Royal Caribbean Cruises Ltd

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RCL : NYSE : Services
$108.2 up 1.1 | 0.99%
Today's Range: 106.92 - 108.37
Avg. Daily Volume: 1434800.0
05/24/17 - 3:59 PM ET

Financial Analysis


ROYAL CARIBBEAN CRUISES LTD's gross profit margin for the first 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 0.08 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 increased by 17.48% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)2008.561917.8
EBITDA ($mil)515.27374.2
EBIT ($mil)279.52163.43
Net Income ($mil)214.7399.14


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)109.31117.36
Total Assets ($mil)22017.2620963.41
Total Debt ($mil)8569.378702.18
Equity ($mil)9266.837887.77


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin41.4635.26
EBITDA Margin25.6519.51
Operating Margin13.928.52
Sales Turnover0.390.4
Return on Assets6.353.43
Return on Equity15.099.12
Debt Q1 FY17 Q1 FY16
Current Ratio0.140.2
Debt/Capital0.480.52
Interest Expense80.3265.45
Interest Coverage3.482.5


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)215.06215.85
Div / share0.480.38
EPS0.990.46
Book value / share43.0936.54
Institutional Own % n/a n/a
Avg Daily Volume1458005.01708163.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 35.64 for the Hotels, Restaurants & Leisure industry and a discount compared to the S&P 500 average of 25.02. To use another comparison, its price-to-book ratio of 2.44 indicates a discount versus the S&P 500 average of 3.00 and a significant discount versus the industry average of 11.22. The price-to-sales ratio is well 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 16.23 Peers 35.64   RCL 7.94 Peers 20.48

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 12.72 Peers 25.23   RCL 0.76 Peers 1.60

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 2.44 Peers 11.22   RCL 97.85 Peers 121.72

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 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 2.63 Peers 3.30   RCL 2.23 Peers 4.21

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 significantly trails its peers on the basis of sales growth

 

 

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