Is Royal Caribbean Stock a Good Investment?
Royal Caribbean Investment Advice | RCL |
- Examine Royal Caribbean's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Royal Caribbean's leadership team and their track record. Good management can help Royal Caribbean navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Hotels, Resorts & Cruise Lines space and any emerging trends that could impact Royal Caribbean's business and its evolving consumer preferences.
- Compare Royal Caribbean's performance and market position to its competitors. Analyze how Royal Caribbean is positioned in terms of product offerings, innovation, and market share.
- Check if Royal Caribbean pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Royal Caribbean's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Royal Caribbean Cruises stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Royal Caribbean Cruises is a good investment.
Sell | Buy |
Strong Buy
Market Performance | Solid | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Responds to the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Possible Manipulator | Details |
Examine Royal Caribbean Stock
Researching Royal Caribbean's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 79.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 0.66. Royal Caribbean Cruises recorded earning per share (EPS) of 9.97. The entity last dividend was issued on the 20th of September 2024. The firm had 2:1 split on the 3rd of August 1998.
To determine if Royal Caribbean is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Royal Caribbean's research are outlined below:
| Royal Caribbean Cruises has 22.13 B in debt with debt to equity (D/E) ratio of 7.47, demonstrating that the company may be unable to create cash to meet all of its financial commitments. Royal Caribbean Cruises has a current ratio of 0.28, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Note however, debt could still be an excellent tool for Royal to invest in growth at high rates of return. | |
| Royal Caribbean has a strong financial position based on the latest SEC filings | |
| Over 79.0% of Royal Caribbean shares are owned by institutional investors | |
| On 11th of October 2024 Royal Caribbean paid $ 0.4 per share dividend to its current shareholders | |
| Latest headline from insidermonkey.com: Hedge Fund and Insider Trading News Ken Griffin, Bridgewater Associates, AQR Capital Management, Brookfield Asset Management, Sight Sciences Inc , Royal Caribbean Cruises Ltd , and More |
Royal Caribbean Quarterly Liabilities And Stockholders Equity |
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Royal Caribbean uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Royal Caribbean Cruises. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Royal Caribbean's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 1st of February 2024 Upcoming Quarterly Report | View | |
| 2nd of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 1st of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Royal Caribbean's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Royal Caribbean's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2012-02-02 | 2011-12-31 | 0.15 | 0.17 | 0.02 | 13 | ||
2007-05-01 | 2007-03-31 | 0.06 | 0.04 | -0.02 | 33 | ||
2007-02-05 | 2006-12-31 | 0.2 | 0.22 | 0.02 | 10 | ||
2003-01-30 | 2002-12-31 | 0.01 | 0.03 | 0.02 | 200 | ||
1998-02-11 | 1997-12-31 | 0.1 | 0.12 | 0.02 | 20 | ||
2009-07-29 | 2009-06-30 | -0.13 | -0.16 | -0.03 | 23 | ||
2004-01-29 | 2003-12-31 | -0.07 | -0.1 | -0.03 | 42 | ||
2000-01-25 | 1999-12-31 | 0.18 | 0.21 | 0.03 | 16 |
Know Royal Caribbean's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Royal Caribbean is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Royal Caribbean Cruises backward and forwards among themselves. Royal Caribbean's institutional investor refers to the entity that pools money to purchase Royal Caribbean's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Amvescap Plc. | 2024-06-30 | 2.6 M | D. E. Shaw & Co Lp | 2024-09-30 | 2.3 M | Dimensional Fund Advisors, Inc. | 2024-09-30 | 2.2 M | Dz Bank Ag Deutsche Zentral-genossenschaftsbank Frankfurt Am Main | 2024-09-30 | 2.1 M | Northern Trust Corp | 2024-09-30 | 2 M | D1 Capital Partners L.p. | 2024-09-30 | 1.6 M | Charles Schwab Investment Management Inc | 2024-09-30 | 1.5 M | Nuveen Asset Management, Llc | 2024-06-30 | 1.5 M | Bank Of New York Mellon Corp | 2024-06-30 | 1.4 M | Capital Research Global Investors | 2024-09-30 | 30.5 M | Capital Research & Mgmt Co - Division 3 | 2024-09-30 | 29.4 M |
Royal Caribbean's market capitalization trends
The company currently falls under 'Large-Cap' category with a total capitalization of 64.93 B.Market Cap |
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Royal Caribbean's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.05 | 0.03 | |
| Return On Capital Employed | 0.11 | 0.12 | |
| Return On Assets | 0.05 | 0.03 | |
| Return On Equity | 0.36 | 0.38 |
Determining Royal Caribbean's profitability involves analyzing its financial statements and using various financial metrics to determine if Royal Caribbean is a good buy. For example, gross profit margin measures Royal Caribbean's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Royal Caribbean's profitability and make more informed investment decisions.
Royal Caribbean's Earnings Breakdown by Geography
Evaluate Royal Caribbean's management efficiency
Royal Caribbean Cruises has Return on Asset of 0.0731 % which means that on every $100 spent on assets, it made $0.0731 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.4426 %, implying that it generated $0.4426 on every 100 dollars invested. Royal Caribbean's management efficiency ratios could be used to measure how well Royal Caribbean manages its routine affairs as well as how well it operates its assets and liabilities. At this time, Royal Caribbean's Return On Capital Employed is quite stable compared to the past year. Return On Equity is expected to rise to 0.38 this year, although the value of Return On Tangible Assets will most likely fall to 0.03. At this time, Royal Caribbean's Fixed Asset Turnover is quite stable compared to the past year. Asset Turnover is expected to rise to 0.43 this year, although the value of Other Assets will most likely fall to about 988.4 M.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 19.14 | 21.12 | |
| Tangible Book Value Per Share | 15.98 | 18.93 | |
| Enterprise Value Over EBITDA | 12.60 | 7.83 | |
| Price Book Value Ratio | 7.02 | 7.37 | |
| Enterprise Value Multiple | 12.60 | 7.83 | |
| Price Fair Value | 7.02 | 7.37 | |
| Enterprise Value | 12.6 B | 13.3 B |
Royal Caribbean showcases strong leadership that adapts to market changes and drives innovation. Our analysis explores how this adaptability affects the stock's investment appeal.
Dividend Yield 0.0066 | Forward Dividend Yield 0.0066 | Forward Dividend Rate 1.6 | Beta 2.6 |
Basic technical analysis of Royal Stock
As of the 24th of November, Royal Caribbean holds the Coefficient Of Variation of 298.73, risk adjusted performance of 0.2629, and Semi Deviation of 0.9162. Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of Royal Caribbean, as well as the relationship between them. Please check Royal Caribbean Cruises standard deviation, as well as the relationship between the maximum drawdown and expected short fall to decide if Royal Caribbean Cruises is priced some-what accurately, providing market reflects its current price of 241.49 per share. Given that Royal Caribbean has jensen alpha of 0.47, we recommend you to check out Royal Caribbean Cruises's recent market performance to make sure the company can sustain itself at a future point.Royal Caribbean's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Royal Caribbean insiders, such as employees or executives, is commonly permitted as long as it does not rely on Royal Caribbean's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Royal Caribbean insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Bethge Laura H over three months ago Disposition of 267 shares by Bethge Laura H of Royal Caribbean at 146.38 subject to Rule 16b-3 | ||
Michael Bayley over six months ago Disposition of 11596 shares by Michael Bayley of Royal Caribbean at 135.77 subject to Rule 16b-3 | ||
Arne Wilhelmsen over a year ago Royal Caribbean exotic insider transaction detected |
Royal Caribbean's Outstanding Corporate Bonds
Royal Caribbean issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Royal Caribbean Cruises uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Royal bonds can be classified according to their maturity, which is the date when Royal Caribbean Cruises has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
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Understand Royal Caribbean's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Royal Caribbean's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.2629 | |||
| Market Risk Adjusted Performance | 0.4313 | |||
| Mean Deviation | 1.57 | |||
| Semi Deviation | 0.9162 | |||
| Downside Deviation | 1.38 | |||
| Coefficient Of Variation | 298.73 | |||
| Standard Deviation | 2.0 | |||
| Variance | 3.99 | |||
| Information Ratio | 0.2693 | |||
| Jensen Alpha | 0.47 | |||
| Total Risk Alpha | 0.3442 | |||
| Sortino Ratio | 0.3906 | |||
| Treynor Ratio | 0.4213 | |||
| Maximum Drawdown | 10.23 | |||
| Value At Risk | (2.33) | |||
| Potential Upside | 4.24 | |||
| Downside Variance | 1.9 | |||
| Semi Variance | 0.8395 | |||
| Expected Short fall | (2.01) | |||
| Skewness | 0.7503 | |||
| Kurtosis | 1.14 |
| Risk Adjusted Performance | 0.2629 | |||
| Market Risk Adjusted Performance | 0.4313 | |||
| Mean Deviation | 1.57 | |||
| Semi Deviation | 0.9162 | |||
| Downside Deviation | 1.38 | |||
| Coefficient Of Variation | 298.73 | |||
| Standard Deviation | 2.0 | |||
| Variance | 3.99 | |||
| Information Ratio | 0.2693 | |||
| Jensen Alpha | 0.47 | |||
| Total Risk Alpha | 0.3442 | |||
| Sortino Ratio | 0.3906 | |||
| Treynor Ratio | 0.4213 | |||
| Maximum Drawdown | 10.23 | |||
| Value At Risk | (2.33) | |||
| Potential Upside | 4.24 | |||
| Downside Variance | 1.9 | |||
| Semi Variance | 0.8395 | |||
| Expected Short fall | (2.01) | |||
| Skewness | 0.7503 | |||
| Kurtosis | 1.14 |
Consider Royal Caribbean's intraday indicators
Royal Caribbean intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Royal Caribbean stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Royal Caribbean Corporate Filings
F4 | 21st of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
13A | 13th of November 2024 The form used by investors holding more than 5% of a company's stock, to report their beneficial ownership pursuant to Rule 13d-1 or Rule 13d-2 under the Securities Exchange Act of 1934 | ViewVerify |
8K | 29th of October 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
13A | 10th of July 2024 An amended filing to the original Schedule 13G | ViewVerify |
Royal Stock media impact
Far too much social signal, news, headlines, and media speculation about Royal Caribbean that are available to investors today. That information is available publicly through Royal media outlets and privately through word of mouth or via Royal internal channels. However, regardless of the origin, that massive amount of Royal data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Royal Caribbean news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Royal Caribbean relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Royal Caribbean's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Royal Caribbean alpha.
Royal Caribbean Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Royal Caribbean can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Royal Caribbean Cruises Historical Investor Sentiment
Investor biases related to Royal Caribbean's public news can be used to forecast risks associated with an investment in Royal. The trend in average sentiment can be used to explain how an investor holding Royal can time the market purely based on public headlines and social activities around Royal Caribbean Cruises. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Royal Caribbean's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Royal Caribbean and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Royal Caribbean news discussions. The higher the estimate score, the more favorable the investor's outlook on Royal Caribbean.
Royal Caribbean Corporate Directors
| William Kimsey | Lead Independent Director | Profile | |
| Arne Wilhelmsen | Independent Director | Profile | |
| William Reilly | Independent Director | Profile | |
| Donald Thompson | Independent Director | Profile |
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Royal Caribbean Cruises. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators. You can also try the Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Is Hotels, Resorts & Cruise Lines space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Royal Caribbean. If investors know Royal will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Royal Caribbean listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.154 | Dividend Share 0.4 | Earnings Share 9.97 | Revenue Per Share 62.168 | Quarterly Revenue Growth 0.175 |
The market value of Royal Caribbean Cruises is measured differently than its book value, which is the value of Royal that is recorded on the company's balance sheet. Investors also form their own opinion of Royal Caribbean's value that differs from its market value or its book value, called intrinsic value, which is Royal Caribbean's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Royal Caribbean's market value can be influenced by many factors that don't directly affect Royal Caribbean's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Royal Caribbean's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Royal Caribbean is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Royal Caribbean's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.