Carnival (CCL) AI Stock Analysis

• Market Cap: £27.29B
• Dividend Yield: N/A
• Average Volume (3M): 529.29K
• Price to Earnings (P/E): 13.8
• Beta (1Y): 1.40
• Revenue Growth: 3.55%
• EPS Growth: 56.77%
• Country: UK
• Employees: 115,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): N/A
• Shares Outstanding: 188,483,860
• 10 Day Avg. Volume: 443,079
• 30 Day Avg. Volume: 529,293
• PEG Ratio: >-0.01
• Price to Book (P/B): 3.16
• Price to Sales (P/S): 1.17
• P/FCF Ratio: 22.51
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £2,550.00
• Price Target Upside: 28.59% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: 2,012.00p ▲(1.46% Upside)

Carnival Corporation's overall stock score reflects a strong financial recovery and positive earnings call insights, which are the most significant factors. The company's technical indicators suggest caution, while the valuation is reasonable. Corporate events add a positive strategic dimension. However, high leverage remains a risk that needs careful management.

Positive Factors

Revenue Growth

Consistent revenue growth and improving margins indicate strong market demand and effective cost management, supporting long-term profitability.

Operational Execution

Effective cost management enhances profitability and competitiveness, providing a buffer against economic fluctuations and supporting sustainable growth.

Debt Reduction

Reducing and refinancing debt improves financial flexibility and lowers risk, positioning the company for future investment and growth opportunities.

Negative Factors

High Leverage

High leverage can strain cash flow and limit financial flexibility, potentially impacting the company's ability to invest in growth and weather economic downturns.

Increased Interest Expenses

Rising interest expenses can erode profitability and limit financial resources available for strategic initiatives, impacting long-term financial health.

Expected Cost Increases

Anticipated cost increases could pressure margins and reduce profitability, challenging the company's ability to maintain competitive pricing and invest in growth.

Carnival Business Overview & Revenue Model

Company Description

Carnival Corporation & plc is a global cruise company and one of the largest leisure travel companies in the world. Headquartered in Miami, Florida, it operates a fleet of cruise ships under several well-known brands, including Carnival Cruise Line, Holland America Line, Princess Cruises, and more. The company offers a variety of cruise itineraries and experiences, catering to different market segments and customer preferences, ranging from family vacations to luxury travel.

How the Company Makes Money

Carnival generates revenue primarily through the sale of cruise tickets and onboard services. The key revenue streams include ticket sales, which account for a significant portion of income, as well as onboard spending from guests on services such as dining, excursions, spa treatments, and retail purchases. Additionally, Carnival earns money through ancillary services like travel insurance and pre-cruise hotel packages. The company also benefits from partnerships with travel agencies, airlines, and other service providers that help to promote its offerings. Seasonal demand and the ability to effectively manage operating costs are crucial factors influencing its profitability.

Carnival Financial Statement Overview

Summary

Carnival has shown a strong recovery with improving revenue, profitability, and cash flow. However, high leverage remains a concern despite efficient equity use and strong cash generation.

Income Statement

Carnival's income statement shows a strong recovery with a TTM revenue growth rate of 2.15% and improving margins. The gross profit margin stands at 39.49%, and the net profit margin is 10.07%, indicating solid profitability. The EBIT and EBITDA margins are also healthy at 15.53% and 25.90%, respectively. The company has shown consistent revenue growth over the past few years, rebounding from significant losses in 2020 and 2021.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio of 2.34, which poses a risk due to significant leverage. However, the return on equity is strong at 26.18%, indicating efficient use of equity to generate profits. The equity ratio is moderate, suggesting a balanced asset structure. While the company has improved its financial position, the high debt levels remain a concern.

Cash Flow

Carnival's cash flow statement shows a robust free cash flow growth rate of 41.36% in the TTM period, highlighting improved cash generation. The operating cash flow to net income ratio is 0.49, and the free cash flow to net income ratio is 0.52, indicating a healthy conversion of income to cash. Despite past challenges, the company has strengthened its cash flow position significantly.

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	8.30B	9.38B	7.28B	412.00M	-2.75B	-2.65B
EBITDA	6.10B	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	48.28B	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	39.03B	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: 1983.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CCL, the sentiment is Positive. The current price of 1983 is above the 20-day moving average (MA) of 1847.03, above the 50-day MA of 1882.84, and above the 200-day MA of 1765.44, indicating a bullish trend. The MACD of 24.47 indicates Negative momentum. The RSI at 66.83 is Neutral, neither overbought nor oversold. The STOCH value of 90.53 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:CCL.

Carnival Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JET2	75 Outperform	£2.59B	6.02	23.98%	1.17%	7.17%	-2.22%
CCL	74 Outperform	£27.29B	13.83	25.66%	―	3.55%	56.77%
JD	71 Outperform	£4.19B	8.57	19.64%	1.15%	14.60%	58.84%
IHG	69 Neutral	£15.86B	28.50	―	1.23%	5.55%	19.27%
WTB	66 Neutral	£4.12B	17.10	7.52%	3.97%	-2.12%	8.95%
TW	65 Neutral	£3.68B	43.33	1.97%	8.95%	4.21%	-65.57%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Carnival Corporate Events

Carnival plc Updates on Voting Rights and Capital Structure

Carnival plc announced its current voting rights and capital structure, revealing that it has 217,411,094 issued ordinary shares, with 145,607,591 shares carrying voting rights. This update is crucial for shareholders and stakeholders to determine their notification obligations under the FCA’s Disclosure and Transparency Rules.

Carnival CEO Joins Chipotle Board as Non-Executive Director

Carnival Corporation & plc announced the appointment of its CEO, Josh Weinstein, as a Non-Executive Director at Chipotle Mexican Grill Inc. This move highlights the strategic alignment between Carnival’s leadership and other major industries, potentially enhancing the company’s influence and networking capabilities within the corporate sector.

Carnival plc Updates on Voting Rights and Capital Status

Carnival plc announced the current status of its voting rights and capital, revealing that it has 145,607,591 voting rights available. This update is crucial for shareholders and others with notification obligations under the FCA’s Disclosure and Transparency Rules, as it affects their calculations regarding interest notifications in the company.

Carnival Corporation Reports Strong Q3 2025 Financial Results

Carnival Corporation & plc has released its quarterly financial results for the third quarter of 2025, highlighting an increase in total revenues and net income compared to the previous year. The company reported total revenues of $8.153 billion for the three months ended August 31, 2025, up from $7.896 billion in the same period in 2024, and a net income of $1.852 billion, an increase from $1.735 billion. This financial performance underscores Carnival’s strong recovery and growth in the cruise industry, reflecting improved passenger ticket sales and onboard revenues. The results are expected to positively impact the company’s market position and provide confidence to stakeholders about its financial health and operational resilience.

Carnival Corporation to Discuss Q3 Earnings in Upcoming Call

Carnival Corporation & plc announced a scheduled conference call with analysts on September 29, 2025, to discuss their third-quarter financial results. This event reflects the company’s commitment to transparency and engagement with stakeholders, potentially impacting its market position and investor relations.