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Carnival (CUK)
NYSE:CUK
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Carnival
(NYSE:CUK)69Neutral
Carnival (CUK) vs. S&P 500 (SPY)
Market Cap
$26.71B
Dividend YieldN/A
Average Volume (3M)1.95M
Price to Earnings (P/E)13.6
Beta (1Y)1.99
Revenue Growth15.87%
EPS GrowthN/A
CountryUS
Employees115,000
SectorConsumer Cyclical
Sector Strength53
IndustryHotels, Lodging & Leisure
Share Statistics
EPS (TTM)1.39
Shares Outstanding187,687,580
10 Day Avg. Volume2,110,897
30 Day Avg. Volume1,953,584
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.12
Price to Cash Flow (P/CF)7.70
P/FCF Ratio7.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$20.00Price Target Upside5.54% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering0
Carnival Business Overview & Revenue Model
Company DescriptionCarnival Corporation & plc (CUK) is one of the world's largest leisure travel companies and a leading cruise operator. The company operates a portfolio of global cruise line brands, including Carnival Cruise Line, Princess Cruises, Holland America Line, and Seabourn, among others. With a diverse fleet of ships, Carnival offers vacation experiences to major destinations worldwide, catering to a wide range of travelers with various onboard activities, entertainment, dining options, and shore excursions.
How the Company Makes MoneyCarnival Corporation makes money primarily through ticket sales for its cruise vacations, which constitute a significant portion of its revenue. The company also generates substantial income from onboard spending, including sales in restaurants, bars, casinos, spas, and shops, as well as fees for shore excursions and other activities. Additionally, Carnival benefits from partnerships with travel agencies and tour operators, which facilitate bookings and enhance customer reach. The company's earnings are influenced by factors such as fuel prices, currency exchange rates, and global travel demand.
Carnival Financial Statement Overview
Summary
Carnival shows significant revenue recovery and profitability post-pandemic, with an 8.87% net profit margin and a 33.9% gross margin. However, high debt-to-equity ratio and leverage remain concerns for financial stability.Income Statement
Carnival has shown a significant recovery in revenue from the pandemic-induced lows, with a revenue growth rate of 77.4% from 2022 to 2023. The company has returned to profitability with a net profit margin of 8.87% in 2023, a substantial turnaround from previous losses. The gross profit margin stands at 33.9%, and the EBIT margin is 16.6%, indicating improving operational efficiency. However, these figures remain below pre-pandemic levels, suggesting further room for recovery.65
Positive
Balance Sheet
Carnival's balance sheet shows a high debt-to-equity ratio of 3.12, highlighting significant leverage, which poses a risk in terms of financial stability. The equity ratio is at 18.2%, indicating limited equity buffer. Return on equity has improved to 21.9% with the return to profitability. While the company is recovering, the high leverage remains a concern for long-term financial health.50
Neutral
Cash Flow
Free cash flow has grown by 30.1% from 2022 to 2023, reflecting improved cash generation capabilities. The operating cash flow to net income ratio of 3.09 suggests strong cash flow relative to reported earnings. However, the high capital expenditure and debt servicing requirements pose challenges to cash flow sustainability.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 25.02B | 21.59B | 12.17B | 1.91B | 5.59B | Gross Profit |
| 15.86B | 7.28B | 412.00M | -2.75B | -2.65B | EBIT |
| 3.57B | 1.96B | -4.38B | -7.09B | -8.87B | EBITDA |
| 6.23B | 4.35B | -2.04B | -5.55B | -6.94B | Net Income Common Stockholders |
| 1.92B | -74.00M | -6.09B | -9.50B | -10.24B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.21B | 2.42B | 4.03B | 9.14B | 9.51B | Total Assets |
| 48.28B | 49.12B | 51.70B | 53.34B | 53.59B | Total Debt |
| 28.88B | 31.89B | 35.88B | 34.61B | 28.38B | Net Debt |
| 27.67B | 29.48B | 31.85B | 25.67B | 18.87B | Total Liabilities |
| 39.03B | 42.24B | 44.64B | 41.20B | 33.04B | Stockholders Equity |
| 9.25B | 6.88B | 7.06B | 12.14B | 20.55B |
| Cash Flow | Free Cash Flow | |||
| 1.30B | 997.00M | -6.61B | -7.72B | -9.92B | Operating Cash Flow |
| 5.92B | 4.28B | -1.67B | -4.11B | -6.30B | Investing Cash Flow |
| -4.54B | -2.81B | -4.77B | -3.54B | -3.24B | Financing Cash Flow |
| -2.58B | -5.09B | 3.58B | 6.95B | 18.65B |
Carnival Technical Analysis
Negative
18.95
Price Trends
22.74
Negative
22.24
Negative
18.81
Positive
Market Momentum
-1.04
Positive
28.89
Positive
15.87
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CUK, the sentiment is Negative. The current price of 18.95 is below the 20-day moving average (MA) of 21.93, below the 50-day MA of 22.74, and above the 200-day MA of 18.81, indicating a neutral trend. The MACD of -1.04 indicates Positive momentum. The RSI at 28.89 is Positive, neither overbought nor oversold. The STOCH value of 15.87 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CUK.
Carnival Risk Analysis
Carnival disclosed 19 risk factors in its most recent earnings report. Carnival reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Carnival Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $57.59B | 19.56 | 46.85% | 0.44% | 18.60% | 65.95% | |
74 Outperform | $190.74B | 34.26 | 5.54% | 0.90% | 3.97% | 89.53% | |
69 Neutral | $26.71B | 13.61 | 23.75% | ― | 15.87% | ― | |
60 Neutral | $13.01B | 10.45 | 0.79% | 3.53% | 1.60% | -22.47% | |
59 Neutral | $27.15B | 14.83 | 23.75% | ― | 15.87% | ― | |
57 Neutral | $8.83B | 11.32 | 105.46% | ― | 10.87% | 433.82% | |
47 Neutral | $579.71M | ― | 21.42% | ― | 13.20% | 28.95% |
* Consumer Cyclical Sector Average
Performance Comparison
CUK
Carnival
18.95
4.24
28.82%
CCL
Carnival
20.64
4.41
27.17%
RCL
Royal Caribbean
214.00
87.24
68.82%
DIS
Walt Disney
105.51
-5.79
-5.20%
NCLH
Norwegian Cruise Line
20.06
0.26
1.31%
LIND
Lindblad Expeditions Holdings
10.62
2.34
28.26%
Carnival Earnings Call Summary
Earnings Call Date: Dec 20, 2024 | % Change Since: -17.00% | Next Earnings Date: Apr 1, 2025
Earnings Call Sentiment Positive
The earnings call highlighted robust financial performance with record-breaking revenues and strong booking trends, alongside improvements in debt metrics and sustainability efforts. Despite these positive trends, potential challenges such as passenger charges in Mexico and the lingering impact of the Red Sea disruptions were noted. Overall, the sentiment remains optimistic for continued growth and financial improvement.Highlights
Record-Breaking Revenues and Cash Flow
Achieved record revenues for the seventh consecutive quarter and full-year revenues hit an all-time high of $25 billion, with cash from operations reaching almost $6 billion.
Significant Yield Improvements
Full-year 2024 yield increased by 11%, with prices up in all major brands, translating to an additional $700 million in net income compared to initial guidance.
Debt Reduction and Financial Improvements
Paid down over $8 billion of debt since January 2023, achieving a 4.3 times net debt to EBITDA ratio, with plans to reach investment-grade leverage metrics by 2026.
Strong Booking Trends and Future Growth
2025 and 2026 booking volumes are breaking records, with higher prices and occupancy expected for all quarters.
Sustainability and Emissions Reduction
Achieved about a 17.5% reduction in greenhouse gas emissions intensity versus 2019, on track to achieve a 20% reduction by 2026.
Lowlights
Potential Challenges in Mexico
Facing potential additional passenger charges in Mexico, which could impact less than 5% of itineraries for the year if implemented.
Impact of Red Sea Disruptions
Although less impactful than initially expected, the Red Sea issue in 2024 resulted in an approximate $100 million impact, with 2025 not seeing a full bounce-back.
Company Guidance
During the Carnival Corporation and PLC Fourth Quarter 2024 Earnings Conference Call, the company provided optimistic guidance for the upcoming year, emphasizing strong financial performance and projections. Key metrics highlighted include a record net income improvement of over $250 million year-over-year, with full-year revenues at an all-time high of $25 billion and cash from operations near $6 billion. The company reported a yield increase of 11% for the year, outperforming original guidance by nearly 250 basis points, and achieved a 17.5% reduction in greenhouse gas emissions intensity from 2019 levels. For 2025, Carnival anticipates yield growth exceeding 4%, contributing over $400 million to the bottom line, with unit cost growth remaining controlled. The company is also progressing toward its 2026 SeaChange targets, with expectations of achieving an EBITDA per ALBD increase of 50% from 2023 and an ROIC of 12%. Additionally, Carnival has significantly reduced its debt, paying down over $8 billion since January 2023, and is on track to achieve investment-grade leverage metrics by 2026.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.