Carnival (CCL) AI Stock Analysis

• Market Cap: $42.21B
• Dividend Yield: N/A
• Average Volume (3M): 21.14M
• Price to Earnings (P/E): 15.8
• Beta (1Y): 1.61
• Revenue Growth: 6.39%
• EPS Growth: 39.66%
• Country: US
• Employees: 115,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): 0.34
• Shares Outstanding: 1,167,541,000
• 10 Day Avg. Volume: 26,058,371
• 30 Day Avg. Volume: 21,136,180
• PEG Ratio: >-0.01
• Price to Book (P/B): 3.50
• Price to Sales (P/S): 1.29
• P/FCF Ratio: 24.98
• Enterprise Value/Market Cap: 1.61
• Enterprise Value/Revenue: 2.59
• Enterprise Value/Gross Profit: 6.56
• Enterprise Value/Ebitda: 10.01
• 1Y Price Target: $36.76
• Price Target Upside: 16.11% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 19
• EPS Forecast (FY): 2.52
• Revenue Forecast (FY): $27.80B

• Rating: 78 Outperform
• Price Target: $35.00 ▲(10.55% Upside)

Carnival's strong financial recovery, highlighted by impressive earnings and strategic debt management, is the most significant factor driving the score. The bullish technical indicators and strategic corporate events further support a positive outlook, though high leverage and potential cost headwinds remain concerns.

Positive Factors

Revenue Growth

Carnival's record revenue growth indicates strong market demand and effective pricing strategies, supporting long-term business expansion.

Cash Generation

Robust cash generation enhances Carnival's ability to reinvest in operations, pay down debt, and provide shareholder returns, strengthening financial stability.

Strategic Developments

New destination developments position Carnival to capture more market share and enhance customer experience, supporting long-term growth.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, potentially affecting Carnival's ability to invest in growth opportunities.

Regulatory Costs

Increasing regulatory costs can pressure margins and profitability, impacting Carnival's long-term financial performance.

Caribbean Capacity Challenges

Increased competition in the Caribbean may pressure pricing and yields, challenging Carnival's ability to maintain profitability in this key market.

Carnival Business Overview & Revenue Model

Company Description

Carnival Corporation & plc operates as a leisure travel company. Its ships visit approximately 700 ports under the Carnival Cruise Line, Princess Cruises, Holland America Line, P&O Cruises (Australia), Seabourn, Costa Cruises, AIDA Cruises, P&O Cruises (UK), and Cunard brand names. The company also provides port destinations and other services, as well as owns and owns and operates hotels, lodges, glass-domed railcars, and motor coaches. It sells its cruises primarily through travel agents, tour operators, vacation planners, and websites. The company operates in the United States, Canada, Continental Europe, the United Kingdom, Australia, New Zealand, Asia, and internationally. It operates 87 ships with 223,000 lower berths. Carnival Corporation & plc was founded in 1972 and is headquartered in Miami, Florida.

How the Company Makes Money

Carnival generates revenue primarily through ticket sales for its cruises, which constitutes the largest portion of its income. Passengers pay for a variety of cruise packages that include accommodations, meals, and entertainment. Additionally, the company earns significant revenue from onboard spending, which includes purchases of beverages, specialty dining, spa services, excursions, and shopping. Another key revenue stream comes from travel-related services, such as pre- and post-cruise hotel accommodations and air travel arrangements. The company also benefits from partnerships with various travel agencies and online travel platforms, which help to sell its cruise packages. Moreover, Carnival's loyalty programs encourage repeat business, enhancing customer retention and driving additional revenue. Seasonal promotions and marketing campaigns further contribute to its earnings by attracting a diverse customer base.

Carnival Financial Statement Overview

Summary

Carnival has shown strong revenue and profit growth, improved margins, and enhanced cash flow generation. However, high leverage remains a concern, which could impact financial stability if not managed effectively.

Income Statement

Carnival has shown impressive revenue growth with a TTM increase of 99% compared to the previous year. The company has improved its profitability significantly, with a gross profit margin of 39.5% and a net profit margin of 10.1% in the TTM. EBIT and EBITDA margins have also strengthened, indicating better operational efficiency. However, the company has experienced volatility in past years, which could pose a risk if not managed well.

Balance Sheet

Carnival's balance sheet shows a high debt-to-equity ratio of 2.34, indicating significant leverage. However, the company has improved its return on equity to 26.2% in the TTM, reflecting better profitability. The equity ratio is moderate, suggesting a balanced approach to financing. While the company has made progress, the high debt levels remain a concern.

Cash Flow

The cash flow statement reveals strong free cash flow growth of 384.9% in the TTM, showcasing improved cash generation capabilities. The operating cash flow to net income ratio is 0.49, indicating a healthy conversion of earnings to cash. The free cash flow to net income ratio is 0.52, suggesting effective cash management. Despite past challenges, the recent improvements are promising.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	26.23B	25.02B	21.59B	12.17B	1.91B	5.59B
Gross Profit	10.36B	9.38B	7.28B	412.00M	-2.75B	-2.65B
EBITDA	6.79B	6.23B	4.37B	-2.20B	-5.69B	-7.12B
Net Income	2.64B	1.92B	-74.00M	-6.09B	-9.50B	-10.24B
Balance Sheet
Total Assets	50.83B	49.06B	49.12B	51.70B	53.34B	53.59B
Cash, Cash Equivalents and Short-Term Investments	1.76B	1.21B	2.42B	4.03B	9.14B	9.51B
Total Debt	27.86B	28.88B	31.89B	35.88B	34.61B	28.38B
Total Liabilities	38.90B	39.81B	42.24B	44.64B	41.20B	33.04B
Stockholders Equity	11.93B	9.25B	6.88B	7.06B	12.14B	20.55B
Cash Flow
Free Cash Flow	2.91B	1.30B	997.00M	-6.61B	-7.72B	-9.92B
Operating Cash Flow	5.61B	5.92B	4.28B	-1.67B	-4.11B	-6.30B
Investing Cash Flow	-2.39B	-4.54B	-2.81B	-4.77B	-3.54B	-3.24B
Financing Cash Flow	-2.99B	-2.58B	-5.09B	3.58B	6.95B	18.65B

Carnival Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 31.66
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CCL, the sentiment is Positive. The current price of 31.66 is above the 20-day moving average (MA) of 27.39, above the 50-day MA of 27.48, and above the 200-day MA of 25.98, indicating a bullish trend. The MACD of 1.08 indicates Negative momentum. The RSI at 70.75 is Negative, neither overbought nor oversold. The STOCH value of 90.97 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CCL.

Carnival Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CCL	78 Outperform	$42.21B	15.83	25.64%	―	6.39%	39.66%
CUK	77 Outperform	$42.45B	15.70	25.64%	―	6.39%	39.66%
OSW	70 Outperform	$2.22B	30.45	13.53%	0.79%	7.27%	45.12%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Carnival Corporate Events

Carnival Closes $1.25 Billion Senior Notes Offering

On October 15, 2025, Carnival Corporation closed its private offering of $1.25 billion in senior unsecured notes due 2029, with a 5.125% interest rate. The proceeds, along with cash on hand, will be used to redeem $2 billion of its 6.000% senior unsecured notes due 2029, as part of its strategy to reduce interest expenses. This move is expected to impact the company’s financial structure by lowering its interest obligations and potentially improving its market positioning.

Carnival Closes $1.25 Billion Senior Notes Offering

On October 15, 2025, Carnival Corporation closed a private offering of $1.25 billion in senior unsecured notes due 2029, with an interest rate of 5.125%. The proceeds, along with cash on hand, will be used to redeem $2 billion of its outstanding 6.000% senior unsecured notes due 2029, as part of the company’s strategy to reduce interest expenses. This financial maneuver is expected to impact the company’s operations by lowering its interest obligations, potentially improving financial stability and benefiting stakeholders.

Carnival Redeems Convertible Notes to Deleverage

On September 29, 2025, Carnival Corporation announced its decision to redeem its 5.75% convertible senior notes due 2027, as part of its strategy to deleverage and reduce interest expenses. This move allows note holders to convert their notes into shares, potentially impacting the company’s equity structure. Additionally, Carnival reported record financial results for the third quarter of 2025, with a net income of $1.9 billion and adjusted net income of $2 billion. The company exceeded its guidance, driven by strong demand and effective cost management, and raised its full-year outlook for the third time in 2025. Carnival’s strategic refinancing efforts and the opening of new destinations like Celebration Key highlight its focus on strengthening financial flexibility and enhancing customer experiences.

Carnival Announces Redemption of Convertible Senior Notes

On September 29, 2025, Carnival Corporation announced a notice of redemption for its outstanding 5.75% convertible senior notes due 2027, as part of its strategy to deleverage and reduce interest expenses. The redemption is set for December 5, 2025, allowing note holders to convert their notes into shares before the redemption date. In the third quarter of 2025, Carnival achieved record financial results with a net income of $1.9 billion and adjusted net income of $2 billion, surpassing previous guidance. The company also raised its full-year 2025 outlook for the third time, citing strong demand and effective cost management. Carnival’s refinancing strategy has significantly reduced its debt, and the company continues to strengthen its balance sheet and financial flexibility.