Royal Caribbean Cruises Ltd

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RCL : NYSE : Services
$85.51 up 0.52 | 0.61%
Today's Range: 84.05 - 86.35
Avg. Daily Volume: 1902700.0
01/18/17 - 4:02 PM ET

Financial Analysis


ROYAL CARIBBEAN CRUISES LTD's gross profit margin for the third 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 0.10 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 6.47% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)2563.742523.1
EBITDA ($mil)966.19880.01
EBIT ($mil)736.86669.27
Net Income ($mil)693.26228.79


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)178.43147.42
Total Assets ($mil)22450.2620958.85
Total Debt ($mil)9717.858489.94
Equity ($mil)8790.158255.79


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin47.7345.03
EBITDA Margin37.6834.87
Operating Margin28.7426.53
Sales Turnover0.380.39
Return on Assets5.472.71
Return on Equity13.986.88
Debt Q3 FY16 Q3 FY15
Current Ratio0.180.21
Debt/Capital0.530.51
Interest Expense82.6166.82
Interest Coverage8.9210.02


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)214.57219.99
Div / share0.480.38
EPS3.211.03
Book value / share40.9737.53
Institutional Own % n/a n/a
Avg Daily Volume1922342.02357064.0

Valuation


BUY. ROYAL CARIBBEAN CRUISES LTD's P/E ratio indicates a significant discount compared to an average of 30.75 for the Hotels, Restaurants & Leisure industry and a significant discount compared to the S&P 500 average of 25.49. To use another comparison, its price-to-book ratio of 2.10 indicates a discount versus the S&P 500 average of 2.84 and a significant discount versus the industry average of 7.45. 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 15.15 Peers 30.75   RCL 7.85 Peers 15.71

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 12.62 Peers 31.36   RCL 0.15 Peers 1.82

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 2.10 Peers 7.45   RCL 121.48 Peers 70.64

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 2.17 Peers 2.93   RCL 3.33 Peers 4.94

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.

 

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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