Education
About Us
Working with TipRanks
Follow Us
Carnival Corporation & plc (CUK)
:CUK
Top Page
Carnival
(NYSE:CUK)
Rating:75Outperform
Price Target:
$28.00
▲(4.59%Upside)
Carnival (CUK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$38.08B
Dividend YieldN/A
Average Volume (3M)2.31M
Price to Earnings (P/E)14.5
Beta (1Y)1.80
Revenue Growth10.81%
EPS Growth175.74%
CountryUS
Employees115,000
SectorConsumer Cyclical
Sector Strength61
IndustryLeisure
Share Statistics
EPS (TTM)0.35
Shares Outstanding188,478,060
10 Day Avg. Volume2,931,379
30 Day Avg. Volume2,305,299
Financial Highlights & Ratios
PEG Ratio0.63
Price to Book (P/B)3.57
Price to Sales (P/S)0.00
P/FCF Ratio12.62
Enterprise Value/Market Cap1.63
Enterprise Value/Revenue0.61
Enterprise Value/Gross Profit6.08
Enterprise Value/Ebitda2.46
Forecast
1Y Price Target
$20.00Price Target Upside-25.29% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering0
Carnival Business Overview & Revenue Model
Company DescriptionCarnival Corporation & plc (CUK) is a global cruise company and one of the largest leisure travel companies in the world. It operates a portfolio of leading cruise brands, including Carnival Cruise Line, Princess Cruises, Holland America Line, Seabourn, Costa Cruises, AIDA Cruises, P&O Cruises (UK), and Cunard, among others. The company provides travelers with a range of vacation experiences, from family-friendly cruises to luxury voyages, across various destinations worldwide.
How the Company Makes MoneyCarnival makes money primarily through the sale of cruise tickets and onboard services. Its revenue model is based on two main streams: passenger ticket sales and onboard spending. Passenger tickets are sold for various cruise itineraries, which can range from short trips to extended voyages. Onboard spending includes revenue from food and beverage sales, casino gaming, spa services, shore excursions, retail purchases, and specialty dining. Additionally, Carnival generates revenue through partnerships with travel agencies and tour operators, as well as through strategic alliances with various brands that provide services or products on its ships. The company's earnings are also influenced by factors such as fuel costs, geopolitical conditions, and consumer demand for travel experiences.
Carnival Earnings Call Summary
Earnings Call Date:Jun 24, 2025
(Q2-2025)
| % Change Since: 24.11%|
Next Earnings Date:Sep 26, 2025
Earnings Call Sentiment Positive
Carnival Corporation reported another quarter of record revenues and surpassed 2026 financial goals ahead of schedule, driven by strong booking positions and new destination launches. However, geopolitical uncertainties and expected cost increases in the coming quarters present challenges, along with the initial yield impact of the new loyalty program.Q2-2025 Updates
Positive Updates
Record Revenues and Financial Performance
Carnival Corporation achieved record revenues for the eighth consecutive quarter, with EBITDA up 26%, operating income up 67%, and net income more than tripled year-over-year. EBITDA margins were 200 basis points higher than 2019, marking the highest margins in nearly twenty years.
Early Achievement of 2026 Targets
Carnival surpassed its 2026 targets 18 months ahead of schedule, including a 52% increase in EBITDA per ALBD and a 12.5% ROIC. The company also reduced its carbon intensity by 20% compared to 2019.
Strong Customer Deposits and Booking Position
Customer deposits reached an all-time high, with the booking position for 2026 in line with last year's record levels and at historically high prices.
Successful Launch of New Destinations
Carnival is set to open Celebration Key in July 2025 and expand Relax Away Half Moon Cay by mid-2026, enhancing its portfolio of private island destinations.
Negative Updates
Geopolitical Instability Concerns
The conflict in the Middle East poses potential risks, although no immediate impact on business has been observed yet.
Higher Cruise Costs in Q3 2025
Carnival expects Q3 cruise costs without fuel per ALBD to rise by 7% year-over-year due to new destination operating expenses and lower capacity.
Potential Impact of New Loyalty Program
The new Carnival Rewards loyalty program, launching in June 2026, will initially impact yields negatively due to revenue deferral, with positive yield impact expected only after two years.
Company Guidance
In the second quarter of 2025, Carnival Corporation & plc reported its eighth consecutive quarter of record revenue, achieving new highs in EBITDA and operating income both in total and on a per ALBD basis. Customer deposits reached an all-time high, and year-over-year, EBITDA increased by 26%, operating income rose by 67%, and net income more than tripled, exceeding guidance by $185 million. Yields grew by approximately 6.5%, surpassing guidance by 200 basis points, with both ticket and onboard spending performing strongly. Unit costs also improved by 200 basis points, with EBITDA margins surpassing 2019 levels by 200 basis points, marking the highest margins in nearly two decades. The company exceeded its 2026 financial targets, achieving a 52% increase in EBITDA per ALBD and a 12.5% ROIC, doubling from 2023, and also met its carbon intensity reduction target. Looking forward, Carnival anticipates further yield growth and aims to set new targets for 2025, with strong booking positions and high prices, bolstered by strategic marketing and investment initiatives.Carnival Financial Statement Overview
Summary
Carnival has demonstrated a strong recovery in revenue and profitability, with marked improvements in net income and operating efficiency. However, financial health is still challenged by high leverage and volatile cash flow growth, necessitating a focus on debt reduction and cash flow stability.Income Statement
Carnival has shown a strong recovery in its revenue growth, with a significant increase from $12.17 billion in 2022 to $25.97 billion TTM (Trailing-Twelve-Months) in 2025. The gross profit margin has improved, highlighting increased operational efficiency. The net profit margin is positive, indicating profitability, a stark contrast to the losses in 2022. However, despite these improvements, the company still faces challenges with volatile EBIT and EBITDA margins due to industry fluctuations.75
Positive
Balance Sheet
The Debt-to-Equity ratio remains high due to significant leverage, although there has been some improvement in stockholders' equity. The return on equity has shifted to positive, reflecting enhanced profitability. Despite this, the equity ratio is relatively low, indicating a high dependency on debt financing, which could pose risks if market conditions worsen.60
Neutral
Cash Flow
Carnival's cash flow generation has improved, with an increase in free cash flow, showcasing better capital management. The operating cash flow to net income ratio is solid, indicating efficient cash generation relative to earnings. However, the free cash flow growth rate shows volatility, highlighting potential risks in sustaining cash flow growth amidst capital expenditures and financing needs.70
Positive
| 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
Positive
26.77
Price Trends
20.97
Positive
19.91
Positive
20.63
Positive
Market Momentum
1.65
Negative
77.00
Negative
93.79
Negative
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 26.77 is above the 20-day moving average (MA) of 23.17, above the 50-day MA of 20.97, and above the 200-day MA of 20.63, indicating a bullish trend. The MACD of 1.65 indicates Negative momentum. The RSI at 77.00 is Negative, neither overbought nor oversold. The STOCH value of 93.79 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $38.08B | 14.51 | 30.02% | ― | 10.81% | 175.74% | |
72 Outperform | $38.12B | 15.89 | 30.02% | ― | 10.81% | 175.74% | |
72 Outperform | $38.12B | 15.89 | 30.02% | ― | 10.81% | 175.74% | |
72 Outperform | $2.20B | 33.70 | 12.80% | 0.75% | 9.80% | 89.42% | |
72 Outperform | $2.20B | 33.70 | 12.80% | 0.75% | 9.80% | 89.42% | |
63 Neutral | $16.67B | 10.98 | -6.97% | 2.95% | 1.72% | -24.21% |
* Consumer Cyclical Sector Average
Performance Comparison
CUK
Carnival
26.77
10.28
62.34%
CCL
Carnival
29.31
11.41
63.74%
CCL
Carnival
29.31
11.41
63.74%
OSW
OneSpaWorld Holdings
21.26
6.01
39.41%
OSW
OneSpaWorld Holdings
21.26
6.01
39.41%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.