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Carnival Corporation & plc (CUK)
:CUK
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Carnival
(NYSE:CUK)
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Rating:77Outperform
Price Target:
$30.00
▲(10.82% Upside)
Carnival's strong financial performance and positive earnings call are the most significant factors driving the stock score. Despite some technical weaknesses and valuation concerns, the company's robust recovery and future outlook position it favorably in the leisure industry.
Carnival (CUK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$38.40B
Dividend YieldN/A
Average Volume (3M)1.91M
Price to Earnings (P/E)13.8
Beta (1Y)1.73
Revenue Growth7.14%
EPS Growth63.17%
CountryUS
Employees115,000
SectorConsumer Cyclical
Sector Strength84
IndustryLeisure
Share Statistics
EPS (TTM)1.43
Shares Outstanding188,483,860
10 Day Avg. Volume1,558,251
30 Day Avg. Volume1,912,951
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)3.50
Price to Sales (P/S)1.29
P/FCF Ratio24.98
Enterprise Value/Market Cap1.74
Enterprise Value/Revenue2.55
Enterprise Value/Gross Profit6.45
Enterprise Value/Ebitda9.84
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Carnival Business Overview & Revenue Model
Company DescriptionCarnival Corporation & plc (CUK) is a global cruise company, one of the largest leisure travel companies in the world, operating a fleet of cruise ships under various brands. The company is headquartered in Miami, Florida, and is incorporated in the United Kingdom. Carnival operates a diverse portfolio of cruise brands, including Carnival Cruise Line, Princess Cruises, Holland America Line, and several others, catering to a wide range of customers with varying preferences and budgets. The company provides vacation experiences that include accommodations, dining, entertainment, and activities aboard its ships, as well as excursions at various ports of call.
How the Company Makes MoneyCarnival generates revenue primarily through ticket sales for its cruise vacations, which represent the largest portion of its income. Additional revenue comes from onboard spending, which includes purchases made by passengers for dining, beverages, excursions, spa services, and merchandise while on board. The company also earns income from its travel agent commissions and partnerships with other travel-related companies. Furthermore, Carnival benefits from its loyalty programs, which encourage repeat customers and enhance customer retention. Significant partnerships with airlines, hotels, and excursion providers contribute to bundled service offerings, enhancing overall customer experience and driving additional sales.
Carnival Earnings Call Summary
Earnings Call Date:Sep 29, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Dec 19, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong financial performance with record net income, increased yields, and positive booking trends. While there are concerns about rising interest expenses and operational costs in 2026, these were overshadowed by the overall positive results and future outlook.Q3-2025 Updates
Positive Updates
Record Net Income
Carnival Corporation achieved an all-time high net income of $2 billion, surpassing its pre-pause benchmark by nearly 10%.
Increased Yields
Yields increased by 4.6% on a same ship basis, exceeding guidance and demonstrating strong operational performance.
Strong ROIC
The company reported a 13% return on invested capital (ROIC) for the trailing twelve months, the first time returns have reached the teens since 2007.
Record Customer Deposits
Customer deposits reached a record $7.1 billion for the third quarter, up over $300 million versus the prior year.
Celebration Key Success
The new destination, Celebration Key, received positive feedback and is expected to host 2.8 million guests next year.
Booking Trends
Booking trends are improving, with nearly half of 2026 already booked at higher prices. 2027 bookings are off to an unprecedented start.
Negative Updates
High Net Interest Expense
Net interest expense increased nearly 600% compared to 2019, impacting overall financial performance.
Headwinds for 2026
2026 expected to face a 50 basis point impact on yields due to the new loyalty program and up to a 100 basis point impact from increased dry dock expenses.
Operational Costs
Increased operating expenses anticipated for new destinations, impacting overall year-over-year cost comparisons by about 0.5 points.
Company Guidance
During the Carnival Corporation & plc Q3 2025 earnings call, the company reported remarkable performance metrics, achieving record revenues, yields, operating income, EBITDA, and customer deposits. Net income reached an all-time high of $2 billion, representing a nearly 10% increase over the pre-pause benchmarks, despite a significant rise in net interest expenses. Yields improved by 4.6% on a same-ship basis, surpassing guidance expectations due to strong close-in demand and onboard spending. Unit costs beat guidance by 1.5 points, and the company raised its full-year guidance for the third time in 2025. Return on Invested Capital (ROIC) was reported at 13%, marking the first time since 2007 that returns reached the teens. The company also noted a reduction in leverage to 3.6 times net debt to EBITDA, positioning it closer to investment-grade metrics and enabling future capital returns to shareholders. Booking trends showed continued improvement, with nearly half of 2026 already booked at higher prices.Carnival Financial Statement Overview
Summary
Carnival has shown a strong recovery in revenue growth and profitability, with positive trends in net income and operating efficiency. However, the company remains heavily leveraged, and cash flows are susceptible to industry volatility. Continued focus on reducing debt and maintaining cash flow stability is crucial.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.85
Very 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.70
Positive
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.78
Positive
| 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 | 49.87B | 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 | 37.94B | 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
Positive
27.07
Price Trends
27.49
Negative
26.42
Positive
23.23
Positive
Market Momentum
-0.21
Negative
47.91
Neutral
62.20
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 27.07 is above the 20-day moving average (MA) of 26.30, below the 50-day MA of 27.49, and above the 200-day MA of 23.23, indicating a neutral trend. The MACD of -0.21 indicates Negative momentum. The RSI at 47.91 is Neutral, neither overbought nor oversold. The STOCH value of 62.20 is Neutral, 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | $38.24B | 15.31 | 25.74% | ― | 7.14% | 63.17% | |
| ― | $38.40B | 13.81 | 25.74% | ― | 7.14% | 63.17% | |
| ― | $2.18B | 31.30 | 13.16% | 0.75% | 8.51% | 31.24% | |
| ― | $5.70B | 25.36 | 8.66% | ― | 17.25% | 93.88% | |
| ― | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
| ― | $8.29B | 42.99 | ― | ― | 12.47% | 22.74% | |
| ― | $339.82M | ― | ― | ― | -3.02% | -517.53% |
* Consumer Cyclical Sector Average
CUK
Carnival
26.52
6.44
32.07%
CCL
Carnival
29.42
7.32
33.12%
PLNT
Planet Fitness
96.28
16.14
20.14%
OSW
OneSpaWorld Holdings
21.32
4.02
23.24%
XPOF
Xponential Fitness
6.94
-5.65
-44.88%
LTH
Life Time Group Holdings
26.77
4.02
17.67%
Carnival Corporate Events
Carnival Corporation Reports Record-Breaking Q3 2025 Earnings
Sep 30, 2025
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
Sep 30, 2025
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.
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.