Carnival (CUK) AI Stock Analysis

• Market Cap: $40.42B
• Dividend Yield: N/A
• Average Volume (3M): 2.07M
• Price to Earnings (P/E): 15.3
• Beta (1Y): 1.60
• 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: 188,483,860
• 10 Day Avg. Volume: 2,501,127
• 30 Day Avg. Volume: 2,069,585
• 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: 1.68
• Enterprise Value/Revenue: 2.59
• Enterprise Value/Gross Profit: 6.56
• Enterprise Value/Ebitda: 10.01
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 2.53
• Revenue Forecast (FY): $27.77B

• Rating: 77 Outperform
• Price Target: $35.00 ▲(49.13% Upside)

Carnival's overall stock score is driven by its strong financial performance and positive earnings call, which highlight robust revenue growth, improved profitability, and strategic initiatives. While the technical analysis indicates a potential overbought condition, the company's valuation remains reasonable, and the reinstatement of dividends reflects confidence in future cash flows. The absence of significant corporate events further solidifies the focus on financial and operational metrics.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong recovery and demand in the leisure industry, enhancing Carnival's market position and financial health.

Cash Generation

Strong cash generation supports operational and strategic initiatives, providing Carnival with the flexibility to invest in growth and manage debt effectively.

Cost Management

Effective cost management enhances profitability and operational efficiency, allowing Carnival to better navigate inflationary pressures and maintain competitive pricing.

Negative Factors

High Debt Levels

While leverage has improved, high debt levels can limit financial flexibility and increase risk, necessitating continued focus on debt reduction.

Regulatory Costs

Increased regulatory costs can impact profitability and require strategic adjustments to maintain margins, affecting long-term financial performance.

Caribbean Market Challenges

Increased competition in the Caribbean market could pressure pricing and market share, challenging Carnival's growth and profitability in this key region.

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 the sale of cruise tickets and onboard services. Ticket sales represent a significant portion of its income, with customers purchasing cruise packages that include accommodations, meals, and entertainment. Additionally, Carnival earns substantial revenue from onboard spending, which encompasses purchases made by guests during their cruise, including dining at specialty restaurants, spa services, excursions, and shopping. The company also has partnerships with various travel agencies and online travel platforms that help in marketing and distributing its cruise offerings. Furthermore, Carnival benefits from brand loyalty programs and promotional campaigns that encourage repeat business, contributing to its long-term revenue growth.

Carnival Financial Statement Overview

Summary

Carnival's financial performance is strong, with impressive revenue growth and improved profitability. The company has reduced its leverage, although it remains relatively high. Cash flow generation is robust, supporting operational and strategic initiatives. Overall, Carnival is on a positive trajectory, but it needs to continue managing its debt levels and further align cash flows with profitability.

Income Statement

Carnival has shown impressive revenue growth with a 99% increase in TTM, indicating strong recovery and demand in the leisure industry. The gross profit margin improved to 39.5%, and the net profit margin reached 10.1%, reflecting enhanced operational efficiency and profitability. EBIT and EBITDA margins also improved, showcasing effective cost management and operational leverage.

Balance Sheet

The debt-to-equity ratio decreased to 2.34 from previous higher levels, indicating improved financial leverage, although it remains relatively high. Return on equity improved significantly to 26.2%, reflecting better profitability and efficient use of equity. However, the equity ratio remains moderate at 23.9%, suggesting a balanced asset structure.

Cash Flow

Free cash flow growth was robust at 384.9%, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 0.49, showing a healthy conversion of income to cash. The free cash flow to net income ratio of 0.52 suggests effective cash management, although there is room for improvement in aligning cash flows with net income.

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: 23.47
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CUK, the sentiment is Positive. The current price of 23.47 is below the 20-day moving average (MA) of 26.33, below the 50-day MA of 25.41, and below the 200-day MA of 23.81, indicating a bullish trend. The MACD of 1.71 indicates Negative momentum. The RSI at 71.49 is Negative, neither overbought nor oversold. The STOCH value of 77.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CUK.

Carnival Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CCL	78 Outperform	$40.39B	15.35	25.64%	―	6.39%	39.66%
CUK	77 Outperform	$40.42B	15.28	25.64%	―	6.39%	39.66%
LTH	71 Outperform	$5.90B	20.87	10.38%	―	15.77%	86.16%
PLNT	70 Outperform	$9.09B	44.58	―	―	14.39%	31.64%
OSW	70 Outperform	$2.18B	30.14	13.53%	0.79%	7.27%	45.12%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
XPOF	54 Neutral	$426.14M	-5.31	―	―	-3.55%	-111.90%

Carnival Corporate Events

Carnival Corporation Reports Record-Breaking Q3 2025 Earnings

Carnival Corporation & plc is the world’s largest cruise company, operating a diverse portfolio of cruise lines including Carnival Cruise Line, Princess Cruises, and Holland America Line, among others, within the leisure travel industry.

Carnival Corporation’s Earnings Call Highlights Record Performance

Carnival Corporation & plc’s recent earnings call painted a picture of robust financial health, marked by record net income and positive booking trends. Despite concerns over rising interest expenses and operational costs anticipated in 2026, the overall sentiment was optimistic, buoyed by strong performance metrics and a promising future outlook.