Royal Caribbean Cruises Ltd

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RCL : NYSE : Services
$98.57 | %
Today's Range: 98.18 - 99.785
Avg. Daily Volume: 1575000.0
03/24/17 - 4:02 PM ET

Financial Analysis


ROYAL CARIBBEAN CRUISES LTD's gross profit margin for the fourth quarter of its fiscal year 2016 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 0.10 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has increased by 13.12% 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 Q4 FY16 Q4 FY15
Net Sales ($mil)1909.991902.05
EBITDA ($mil)532.26459.25
EBIT ($mil)299.05249.92
Net Income ($mil)261.09206.8


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)132.6121.57
Total Assets ($mil)22310.3220921.86
Total Debt ($mil)9387.448667.06
Equity ($mil)9121.418063.04


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin41.1938.31
EBITDA Margin27.8624.14
Operating Margin15.6613.14
Sales Turnover0.380.4
Return on Assets5.753.18
Return on Equity14.078.25
Debt Q4 FY16 Q4 FY15
Current Ratio0.170.2
Debt/Capital0.510.52
Interest Expense80.5764.13
Interest Coverage3.713.9


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)214.59217.99
Div / share0.480.38
EPS1.210.94
Book value / share42.5136.99
Institutional Own % n/a n/a
Avg Daily Volume1559061.02046159.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 38.13 for the Hotels, Restaurants & Leisure industry and a discount compared to the S&P 500 average of 26.33. To use another comparison, its price-to-book ratio of 2.34 indicates a discount versus the S&P 500 average of 2.93 and a significant discount versus the industry average of 9.42. 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 16.73 Peers 38.13   RCL 8.47 Peers 16.34

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 12.37 Peers 23.78   RCL 0.88 Peers 2.82

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 2.34 Peers 9.42   RCL 97.34 Peers 79.35

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 exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
RCL 2.51 Peers 3.24   RCL 2.40 Peers 2.81

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 discount to its industry on this measurement.

 

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

RCL trails its peers on the basis of sales growth

 

 

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