Royal Caribbean GroupFind Ratings Reports
ROYAL CARIBBEAN GROUP's gross profit margin for the third quarter of its fiscal year 2021 has significantly decreased when compared to the same period a year ago. The company grew its sales and net income significantly quarter versus same quarter a year prior, and was able to outpace the average competitor in the subsector when comparing net income growth, but not when comparing revenue growth. ROYAL CARIBBEAN GROUP has weak liquidity. Currently, the Quick Ratio is 0.70 which 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 decreased by 22.34% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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|Income Statement||Q3 FY21||Q3 FY20|
|Net Sales ($mil)||456.96||-33.69|
|Net Income ($mil)||-1424.55||-1346.76|
|Balance Sheet||Q3 FY21||Q3 FY20|
|Cash & Equiv. ($mil)||3289.33||3016.79|
|Total Assets ($mil)||32665.57||31828.81|
|Total Debt ($mil)||21459.94||19539.19|
|Profitability||Q3 FY21||Q3 FY20|
|Gross Profit Margin||-78.07||1016.08|
|Return on Assets||-16.13||-13.06|
|Return on Equity||-81.49||-49.92|
|Debt||Q3 FY21||Q3 FY20|
|Share Data||Q3 FY21||Q3 FY20|
|Shares outstanding (mil)||254.79||214.7|
|Div / share||0.0||0.0|
|Book value / share||25.38||38.79|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||3361124.0||4331077.0|
SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. Conducting a second comparison, its price-to-book ratio of 3.27 indicates a discount versus the S&P 500 average of 4.74 and a premium versus the subsector average of 1.82. The price-to-sales ratio is well above both the S&P 500 average and the subsector average, indicating a premium. Upon assessment of these and other key valuation criteria, ROYAL CARIBBEAN GROUP seems to be trading at a premium to investment alternatives.
|RCL NM||Peers 10.89||RCL NM||Peers 5.13|
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.
RCL's P/E is negative making this valuation measure meaningless.
Neutral. 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's P/CF is negative making the measure meaningless.
|RCL 161.99||Peers 72.21||RCL NA||Peers 0.03|
Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings.
RCL's ratio is negative making this valuation measure meaningless.
Neutral. 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.
Ratio not available.
|RCL 3.27||Peers 1.82||RCL -9.63||Peers 377.50|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
RCL is trading at a significant premium 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.
|RCL 36.18||Peers 24.03||RCL -87.56||Peers -58.64|
Premium. 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 premium to its subsector.
Lower. A sales growth rate that trails the subsector implies that a company is losing market share.
RCL significantly trails its peers on the basis of sales growth.