Avg. Daily Volume: 1500000.0
09/21/17 - 4:03 PM ET

Financial Analysis


ROYAL CARIBBEAN CRUISES LTD's gross profit margin for the second quarter of its fiscal year 2017 has increased when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. ROYAL CARIBBEAN CRUISES LTD has very weak liquidity. Currently, the Quick Ratio is 0.07 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 increased by 18.87% 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.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)2195.272105.26
EBITDA ($mil)654.63508.32
EBIT ($mil)419.7286.7
Net Income ($mil)369.53229.91


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)130.48175.16
Total Assets ($mil)22024.1722471.49
Total Debt ($mil)8020.3310048.91
Equity ($mil)9683.418145.67


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin42.7537.75
EBITDA Margin29.8224.14
Operating Margin19.1213.62
Sales Turnover0.390.38
Return on Assets6.983.4
Return on Equity15.889.38
Debt Q2 FY17 Q2 FY16
Current Ratio0.150.2
Debt/Capital0.450.55
Interest Expense75.5977.7
Interest Coverage5.553.69


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)215.1215.25
Div / share0.480.38
EPS1.711.06
Book value / share45.0237.84
Institutional Own % n/a n/a
Avg Daily Volume1487728.01448401.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 44.25 for the Hotels, Restaurants & Leisure industry and a discount compared to the S&P 500 average of 24.88. To use another comparison, its price-to-book ratio of 2.74 indicates a discount versus the S&P 500 average of 3.10 and a significant discount versus the industry average of 9.96. The current price-to-sales ratio is well above the S&P 500 average, but 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 17.35 Peers 44.25   RCL 9.13 Peers 18.23

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

RCL is trading at a significant 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 14.46 Peers 25.32   RCL 0.69 Peers 2.87

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 2.74 Peers 9.96   RCL 104.01 Peers 50.58

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.

 

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

RCL is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
RCL 3.06 Peers 3.35   RCL 2.73 Peers 7.77

Average. 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 valuation on par with its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

RCL significantly trails its peers on the basis of sales growth

 

 

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