Royal Caribbean Group
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ROYAL CARIBBEAN GROUP's gross profit margin for the third quarter of its fiscal year 2020 has significantly increased when compared to the same period a year ago. Sales and net income fell significantly, underperforming compared to the average company in its subsector. ROYAL CARIBBEAN GROUP has weak liquidity. Currently, the Quick Ratio is 0.69 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.
At the same time, stockholders' equity ("net worth") has significantly decreased by 30.46% 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 FY20 | Q3 FY19 |
---|---|---|
Net Sales ($mil) | -33.69 | 3186.85 |
EBITDA ($mil) | -583.36 | 1211.52 |
EBIT ($mil) | -900.5 | 891.23 |
Net Income ($mil) | -1346.76 | 883.24 |
Balance Sheet | Q3 FY20 | Q3 FY19 |
---|---|---|
Cash & Equiv. ($mil) | 3016.79 | 276.73 |
Total Assets ($mil) | 31828.81 | 29825.46 |
Total Debt ($mil) | 19539.19 | 11398.1 |
Equity ($mil) | 8328.59 | 11976.91 |
Profitability | Q3 FY20 | Q3 FY19 |
---|---|---|
Gross Profit Margin | 1016.08 | 49.06 |
EBITDA Margin | 1731.64 | 38.01 |
Operating Margin | 2673.04 | 27.97 |
Sales Turnover | 0.15 | 0.36 |
Return on Assets | -13.06 | 6.44 |
Return on Equity | -49.92 | 16.04 |
Debt | Q3 FY20 | Q3 FY19 |
---|---|---|
Current Ratio | 0.76 | 0.17 |
Debt/Capital | 0.7 | 0.49 |
Interest Expense | 258.58 | 102.04 |
Interest Coverage | -3.48 | 8.73 |
Share Data | Q3 FY20 | Q3 FY19 |
---|---|---|
Shares outstanding (mil) | 214.7 | 209.61 |
Div / share | 0.0 | 0.78 |
EPS | -6.29 | 4.2 |
Book value / share | 38.79 | 57.14 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 5989147.0 | 8225071.0 |
SELL. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. For additional comparison, its price-to-book ratio of 1.96 indicates a significant discount versus the S&P 500 average of 4.02 and a significant discount versus the subsector average of 28.35. The price-to-sales ratio is well above the S&P 500 average, but well below the subsector average. After reviewing these and other key valuation criteria, ROYAL CARIBBEAN GROUP proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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RCL NM | Peers 262.77 | RCL NM | Peers 38.80 | |||||||||||||||||||||
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. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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RCL NM | Peers 91.14 | RCL NA | Peers 0.61 | |||||||||||||||||||||
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. |
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Price/Book |
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Earnings Growth |
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RCL 1.96 | Peers 28.35 | RCL -315.86 | Peers 278.30 | |||||||||||||||||||||
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 significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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RCL 3.47 | Peers 7.92 | RCL -56.42 | Peers -21.56 | |||||||||||||||||||||
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 subsector on this measurement. |
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. |
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