Carnival (CCL) AI Stock Analysis

• Market Cap: £31.22B
• Dividend Yield: N/A
• Average Volume (3M): 529.29K
• Price to Earnings (P/E): 15.9
• Beta (1Y): 1.55
• Revenue Growth: 3.46%
• EPS Growth: 33.88%
• Country: UK
• Employees: 115,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): 0.25
• 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: £2,524.71
• Price Target Upside: 11.02% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: 2,637.00p ▲(15.96% Upside)

Carnival Corporation's strong financial recovery and record-breaking earnings performance are the most significant factors driving the score. The company's strategic initiatives and positive future outlook further enhance its position. However, high leverage and overbought technical indicators present potential risks.

Positive Factors

Revenue Growth

The robust revenue growth rate indicates a strong rebound in demand for cruise services, positioning Carnival well for sustained market recovery and expansion.

Operational Efficiency

Effective cost management enhances profitability and competitiveness, allowing Carnival to maintain margins and improve financial resilience.

Debt Reduction

Significant debt reduction and refinancing efforts strengthen the balance sheet, improving financial stability and reducing interest burden.

Negative Factors

High Leverage

High leverage poses risks, especially in volatile markets, potentially limiting financial flexibility and increasing vulnerability to economic downturns.

Increased Net Interest Expense

Rising interest expenses can erode profitability and cash flow, challenging Carnival's ability to invest in growth and manage debt effectively.

Cost Increases Expected

Anticipated cost increases could pressure margins, necessitating further efficiency improvements to sustain profitability in the long term.

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. 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's financial statements reflect a strong recovery trajectory with significant improvements in revenue, profitability, and cash flow. The company has managed to enhance its margins and cash generation, although it remains highly leveraged, which could pose risks in uncertain economic conditions.

Income Statement

Carnival's income statement shows a strong recovery with a significant revenue growth rate of 99% in TTM, indicating a robust rebound from previous years. The gross profit margin of 39.5% and net profit margin of 10.1% reflect improved profitability. The EBIT and EBITDA margins have also improved, showcasing operational efficiency. However, the company experienced significant losses in previous years, which could pose a risk if economic conditions change.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.34, indicating substantial leverage, which could be risky in volatile markets. However, the return on equity of 26.2% in TTM is strong, reflecting effective use of equity to generate profits. The equity ratio of 23.5% suggests a moderate level of financial stability.

Cash Flow

Carnival's cash flow statement shows a positive trend with a free cash flow growth rate of 384.9% in TTM, indicating improved cash generation. The operating cash flow to net income ratio of 0.49 and free cash flow to net income ratio of 0.52 suggest that the company is generating sufficient cash relative to its net income, although there is room for improvement.

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: 2274.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 2274 is above the 20-day moving average (MA) of 2153.00, above the 50-day MA of 1967.16, and above the 200-day MA of 1819.94, indicating a bullish trend. The MACD of 125.61 indicates Negative momentum. The RSI at 69.66 is Neutral, neither overbought nor oversold. The STOCH value of 74.95 is Neutral, 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
CCL	78 Outperform	£31.22B	15.94	24.84%	―	3.46%	33.88%
JET2	75 Outperform	£2.67B	6.21	23.98%	1.18%	7.17%	-2.22%
IHG	69 Neutral	$20.46B	28.60	―	1.23%	5.55%	19.27%
WTB	66 Neutral	£4.32B	18.31	7.52%	3.80%	-2.12%	8.95%
PPH	65 Neutral	£753.41M	34.58	7.17%	1.84%	6.14%	1.27%
OTB	64 Neutral	£318.07M	40.49	14.50%	1.39%	-5.30%	-30.17%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Carnival Corporate Events

Carnival Posts Record 2025 Profits, Restores Dividend as Bookings and Credit Profile Surge

Carnival Corporation & plc reported a record 2025, with net income of $2.8 billion and adjusted net income of $3.1 billion, more than 60% higher year-on-year, on record revenue of $26.6 billion and all-time high operating income of $4.5 billion. The company outperformed its guidance for the fourth time in 2025, driven by strong close-in demand, record net yields in constant currency, and tight cost control that limited adjusted cruise cost growth excluding fuel, while fuel consumption per berth continued to decline. Fourth-quarter adjusted net income surged over 140% versus 2024, record EBITDA and margins expanded, and customer deposits hit a new high, underscoring robust demand and strong pricing. Carnival has achieved a net debt to adjusted EBITDA ratio of 3.4x, completed a $19 billion refinancing plan in under a year, reduced total debt by over $10 billion from its peak, and secured investment-grade status from Fitch, enabling the reinstatement of a quarterly dividend of $0.15 per share. Looking ahead, the company expects another year of double-digit earnings growth in 2026, with adjusted net income projected to rise about 12% on minimal capacity growth, net yields to improve further, and return on invested capital to exceed 13.5%, supported by record advance bookings at historically high prices and a proposed simplification of its dual-listed corporate structure to streamline governance and reporting.

The most recent analyst rating on (GB:CCL) stock is a Buy with a £2012.00 price target. To see the full list of analyst forecasts on Carnival stock, see the GB:CCL Stock Forecast page.

Carnival Corporation Announces Q4 Earnings Call

Carnival Corporation & plc has announced a conference call with analysts scheduled for December 19, 2025, to discuss its fourth quarter financial results. This call is significant as it provides insights into the company’s financial health and strategic direction, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (GB:CCL) stock is a Buy with a £2012.00 price target. To see the full list of analyst forecasts on Carnival stock, see the GB:CCL Stock Forecast page.

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.

The most recent analyst rating on (GB:CCL) stock is a Buy with a £2012.00 price target. To see the full list of analyst forecasts on Carnival stock, see the GB:CCL Stock Forecast page.

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.

The most recent analyst rating on (GB:CCL) stock is a Hold with a £2153.00 price target. To see the full list of analyst forecasts on Carnival stock, see the GB:CCL Stock Forecast page.

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.

The most recent analyst rating on (GB:CCL) stock is a Hold with a £2153.00 price target. To see the full list of analyst forecasts on Carnival stock, see the GB:CCL Stock Forecast page.