Carnival (CCL) AI Stock Analysis

• Market Cap: $38.87B
• Dividend Yield: N/A
• Average Volume (3M): 25.66M
• Price to Earnings (P/E): 16.2
• Beta (1Y): 1.82
• Revenue Growth: 10.81%
• EPS Growth: 175.74%
• Country: US
• Employees: 115,000
• Sector: Consumer Cyclical
• Sector Strength: 61
• Industry: Leisure
• EPS (TTM): 0.35
• Shares Outstanding: 1,166,606,900
• 10 Day Avg. Volume: 36,247,361
• 30 Day Avg. Volume: 25,660,229
• PEG Ratio: 0.63
• Price to Book (P/B): 3.57
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.62
• Enterprise Value/Market Cap: 1.59
• Enterprise Value/Revenue: 0.61
• Enterprise Value/Gross Profit: 6.08
• Enterprise Value/Ebitda: 2.46
• 1Y Price Target: $29.57
• Price Target Upside: -1.30% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18

• Rating: 73 Outperform
• Price Target: $30.00 ▲(0.13%Upside)

Carnival's strong recovery and bullish technical indicators drive a positive outlook. Despite high leverage and rising operational costs, strategic financial moves and positive earnings call guidance suggest continued growth potential.

Positive Factors

Earnings

Carnival Corporation's Q2 earnings per share were significantly higher than expected, indicating strong financial performance.

Financial Performance

Carnival Corporation achieved the highest 2Q margin in 20 years, marking the second consecutive quarter of EBITDA margin expansion compared to 2019.

Negative Factors

Booked Position

Although the company's booked position remains strong, it is slightly weaker compared to the previous year's record levels.

Market Perception

J.P. Morgan may have a conflict of interest that could affect the objectivity of its research report on Carnival Corporation.

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 Corporation generates revenue primarily through ticket sales for its cruise voyages, which include accommodations, meals, and basic onboard amenities. Additional revenue streams come from onboard spending by passengers, such as purchases at specialty restaurants, bars, casinos, spas, and retail outlets, as well as shore excursions and other services. Carnival also earns income from travel and vacation-related services, including port and terminal operations. The company's revenue is influenced by factors such as fleet size, occupancy rates, ticket pricing, and the level of onboard spending. Strategic partnerships with travel agencies and marketing alliances also play a role in reaching wider customer bases and enhancing revenue streams.

Carnival Financial Statement Overview

Summary

Carnival has shown notable recovery with improved revenue, profitability, and cash flow metrics. High leverage remains a risk despite strong revenue growth and improving profit margins.

Income Statement

Carnival's TTM revenue increased with a strong revenue growth rate from the previous year. The company shows a solid gross profit margin of 39.2% and a net profit margin of 9.7%, reflecting improved profitability from the previous losses. However, the EBIT margin at 16.2% and EBITDA margin at 26.0% indicate room for operational efficiency improvements.

Balance Sheet

The company's debt-to-equity ratio of 2.86 indicates relatively high leverage, which poses a risk in economic downturns. The return on equity is 25.2%, showing effective utilization of shareholder funds. However, the equity ratio of 19.6% suggests a lower proportion of assets financed by equity, indicating financial vulnerability.

Cash Flow

Carnival's free cash flow improved significantly, with a growth rate of 116.3%, indicating better cash management. The operating cash flow to net income ratio of 2.15 and free cash flow to net income ratio of 1.11 suggest strong cash generation relative to earnings. However, past negative cash flows remain a concern that needs continued attention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.97B	25.02B	21.59B	12.17B	1.91B	5.59B
Gross Profit	10.18B	9.38B	7.28B	412.00M	-2.75B	-2.65B
EBITDA	6.75B	6.23B	4.37B	-2.20B	-5.69B	-7.12B
Net Income	2.52B	1.92B	-74.00M	-6.09B	-9.50B	-10.24B
Balance Sheet
Total Assets	51.16B	49.06B	49.12B	51.70B	53.34B	53.59B
Cash, Cash Equivalents and Short-Term Investments	2.15B	1.21B	2.42B	4.03B	9.14B	9.51B
Total Debt	28.65B	28.88B	31.89B	35.88B	34.61B	28.38B
Total Liabilities	41.16B	39.81B	42.24B	44.64B	41.20B	33.04B
Stockholders Equity	10.01B	9.25B	6.88B	7.06B	12.14B	20.55B
Cash Flow
Free Cash Flow	2.81B	1.30B	997.00M	-6.61B	-7.72B	-9.92B
Operating Cash Flow	5.43B	5.92B	4.28B	-1.67B	-4.11B	-6.30B
Investing Cash Flow	-2.34B	-4.54B	-2.81B	-4.77B	-3.54B	-3.24B
Financing Cash Flow	-2.61B	-2.58B	-5.09B	3.58B	6.95B	18.65B

Carnival Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 29.96
• 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 29.96 is above the 20-day moving average (MA) of 25.32, above the 50-day MA of 22.94, and above the 200-day MA of 22.72, indicating a bullish trend. The MACD of 1.72 indicates Negative momentum. The RSI at 80.63 is Negative, neither overbought nor oversold. The STOCH value of 97.48 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
OSW	77 Outperform	$2.20B	33.70	12.80%	0.75%	9.80%	89.42%
CUK	74 Outperform	$38.91B	14.74	30.02%	―	10.81%	175.74%
CCL	73 Outperform	$38.87B	16.24	30.02%	―	10.81%	175.74%
Sector *	62 Neutral	$16.90B	11.24	-7.48%	2.95%	1.60%	-23.76%

Carnival Corporate Events

Carnival Secures $4.5 Billion Credit Facility

On June 13, 2025, Carnival Corporation and Carnival plc announced the successful arrangement of a new $4.5 billion multi-currency revolving credit facility, replacing the existing facility of Carnival Holdings (Bermuda) II Limited. This new agreement, which matures in 2030, includes an accordion feature for up to $1.0 billion of additional commitments and is expected to enhance the company’s liquidity, aiding in debt reduction efforts. The facility is unsecured and guaranteed by the same subsidiaries that guarantee the company’s senior secured term loan facilities, reflecting confidence in Carnival’s continued performance and strong banking relationships.

The most recent analyst rating on (CCL) stock is a Hold with a $21.00 price target. To see the full list of analyst forecasts on Carnival stock, see the CCL Stock Forecast page.

Carnival Secures $4.5 Billion Credit Facility

On June 13, 2025, Carnival Corporation and Carnival plc announced the successful arrangement of a new $4.5 billion multi-currency revolving credit facility, replacing the existing facility. This new agreement, which matures in June 2030, includes an accordion feature for additional commitments and reflects confidence in Carnival’s financial performance and banking relationships. The new facility is unsecured and guaranteed by the same subsidiaries that back the company’s senior secured term loan facilities, enhancing liquidity and supporting debt reduction efforts.

The most recent analyst rating on (CCL) stock is a Hold with a $21.00 price target. To see the full list of analyst forecasts on Carnival stock, see the CCL Stock Forecast page.

Carnival Completes $1 Billion Senior Notes Offering

On May 21, 2025, Carnival Corporation closed a private offering of $1.0 billion in senior unsecured notes due 2031, with an interest rate of 5.875%. The proceeds will be used to redeem $993 million of the company’s 7.625% senior unsecured notes due 2026, continuing its strategy to reduce interest expenses and manage future debt maturities. This transaction is expected to reduce net interest expenses by over $20 million through the maturity date of the 2026 notes. The notes are guaranteed by Carnival plc and certain subsidiaries and include investment-grade covenants, offering a strategic advantage in managing the company’s financial obligations.

The most recent analyst rating on (CCL) stock is a Hold with a $21.00 price target. To see the full list of analyst forecasts on Carnival stock, see the CCL Stock Forecast page.

Carnival Completes $1 Billion Senior Notes Offering

On May 21, 2025, Carnival Corporation closed a private offering of $1.0 billion in senior unsecured notes due 2031, with a 5.875% interest rate. The proceeds will be used to redeem $993 million of the company’s 7.625% senior unsecured notes due 2026, continuing its strategy to reduce interest expenses and manage debt maturities. The transaction is expected to save over $20 million in net interest expenses by the maturity date of the 2026 notes. The notes are guaranteed by Carnival plc and certain subsidiaries and include investment-grade covenants.

The most recent analyst rating on (CCL) stock is a Hold with a $21.00 price target. To see the full list of analyst forecasts on Carnival stock, see the CCL Stock Forecast page.